I’m thinking about using a staking service, but coinbase is so easy and I trust it more than most other companies. if I do use a service, which one do people recommend?

  • jeremy_fritzen@alien.topBEnglish
    1·
    1 year ago

    If you have ETH, the easiest way to stake it is onchain directly.

    It may seem counter-intuitive but I think it’s actually easier to do it than in a Centralized Exchange.

    Just buy rETH on any DEX on you’re good. If you don’t know what I’m talking about, check RocketPool.

    In a nutshell, RocketPool is like staking. Your ETH are locked in a Pool (a smart contract) that is used by Ethereum Validators who receive an extra fee for doing that. On your side:

    • You have better guarantees over your funds (we can debate this point but I prefer to trust an audited and well-known smart contract protocol than a Centralized Exchange, no matter how good and well-established is its reputation)
    • You don’t have to stake yourself: being a Validator is risky and requires some good technical skills to maintain it in the long run. In RocketPool, the Ethereum Validators that participate in it are doing this job for you: they stake your ETH.
    • It’s flexible: I don’t know about Coinbase but with RocketPool, since you just swap your ETH for rETH (just keep in mind to keep some ETH on your wallet), you can exit whenever you want, with no delay. Just swap your rETH for any other token or ETH.