How to Stake Ethereum

Intermediate 15 minutes

Ethereum staking secures the network and earns you approximately 4% APY. There are multiple ways to stake, from running your own validator to pooled options.

Staking Options Compared

Method	Minimum	APY	Complexity
Solo staking	32 ETH	~4-5%	High
Lido (stETH)	Any	~4%	Easy
Rocket Pool	0.01 ETH	~4%	Easy
Coinbase	Any	~3.5%	Easiest

Option 1: Solo Staking (32 ETH)

Run your own validator node:

Requirements

32 ETH ($50,000+ at current prices)
Dedicated computer (24/7 operation)
Reliable internet connection
Technical knowledge

Pros

Full control, no middleman
Highest rewards (no fees to third party)
Contribute to decentralization

Cons

High capital requirement
Technical setup and maintenance
Slashing risk if offline or misconfigured

Solo Staking Risks

Being offline for extended periods or running duplicate validators can result in slashing - losing some of your 32 ETH stake.

Option 2: Lido (Liquid Staking)

The most popular liquid staking solution:

How It Works

Deposit any amount of ETH
Receive stETH tokens 1:1
stETH balance grows daily with rewards
Use stETH in DeFi while earning

To Stake with Lido

Go to stake.lido.fi
Connect wallet
Enter ETH amount
Confirm transaction
Receive stETH

stETH in DeFi

You can use stETH as collateral in Aave, provide liquidity in Curve, or hold in your wallet. Your balance increases even while using it elsewhere.

Option 3: Rocket Pool (Decentralized)

More decentralized than Lido:

Benefits

Permissionless - anyone can run a node
More decentralized node operator set
Receive rETH token
rETH appreciates in value vs ETH

How to Stake

Go to stake.rocketpool.net
Connect wallet
Swap ETH for rETH
Hold rETH (value increases over time)

Option 4: Exchange Staking

Simplest option for beginners:

Coinbase

Stake any amount
Receive cbETH token
~3.5% APY (Coinbase takes 25% cut)
Not available in all regions

Kraken, Binance

Similar one-click staking
Rates vary
May have withdrawal restrictions

Not Your Keys

Exchange staking means you trust the exchange with your ETH. For maximum security, liquid staking (Lido/Rocket Pool) keeps you in control.

Liquid Staking Tokens Compared

Token	Provider	Fee	Model
stETH	Lido	10%	Rebasing (balance grows)
rETH	Rocket Pool	~14%	Value accruing
cbETH	Coinbase	25%	Value accruing

Unstaking ETH

Since Shanghai upgrade, withdrawals are enabled
Solo staking: Enter withdrawal queue
Liquid staking: Swap token back to ETH
Or sell liquid staking token on DEX

Tax Considerations

Staking rewards may be taxable income
Swapping ETH for stETH may be taxable event
Consult tax professional for your jurisdiction
Keep records of all transactions

Smart Contract Risk

Liquid staking involves smart contract risk. Lido and Rocket Pool are audited and battle-tested, but risk is never zero.