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Best Ethereum Staking Platform UK 2021 – Get Top ETH Rewards

Cryptocurrency staking has grown in popularity amid the rise in proof-of-stake blockchains. The concept of staking involves crypto holders who keep their tokens on a platform to serve as a validator of the network in exchange for rewards. Ethereum staking provides investors with a mid to long-term investment option. Investors can earn an annual percentage yield (APY) of 5.3% when staking Ethereum.

This guide highlights some of the best Ethereum staking platforms and how you can generate returns from ETH staking.

Best Ethereum Staking Platforms 2021 List

  1. eToro – Global Best Ethereum staking platform for ETH staking rewards
  2. Coinbase – Best user-friendly ETH staking platform
  3. Kraken – Top Ethereum staking destination for much of Europe
  4. KuCoin – Popular ETH Staking Exchange
  5. Binance – World’s Largest Crypto Exchange and Staking Platform

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Best Ethereum Staking Platforms Reviewed

Ethereum staking is highly popular given the network’s crucial role in the DeFi sub-sector. At the moment of writing, over 3,000 high-brew dApps are resident on the Ethereum network. Given its vital role in the new face of financial services, Ethereum staking has spiked despite the network not operating fully on a PoS model. Ethereum staking currently ranks third on the list of the most staked tokens, according to Staking Rewards. ETH staking rewards stand at 5.38%, and so far, over $26.4 billion of ETH have been locked up as the network transitions to the PoS consensus algorithm.

Meanwhile, several platforms now offer support for Ethereum 2.0 staking but making a decision can be difficult. Of the five exchanges listed above, we would thoroughly review two cryptocurrency platforms where you can stake Ethereum.

1. eToro – Overall Best Ethereum Staking Platform

eToro stock broker

eToro is a global financial services provider that was founded in 2007. The online trading platform operates as a social trading platform and is home to over 20 million global users who use the firm to invest and trade cryptocurrencies.

eToro launched Ethereum staking early this year following the success of its Cardano staking and Tron (TRX) staking services. Investors get to stake their favourite digital assets in a secure, simple, and hassle-free environment.

eToro staking

Accrued rewards are shared monthly to stakers, and the rewards are calculated according to the membership club an investor falls under. Users get to choose between Bronze, Silver, Gold, Platinum, Diamond, and Platinum+ memberships. Rewards are shared based on these, and with Bronze members getting 75%, Silver, Gold, and Platinum taking up 85%.

Diamond and Platinum+ members have the highest share of the membership ratio with a 90% share. Hold periods are set at 14 days which means you will begin to earn rewards on the 15th day of staking. eToro offers one of the highest ETH staking rewards in the industry and you are guaranteed a 5-6.25% return on your investment. Charges are minimal, although unspecified but this may likely be negligible.

Pros:

  • Regulated and well-reputed brokerage firm.
  • A hassle-free process to start staking Ether.
  • Several cryptos can be staked with this provider.
  • Low staking fees

Cons:

  • A piece of the rewards is kept by eToro.

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2. Coinbase – User-friendly Staking Platform

coinbase logo

Much like eToro, the top US crypto exchange Coinbase offers staking-as-a-service (SaaS) for users.

You can stake your idle tokens among a varied number of digital assets on the Coinbase platform. You can stake ALGO, ETH, XTZ, ATOM, USDC, and Maker DAI.

Coinbase Ethereum Staking

Ethereum staking reward is pegged at 5%, the highest on the platform, but this comes with a hefty 25% commission fee which can significantly impact your staking returns. ETH staking is offered in specific regions only. Coinbase plans to add more jurisdictions to its crypto staking services in the future.

Pros:

  • User-friendly and intuitive staking platform
  • Automatic and periodic payments
  • Low minimum deposit.
  • Larger repository of assets to stake

Cons:

  • High staking fees

What is Ethereum Staking?

Ethereum staking

Crypto staking involves locking up or pledging a network’s asset to help the network validate transactions better. When you freeze your Ether, the stakes are passed on to miners (nodes) who use them to participate as validators in the network.

Under proof-of-stake blockchains, miners are assigned blocks to be recorded on the blockchain-based on the amount of Ether they hold. The miners get a reward for this activity, which is then passed on to the user who lent his tokens.  Token rewards and the knowledge that you’re helping secure the blockchain are two major rewards for users who stake their Ether. The downside? Well, you won’t have access to the funds once it’s locked up. You’ll have to wait for the expiration period.

How Does Ethereum Staking Work?

There are two methods to staking Ethereum. There is the soft-staking and the hard staking. Under the soft-staking method, the user has to freeze his Ether by using a platform that enables such transactions without going through too much effort. The second option, hard staking, involves a total freeze on the user’s assets. During the locked-in period, the user won’t be able to sell its cryptocurrencies. There are also instances where the user receives the staking rewards daily or monthly. Another option is for the user to receive his rewards once the staking period ends.

Is Staking Ethereum Safe?

Staking, in itself, carries along with it a certain level of risk and in the crypto industry, this risk is even more pungent. Your investment may erode in the following two instances:

  • The value of your staked token declines significantly with the fees generated not being able to cover your initial investment
  • The blockchain becomes less popular with time and generates fewer fees leading to fewer returns

These are the primary risks involved in staking Ethereum. Here are the reasons why the Ethereum network remains solid despite the emergence of Cardano and Polkadot:

  • Ethereum Is the Most Recognized Dapps Platform In the World

The Ethereum blockchain was created in 2015 to bring about a new financial landscape, and the network has been largely successful in its attempt. This has seen the Ethereum blockchain become the most recognised dApps brand globally, and it currently plays host to over 3,000 top-ranking dApps platforms in the world.

