Ethereum Staking: How It Works, What You Earn, and Where to Start

When you stake Ethereum, the native cryptocurrency of the world’s largest smart contract platform, which shifted from mining to proof-of-stake in 2022. Also known as ETH staking, it lets you earn rewards by locking up your coins to help validate transactions and secure the network. Unlike mining, you don’t need fancy hardware—just 32 ETH and a reliable internet connection. But you don’t need to own that much to start. Many users join staking pools or use exchanges to stake smaller amounts and still earn returns.

Proof-of-stake, the consensus mechanism Ethereum now uses, replaces energy-hungry mining with economic incentives. Also known as PoS, it rewards validators who hold and lock ETH to propose and confirm blocks. This shift cut Ethereum’s energy use by over 99% and made staking accessible to everyday users. The rewards you earn come from transaction fees and new ETH issued as incentives—typically between 3% and 7% APR in 2025, depending on how much ETH is staked network-wide. Higher participation means slightly lower yields, but it also makes the network more secure.

Staking isn’t risk-free. Your ETH is locked for a period—you can’t sell or move it instantly. If you run your own validator and go offline, you lose a small portion of your stake. And while Ethereum itself is stable, the value of your staked ETH can drop if the market crashes. That’s why many users prefer custodial staking through trusted platforms like Coinbase or Kraken, where the platform handles the technical side. Others use non-custodial tools like Lido or Rocket Pool to keep control of their keys while still earning rewards.

What you’re really buying into is passive income without the noise of trading. If you believe in Ethereum’s long-term future, staking is one of the most straightforward ways to earn while helping the network grow. You’re not gambling on price swings—you’re being paid to help keep the system running. And with over 30% of all ETH now staked, it’s clear this isn’t a trend—it’s the new normal.

Below, you’ll find real guides on how to stake ETH, what platforms to avoid, how taxes affect your rewards, and how staking compares to other crypto income methods. Whether you’re holding 1 ETH or 100, there’s a path that fits your risk level—and we’ve got the details you need to start safely.