- Ethereum staking is becoming attractive to investors with many platforms embracing ETH2.0.
- Matrixport announced on August 25 that users could earn rewards between 3 and 10% on the staked ETH.
Staking is gaining popularity in the cryptocurrency industry. The need to grow cryptocurrency holdings is more significant now more than ever. Many holders prefer to keep their crypto assets for the long run, especially with predictions that Bitcoin could rise to $100,000 by the end of 2021. Investors can also take advantage of crypto signals to trade and grow their holdings.
Ethereum staking is gaining traction fast, especially with the launch of ETH 2.0 in the pipeline. After buying Ether from eToro, investors can decide to stake directly on Ethereum 2.0 blockchain or stake on other platforms. The former requires a minimum of 32 ETH, and the user will have to operate a node. According to Ethereum’s official website:
“As a validator, you’ll be responsible for storing data, processing transactions, and adding new blocks to the blockchain. This will keep Ethereum secure for everyone and earn you new ETH in the process.”
There are many constraints to this method of staking. Many cannot raise the minimum tokens needed, and the process can be a bit complex depending on the level of knowledge in crypto, particularly Proof-of-Stake (PoS) algorithm concepts.
What Is Ethereum Staking?
Ethereum staking refers to the process of pledging tokens to the network for a specified period while earning rewards of up to 10% in return. Staking helps PoS blockchains to remain secure and strengthen the Ethereum network. Note that the rewards are received in ETH and often can be compound to grow the holdings.
Ethereum is becoming a formidable cryptocurrency to hold, bolstered by all the developments that have been running. On August 5, 2021, the London hard fork went live with an essential upgrade for the network, EIP-1559. Developers specifically launched this update to reduce the high transaction cost that had crippled users on the network and other smart contract projects.
The adoption of EIP-1559 has been impressive hitting 55% in just three weeks. Compared to the Bitcoin SegWit upgrade for supporting faster transactions, Ether’s upgrade has enjoyed a remarkable uptake and in a short time.
Although Ethereum 2.0 is still a long way before going live, crypto enthusiasts and experts predict that its rollout would be revolutionary for Ethereum and the entire cryptocurrency industry.
Analysts at Goldman Sachs, a prominent investment bank in the US, believe that Ethereum has solid technology, especially with the smart contracts ecosystem it supports and that it has great potential. Other people say that Ether could eventually overtake Bitcoin to become the most prominent crypto asset in the market.
There are many platforms where investors can stake Ethereum to earn passively and grow their holdings. We will dive into the three best platforms to stake your Ethereum and what benefits come with them.
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Staking Ethereum on eToro
Staking on eToro has been covered extensively in the 3 Best Staking Platforms 2021, and while at it, you can also check out 3 Best Bitcoin Staking Platforms. However, it is essential to mention eToro is a global platform that allows investors to grow their crypto holdings with ease. According to Toro’s official website, “users can benefit from owning Ethereum with ETH 2.0 staking. Lock in your ETH now on your eToro Money crypto wallet, and enjoy simple, secure, and hassle-free growth on your long-term ETH investment.”
Looking to buy, trade or stake crypto now? Invest at eToro!
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Staking on eToro will earn you rewards between 5 and 6.25%, and it is hassle-free because the platform executes the process on your behalf. Staking ETH 2.0, however, must be approached with a lot of awareness because the Ethereum staked will stay locked until the protocol is fully launched.
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Staking ETH 2.0 On Singapore’s Matrixport
Asia has, over the years, become a cryptocurrency powerhouse despite the frustrations in China. On August 5, 2021, Matrixport, one of the region’s fastest-growing crypto assets services providers, launch “ETH2.0 Staking Earn.” The new offering allows the platform users to take part in Ethereum 2.0 staking.
The new service is a game-changer because investors will stake at a lower threshold, earn rewards from the locked-up coins, and grow their holdings. Moreover, the platform promises increased liquidity for other related decentralized finance (DeFi) products. Participating in ETH 2.0 Staking on Matrixport is straightforward. With the platform’s app, users can complete the process in “just two taps.”
Matrixport offers rewards of between 3 and 10% from a combination of the normal ETH 2.0 staking and DeFi mining toke revenues of 6.81%. Realize that a transaction income fee of 0.14% is charged to facilitate the process. A statement from the co-founder and CEO, John Ge, reads in part:
“The transition to proof-of-stake is an important milestone for the ecosystem, but the barrier to meaningfully participate in ETH 2.0 staking pools is still high for many. Matrixport’s ground-breaking ”ETH2.0 Staking Earn’ balances robust ETH 2.0 staking rewards with the liquidity benefits of DeFi protocols.”
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Ethereum Staking On YeFi DApp
Some users prefer to keep their assets on decentralized platforms such as decentralized exchanges (DEXs), where they control the holdings. Hence YeFi is a platform that makes decentralized staking possible and lucrative. According to the official website, “YeFi is a must-have app for any crypto HODLer. We get it, investing in crypto takes time and patience. We offer a fun and simple way to earn passive income on assets that would otherwise sit in your wallet.”
The platform allows users to stake Ethereum and other assets, earning a daily passive interest of up to 80% APY. The app is accessible via any Binance Smart Chain (BSC) compatible wallet. Since YeFi is a decentralized application (DApp), users control the assets and can grow the same assets using the automatic function backed by math and code.
In addition to Ethereum, other crypto assets supported for staking include Bitcoin, USDT, FIL, YeFi, and YTA. Some wallets already compatible with YeFi are Metamask, Trust Wallet, YottaChain, BitKeeper, and BSC.
Looking to buy, trade or stake crypto now? Invest at eToro!
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John Isige
