How to Stake Ethereum in CryptoStake: From Account Setup to Staking Strategy Tips

Learn how to stake ETH in the CryptoStake app and create a sustainable stream of passive income in crypto 

Since the Ethereum blockchain has transitioned to Proof-of-Stake (PoS) consensus mechanism, staking ETH became a meaningful way to earn passive income on crypto holdings. Today, numerous online platforms offer a variety of staking options, from intermediary services to running your own validator node. 

However, this blog post isn't about comparing and rating each method; it's about finding the perfect combination of profitability and sustainability of Ethereum validator staking; in other words, learning how to earn rewards in ETH (not wrapped or platform tokens) with minimum risk over a long period of time. 

CryptoStake transforms staking into an easy-to-launch, and, most importantly, fully reliable source of passive income that contributes to the long-term financial security of our users. Here you will find the answers to the following questions regarding earning rewards in ETH on our platform, and more:

  1. What is staking Ethereum? Breaking down the general concept and the challenges of solo staking; 
  2. How does Ethereum staking work? Explaining the how an actual ‘solo’ validator staking is conducted to illustrate how greatly CryptoStake simplifies this process from a technical standpoint; 
  3. How to register and begin staking through our proprietary application?
  4. How to optimize the strategy for better staking yields in the long run.

Having learned the functionalities of our product, you won't have a dilemma about where to stake ETH and build a foundation for financial independence.

How does Ethereum work or why people must stake ETH to keep things running

ETH used to be the native coin of a Proof-of-Work (PoW) blockchain, but then the impact of environmental and other factors forced the Ethereum Foundation to organize the switch to another mechanism called Proof-of-Stake (PoS).

Ethereum staking is a way to earn rewards by contributing to the security of the Ethereum network. Unlike traditional Proof-of-Work mining, staking doesn't require solving complex computational puzzles. Instead, you lock up your tokens in the Ethereum Proof-of-Stake blockchain for a set period. These staked tokens act as collateral, ensuring your commitment to the network's security. 

Where to stake ETH these days: all existing options   

While not analyzing different staking platforms, we are still going to list the currently available staking methods for educational purposes. 

Solo Staking: This method requires running your own validator node on the Ethereum network. It offers the highest level of control and potential rewards but comes with a set of challenges. 

Non-custodial Staking: Here participants retain full control of staked ETH while being relieved of technical duties.

Staking Pools:  Online platforms that allow users to pool together sums in ETH to meet the minimum requirements for running a validator node. 

Liquid Staking: On such platforms, users stake ETH and receive liquid tokens in return. These non-utility tokens can be traded or used in DeFi applications while the utility token collateral continues to generate staking rewards. However, this may involve additional fees and potential risks specific to the liquid staking protocol.

Custodial Staking: Typical to centralized exchanges, this type of staking provides a comfortable environment to crypto traders on these platforms. However, it requires relinquishing control of your holdings to the custodian (exchange), which significantly increases the risk factor.   

What is staking Ethereum as a validator? 

Ethereum staking is done by validators - crucial network participants chosen via a process called pseudo random selection (a combination of randomness and the amount of ETH staked). They are responsible for verifying transactions and adding new blocks to the blockchain. If any of the validators act maliciously (tries to double spend, collude, display inconsistency or unresponsiveness), they risk being slashed, which means losing a portion of their staked ETH. In return for their role in securing the network, the participants receive Ethereum validator rewards, distributed in the form of newly minted ETH. 

The challenges of solo ETH staking 

Staking as a validator offers potentially higher rewards compared to other staking methods because of the absence of service fees, but it also comes with a higher barrier to entry. Running validator software requires significant technical expertise and maintaining constant uptime for your validator node is crucial. 

For instance, setting up and maintaining a validator node requires the knowledge of command-line interfaces, blockchain technology, and the specific software used for validator operation. Troubleshooting any technical issues can be challenging for those without a strong technical background. Allow to explain these challenges in detail. 

Hardware and software requirements 

The path of a solo validator begins with an assembly of a robust hardware platform. The list of crucial components includes a high-performance processor, ample RAM (ideally exceeding 32GB), and reliable storage. Additionally, a stable internet connection with minimal latency is crucial for optimal operation.

