TOP 3 Ways to Stake Ethereum 2.0

By Cryptonator`s | Cryptonator`s Investments | 28 Sep 2022

With the recent transition to Proof of Stake, there is now the opportunity to stake your Ethereum. While becoming a validator is quite complicated, it is quite easy to delegate your Ethereum to a validator to earn staking rewards.

Here are the TOP 3 ways to stake your Ethereum.

1. Using a CEX

The easiest way to stake your Ethereum is by using a CEX. Some centralized exchanges like Binance and KuCoin are already offering Ethereum 2.0 staking to their users. All you need to do is having an account at the corresponding cryptocurrency exchange and subscribe to Ethereum 2.0 staking.

On Binance, you will get $BETH as the tokenized representation of your staked $ETH in a 1:1 ratio, after your subscription to Ethereum 2.0 staking. This mechanism allows you to take advantage of the liquidity while enjoying the rewards of $ETH staking. The on-chain rewards are frequently distributed to the staking participants.

KuCoin is another exchange that supports Ethereum 2.0 staking. On this exchange, you have to use a converter to convert Ethereum to Ethereum 2.0. Then you are ready to start staking. The staking rewards are distributed to your KuCoin Main Account on a daily basis.

2. Using a Wallet

You can also stake your Ethereum directly from your crypto wallet. Some cryptocurrency wallets like the Ledger Hardware Wallet provide easy access to Ethereum 2.0 staking. For most other wallets like Trust Wallet or Atomic Wallet, you have to be connected to a staking service called Lido.

Lido is a liquid staking solution for Ethereum 2.0. It lets users stake their Ethereum without locking it or maintaining infrastructure. When you use Lido to stake your $ETH on the Ethereum beacon chain, you will receive $stETH. Similar to $BETH on Binance, $stETH represents your $ETH that is staked on the Ethereum beacon chain on a 1:1 basis. The total amount of $wstETH tokens doesn't change after you have received the tokens. Instead, the token’s value increase over time to reflect the Ethereum staking rewards earned.

By the way, Lido also supports the Solana, Polygon, Polkadot, and Kusama networks.

3. Using a Layer 2 Solution

The smartest way to stake your Ethereum 2.0 is probably using a Layer 2 solution like Loopring. The thing is that if you want to stake your Ethereum on-chain, you have to pay high gas fees. Staking Ethereum 2.0 with a Layer 2 solution like Loopring is a lot cheaper and also faster.

Ethereum 2.0 staking on Loopring is also powered by Lido but in the end, it is on Layer 2. It works the same way as if you were staking directly with Lido but with Loopring, you can get your $wstETH rewards gas free.

My Final Words

I hope that I could provide you with some useful information about Ethereum 2.0 staking. Of course, I am also interested if you are already staking your Ethereum and where?

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