How to stake Ethereum (ETH) from the UK

By   |   Verified by David Boyd   |   Updated 29th August 2022

  • Learn how to stake Ethereum for a passive return on investment.
  • Find out which exchanges have Ethereum staking for the UK.
  • 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 the UK, but for most people, staking your Ethereum at an exchange will be the easiest option. Scroll down to get started.

Where to stake Ethereum

eToro Crypto

On website

eToro Crypto

Highlights

  • Trade and stake a range of crypto assets with low fees.
  • Copy successful traders. Practice with a demo account.
  • eToro is regulated by CySec, FCA and ASIC.


Disclaimer: Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply. Please give the risk warning sufficient screen time and prominence.


Pros

  • The user-friendly website and app make it easy to trade from anywhere.
  • Trade Bitcoin, Ethereum, and 60+ other crypto assets.
  • With its CopyTrader feature, you can replicate the moves of other investors.
  • Start trading with just $10.

Cons

  • There is a 1% fee that is added to the market price.
  • Other exchanges have more selections of crypto coins and tokens.
Coinbase

On website

Finty may be compensated when you click on the link.

Highlights

  • Get £5 in Bitcoin with your first trade on Coinbase.
  • Buy and sell popular digital currencies, and keep track of them in the one place.
  • Invest in cryptocurrency slowly over time by scheduling buys daily, weekly, or monthly.
  • Crypto stored on Coinbase servers is covered by an insurance policy.


Cryptocurrency is not regulated by the UK Financial Conduct Authority and is not subject to protection under the UK Financial Services Compensation Scheme or within the scope of jurisdiction of the UK Financial Ombudsman Service. Investing in cryptocurrency comes with risk and cryptocurrency may gain in value, or lose some or all value. Capital gains tax may be applicable to profits from cryptocurrency sales.


Pros

  • Get access to a wide variety of altcoins.
  • Start trading with as little as $2.
  • Offers Coinbase card which allows you to spend crypto anywhere.

Cons

  • Fees are higher compared to other exchanges.
Kraken

On website

Kraken

Highlights

  • Get started with as little as $10.
  • Sign up today and buy 50+ cryptocurrencies in minutes.
  • Make easy deposits and withdrawals, measure your portfolio's performance and keep track of all of your crypto in one convenient place.

Pros

  • Large selection of tokens to trade.
  • Earn rewards by staking eligible assets.
  • Access to a range of educational materials.

Cons

  • Limited options to fund your account.
KuCoin

On website

KuCoin

Highlights

  • Safe and rapid Bitcoin purchase.
  • Multiple order types for all kinds of risk appetite.
  • Sign up and get a welcome gift.

Pros

  • Easy signup and quick verification process.
  • Competitive trading fee.
  • Spend your crypto using a Zipmex card.
  • Mobile apps.

Cons

  • Limited customer support option.
Binance

On website

Binance

Highlights

  • Sign up on Binance to get a 100 USDT cashback voucher. Terms and Conditions apply.
  • Trade over 50 cryptocurrencies with low trading fees.
  • Uses state-of-the-art storage technology to protect your cryptocurrency and GRB assets.
  • Earn rewards for holding coins and tokens.

Pros

  • It has some of the lowest trading fees out there. 0.1% for spot trading and 0.5% for instant buy or sell fees.
  • Credit card or debit card deposits are accepted.
  • Provides charting and trading tools suitable for advanced crypto traders.

Cons

  • The platform UI can be complicated to learn for new investors.
Uphold Crypto

On website

Uphold Crypto

Highlights

  • Invest in 110+ coins including the majors, altcoins, and stablecoins with 0% commission.
  • Ability to trade crypto against other assets like foreign currency and commodities.
  • Stake a range of coins with competitive yields.

Pros

  • Open an account in less than a minute.
  • Low deposit requirement and commission-free trading.
  • Option to trade fiat currencies and precious metals.

Cons

  • High spreads on low-liquidity assets.

How to stake Ethereum

If you're thinking of taking a stake in Ethereum (ETH) from the UK, 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 penalised. 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.