How to Stake ETH 2.0 on Redot
ETH 2.0 is an update that aims to improve Ethereum’s scalability and security. Its key feature is the shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
To become a solo validator, ETH stakers need to deposit at least 32 tokens. Then, they can get daily transaction rewards and generate up to 20% APYs. However, network downtime or misconfiguration of a node can lead to penalties – these fees lead to stakers losing their ETH and, in extreme cases, having to exit the network.
Benefits of Staking ETH2 on Redot
Redot is a secure digital asset exchange that enables no-fee ETH2 staking with minimal investments (0.01 ETH).
Here’s how the platform crypto traders and Ethereum stakers.
- Institutional grade trading support. Redot supports institutions with a high transaction throughput (300,000 TPS), and FIX 4.4/5.0 API connectivity.
- Security. Through 2FA and SSL-certified payment gateways, we ensure the safety and inaccessibility of your assets and financial data.
- Compliance, ensured by custody licenses from Estonia, one of the EU-member states.
- 24/7 uptime and autonomous microservice architecture that ensures a reliable backup system in case a single component fails.
How to Stake ETH 2.0. on Redot?
To benefit from a reliable infrastructure with 24/7 uptime, ETH2.0 stakers choose exchange platforms like Redot.
Let’s find out how to stake ETH 2.0 on Redot.
Step #1. Create an account
Before taking ETH, you need to have an account on Redot. Choose “Sign in” in the right top corner of the screen and click on “Sign up” in the login tab.
The platform will take you to the sign-up form. Enter an email you want to connect the account to and come up with a strong password to protect your funds and trade history.
We recommend going the extra mile to protect the account from third-party attacks – enable two-factor authentication. Redot uses Google Authenticator to support 2FA. You can download it on iOS, Android, or Windows.
To enable 2FA, follow the instructions on “Security settings”.
Step #2. Verify your account
To buy crypto, trade, or stake ETH on Redot, users need to confirm their identity. It takes just a few minutes – fill out a short form on the “Verification” page. We don’t ask account holders for redundant data – here’s what you need to share with Redot:
- First and last name
- The picture of your ID
- A selfie (it should match the person on the identity card).
Step #3. Fund your account with Ethereum
Now that you secured and verified your account, it’s time to deposit ETH into your wallet. As far as security is concerned, on Redot, your assets are attack-proof since they are held in deep cold storage.
You can convert BTC, ETH, USDT, and other currencies to ETH2. Generally, there are four ways to deposit tokens:
- Address – generate an address you can use to withdraw crypto from wallets and exchanges to Redot.
- Debit/credit card – Redot relies on Coinify – a secure crypto payment gateway – to enable SSL-secure transactions.
- SEPA for cross-border euro transfers with low fees.
Keep in mind that not all the methods listed above are available for each currency from the drop-down menu.
Step #4. Stake Your ETH Tokens
If you deposited as little as 0.01 ETH, you can stake your tokens and acquire interests. Redot doesn’t charge fees – stakers get to claim 100% of their rewards.
By staking ETH 2.0 on its earlier stages, you can generate up to 20% in APY. On top of that, Redot users can track daily ETH price fluctuations and staking rewards via an intuitive dashboard.
Frequently Asked Questions
How are ETH2 and ETH different?
ETH2 refers to staked Ethereum tokens. Until the update is complete, there’s a distinction between ETH (not-staked Ether) and ETH2 (locked up tokens). As soon as PoW gives way to PoS, all ETH2 will be automatically reverted to ETH. Both tokens have identical prices.
How is Proof-of-Stake different from Proof-of-Work?
PoS is a consensus algorithm that chooses validators for reviewing blocks on a semi-random basis (the odds of selection are higher for validators who keep higher stakes over longer periods of time).
On the contrary, PoW determines the node that validates the block by having miners solve a computational problem. The first validator to find the answer gets to claim the reward. PoW is widely considered to be more resource-intensive and harder to scale to widespread adoption than PoS. Because of the shift from PoW to PoS you need to use Ethscan to check all the transactions within this new network as existing block explorer don’t yet support ETH2.
Do I need to hold ETH to stake ETH2?
Yes, you need to deposit at least 0.01 – you can do this by trading or buying crypto.
What rewards can I get for ETH staking?
Staking rewards depend on the number of validators who deposited ETH tokens. The fewer validators there are, the higher the incentives will be. This is why crypto investors are excited to become early ETH2 stakers.
Can I trade or sell staked ETH2?
Until the update is complete, all tokens are locked up. After the beacon chain and the mainnet merge is complete, stakers will be able to sell and trade their funds.
For how long is my ETH2 locked up?
The stakes are locked up until the Ethereum 2.0 update is out. To follow the latest news on the progress of the development team, check out our blog.
Can I use staked ETH as margin trading collateral?
No, unlike regular ETH, there’s no way to use staked ETH2 as collateral assets for trading.
What tax obligations should I be aware of?
US citizens have to report staking rewards if their value is over $600 by filling in the 1099-MISC form.
Are there risks associated with ETH staking?
Generally, ETH2 staking is a rewarding investment. However, there’s a degree of uncertainty involved since the update is incomplete. As for validator penalties (quadratic leakage, etc.), the platform will cover these costs, ensuring users don’t have to stress over fees.
Is there a staking minimum?
To stake ETH2, Redot users need to deposit at least 0.01 ETH to the platform.