Crypto Basics

Ethereum Staking: How It Works

A plain-language guide to Ethereum staking: solo staking vs pooled and liquid staking, the real risks involved, and how to think about whether it's right for you.

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Ethereum staking is how the network pays you for helping secure it: lock up ETH as collateral, help confirm transactions, and earn rewards for doing it honestly.

What staking means for Ethereum

Staking means locking up ETH as collateral so you can act as a validator, the role that confirms transactions and proposes new blocks. It’s the same mechanism that has secured the whole Ethereum network since the Merge, just experienced from the inside instead of watching it work from the sidelines. For the full mechanics of how that security model functions, see Ethereum Proof of Stake: What the Merge Changed.

Solo staking vs pooled staking

Running your own validator directly, usually called solo staking, requires locking up 32 ETH and running validator software yourself, online and available around the clock. That’s a real commitment, in both capital and uptime. Pooled staking, sometimes called liquid staking, solves the capital side of that: a platform combines many people’s ETH into one set of validators, so you can stake far less than 32 ETH. In exchange, you typically receive a token representing your staked position, which you can use elsewhere while the underlying ETH keeps earning. We’re not endorsing a specific platform here. If you look into pooled or liquid staking, research the provider the same way you’d research any third party holding your funds.

The real risks

Staking isn’t risk-free. A validator that goes offline too often, or acts dishonestly, gets a portion of its stake slashed, and that risk exists whether you’re running the validator yourself or staking through a pool. Solo staking also means your ETH is committed for as long as you’re staking it. Pooled and liquid staking add a separate risk on top of that: you’re trusting a third party’s smart contracts with the funds, and smart contract bugs or exploits are a real risk independent of the staking mechanism itself.

If you want to go deeper on whether staking fits your own situation, our lesson on staking and yield walks through it step by step.

Staking and your Zypto App wallet

Zypto App doesn’t run staking for you directly. What it does give you is a self-custodial wallet for your ETH, and every token that natively lives on the Ethereum blockchain, under your own keys, whether you choose to stake independently or simply hold it. If you do decide to stake, through your own validator or a third-party platform, that choice, and the funds behind it, stay entirely yours to make.

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Prices, fees, features and availability mentioned in this article were correct at the time of publishing and may have changed since.

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