The 6 Best Places to Stake Ethereum

Ethereum is one of the most popular cryptocurrencies in the world, and staking is one of several ways to profit.

Ethereum is one of the most popular and valuable coins existing in the current crypto market. However, while this currency is widely available to buy and sell, not every platform is great for staking it. There are also some terms and conditions surrounding staking that you should be aware of beforehand.

So, what should you know before staking Ethereum, and what are the best platforms to use?

Are There Any Requirements Needed to Stake Ethereum?

If you want to stake Ether and become a validator, you'll need to already own 32 ETH, and you'll need to be prepared to have that ETH locked. This is pretty much a constant across the crypto exchange industry and is sometimes referred to as the 32 ETH requirement. At the time of writing in November 2021, this number of ETH amounts to $129,395.84 in USD—which is obviously not an insignificant figure.

But what's a validator, and do you need to be one in order to stake Ethereum?

In a nutshell, a validator can verify transactions that take place on a blockchain, which is also known as the Proof of Stake mechanism (that you can read about here). They're responsible for creating new blocks and increasing platform security. Validators also need sufficient storage space and RAM, too—250GB and 8GB, respectively. And, through being a validator, you can be rewarded.

However, you can join a stake pool with just a couple of ETH, where you can combine your crypto with that of others to get rewarded. But this still amounts to thousands of dollars worth of crypto, so keep this in mind. You'll also need to run an 'Eth1' or Mainnet client to do this.

Okay, so you've now got a better understanding of the staking requirements for Ethereum. Let's have a look at the best platforms to perform this activity on.

1. Coinbase

Coinbase is a crypto exchange launched in June of 2012 and began allowing users to stake in April of 2021. It's a hugely popular platform and now makes billions of dollars in annual revenue. But what makes it a good choice for staking Ethereum?

Related: What Is Cryptocurrency Staking?

The great thing about Coinbase is that it has no ETH staking minimum. Of course, you still need the 32 ETH minimum to become a validator—but you can easily join a staking pool on Coinbase. You can earn rewards in the form of Ethereum via these staking pools. Coinbase is also a trusted, legitimate exchange, so you don't need to worry about getting scammed out of your ETH here.

Now, for the downside. Coinbase takes a 25% commission on any rewards you earn via staking. You also can't stake on Coinbase if you live outside the US, which can be a limiting factor for many. Take note of this before you begin the staking process.

2. Kraken

Kraken Exchange was founded in July 2011 and has since made its way among the top crypto exchanges out there. You can buy and sell a wide range of cryptocurrencies on this platform, as well as stake Ethereum.

Like Coinbase, you're going to need at least 32 ETH to become a validator and stake independently on Kraken, but the platform offers the ability to join a staking pool with as little as 0.0001 ETH.

Like Coinbase, Kraken does charge a fee for staking Ethereum, though it's only 15% in comparison to Coinbase's 25%. This is also an administrative fee, not a commission, but it will be taken out of your reward earnings.

3. Binance

Binance is a huge crypto exchange that was launched in 2017 by businessman Changpeng Zhao. You can trade over 500 coins on Binance's exchange platform, as well as stake Ethereum.

Binance also mandates the 32 ETH requirement for independent validators, but you can stake ETH in a pool for just 0.1 ETH (which amounts to around $400).

Be aware that the Binance exchange tokenizes BETH (or Beacon ETH, a token of Beacon Chain) as the sole proof of your staked Ethereum in a 1:1 ratio (so 1 BETH = 1 ETH). But there are no staking fees at all, so you can reap the rewards of your work without any frustrating cuts.

4. Bitfinex

The Bitfinex crypto exchange was founded in 2013 in Hong Kong by Giancarlo Devasini and Raphael Nicolle. It's now a top choice for buying and selling crypto around the world and is also a solid option for staking Ether for a number of reasons.

Firstly, there is no minimum requirement for ETH if you want to stake without being an independent validator. However, Bitfinex stands by the 32 ETH rule if you do want to become an official validator, so keep this in mind.

So, let's get to the fees. There are none! Bitfinex does not take any sort of fee for staking, so you'll get exactly what you earned.

5. Lido

Unlike the other platforms listed here, Lido is not a cryptocurrency exchange. It's actually an Ethereum-based liquid staking platform that lets you stake any amount of Ethereum you want and doesn't lock your funds as some other exchanges will.

Related: What Are Multi-Signature Wallets?

Lido requires a minimum deposit of 32 ETH to self-stake, but you can still join a stake pool with no minimum deposit required. However, Lido does require a 10% staking fee, which they take out of your earnings.

6. Poloniex

Poloniex is a well-established crypto exchange that was founded in 2014.

Poloniex, unlike the other platforms discussed here, does not hold itself to the 32 ETH staking rule for validators, which opens the door for those who do not own large amounts of Ethereum.

Unfortunately, Poloniex charges a hefty 25% staking fee, which they take out of your earnings. So, if you don't want to take this kind of hit, consider exchanges that charge a lower fee—or none at all.

Staking Can Earn You Rewards, But It's Best to Do It Properly

Staking Ethereum is a great way to earn rewards from your deposited funds, but it's important to know which platforms offer the best experience and benefits for users before putting up any of your precious assets. So, take a look at the above suggestions before selecting your final location for staking Ethereum.

Good luck!

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