Ethereum is one of the most popular decentralized blockchains and the cryptocurrency ETH is the second-largest my market cap after Bitcoin. It was recently upgraded to Ethereum 2.0, which allows users to stake ETH and earn rewards.
To stake your Ethereum and earn rewards, you will need to use an on-chain wallet or staking platform. I have done hours of research to find you the best places to stake Ethereum and earn the highest rewards.
Top Places to Stake ETH in 2023
1. Binance
Binance is my TOP choice for staking Ethereum as it has the highest rates available for fixed staking. At the time of writing, the rewards are 4.6% APR for fixed rates. If you prefer to keep your ETH flexible, the rates are lower, at 0.76% APR, but you can also claim an additional 0.25% APR if you have less than 0.15 ETH staked.
Binance is a great choice because it is one of the best crypto exchanges, and you can directly buy ETH with low trading fees of just 0.1%. It is very convenient to stake it on Binance after your purchase.
If you plan on doing more than staking ETH, for example if you are into day trading, leverage trading or earning interest on other coins, Binance also caters for that, so you can rely on it for all your crypto needs. The only issue is that Binance is not available for US users, so if you are a resident of the States, have a look at my #4 option, Coinbase.
- Largest cryptocurrency exchange in the world
- Buy ETH easily with low trading fees of 0.1%
- Receive high ETH rewards with fixed staking
- Not supported in the US
2. Bybit
Bybit is my next choice for staking ETH, and is the best option if you plan on remaining anonymous, as you can sign up to this exchange without ID. The rewards are not as high as on Binance, but they are a good choice if you are not able to sign up to Binance.
If you stake your ETH for 60 days on Bybit, you will receive 1.80% APY, and for 30 days, it is 1.50% APY. You will see from the image above that if you keep your staking flexible, you will receive 2.5% APY on your Ethereum. However, this is only available for the first 0.2 ETH you stake, and this rate drops dramatically if you have more than that. If you have between 0.2 ETH and 1 ETH, your rewards are only 0.5% APY, and for more than 1 ETH, it is only 0.1% APY. I prefer to stake for 60 days and earn the higher rate, and I am not concerned about keeping it flexible, as ETH is a long-term HODL anyway.
Keep in mind that the reward rates change frequently, so to check the current interest, visit Bybit's Earn page directly from their website.
- Buy and stake ETH easily from the one platform
- You can remain anonymous on Bybit, with no KYC required
- Earn higher rewards on ETH when you stake it for 60 days
- The interest rates are low if you choose flexible staking and you have >0.2 ETH
3. eToro
eToro USA LCC does not offer CFDs, only real Crypto assets available
eToro is one of the best crypto brokers in the USA, offering more than 75 coins, and the option to earn interest on some of these. You can stake Ethereum on eToro, but unfortunately staking ETH is not available for US users. If you are from the US, you can stake using Coinbase, our #4 option on this list.
The rewards on eToro are unclear, as their website simply states that "you can earn up to 4.3% rewards per year on the ETH that you stake". While this is higher than other options on this list, there is no specifying how to achieve this high yield, nor what the minimum might be. If you are interested in staking ETH on eToro, you can check on their official site, as information changes quickly.
Despite the lack of information, eToro is still a top choice for me because it is a very well-known company that is trusted by millions of users around the world, and it also gives you exposure to other assets besides crypto, such as forex and stocks. If you want to be a diversified investor, then eToro is an excellent platform to use.
- Very simple and easy to use
- Trusted and well-known platform
- Potential high rewards of 4.3% APY on ETH
- Staking ETH not available in the USA
- Vague information about how much interest you can earn on ETH
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4. Coinbase
Coinbase is the #1 choice of staking ETH if you are a US citizen. While many of the other platforms in this article do not allow ETH staking for US residents, Coinbase is the exception. Coinbase is an excellent choice due to its user-friendly nature. I have lots of feedback from readers that remark how easy it is to navigate, even for those with no prior knowledge of crypto.
You can easily deposit money into Coinbase and buy ETH, or even directly purchase Ethereum using a credit card. While the fees to buy crypto on Coinbase are higher than on other exchanges, it is a small price to pay for convenience and ease of use.
Once you own some ETH, you can stake it, and receive up to 3.28% APY. If you have other crypto you also want to stake, you can earn interest on them too using Coinbase. For example, you can earn 5.75% APY on ALGO, 6.12% on ATOM, 3.19% on XTZ, and 1.5% on USDC.
- Beginner-friendly exchange
- Available in the USA
- Fairly high rewards of 3.89% APY
- Fees to purchase ETH are higher than other exchanges
5. Kraken
Kraken is one of the best crypto exchanges in the US, due to its ease of use and low trading fees. Of course, the Earn feature on Kraken is another attractive drawcard to many users. There are more than 15 coins available to stake on Kraken, and ETH is one of them.
