There are number of platforms where you can stake ETH to earn rewards. In this article, we will briefly go through how we can stake ETH on Lido. Thanks to services like Lido, you do not need to have 32 ETH in order to do staking. Lido lets you stake any ETH amount to earn daily rewards and to grow your balance with DeFi.
According to the ETH official website, “Staking is the act of depositing 32 ETH to activate validator software. 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.”
You’ll need 32 ETH to activate your own validator, but it is possible to stake less by using pooled services or using staking services from crypto exchanges. Find out more information from its official website : https://ethereum.org/en/staking/
Why stake your ETH?
According to the ETH website, staking ETH will bring several benefits to its ecosystem. Below are the list of benefits:
“To Earn rewards. Rewards are given for actions that help the network reach consensus. You’ll get rewards for running software that properly batches transactions into new blocks and checks the work of other validators because that’s what keeps the chain running securely.”
“Better security. The network gets stronger against attacks as more ETH is staked, as it then requires more ETH to control a majority of the network. To become a threat, you would need to hold the majority of validators, which means you’d need to control the majority of ETH in the system–that’s a lot!”
“More sustainable. Stakers don’t need energy-intensive computers to participate in a proof-of-stake system–just a home computer or smartphone. This will make Ethereum better for the environment.”
How to Stake ETH on Lido and Earn Rewards
Using Metamask to Stake ETH
First, visit https://stake.lido.fi/ and click the connect wallet button. Then, click “MetaMask”. You’ll need to install MetaMask wallet from here : https://metamask.io/
“MetaMask is a software cryptocurrency wallet used to interact with the Ethereum blockchain. It allows users to access their Ethereum wallet through a browser extension or mobile app, which can then be used to interact with decentralized applications.” -Wikipedia
To stake ETH, you will need some ETH in your wallet as well. You can buy ETH from exchanges like Binance, Huobi, Luno, etc. Follow this guide “https://www.kintechie.com/how-to-buy-bitcoin-and-others-with-luno-exchange/” to buy ETH from Luno.
And once you’ve transferred ETH into your MetaMask ETH wallet, you will be able to stake them on Lido after connecting to your MetaMask wallet. For example below :
Enter the amount you want to stake or click “MAX” to stake all your ETH from your wallet on Lido. Once you’re ready, just click the “Submit” button and follow the next steps.
Staking requires gas fees as well. Once you have staked successfully, you will notice that your total staked ETH amount is less than the amount of ETH that you’ve entered, and that’s because it is used for the gas fees. Also, the gas fees varies from time to time.
Using Ledger Live to Stake ETH
Staking with Ledger Live is almost the same as staking with your MetaMask wallet. You will need to buy ETH from some exchanges and then transfer them into your Ledger wallet.
Open up Ledger Live software, create a ETH account if you do not have one. Transfer your ETH from your exchange into your Ledger ETH wallet.
You can either click the “Stake” button under your ETH account, or go to “Discover” and then choose “Lido.
Enter the ETH amount you want to stake and then click “Submit” follow the next steps and you should be able to stake your ETH. Again, you will need to pay some gas fees to stake your ETH using Ledger Live as well.
Rewards Calculator
You can check out the rewards calculator from Lido website as well “https://lido.fi/ethereum“. Just enter the amount of ETH and you will see the total rewards that you might received within a month or a year. Take note that the APR % rewards will keep changing everyday, you might receive 4.8% today, and 5% the next day.
You can also use the APY Calculator from this site to calculate estimated rewards : https://www.kintechie.com/apy-calculator/
In Conclusion
Staking ETH on Lido is fast and easy. All you need to do is to buy ETH from one of the exchanges and then transfer them into your crypto wallet. You can always choose either MetaMask or any other wallets. However, having your ETH on hardware wallet like the Ledger wallet is much safer and more secure. https://www.ledger.com/academy/ledger-nano-the-safest-way-to-manage-crypto
Hardware wallets securely keep a crypto user’s private keys in offline or “cold” storage, meaning they are not connected to the internet, except when a user must briefly connect them to a computer to complete a transaction (more on that later.) Software- or web-based crypto wallets are “hot”, or permanently online, which gives hackers more potential attack vectors through which to steal your funds. Because of this, hardware wallets are nearly universally considered to be a very safe option for keeping crypto assets out of the wrong hands.
https://bitpay.com/blog/hardware-wallets-explained/
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