Passive income 2.0 arrives with Ethereum staking on Coinbase and Kraken. Run the calculator to estimate and earn rewards on staking Ethereum by joining an easy to use crypto pool! All explained below.
One of the easiest ways to take advantage of the cryptocurrency industrial revolution and build an income source that is passive is to jump into the world of staking.
Ethereum is the leading decentralized, open-source blockchain that includes smart contract functionality with use case after use case. It is a crypto that has a bright future ahead regardless of the price swings.
Why? Let’s take a look further on Ethereum itself and we will jump into why staking is a smart move.
What Ethereum Could Mean for Your Passive Income Goals.
The technology behind the blockchain is home to digital money transactions, global payments, and applications all built on the ledger.
Ethereum was first proposed by Vitalik Buterin. Designed to expand the utility of cryptocurrencies, being more than a “store of value” and allowing developers to create their own applications.
The blockchain runs on “Gas” which refers to an amount of $ETH that is needed to perform certain function on the network. Functions include swapping, trading or moving tokens, using decentralized applications and smart contracts. It also includes minting NFTs which have become very popular.
The goal of Ethereum is to become a global platform, allowing users from all over the world to write and run software that is resistant to fraud, downtime and censorship.
Ethereum Staking 2.0 Rewards.
When you participate in Ethereum staking, you can earn income by joining in on a public good for the entire ecosystem. When you stake, you help secure the network and for that, you earn rewards in the process.
As a validator you’ll be responsible for processing transactions, storing data, and adding new blocks to the blockchain. This keeps the Ethereum network secure for everyone who uses it. It also earns you new $ETH in the process. This method is also known as proof-of-stake.
You can earn up to 5% to 7% APR (depending on where you stake) on any $ETH that you stake as a reward for helping secure the network.
It takes 32 $ETH token to activate validator software. Most average crypto investors can not afford this, so here is where Coinbase and Kraken come into play. Let’s now dive into those passive benefits.
Where Coinbase and Kraken Come Into The Picture.
Ethereum staking rewards are given in accordance to how much $ETH tokens are validating and what rewards the network is offering. At times when there is smaller amounts of $ETH staked, the protocol rewards increase as an incentive for more $ETH to be staked.
However, when there’s plenty of $ETH staked, the reward is reduced. This helps spread rewards to multiple Ethereum staking validators and accommodate everyone.
Both Coinbase and Kraken make staking Ethereum easy. With their respective platforms, they make staking from home easier than trying to run your own validator. Especially if you do not have 32 $ETH token to contribute to the setup. Not to mention all the upgrades and time required.
Coinbase and Kraken give you the “hands off” approach to Ethereum staking. The trade is a slightly reduced reward percentage. You’ll earn higher rewards when you stake $ETH yourself of course.
But most people don’t have time, or the expertise to run their own validator. Coinbase and Kraken both are your partners in this case though. Now let’s find out why!
Coinbase or Kraken? Why Not Both!
As you are doing your due diligence on where to stake your Ethereum, Coinbase and Kraken both come up as worthy places to park your $ETH and earn rewards.
So which place should you be staking Ethereum at? Coinbase or Kraken? We ask you, why not consider both?
Both Coinbase and Kraken run top notch Ethereum staking programs. If you have accounts at both exchanges, you can split your $ETH to 50% at both places. Put half your $ETH at Kraken and the other half at Coinbase.
By doing so, you keep competition healthy among two top validators. You also spread your risk out in case one of the validators are compromised or your personal account is for some reason.
Staking can be rewarding, however it also comes with the risk of loss if the validator duties are not met. The risk is lower at both of these popular crypto exchanges. There are no minimums to stake on Kraken or Coinbase. You can add more $ETH at any time.
Getting Started – Your Ethereum Staking How to Guides
In summary, you will need to sign up for a Coinbase account and a Kraken account. Once your accounts are approved you can buy $ETH or transfer Ethereum you have already purchased to your accounts.
To do this, follow these step by step instructions for staking Ethereum on Coinbase. Transfer or stake 50% there. Next, follow a similar process with this Kraken setup guide for staking Ethereum and you are all set.
Earning rewards at the current rate of 5% to 7% on average is a great way to earn passive income while Ethereum staking is running at one of these trusted validators from Coinbase and Kraken.