Ethereum (ETH) is the second-largest cryptocurrency by market capitalization after Bitcoin and also the largest Proof-of-Stake (PoS) blockchain in the world. Since The Merge in 2022, Ethereum no longer uses Proof-of-Work (mining) but instead relies on staking. This means that any ETH holder can lock their coins in the network and earn rewards of 5–10% per year.
This article will explain step by step:
what ETH staking is,
the available options (solo validator, staking pool, centralized exchanges),
the risks and benefits,
and how you can start earning passive income with ETH yourself.
What is Ethereum staking?
Simply put, staking is locking ETH into the network to help secure it, and in return, you receive rewards. If the Bitcoin network has “miners,” then the Ethereum network has “validators.”
Validators confirm transactions and maintain network security.
Rewards are distributed among those who stake their ETH.
Average yield: 5–10% annually, depending on the method.
Staking methods in Ethereum
There are several ways to stake ETH. Each option has its own pros and cons:
1. Solo staking (running your own validator node)
Requirements: 32 ETH (~€50,000 at the current price).
You also need a computer with stable internet, running 24/7.
Full control over your funds.
Yield: 5–6% annually.
Risk: requires technical knowledge and risk of losing part of the staking rewards if your node malfunctions (slashing risk).
Best suited for experienced users with higher capital.
2. Staking pools
If you don’t have 32 ETH, you can join a staking pool. This works like a shared fund: many users contribute ETH, and rewards are distributed proportionally.
Minimum amount: from 0.01 ETH (depends on the platform).
Yield: 4–6% annually.
A very popular solution is Lido Finance (stETH) – you receive a “liquidity token” that you can use in DeFi while your ETH continues earning rewards.
Great choice for beginners.
3. Centralized exchanges (Binance, Coinbase, Bybit, KuCoin, BingX)
The easiest way – stake ETH directly on an exchange by simply pressing the “Stake” button.
Minimum amount: from 0.1 ETH.
Yield: 3–5% annually (slightly lower, since exchanges take a fee).
Risk: you trust the exchange (if it goes bankrupt or freezes funds, you could lose ETH).
Convenient, but less secure than self-custody.
4. Liquid staking (DeFi solutions)
This is a mix of staking and DeFi – you stake ETH and receive a token (e.g., stETH from Lido or cbETH from Coinbase) that you can use on other DeFi platforms.
Yield: 5–7% annually, plus additional yield opportunities in DeFi protocols.
Risk: smart contract vulnerabilities.
Step-by-step: How to start staking ETH
Option A – Using Binance (the easiest way)
Register on Binance.
Deposit or buy ETH.
Go to Earn → ETH Staking.
Choose Flexible or Locked staking.
Click Stake – done!
Option B – Using Lido (liquid staking)
Download MetaMask or another Web3 wallet.
Visit Lido Finance.
Connect your wallet and choose how much ETH to stake.
In return, you’ll receive stETH.
You can hold stETH or use it on DeFi platforms to earn more.
Option C – Running a solo validator
Prepare 32 ETH.
Download an Ethereum staking client (e.g., Prysm, Lighthouse).
Set up a server or Raspberry Pi that runs 24/7.
Deposit 32 ETH into the validator.
Receive staking rewards directly in your wallet.
How much can you earn with ETH staking?
Let’s say you have:
5 ETH (~€8,000 at €1,600 each).
You choose a staking pool with a 5% annual yield.
After one year, you’d earn approximately:
0.25 ETH (~€400).
If ETH’s price rises in the future, your rewards become even more valuable.
Risks of ETH staking
Centralization risk – exchanges or pools could become too large.
Slashing risk – for solo validators if your node fails.
Smart contract risk – in DeFi solutions.
Liquidity risk – ETH may be locked, and you can’t withdraw it immediately.
Conclusion
Ethereum staking is one of the safest and most stable ways to earn passive income in the crypto world.
If you’re a beginner → start with exchanges or Lido.
If you have more capital and technical skills → choose solo staking.
Average yield: 5–10% per year + potential ETH price appreciation.
⚠️ Remember: staking is not “quick money” but a long-term investment with stable returns.