Next, you'd have to download a validator client like Geth and Prysm, preferably from the Ethereum official website. Properly running these clients could be a burden to some as it includes downloading the entirety of the Ethereum blockchain history, meticulously verifying transactions, and proposing new blocks to the network.

A technical hurdle of establishing a solo validator node

The setup process itself could pose a challenge for those lacking technical expertise. Here's a closer look at the potential difficulties:

  1. Downloading and installing the chosen validator client: While seemingly easy, this initial step can be challenging for individuals unfamiliar with command-line interfaces.
  2. Depositing the ETH minimal stake (or more) to a contract: This locked ETH serves as collateral, and any technical missteps leading to loss of access can be disastrous.
  3. Configuring the validator client: Setting up a strong password and figuring out the complexities of key security are of utmost importance. A single mistake can compromise your entire stake.
  4. Ensuring connectivity and network synchronization: Maintaining constant uptime for your validator node is paramount. Any downtime, even for brief periods, translates into missed rewards or potential penalties.

The never-ending duties of Ethereum validator 

Maintaining a solo validator node necessitates constant attention, like tending a fire that must never go out. Staking ETH independently entails regularly checking for errors, software updates, and ensuring a close to 24/7 uptime. A single missed update or technical hiccup can disrupt the flow of earnings or make a dent in the crypto stake. 

Moreover, a loss of validator key could mean a permanent loss of access to the locked up holdings. Therefore, secure storage and meticulous handling are essential. Lastly, the Ethereum protocol undergoes continuous changes and improvements. Keeping your validator software updated to maintain compatibility with these upgrades requires ongoing research and execution. 

All in all, solo staking, while most profitable and immersive, requires a great deal of tech knowledge, while there is a way to become involved in running the Ethereum blockchain on the same validator level but without the tech hassle. 

How to stake ETH securely and hassle-free with a non-custodial provider 

Non-custodial staking providers like CryptoStake come in, offering an equally secure but far less "involving" alternative to solo staking. Such non-involvement comes at a price, of course, but rest assured that the price in anxiety that inexperienced solo staker pay is far steeper. 

The keys are yours, so is your crypto 

Similar to the solo campaign, non-custodial staking ensures that users retain complete control over staked crypto throughout the entire staking period. Unlike custodial exchanges that hold your private keys, CryptoStake never interacts with the keys that grant access to your funds. We only request access to the validator key, which allows us to perform necessary maintenance on your behalf.

‘Tap and earn’  - a simple staking formula 

For CryptoStake users, the process of setting up an Ethereum validator is a cakewalk. After synchronizing your wallet and loading your ETH, staking becomes a one-click operation. There's no need to download additional software, monitor uptime religiously, or actively participate in the staking process beyond tracking your ETH validator rewards. Through diligent strategy development, CryptoStake has optimized our proprietary ETH staking setup to minimize the risk of slashing (losing a portion of your staked ETH) to less than 1%. This exceptionally low slashing risk sets us apart in the industry. 

Guaranteed uptime and tax compliance

Ensuring consistent uptime is essential for effective ETH staking. CryptoStake achieves this by strategically duplicating validators across three independent data centers. In the unlikely event of an outage at one location, the other two data centers seamlessly take over, ensuring uninterrupted staking activity.

Furthermore, CryptoStake understands the importance of tax compliance in the cryptocurrency space. We want all our users to be able to effortlessly demonstrate the legitimacy of their ETH staking earnings. This is why we provide comprehensive earning statements that can be readily incorporated into your tax forms. This tax assistance is a rare benefit not typically offered by other crypto staking providers.

A small fee for big benefits 

CryptoStake charges a modest 3% fee to cover the costs associated with maintaining a secure, optimized staking environment. Think of this fee as an insurance policy that guarantees a smooth staking experience and minimizes the risks associated with slashing. By outsourcing the complexities of ETH staking to CryptoStake, you can enjoy the benefits of passive income generation without the technical burdens and anxieties of solo staking.

