Rocket pool protocol
Rocket pool is “the base layer protocol for ETH 2.0 staking, in a decentralised and trustless manner. The protocol is usable by stakers of all shapes and sizes, allowing anyone to stake ETH on the decentralised network, with full autonomy. RocketPool’s mission is to create a solution that adheres to the rise of decentralised finance, keeping the platform away from centralisation and working for a better future for the financial system. This combats the current centralisation issues on the network as some staking services take up large amount of of the network.
Staked offers yields of 7% to 20%, depending on the amount of ETH staked in the 2.0 Network ecosystem. They provide an easy to understand UI for stakers, who can then easily manage their funds. In order to start working with Staked, you need to contact them through a form available on their website. Once again showing that they are aimed towards larger clients rather than the average cryptocurrency investor.
Ankr offers their users just over 5% yearly return on their ETH, this isn’t as big as some other pools, though combined with the price rise of ETH, it can mean a great return on your investment.
Blox is an Ethereum staking platform that has a few unique features that set it out against the competition. One of these is that they are the first Ethereum staking tool that is non-custodial, this means that you keep both the private and public key to your wallet, and Blox keeps none. This is especially good when it comes to keeping your funds safe, as it means Blox has absolutely no control over your funds, even if they wanted to. It also keeps you safe from hacks on Blox. As the classic saying goes in the crypto space, “not your keys, not your coins”.
To prove their reliability, they are an open-source project that has been audited publicly, giving them another badge of trustworthiness if the no-keys wasn’t enough. They also never enforce reward sharing, letting you keep all of your funds earned in their staking program.
Blox states that on their platform there is the potential for earning up to 18% annually, but this decreases through time as more Ethereum is staked on the ETH 2.0 network.
The main drawback with Blox is that you need to stake a minimum of 32 Ethereum in order to use their services, this is currently valued at just under 100,000USD.
They offer their services to you for a minimum of only 5$ a month! A small price to pay for what could possibly be a great investment.
Staking ETH 2.0 on exchanges
In addition to the staking services we have previously discussed. A number of different exchanges have also started providing their own staking services. This makes it a lot easier for those newer to crypto, as they can stick with platforms that they are familiar with and don’t have to venture out and risk being scammed or misled by other parties.
Considering this, Kraken does allow you to trade your staked ETH for unstaked ETH, effectively allowing you to do so. Though this functionality is not available to those in the US or Canada.
What is Ethereum Staking
When being a sole validator and staking 32 ETH, you won’t be able to withdraw your rewards until Ethereum 2.0 is fully rolled out and new versions deployed. The update allowing withdrawal will commence during the merge of the Mainnet and the Beaconchain.
If you have less than 32 ETH to stake, this is where Staking-As-A-Service platforms come in. Like some of those we mentioned above, they pool together the funds of many smaller stakers and lock those funds away, allowing smaller stakers to gain the benefits on their behalf, for a small fee of course. The advancement of these Staking-As-A-Service platforms has led to offerings of withdrawals through the platform, this lets users withdraw their funds early for a fee, making it even easier for users to get involved in staking their Ethereum.
Staking on the Ethereum network is necessary as it means that once Ethereum 2.0 is released, the network will run smoothly. By staking your Ethereum, you process transactions and run the network, this is why those using the network pay fees, as the fees are then used to pay the stakers.
How to choose the right Ethereum Staking Platform
Choosing an Ethereum staking platform depends heavily on the motivations behind staking you Ethereum. If you are in crypto mainly for the knowledge, technology, and pushing decentralised technology, it would make the most sense to choose RocketPool as that’s what they believe in and their practices reflect that. If you are a newer cryptocurrency trader, you may be more comfortable with Coinbase or another exchange staking system that removes all the hastle.
Ethereum Staking Pools
If you want to stake on Ethereum, but don’t meet the required 32 Ethereum to stake, you can stake your ETH in what is known as a “pool”. This is where Staking-as-a-Service comes in, as they handle everything for you and stake your coins on their behalf in exchange for either an ETH or USD fee. There are many different pools out there, giving you a large amount of choice when deciding who to stake with. These pools compete by offering different pricing rates and ROI on their user’s staked funds
Ethereum Solo Staking Platforms
Ethereum Solo staking platforms set up and manage all the technicals of staking for you just like any other staking platform for you, though the benefit of solo staking platforms is that you get to keep your private keys, and therefore full control over your staked coins. This is referred to as a “non-custodial staking platform”. Most of these platforms take cost through the form of a monthly fee.
Is ETH Staking Profitable?
In terms of increasing the amount of Ethereum you have, it is definitely profitable. Ethereum staking does not depend on any factors to do with the price of the asset, it will simply continuously provide you with interest. The only ways that funds can be at risk is with a problem on the service you are using, which is why it is always important to choose a crypto service that you trust heavily.
What Are Staking-as-a-Service Platforms?
Staking-As-A-Service platforms let crypto investors stake their assets without any of the technical knowledge or effort required to do so. The service will take care of all the technical aspects in return for a fee. These services can also offer additional benefits such as early withdrawal, lockup periods and more. The services are often quite competitive with one-another in order to acquire more customers.
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