Short answer. Staking ETH means locking it up to help secure Ethereum and earning rewards in return. You can solo stake with 32 ETH, use a staking-as-a-service provider, use liquid staking such as Lido or Rocket Pool, or stake through an exchange. Rewards vary with how much ETH is staked: Bitwise’s Q4 2026 report put the gross yield at about 2.63%.
Last updated 30 October 2026
There are several ways to stake your ETH on the Ethereum blockchain. In this resource, we explain these ways and break down the pros and cons of each. (This resource assumes you generally understand staking. If you don’t, see our Ultimate Guide to Staking.)
Key Takeaways
- Validators help secure the Ethereum blockchain and are compensated with ETH staking rewards.
- The rate of return, or APR, changes based on various factors.
- There are 4 ways to stake ETH:
- Solo staking: Full rewards but requires 32 ETH and relatively high technical knowledge.
- Staking as a service: It still requires 32 ETH. Must pay a small fee.
- Pooled staking: The most popular option because you don’t need to have 32 ETH. Must pay a small fee.
- Centralised exchanges: Usually offers the lowest rewards. Only option with exchange risk.
- Staking is not risk-free. Each of the 4 options include different types of risks. The ‘best’ option for you will depend on your skill level, goals and risk tolerance.
Contents
Ethereum Staking 101
The Ethereum blockchain relies on validators to keep it running properly. To become an Ethereum validator, you need to deposit 32 ETH to a certain address. This act is known as staking (i.e. you put your 32 ETH ‘at stake’ to become a validator).
You can still stake ETH even if you don’t have 32 ETH. When you do this, you won’t be a validator but you’ll still get some staking rewards. More on this below.
Important: As of Mar. 2023, validators can’t withdraw their staked ETH. Withdrawals are expected to launch in mid-April 2023.
How much is the APR?
There’s no fixed annual percentage return (APR) for ETH. The APR constantly changes and depends on several factors, such as:
- network activity;
- total ETH staked;
- number of validators; and
- the value captured by MEV, which boosts staking rewards and therefore the APR.
The APR will gradually reduce as more ETH is staked and more validators activate. The APR you receive may also be lower depending on the staking option you choose, as exchanges will often take a higher fee, resulting in a lower APR.
Calculating ETH staking rewards
Need help determining how much you could be earning? Staking calculators estimate how much ETH you could accrue depending on the amount, type, price and time staked.
Ethereum Staking Options
There are 4 ways to stake your ETH to receive rewards. Each has pros and cons and depends on the ease of use, decentralisation preference, skill level and time or difficulty to set up. These 4 options are solo staking (or at-home staking), staking as a service, pooled staking (or liquid staking) and exchange staking.
Solo staking (at-home staking)
Solo staking is the act of managing and running your own Ethereum node. It’s the most challenging but most decentralised and gives the total rewards. As of Mar. 2023, approximately 4.7% of Ethereum validators are solo stakers. (More on solo staking.)
Benefits: Full control, lowest trust assumptions, maximum rewards and most impactful for the network (full decentralisation).
Negatives: Requires 32 ETH, highest technical knowledge and dedicated computer connected to the internet. Carries risk of penalties (slashing).
Staking as a service (SaaS)
SaaS is for users who still want to run an Ethereum node and stake their 32 ETH but aren’t comfortable dealing with hardware. Staking-as-a-service options allow you to delegate the hard part while you earn native block rewards. (More on staking as a service.)
Benefits: Higher rewards than pooled staking, maintaining your node and no third-party smart contract risk.
Negatives: Requires 32 ETH, keeping your own set of validator credentials and trusts staking operator.
Liquid staking (pooled staking)
Liquid staking, or pooled staking, is the most accessible method while retaining ownership over your ETH. Users can stake with as little as 0.01 ETH, making it the easiest way to earn staking rewards and participate in securing Ethereum. It makes staking as simple as a token swap. (More on liquid staking.)
The most common method provides liquidity tokens that can be used in decentralised finance (DeFi), such as Lido’s stETH and Rocket Pool’s rETH.
Benefits: Stake any amount (low barrier to entry), the easiest way (stake now) and instant liquidity via liquid tokens.
Negatives: Non-native to Ethereum (requires third parties, smart contract risks and higher trust assumptions) and smaller rewards.
Centralised exchanges
This is the easiest way to earn ETH staking rewards without using crypto wallets or interacting directly with the Ethereum blockchain. Many centralised exchanges provide staking services, such as Coinbase or Binance, for those who are don’t like holding ETH in their own wallets or using Ethereum-based apps. All you need to do is deposit your ETH into the exchange’s staking program. (More on exchange staking.)
Benefits: Stake any amount, never have to leave an exchange and most accessible.
Negatives: Highest trust assumptions (trusting an exchange with your ETH), lowest rewards (exchanges often take a higher fee), and contributes to network centralisation.
Which Is Right For You?
Each ETH staking option has unique pros and cons. There’s no ‘best’ option. It depends on your preferences and circumstances.
| Who Are You? | Best Option |
|---|---|
| I want to run my own node | Solo staking |
| I don’t want to run my own hardware | Staking as a service |
| I don’t own 32 ETH and want to retain my ETH | Liquid staking |
| I don’t want to use MetaMask or an Ethereum-based app | Exchange staking |
Pooled staking is the most common to date
If the following applies to you, then you’re probably best suited to choose pooled staking.The most common option for many is using pooled staking. Pooled staking is probably best for you if you:
- own less than 32 ETH;
- don’t want to run a node or manage your own validator keys;
- want to help Ethereum decentralise; and
- value a user-friendly experience.
