- Learn how to stake Ethereum for a passive return on investment.
- Find out which exchanges have Ethereum staking for Canadians.
- Complete step-by-step guide to take you through the process.
Staking Ethereum is a way to earn passive income. There are other benefits too. Staking reduces volatility in the market — because coins are locked up — and helps maintain the integrity of the blockchain for the community in general.
There are many ways through which you can stake Ethereum in Canada, but for most people, staking your Ethereum at an exchange will be the easiest option. Scroll down to get started.
Where to stake Ethereum
On website
Highlights
- Get $10 when you sign up and deposit at least $100 in your account.
- Has the lowest fees in Canada.
- Set up recurring buys for assets like Bitcoin, Ethereum, and 18 other coins so you can invest in cryptocurrency on your own schedule.
- NDAX holds a majority of user funds in an offline, multi-signature wallet.
Pros
Cons
Crypto.com
Highlights
- Earn up to 8.5% p.a. on your crypto, and up to 14% p.a. for stablecoins.
- Spend with the Crypto.com Visa Card and get up to 8% back.
- Shop with Crypto.com Pay and receive up to 10% back, paid in CRO.
Pros
Cons
On website
Highlights
- Safe and rapid Bitcoin purchase.
- Multiple order types for all kinds of risk appetite.
- Sign up and get a welcome gift.
Pros
Cons
On website
Crypto assets are highly volatile. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.
Uphold Crypto
Highlights
- Invest in 250 + cryptocurrencies and stablecoins, 27 national currencies, and multiple precious metals with 0% commission.
- Ability to trade crypto against other assets like foreign currency and commodities.
- Registered with FinCEN (US), FCA (UK), and FCIS (Lithuania).
Pros
Cons
How to stake Ethereum
If you're thinking of taking a stake in Ethereum (ETH) from Canada, this step-by-step tutorial will take you through the process.
Step 1: Select a staking method
The easiest way to stake Ethereum, especially if you're new to the concept, is to use a crypto exchange. This is the method we focus on in this article since it is very consumer-friendly.
If you do not want to sake on an exchange, you can join an Ethereum staking pool (but this is less suitable for beginners).
Step 2: Select an exchange
A number of exchanges offer Ethereum staking. We have listed several well-known and reputable options above.
Before choosing where to stake, be clear on how much you can earn (the yield or APY), how long you need to stake for, and the cost for doing so.
Step 3: Send Ethereum to your account
If you don't own Ethereum tokens already, you can buy them at the exchange. If you already have Ethereum in your wallet, they can be transferred to the exchange you choose and staked there.
Step 4: Set up the contract
The exchange acts as the operator of the staking pool. Rewards earned for staking your Ethereum with them will be managed by the exchange.
When configuring the contract, you'll need to decide how long you want the staking contract to last. A general rule of thumb is that the yield is higher the more you put in and the longer you stake for.
Be sure to fully understand the terms and conditions prior to putting your stake. For example, how will withdrawing your tokens before the expiration date affect the yield?
Pros and cons
Pros
- Staking your Ethereum can be an an easy way to make passive income instead of just holding your assets. Yields increase the longer you stake.
- Staking helps maintain Ethereum's blockchain, which benefits the wider community.
- Staking is a way to generate income without the need for expensive mining equipment, making it much more accessible for all.
- It's more eco-friendly to stake compared to mining.
Cons
- Your Ethereum will be inaccessible while staked. This means you will be exposed to volatility in the price of Ethereum, especially for longer contracts.
- APY is projected. It is based on previous performance.
FAQs
Is it worth staking Ethereum?
The yield may not be worth it if you have a small amount of Ethereum or only want to stake for a short period of time. Yields typically increase when staked for longer.
What happens if Ethereum’s value decreases while staked?
While possible to withdraw early, doing so will generally be penalized. Before you enter into a contract, you be aware what the terms are and be comfortable with holding tokens even if the market goes through a bear phase.
How much Ethereum do you need to stake?
It is generally possible to stake a fraction of ETH at an exchange. However, some exchanges may require a minimum amount to be staked. Amounts and terms vary.
Can you lose money staking Ethereum?
Yes. If the market drops while your Ethereum is staked and you don't want to unstake because of penalty fees, it could be worth less than it was when the contract ends (assuming you would have sold to reduce your losses).
Do you have to stake Ethereum on an exchange?
No. There are a number of independent staking pools for Ethereum. Some of these are fee-free.
