Binance.US makes staking Ethereum easy and accessible by dramatically lowering the barriers to entry. We offer an ultra-low minimum of just 0.001 ETH to get started, compared to the standard 32 ETH requirement for staking directly through the Ethereum network!
However, before you get started it is important to understand the potential risks and rewards that come with staking Ethereum in general. Here are answers to some of the most frequently asked questions regarding Ethereum Proof-of-Stake and how you can stake your ETH on Binance.US.
If you’re unsure, you can also learn more about what staking is here.
FAQs:
- What is Ethereum Proof-of-Stake?
- What are the risks of staking ETH?
- What are the rewards for staking ETH?
- When can I unstake my ETH?
- Is there a minimum amount required to stake ETH on Binance.US?
- How do I begin staking my ETH on Binance.US?
What is Ethereum Proof-of-Stake?
Ethereum Proof-of-Stake is a revamped version of the Ethereum blockchain that aims to help the network scale in an efficient and sustainable way by switching from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism.
This new model introduces the opportunity for users to stake their ETH in exchange for staking rewards while also helping secure and facilitate network transactions.
Ethereum and Ethereum PoS are scheduled to merge and become the same network in mid-September, 2022. Until then, users can choose to keep their ETH and its functionality on the legacy chain or begin to stake their ETH on the PoS chain and accrue rewards in anticipation of the full launch of Ethereum PoS.
However, it is essential to note that the transition of Ethereum to PoS is a very ambitious and unprecedented undertaking that Binance.US has no control over. You can learn more about the risks of staking ETH here.
What are the risks of staking ETH?
Ethereum’s PoS model is still in a transition phase. Binance.US has no influence or control over the risks associated with staking ETH, which include:
- A prolonged lock-up period without a definitive date for completion. That means that while you are staking, you will not be able to access or use your ETH in any way until the transition to PoS is complete, and a major upgrade referred to as the ‘Shanghai upgrade’ has taken place. There is no guarantee that significant delays or potential setbacks will not take place. Learn more about the lock-up period here.
- The risk that the transition to PoS will fail or not occur. Due to the complicated technical nature of this transition, there is no guarantee that there will ever be a successful completion date of the transition to PoS. In this case, how and when your ETH assets will be returned to you is outside of Binance.US’ control. If the network upgrade ultimately fails, you may lose all, or a portion of, your staked ETH.
What are the rewards for staking ETH?
You will receive rewards in the form of ETH, which will accrue on top of your principal ETH. Your ETH rewards depend on many factors, including how much ETH you’ve staked and how much ETH is currently staked on the network. Once the transition to PoS is complete, the volume and total value of transaction fees on the network will also influence the rewards rate earned.
You can check the current APY rate for staking ETH on our staking homepage. This APY rate is subject to change depending on several factors, including but not limited to those outlined in the paragraph above.
Staking Rewards are not guaranteed and are subject to change at any time and in the sole absolute discretion of Binance.US. For more information, please see the Staking Services section of our Terms of Use.
By staking ETH, you are also helping to secure and contribute to the growth of the Ethereum PoS network.
When can I unstake my ETH?
You can unstake your ETH after a major future upgrade referred to as the ‘Shanghai upgrade’ is completed. Importantly, this upgrade will only take place after the merging of the legacy Ethereum PoW chain and the PoS chain is complete.
Neither event has a definitive date for completion, but the Ethereum foundation aims for the merge to take place in mid-September 2022 and for the Shanghai upgrade to occur 6-12 months after that. However, one should consider the risk of significant delays or the potential for the process never to be completed.
Binance.US has no control over the timing or completion of these upgrades, nor will we be able to unstake your ETH for you until after these upgrades have taken place. If the network upgrade ultimately fails, you may lose all, or a portion of, your staked ETH.
Is there a minimum amount of ETH required to stake on Binance.US?
On Binance.US, you can start staking with as little as 0.001 ETH. This makes staking ETH widely available to everyone without the need for the 32 ETH normally required to stake directly on the network. We’re proud to be increasing access to the benefits of staking Ethereum for our users.
How do I begin staking my ETH on Binance.US?
To stake your ETH on Binance.US, simply follow the instructions for your appropriate device below.
For web
1. Log in to your account and click the 'Staking' icon on the header bar to visit the Binance.US Staking homepage.
2. If you've staked assets with Binance.US before you can skip to the next step below. If not, you will be shown three screens to help you understand what staking is, as well as its risks, and potential rewards. After reading each screen, click 'Next,' 'Next,' and 'I Understand' in order.
3. Select 'ETH' from the menu of assets available for staking. Please note to be eligible for staking ETH, you must already hold at least 0.001 ETH in your Wallet. For more information, learn How to Buy & Sell Crypto or How to Deposit Crypto.
4. Please carefully read the warning message under 'ETH Cannot Be Unstaked.' Once finished, click 'Got It' to continue.
5. Enter the amount of ETH you would like to stake from your available balance. Once ready, click 'Preview Stake' to continue.
6. Read the warning regarding ETH rewards distribution. Once you are ready, click 'Confirm' to complete the process.
For mobile app
1. From the Binance.US mobile app home screen, tap 'Staking' from the bottom utility bar.
2. If you've staked assets with Binance.US before you can skip to the next step below. If not, you will be shown three screens to help you understand what staking is, as well as its risks, and potential rewards. After reading each screen, click 'Next,' 'Next,' and 'Got It' in order.
3. From the list of assets available for staking, tap on 'ETH.' Please note to be eligible for staking ETH, you must already hold at least 0.001 ETH in your Wallet. For more information, learn How to Buy & Sell Crypto or How to Deposit Crypto.
4. Please carefully read the warning message under 'ETH Cannot Be Unstaked.' Once finished, tap 'I Understand' to continue.
5. Enter the amount of ETH you would like to stake from your available balance. Once ready, tap 'Preview Stake' to continue.
6. Read the warning regarding ETH rewards distribution. Once you are ready, click 'Confirm' to complete the process.
Additional Resources
- Binance.US Staking (Homepage)
- What is Binance.US Staking? (FAQ)
- The Ethereum Merge: What It Is & Why It Matters (Blog)
- Crypto Staking: Definition, Benefits, and Tips (Blog)
Download the Binance.US app to trade on the go: iOS | Android
Follow us to stay up to date with Binance.US news and announcements:
Risk warning: Buying, selling, and holding cryptocurrencies are activities that are subject to high market risk. The volatile and unpredictable nature of the price of cryptocurrencies may result in a significant loss. Binance.US is not responsible for any loss that you may incur from price fluctuations when you buy, sell, or hold cryptocurrencies. Please refer to our Terms of Use for more information.
Disclaimer: Staking Rewards are not guaranteed and are subject to change at any time and in the sole absolute discretion of Binance.US. For more information, please see the Staking Services section of our Terms of Use.