  • Ethereum Is At the Forefront of Next-Gen Financial Services

DeFi boomed in early 2020 with one of the most successful DeFi protocol Yearn.Finance launching on Ethereum. Ever since then, DeFi-facing protocols have grown with over $91 billion total value locked (TVL) currently circulating in the sub-sector. Top DeFi brands like Aave and Compound Finance operate on the Ethereum network, leveraging the older blockchain’s security to allow users to lend, borrow, and earn. Aside from DeFi, non-fungible tokens (NFTs) have also boomed, and Ethereum features significantly in its success. NFT blockchains like Axie Infinity have grown in popularity, with the global NFT figure standing well over $14.27 billion.

  • Ethereum Staking Is One Of the Most Staked Tokens

Ethereum staking is becoming increasingly popular by the day as the network transitions to a PoS protocol. At the moment, Ethereum 2.0 is the third most staked PoS protocol behind the Cardano and Solana network. This makes it a top avenue for crypto investors looking for passive income.

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How Long Does it Take To Earn ETH Staking Rewards?

ETH staking rewards kick in according to the determined periods. On eToro, the bonding window is short. The platform has a two weeks bonding period before you start earning staking rewards. Other platforms like Kraken require a 20 days bonding period before users begin earning rewards.

Benefits of Staking Ethereum

Staking Ethereum has been picking up steam as the development team continues to roll out major upgrades. These are:

  • ETH 2.0 Will Become More Scalable

A number of issues bogs down the current consensus algorithm Ethereum uses. These range from speed, efficiency, security, and scalability. The PoW protocol is inherently secure but slow and expensive. The migration to PoS will enable the Ethereum network to operate in parallel chains, thereby increasing transaction speed, security, and efficiency. This will have the knock-on effect of slashing the gas fees as the blockchain will better handle higher volumes of trades.

  • ETH 2.0 Will Be Environmentally Friendly

One of the major criticism of the PoW algorithm has been its energy heat map. The protocol requires miners to compete for block rewards through solving complex mathematical puzzles. The first to the mark gets the reward while the rest get nothing in return. To increase efficiency and chances of picking block rewards, miners use gas-guzzling supercomputers like an application-specific integrated circuit (ASIC) which has the same energy landmark as entire countries. PoS will eliminate the need for this intense and wasteful competition as only selected validators will verify transactions on the network. This will substantially cut down on the network’s energy demands and attract more ESG-minded investors.

  • Ethereum Staking Is An Income Stream

Staking Ethereum is a major financial coup given the rewards and can serve as a savings plan. Earning newly minted coins without any exertion can be a great way to diversify your investment.
Ether’s 1000% gain year-to-date (YTD) shows the network is still expected to surge in value once the transition is complete. Holding a first-mover advantage (FMA) puts the Ethereum blockchain at the forefront of an entirely novel financial landscape.

Pros & Cons of Staking ETH

Pros

  • Earning passive income
  • Improved network security
  • Higher scalability

Cons

  • Losing Ether due to Slashing
  • Staking leads to increased supply, which is inflationary

How to Stake Ethereum on eToro

If you are on board with the idea of staking Ethereum, here is a step-by-step guide you can follow to start earning rewards by holding Ether coins using our recommended service provider – eToro.

Step 1: Create an eToro account

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To get started, head over to the official website and click on ‘Join Now’ to open the signup page. You will be required to fill in your username, valid email address, and password. You can also signup with your Facebook or Google account.

Step 2: Upload ID

etoro id verification

Once you have registered, you will need to verify your identity. eToro is a regulated entity and you will need to submit a copy of your driver’s license or government-issued ID card and a recent copy of your utility bill or bank statement (not later than 3 months) to verify your place of residence.

Step 3: Deposit

Deposit funds on eToro with credit card, PayPal, e-wallet.

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The next step is to fund your account. You can start with $50 and eToro offers payment methods including bank wire transfer, credit/debit cards, and e-wallet channels like PayPal, Skrill, Neteller, and Klarna.
Head over to the ‘Deposit Funds’ button and choose your preferred payment option. Funds will be deposited within five minutes.

Step 5: Buy ETH

BUY ETHEREUM AT ETORO

Once the deposit is confirmed, you can now buy the ETH tokens. To do this, click on the search bar and type in ‘ETH.’ Click on the first result that pops up and you will be redirected to the ETH buying page. While here, you can learn what other investors feel about ETH and its potential growth through the ‘Feeds’ button.

Click on ‘Trade’ in the right-hand corner to head to the order page when you are ready. Fill in how much you want to invest (minimum deposit is $25) and click on ‘Open Trade’ when you are done.

Step 6: Stake ETH

Once you have purchased ETH, you can head on and stake the desired quantity. Staking Ethereum with eToro is simple, secure, and hassle-free and you can get started with just a few clicks. To do this, request the amount of ETH you want to stake (minimum 1 ETH) and it will be sent over automatically to the staking address.

After this, you can sit back and watch your investment grow.

Conclusion

Staking Ethereum is becoming increasingly popular by the day and it can become a great way to generate passive income on your investment while holding.

If you have decided to try out Ethereum staking in the UK, we recommend working with eToro staking given the platform’s reputation as a top-notch financial services provider. You also get $50 welcome bonus package when you register on eToro.

eToro – Best Ethereum Staking Platform UK

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Frequently Asked Questions

Can you stake Ethereum?

What is Ethereum Staking?

Where can I Stake with Ethereum?

Is Staking Ethereum Worth It?

How do I use an Ethereum Staking Calculator?

How much Ethereum do you need to Stake?

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.

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