The staking is flexible on Kraken, and the rewards are high, at between 4 and 7% APY. The website states that they charge an admin fee, which is 15% of your rewards. This sounds high, but this is already taken into account when they state that the annualized rewards are 4-7%. This means that your actual returns are higher, but after Kraken takes their admin fee, you are left with between 4 and 7% APY.
Besides ETH, you can stake other popular cryptocurrencies such as DOT, ATOM, XTZ, ADA and SOL. Visit Kraken's website to view the full list of coins for staking and the most current reward rates.
- High interest rates for staking ETH
- An excellent choice for beginners since it is easy to use, and has low fees
- As of February 2023, staking no longer supported in the US
6. OKX
OKX is one of the world's largest crypto trading platforms, and is well-known for low fees, range of markets, and advanced trading tools. It is also an excellent option for staking ETH, with a current reward rate of 5.74% APY. This interest rate will vary between 5 and 20% depending on how much ETH is locked, so check the current rate from the OKX website before signing up.
The minimum amount of ETH to get started staking is 0.1 ETH, which is something you need to be aware of, if you only own a small amount. If you wish to purchase more ETH, you can easily do so on OKX.
- Low trading fees if you need to buy ETH
- Easy one-click staking from the OKX website
- High rewards for staking ETH (between 5-20% APY)
- Minimum 0.1 ETH required to start staking
7. Bitfinex
Bitfinex is another top cryptocurrency exchange that accepts staking on Ethereum. They offer up to 3.5% APY on ETH, and there are various other coins you can also earn interest on, such as ADA, DOT, ATOM, SOL, and XTZ. It is easy to stake on Bitfinex, as you can easily purchase ETH directly from the platform, or deposit it from an external exchange or wallet.
There is no minimum amount of ETH that you must stake, no staking fees, and the reward rate of up to 3.5% APY is quite decent. Be sure to check out Bitfinex's site to see the most recent reward rates.
- No staking fees
- No minimum deposit amount for staking ETH
- Earn up to 3.5% APY when you stake ETH
- Not available in the US and Canada
What is Ethereum 2.0?
Ethereum ran on a Proof-of-Work (PoW) model, but Ethereum 2.0 marks a switch to the Proof-of-Stake (PoS) model instead. With this new PoS model, the blockchain requires individuals to stake their ETH in order to validate transactions.
The PoW system was very inefficient, as nodes competed for blocks, whereas the new PoS system of Ethereum 2.0 operates differently, and eliminates the need for massive energy consumption.
What is staking Ethereum?
When you stake ETH, what you are actually doing is locking your ETH, which helps to maintain the security and governance of the blockchain. This helps to validate transactions by creating new blocks on the Ethereum blockchain. In return for providing your ETH, you are rewarded with ETH, which is where the yield comes from when you stake.
What are the best ETH staking rates?
The rates you can receive for staking ETH is continually changing, as it depends on the exchange you choose, and how much ETH is currently being staked. You will see the highest rewards when there is not much ETH staked, because the higher yield will encourage more people to contribute their ETH. However, when there are a lot of people staking ETH, the rates will decrease.
Currently, the best ETH staking rates are 4-7% APY which is found on Kraken. However, as of February 2023, Kraken ceased staking in the USA, so if you are a US citizen, you will need to find a suitable exchange, such as Coinbase, where the current rewards are 3.89%.
Do I need to stake 32 ETH?
If you have done some research on staking ETH, you may have seen that you need at least 32 ETH to begin staking. This is true only if you want to be a full validator. Most casual crypto investors do not own at least 32 ETH, but the good news is you can still stake Ethereum using a crypto exchange such as the ones in the list above. Some of them may have a minimum requirement of 0.1 ETH, or others may have no restrictions at all.
How to Stake Ethereum?
There are two ways to stake Ethereum: run your own Ethereum node or use a crypto exchange. To run an Ethereum node, you will need at least 32 ETH, which is more than most crypto enthusiasts own. It is a complex system where you need to set up hardware and software, and I won't go into detail about how to do this in this article.
Instead, I will focus on the simple way to stake Ethereum, using a crypto exchange. All you have to do is sign up to a suitable crypto exchange in the list above, and purchase or deposit ETH from an external wallet. Then navigate to the Earn or Staking section, and search for Ethereum. Choose the amount you wish to stake, and click to confirm, and you can start staking ETH straight away.
Conclusion
These are the best places to stake Ethereum, and at each of the exchanges above you can easily purchase ETH directly, if you don't already own some. Binance is our top choice to stake ETH, but it is not available for US users. Be sure to consult our full list of options above to find the most suitable exchange for staking ETH.