There are many pooled staking platforms. Pros and cons of each can be found in the below screenshot.
FAQ
There is no ‘Eth2’ token native to the protocol, as the native token ETH did not change when Ethereum switched to proof-of-stake.
Other ETH tokens do represent staked ETH. Examples include rETH (Rocket Pool), stETH (Lido) and ETH2 (Coinbase).
No, there are risks with Ethereum staking, including but not limited to the following:
- Withdrawals locks/limited: ETH withdrawals are currently not live (scheduled for Apr. 2022), and if they go live, it may be weeks to months before you can withdraw your ETH.
- APR or price volatility: APR is not fixed and depends on external conditions. If you are buying just to stake, consider APR or price volatility may outweigh returns.
- Slashing risk: Potential of losing some cryptocurrency if the validator you’re staking with misbehaves (known as “slashing”). Likewise, solo home stakers face slashing risk.
- Exchange risk: If the centralised exchange you use to stake shuts down or becomes insolvent, you may risk losing your ETH.
- Smart contract risk: Pooled staking relies on third parties building smart contract dApps. If there is an error in the code or smart contract, your ETH may be at risk.
- Collusion risk: Delegating ETH to pooled staking carries a minimal risk of validator collusion that could impact the staking provider.
- Trusting third parties: Like exchange risk, trusting any party to help in the process creates some trust assumptions. The only way to avoid this risk is by home staking.
Pooled staking liquid tokens (which represent your ETH), such as Lido’s stETH, can depeg from its 1:1 ETH price. This should be less common when ETH withdrawals are activated. Although your ETH should always be redeemable 1:1 when withdrawing.
Withdrawals are in the testing phase (as of Feb 2022). All indications are withdrawals will go live in April 2023. There may be a limit on how much ETH you can withdraw or how long you’ll have to wait in queue to withdraw.
Watch the below video from Collective Shift for more on staking on the Ethereum blockchain.
ETH staking in 2026
Staking participation keeps growing. Bitwise’s Q4 2026 staking report, covered in the Research Hub on 21 October 2026, showed a record 43.8 million ETH staked and a gross annualised staking yield of 2.63%, down from 2.81%. As this guide explains, more ETH staked means rewards are shared more widely, so yields tend to fall as participation rises.
Access has also widened. In October 2026, Interactive Brokers began offering eligible clients ETH staking through its Client Portal, with zerohash providing the service. The Knowledge Hub lists tools to compare options before you choose, including Staking Rewards for comparing providers and Validator Queue for checking entry and exit wait times.
- Solo staking: most control, needs 32 ETH and technical skill.
- Staking as a service: you keep keys, a provider runs the validator.
- Liquid staking: receive a token such as stETH or rETH you can use elsewhere.
- Exchange staking: simplest, but the exchange holds your ETH.
Watch: Ben Simpson on this topic
Key takeaway: Ben explains realistic ways to earn income on crypto, including staking on proof of stake networks such as Ethereum, and the risks to understand first.
How Collective Shift explains staking yield
Collective Shift’s March 2026 lesson Where Crypto Yield Actually Comes From starts with the source of the reward: proof of stake networks pay new tokens and fees to those who stake to secure them, which is why ETH can earn a staking yield and Bitcoin cannot.
- Know where the yield comes from.
- Check entry and exit queue times.
- Weigh custody and smart contract risk for each method.
“What does earn a yield? Proof-of-stake chains earn a yield.”
Collective Shift lesson Where Crypto Yield Actually Comes From (March 2026)
Where this guide comes from
This guide is written and reviewed by the Collective Shift research team. Collective Shift is a crypto research and education company founded in 2020 in Melbourne, and a research and education partner to Coinbase, Swyftx and CoinSpot. Sources used in this update:
- Video: How To Earn Income On Your Crypto (Without Getting Wrecked), Ben Simpson on YouTube (2026-04-06)
- Collective Shift Knowledge Hub: Research Hub: Ethereum staking reaches record 43.8 million ETH (21 Oct 2026) (ref 5c5d4e24), original source: thedefiant.io
- Collective Shift Knowledge Hub: Research Hub: Interactive Brokers adds ETH staking (14 Oct 2026) (ref 1a2cb9c4), original source: thedefiant.io
- Collective Shift Knowledge Hub: Knowledge Hub tool profile: Staking Rewards (May 2026) (ref 5664af82), original source: www.stakingrewards.com
- Collective Shift Knowledge Hub: Knowledge Hub tool profile: Validator Queue (May 2026) (ref 5ac72fbb), original source: www.validatorqueue.com
- Collective Shift Knowledge Hub: Lesson: Where Crypto Yield Actually Comes From (5 Mar 2026) (ref e196c961)
Last updated 30 October 2026. General information only, not financial advice. Consider your own circumstances and seek professional advice before making investment decisions.
Frequently Asked Questions
What is the ETH staking yield in 2026?
Bitwise’s Q4 2026 staking report, covered by the Research Hub on 21 October 2026, put Ethereum’s gross annualised staking yield at about 2.63%, down from 2.81%. It changes as participation changes.
How long does it take to start or stop staking ETH?
It depends on Ethereum’s validator entry and exit queues, which change with demand. Tools such as Validator Queue show current wait times.
Is ETH staking income taxable in Australia?
Generally, staking rewards are treated as ordinary income when you receive them. Keep records and speak to a registered tax agent.