How to earn interest with cryptocurrencies? We show how Ethereum staking works and what Ethereum promises for the future.
In the fall of 2022, Ethereum transitioned from an energy-intensive proof-of-work to a more efficient proof-of-stake consensus. This means that anyone with enough Ethereum in their wallet or by joining a mining pool can participate in the validation of the Ethereum network and thus earn interest with Ethereum. Because Proof of Stake – i.e. Proof of Ownership – rewards validators with new Ethereum that finds the next block. You therefore get the interest in the form of new Ethereum and not in the form of euros or dollars. But this Ethereum can be sold or kept after receipt. But is it worth it?
Is Ethereum Staking Worth It?
With Ethereum staking, you lock up your Ethereum coins for a period of time and let them work for you. In return, investors receive interest in the form of new Ethereum. The yield is currently 4.79% per year. It can definitely be worked with. But investors need to be careful where they stake their ethers. Because not all suppliers inspire trust. It is best for investors to choose one of the big crypto exchanges – although the FTX example shows that this is not always safe either. For this reason, you should never stake all of your ethers. For example, the author of this article stakes around 25-30% of his ether on a major crypto exchange. The rest is securely stored in a hardware wallet.
But what about cryptocurrencies like Bitcoin and Ethereum?
Expert: Cryptocurrencies will prevail
A well-known German stock market expert is still convinced of the potential of cryptocurrencies. Here you can find out why he thinks crypto regulation is good and what potential he sees in it.
By the way: With the new BÖRSE ONLINE Best of Crypto Index, you can invest in ten of the biggest cryptocurrencies simultaneously with just one certificate traded in Germany. You don’t need a crypto wallet or exchange for this.
Conflict of Interest Notice
The author holds direct positions in the following financial instruments mentioned in the publication or related derivatives that may benefit from any price movements resulting from the publication: Ethereum
Conflict of Interest Notice
The CEO and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions in the following financial instruments mentioned in the publication or related derivatives which could benefit from any price movements resulting from the publication : Ethereum
The price of financial instruments is derived from an index as the underlying. Börsenmedien AG developed this index and owns the rights to it. Börsenmedien AG has concluded a cooperation agreement with the issuer of the securities presented, according to which it grants the issuer a license to use the index. In this respect, Börsenmedien AG receives a fee from the issuer.