ETH wallet staking in CryptoStake explained 

Originally launched as a mobile application with ETH wallet staking feature, CryptoStake recognized the diverse needs of its users. To cater to a wider audience and provide more flexibility, CryptoStake introduced a desktop version. This expansion allows users to choose their preferred platform – managing their staking portfolio on-the-go with the mobile app or leverage the features offered by the desktop application.   

The mobile version of the app provides an additional security layer through optional biometric authentication, specifically fingerprint recognition. Note that the app earned the highest score in the penetration test executed by Hacken, a recognized team of tech experts specializing in auditing smart contracts and blockchain projects.

The desktop version offers advanced features with detailed insights into validator performance to help optimize a staking strategy to reach a full earning potential. 

Crypto staking tip: For the ultimate flexibility, consider installing both the mobile and desktop versions. This lets you monitor your ETH earnings and staking activity seamlessly, regardless of your location. 

How to stake ETH in CryptoStake 

You can easily find the application in popular app stores or get it on this website. After a quick download, you will open the welcome screen, and here is what you have to do - only a few simple steps - to initiate ETH staking. 

  1. CryptoStake doesn't make you fill out lengthy registration forms. Simply create a secure password and safeguard your randomly generated 12-word recovery phrase (think of it as your crypto vault's master key!). This phrase is crucial for regaining access, so store it carefully.
  2. Once your account is set up, transfer the amount equivalent to or higher than the Ethereum minimum stake, set up at the standard 32 ETH. Remember, the transferred ETH and any other supported cryptocurrencies remain firmly under your control. We operate under a non-custodial model, meaning we never touch your private keys or access your funds.
  3. Head to the dedicated staking section within the CryptoStake app (look for the "S" icon). This section provides everything you need to make an informed decision.
  4. To further empower your strategy, utilize our powerful ETH staking calculator. Estimate your future ETH rewards and solidify your investment plan. Once you're ready to join the network, simply hit "Stake." The activation period may take a while, but blame it on the booming popularity of ETH staking.
  5. With your stake active, which usually takes about 13 days, you'll start collecting ETH rewards directly within your CryptoStake wallet. The app allows every user to monitor their staking progress and track reward accumulation in real-time. Our service fee of 3% is deducted before rewards arrive in the wallet. 

For enhanced security and flexibility, CryptoStake offers validator key export functionality. This key, combined with your unique validator ID (traceable across platforms), allows you to access your stake from other wallets if needed.

By completing these steps, you'll become a full-fledged Ethereum validator, contributing to the network's security and earning passive rewards in ETH. CryptoStake empowers you to participate in the future of finance with ease and control. 

More tips on how to stake ETH effectively

We've already mentioned it briefly, but allow me to reiterate that our proprietary crypto staking calculator will serve you well in creating a strategy that generates passive income for months or even years to come. With this calculator, you can forecast your earnings in crypto or USD for up to 20 years and assess the total reward value and reward rate for the chosen period.

For ETH staking, it requires a 10-day period. The unstaking period is necessary to safeguard the stability of the Ethereum blockchain. However, due to the inherent volatility of the cryptocurrency market, many things can change over 10 days, especially regarding prices. Therefore, it's advisable to analyze the market yourself or seek professional advice before deciding when to withdraw your stake from the network.

Consider reinvesting your ETH validator rewards. This practice, known as compounding, dictates that you automatically add your earned ETH back to your staked amount. By increasing your overall stake size, you amplify your chances of being selected as a validator, leading to even greater returns over time thanks to the compounding effect. 


What does it mean to stake ETH? 

Staking ETH involves locking up your Ethereum tokens to help secure the network and earn rewards in return.

How much Ethereum do I need to stake? 

To stake Ethereum on CryptoStake, you'll have to meet the minimum requirement of 32 ETH.

How much will I earn staking Ethereum? 

The exact amount you earn staking ETH depends on current market conditions. To get a personalized estimate, use CryptoStake's built-in calculator, which factors in current APY and your stake size.

What is the risk of staking ETH? 

Staking ETH offers potential rewards but carries slashing, impermanent loss, and smart contract risks, although CryptoStake minimizes these through its secure infrastructure and established practices.  

#crypto staking
#ethereum staking
30 april 2024