What Is Ethereum Staking?

10 cards
You're this close to completing the course.

Eager to start with crypto? Join Nexo – the trusted institution for digital assets to easily buy, earn, and exchange crypto.

Sign Up
Sign Up

What Is Ethereum Staking?

10 cards

ETH staking is crucial to the Ethereum blockchain. Staking allows anyone to lock up their ETH in order to help validate transactions and run the blockchain

Staking has several benefits.

Securing the platform

The Ethereum blockchain relies on stakers to make sure transactions are valid. 

Anyone who has 32 ETH staked may be picked to “validate”, or create, the next block in the blockchain.


In return for helping to run the blockchain, stakers receive ETH as a reward

The longer you stake, the more ETH you receive.

Stake as a Validator vs. with an Exchange

You normally need 32 ETH to stake and become a “validator” of the network.

However, crypto exchanges will pool your ETH with others, allowing you to stake any amount and still receive rewards.

You can’t stake on blockchains like Bitcoin.

Bitcoin uses “Proof-of-Work”, which secures the blockchain through miners solving complex math equations. Ethereum, meanwhile, uses “Proof-of-Stake” to run, which requires staking.

Staking allows you to help run the Ethereum blockchain by becoming:

“I was very excited about a currency that was not controlled by a central government, that could be a free market currency. That was all the incentive I needed to dedicate my life to it.”

Erik Voorhees

High five!

You passed with flying colors. Ready to start your crypto journey?

Exit Course

Sure you want to leave? Finishing it would take less than 3 minutes.

Return to Category