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How to Stake Ethereum on Coinbase • Benzinga Crypto

Ethereum staking is an integral part of Ethereum’s transition to proof-of-stake. Let’s see why staking Ethereum is important and how you can start earning interest on your cryptocurrency by staking Ether on Coinbase.

The Ethereum network is upgrading its blockchain. If you want to trade Ethereum today, it will cost you between $10 and $100, depending on the type of trade you want to make. Due to Ethereum’s proof-of-work consensus model, the network can only process around 15 transactions per second. The Eth 2.0 upgrade will improve both Ethereum’s blockchain transaction cost and throughput, improving the network’s scalability and long-term sustainability.

This upgrade to Ethereum will replace crypto miners with staked Ethereum, a model known as proof-of-stake (POS), ultimately reducing network power consumption by at least 99.95%. Anyone who owns Ether tokens can stake their tokens on the Eth 2.0 chain, and you can earn rewards for doing so. Currently, the interest rate equivalent to these rewards is approximately 7.5% per annum.

To run your own validator node, you will need 32 Ethereum tokens. However, cryptocurrency exchanges like Coinbase make it easy for anyone to stake their Ethereum tokens with no minimum amount required.

Step 1: Create a Coinbase account.

If you don’t already have a Coinbase account, you’ll need to create one through the Coinbase mobile app. Signing up for Coinbase is a simple process – all you need to do is enter your name, email address, and location, then create a secure password.