Ethereum Staking Contracts Get Extra Attention as Simple “Buy and Hold” Strategy Becomes Less Efficient
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- Why do investors choose stake?
- How much do ethereum stakers earn
Ethereum and other altcoins inflicted significant losses on their holders, with a 30% market drop; This is the reason why some traders choose the safe and optimal option to invest in assets. Ethereum’s staking contract allows to hold Ethereum and get even more coins.
Why do investors choose stake?
With the rise of consolidation on the crypto market, long-term traders and investors looking to buy larger amounts of coins can change their investment direction and deposit money in a more convenient way.
The number of ETH pledged in the ETH 2.0 deposit contract has exceeded 9 million, the pledge rate exceeds 7.5%, and the market cap is worth over US$30 billion, ranking in the top ten of the cryptocurrency market can be given. Value. pic.twitter.com/2OLOFcITgZ
— Wu Blockchain (@WuBlockchain) 16 January 2022
Staking contracts allow investors to receive “passive income” with the help of their collateral. But Ethereum staking is not available for investors who are willing to grow their portfolio without spending any time on trading.
To become eligible for the rewards, users need to become validators. By sending 32 ETH to their wallet, individuals can activate the validator software. As validators, clients become responsible for storing data, processing transactions, and transferring blocks through the network. The process of verification is the same as that of mining.
How much do ethereum stakers earn
According to the official Staking Launchpad page, Ethereum miners are currently able to get 5.2% annualized rates for staking their funds. With a standard collateral of 32 ETH, investors receive 1.6 ETH annually.
The drawback of such investments is the inability to withdraw funds from the contract immediately. This requirement puts some off on active traders and investors who usually act quickly on rapidly changing market conditions.