Highly anticipated upgrade on the Ethereum network — The Merge — is around the corner. Regardless of contact with the smart contract network, people are keenly observing the anticipated potential of this upgrade. Meanwhile many investors are also taking different measures to benefit from one among rare moments in the crypto industry.
Citing ‘the merge’ upgrade’s launch soon, Ethereum (ETH) investors and holders are seeking different options to stake their relative assets. Some prominent among these approaches include liquid staking protocols, staking on exchanges, independent staking pools and solo staking. All these options differ from each other in terms of profitability and involved risks.
Staking of Assets Through Liquid Staking Protocols
This method comes as a prominent way to stake Ethereum (ETH). When it comes to liquid staking protocols, Lido and Rocket Pool act as among the biggest within the space. Ethereum users can choose to lock their native assets through these staking protocols.
Such liquid staking could benefit users with impressive returns. For instance, Lido is offering an APR of 3.8% while the APR for staking on Rocket Pool is around 3.61%.
Exchanges Acting as a Staking Option
Crypto exchanges, especifically centralized crypto exchanges also offer a number of easy methods for Ethereum (ETH) staking and earn yield out of it. Some worth mentioning options for this purpose include Binance, Kraken and Coinbase-like crypto exchanges.
In comparison to other methods, staking on crypto exchanges turns out to be the easiest way to earn. Leading US crypto exchange Coinbase is offering approx 3.28% annual percentage rate, while Binance offers APR up to 5.2% and Kraken’s offering ranges from 4% to 7%.
Stake Independently with Independent Staking Pools
Primarily in a staking pool, an entity acting as service provider for staking and lets multiple users at once to contribute as well as earn out of overall profits from the pool. It would need to deposit 32 ETH or more than 54,000 USD worth ETH for a user to become a validator on Ethereum network. Considering the amount is quite huge, someone intending to be involved in staking can also opt for staking pools with little amount of ETH.
Saurav Bhattacharjee is in charge of the Broadcast development team of The Coin Republic.
He has been covering the Metaverse and NFT niche for the past 2 years.
With stellar interviews on his portfolio like Nicehash, Paxful, WallstreetWolvesNFT, Bitholla, Totemfi, EOS.io etc. Saurav has spearheaded the NFT SUPERSTARS AWARD and successfully hosted the first award in 2021.