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How to stake Ethereum (ETH) in 2023

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By - Updated 24 March 2023

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This guide will explain all your need to know when it comes to Ethereum staking. Staking Ethereum provides benefits such as being able to earn passive rewards in Ethereum and helping to maintain the Ethereum network using delegated tokens.

Ethereum staking can be done in a variety of places, including crypto exchanges, third party staking platforms, and also Ethereum’s own website. There are multiple avenues to stake Ethereum and earn varying yields on the asset.

You should then consider where you’d like to delegate your tokens, how long for, and your ideal APY (annual percentage yield) rate. The APY percentage will be the rate of return on investment. This guide will explain all you need to know about Ethereum staking.

Frequently Asked Questions

Is staking Ethereum safe?

Staking can come with risks depending on where users are staking their tokens. Vulnerable staking platforms are prone to hackers that can infiltrate the staking application and drain users’ funds. Most platforms that offer Ethereum staking have been audited multiple times and are hosted on secure exchanges.

Is staking Ethereum worth it?

Staking Ethereum is worth it if you believe in the project and that the price of Ethereum will go up over time. As one of the first blockchain projects, second only to Bitcoin, Ethereum staking can be highly profitable, though being aware of the risks associated with volatility and counterparty risk is vital to understand before you start.

How much Ethereum do you earn staking?

The amount of Ethereum that you can earn through staking will depend wholly on how much Ethereum you have deposited for staking and the APY rate. To earn a high yield, it’s best to look for staking platforms that offer generous APY rates and deposit enough Ethereum so that the APY returns aren’t too small.

Where else should I stake Ethereum?

Ethereum can be staked on any staking platform that offers Ethereum staking capabilities. You can find a list of verified staking services on the official Ethereum website along with their contact details, Twitter profiles, Discord’s and Telegram groups. Most crypto exchanges offer Ethereum staking options with flexible lock ups (see the table above).

What about DeFi Staking with Ethereum?

Decentralised staking (DeFi) platforms that offer Ethereum staking can be found across the internet. When using DeFi products it's important to verify how safe the application is and who’s behind it. Your funds will be at risk if you use a malicious DeFi platform that goes down.

Are staking rewards taxed?

Taxes and staking rewards are a bit of a grey area, no matter where you’re located. Most countries view any form of interest as income, and therefore it may be taxable by the government. The best way to find out about your country's crypto tax laws for crypto is by researching your countries tax laws and crypto tax help sites such as Koinly.

Do I need I.D. to stake?

DeFi staking platforms do not require users to provide identification or personal information to stake. Crypto exchanges will require personal identification so you can create an account on their sites. This is often termed KYC—know your customer—and is a similar process to opening a bank account.

Which crypto wallets will allow me to use DeFi staking platforms?

Almost any non-custodial wallet can be connected to a DeFi staking platform. Metamask, TrustWallet and Coinbase Wallet are some popular crypto self-custodial wallets that can be used to connect and interact with DeFi staking platforms and other DeFi applications.

Where will my staking rewards be sent to?

When you unstake, all staking rewards earned will be deposited into your trading account on the exchange you used along with the principal amount of ETH staked. Remember, if the price of ETH has gone down, it’s possible you will have less than when you started.