How to Stake Ethereum?

 

The Ethereum cryptocurrency was created back in 2015, and since then, it has significantly changed the entire digital coin industry. The Ethereum emergence spurred the development of new projects in the cryptocurrency market, which served as an impetus to attract new users and investments. In this article, we will talk in detail about this coin, learn how to stake Ethereum and explain why the transition to PoS is a fundamental event for the entire industry.

Briefly about Ethereum

Initially, Ethereum worked on the Proof-of-Work consensus protocol. That means that the network was maintained by miners who provided their computing power and received rewards in the form of ETH coins. Exactly the same algorithm works in the blockchain of the most popular Bitcoin crypto.

The creator of the project, Vitalik Buterin, has been promising for many years that the Ethereum network would switch to the Proof-of-Stake protocol, and finally, in the fall of 2022, this happened. Now you can engage in ETH staking not only on WhiteBIT but also officially on the project’s blockchain.

How Does Crypto Stake Work? 

There are no significant differences between Ethereum staking and other coins that work on the Proof-of-Stake consensus protocol. To receive ETH you need:

  • install client on computer
  • lock your coins in a smart contract
  • create a node

It is important to note that for a start, you need to have at least 32 ETH in your wallet, which is quite a large amount for most people. However, the main advantage of crypto staked is the absence of the need to purchase specialised equipment. A simple computer or laptop is enough for staking Ethereum.

It is essential to ensure an uninterrupted connection to the network; otherwise,  the validator will be fined.

The ETH staking reward rate is subject to change. Generally, it depends on the total amount of ETH, but the maximum annual reward rate can reach 18.1%.

Previous post

Worried About Springtime Flooding? Top Tips to Prepare Now

Next post

The birth of online casino