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Academy Beginners Tutorial Article
Ethereum OKEx

How to stake ETH and earn rewards on Ethereum 2.0

2021.06.16 OKEx

A guide to earning staking rewards on Ethereum 2.0

Ethereum is moving from a proof-of-work consensus mechanism to proof-of-stake, through which validators replace miners in maintaining the security of the Ethereum blockchain. Instead of owning mining machines, ETH investors now become validators if they stake a minimum of 32 ETH on the Ethereum blockchain.  

To encourage wider participation in the ecosystem, various cryptocurrency exchanges, wallet providers and staking platforms are offering Ethereum 2.0 staking options for holders with less than 32 ETH. This means that users can earn staking rewards without themselves being full validators of the Ethereum blockchain.

How do you stake ETH?

The official website of the Ethereum project — funded by the Ethereum Foundation — offers a gateway for beginners to explore staking options. 

To begin, open the dropdown menu for "Use Ethereum," which is located at the top left corner of Ethereum's homepage. Then, click the Stake ETH option to proceed.

The staking webpage introduces two options for Ethereum staking: stake 32 ETH or stake less than 32 ETH. If you would like to become a full validator by staking 32 ETH, you need to use the Eth2 launchpad to set up your validator node. To do so, click Start staking after you have clicked 32 ETH in the "How to stake"section. You will then be redirected to the Eth2 launchpad homepage to continue the setup process.

On the other hand, Ethereum 2.0 staking pools offer a lower barrier to entry for users wishing to stake their ETH without running a validator node. To choose an Ethereum 2.0 staking pool, you can click See staking services after you have chosen Less than 32 ETH in the "How to stake" section. Users can then see a list of staking service providers, with key information — such as minimum staking amounts and staking fees.

A list of staking service providers for Ethereum 2.0. Source: beaconcha.in

To participate in Ethereum 2.0 staking via staking platforms, select a service that offers a pool token and then connect your Ethereum wallet — note that Rocket has not launched its pool feature, as of the time of writing. Next, enter your staking amount in ETH, and you will receive the corresponding platform tokens to represent your staked ETH. For instance, you will receive aETH in Ankr Staking in return for staking your ETH. The staking process is completed once you have reviewed transaction details.

Ethereum 2.0 staking example

We will use Lido Finance — a liquidity staking service provider — as an example of how to participate in Ethereum 2.0 staking. When you stake ETH in Lido, you will receive stETH to represent your ETH stake. 

To begin, go to the Lido homepage and choose Ethereum 2.0 as the staking network. There's no minimum staking requirement for Ethereum 2.0, and users can earn daily staking rewards. You can click Read more for more details about ETH staking. After familiarizing yourself with a platform's specific staking details, click Stake now (or the similar function on other protocols) to proceed. 

To stake ETH in Lido, you need to connect your Ethereum wallet — such as MetaMask or WalletConnect. After entering the amount you wish to stake, you will see reference information, such as the staking rewards fee and the transaction cost. 

In this example, we stake 0.005 ETH and receive 0.005 stETH to represent our stake. Click Submit to proceed.

Confirm the gas fee in your MetaMask (or other) wallet, and click Confirm to proceed.

You have now successfully staked 0.005 ETH via Lido and received 0.005 stETH in return. You can also view the transaction details in Etherscan.

Apart from staking platforms, OKEx also offers Ethereum 2.0 staking to our users. For details, please refer to our step-by-step tutorial.   

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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