If you’re holding ETH as a long-term investment, you may have considered using it to earn interest. Let’s look at some of the ways you can earn a passive income on ETH.
What is staking?
Blockchains such as Ethereum use Proof of Stake to validate cryptocurrency transactions. A user can stake the network’s native cryptocurrency and become a validator.
Staking involves holding your funds in a crypto wallet to support a blockchain network’s security and operations. The reason your crypto earns staking rewards is because the blockchain puts it to work.
Staking Ethereum on Centralised Exchanges
Staking on your own requires running a node on your own hardware. However, most centralised cryptocurrency exchanges allow users to stake with them through the exchange’s interface. You can passively grow your ETH via centralised exchanges like Binance, and Coinbase. With Coinbase, you can earn up to 4.5% APR on your Ethereum.
The process of staking is usually similar, but each exchange will offer varying staking offerings. Note that the percentage return you receive will depend on how much ETH you’ve staked.
Staking on Lido
Lido allows you to stake any amount of ETH and earn daily staking rewards in return. Put your ETH to work on Lido and earn up to 4.8% APR.
Lido is the leading Ethereum staking pool, and participants can benefit from its liquidity and security. Simply enter the amount of ETH you wish to stake, connect your wallet, and your reward fee and transaction cost will be calculated.
Celsius
Celsius is a lending platform that allows users to receive interest on deposited cryptocurrencies like Ethereum with no minimum deposit. Earn up to 5.35% APY on your ETH through Celsius.
Youhodler
An ETH Savings Account on Youholder lets you earn up to 5.5% APR + compounding interest on your Ethereum. Earn interest on your ETH as soon as you deposit it and receive weekly returns. Minimum deposit of $500 worth of ETH at market price.
Risks
As with anything in crypto, it’s important to be aware of the risks associated with staking your ETH. While you can earn rewards for staking, you can lose ETH through malicious actions. So, make sure to do your research and if something seems to good to be true, it probably is.
Disclaimer: NOT FINANCIAL NOR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make and only you are accountable for the results.
