How to Stake Ethereum (ETH)
Ethereum staking lets you earn ~3-5% APY on your ETH while helping secure the network. Here's how to do it.
ETH Staking Options
| Method | Minimum | APY | Difficulty |
|---|---|---|---|
| Solo Staking | 32 ETH | ~4-5% | Hard |
| Liquid Staking (Lido) | Any amount | ~3-4% | Easy |
| Rocket Pool | 0.01 ETH | ~3-4% | Easy |
| Exchange (Coinbase) | Any amount | ~2.5-3.5% | Easiest |
Have 32+ ETH + technical skills? Solo staking
Want flexibility to use in DeFi? Liquid staking (Lido)
Want decentralization? Rocket Pool
Want maximum simplicity? Exchange staking
Liquid Staking with Lido (Recommended)
Lido is the most popular ETH staking solution. You get stETH tokens representing your staked ETH.
How to Stake with Lido:
- Go to stake.lido.fi (verify URL!)
- Connect your wallet (MetaMask)
- Enter amount of ETH to stake
- Click "Submit"
- Confirm transaction in wallet
- Receive stETH tokens
Benefits of Liquid Staking:
- No minimum - Stake any amount
- Stay liquid - stETH can be traded or used in DeFi
- Automatic rewards - stETH balance grows daily
- No technical setup - Just a simple transaction
You can use stETH as collateral in Aave, provide liquidity in Curve, and more. Earn staking rewards + DeFi yields = "stacking yields"
Exchange Staking (Easiest)
Major exchanges offer ETH staking with just a few clicks.
Coinbase ETH Staking:
- Log into Coinbase
- Go to your ETH holdings
- Click "Stake"
- Enter amount
- Confirm
- Receive cbETH tokens
Other Exchanges:
- Binance - BETH token
- Kraken - Direct staking (US restrictions)
- Crypto.com - Various lock periods
Pros: Super easy, no gas fees
Cons: Lower rewards (exchange takes cut), custody risk, less control, may face withdrawal restrictions
Risks to Understand
Smart Contract Risk
Liquid staking protocols like Lido use smart contracts. Bugs could cause losses.
Slashing Risk
Validators can be "slashed" for misbehavior. In liquid staking, this is distributed across all stakers (minimal per person).
Price Risk
ETH price could drop. 4% APY doesn't help if ETH drops 50%.
Liquidity Risk
stETH usually trades near 1:1 with ETH, but can temporarily deviate during market stress.
Staking is NOT a risk-free savings account. You're exposed to:
- ETH price volatility
- Smart contract bugs
- Regulatory uncertainty
Only stake what you can afford to lose.
Risk Mitigation:
- Use established protocols (Lido, Rocket Pool)
- Don't stake 100% of your ETH
- Diversify across staking methods
- Keep some liquid for emergencies