Today, we will tell you how to run Ethereum Stacking (ETH). Ether mining farms are still operating, and this year integrated circuit device manufacturers are slowly pushing GPU-Miner out of the Ethereum algorithm. Eventually, they will take control of the production of all coins protected by the PoW consensus algorithm “proof of work” and this will inevitably reduce the level of decentralization of blockchain ecosystems.
The world is facing an energy crisis and high electricity costs, Miner bitcoin and other PoW cryptocurrencies are causing discontent. Scalability and energy consumption are becoming major issues as cryptocurrency becomes mainstream and seeks to establish itself as a legitimate and useful technology.
Last December, Ethereum took its first important step towards addressing these issues by launching a blockchain test that will coordinate the bidding and segmentation process in Ethereum 2.0. Ethereum PoW’s current core network will soon be integrated with the updated chain.
What is Stacking in Ethereum 2.0?
Stacking ETH 2.0 is the freezing of Ethereum coins on a smart contract deposit in order to become a validator and participate in the maintenance of the ecosystem, receiving a reward for it. The validator, like the miner, checks the transaction and finds the hash signature of the unit, but spends much less energy.
Blocking coins is needed to ensure that this node will not act to the detriment of the system, because in this case, he will suffer. To run the ether stacking validator, you must enter 32 ETH. The exchange rate fluctuates constantly, but in any case, it is a large amount.
How to participate in the ETH 2.0 stake?
A wealthy investor or an experienced miner who has Ethereum wallet online, has accumulated enough money can start the validator node and start staking ETH. But keep in mind that if you change your mind to work, blocked coins can no longer be returned. They will be available when developers activate phase 1.5, and this is likely to happen next year (and maybe later).
That the validators did not rush to withdraw money en masse and thus did not collapse the ETH rate, the system set a period of dynamic blocking (256 epochs). Those who froze the money earlier will be able to withdraw it first, and the rest will wait their turn. Given the fact that the first validators started stakeholding ETH last year, the withdrawal process of money deposited in October 2021 may take several months from the start of phase 1.5. Therefore, it is better not to invest all the capital in this project.
You can contact the services to start stacking the air through a trusted site. There are also some risks. If you invest in a bench or your validator is fined or even robbed of his deposit for attempted malicious actions, you will suffer along with him. How to safely invest in the collective stakeholder ETH we’ll talk later. Well, those who still decide to act independently, will need instructions on setting up the equipment.
Ethereum stake on the Binance exchange
If the user is unable to deposit 32 coins to configure the node, he can join one of the collective stacking pools. For PoS ecosystems, this is a common practice. You entrust your money to a validator who wants to run more nodes, and he shares the profits with you and other investors.
There are a lot of such pools, but if you want to be guaranteed to make a profit, activate the broadcasting of the broadcast on the largest cryptocurrency exchange Binance. We will tell you how to do it now.
Create an account and buy coins
If you don’t have an account, you’ll need to create one:
- Go to https://www.binance.com/ru and click “Register”.
- Enter your email (or mobile number) and come up with a password.
- Click “Create account” and confirm the login with a digital code that will be sent to your email address or phone number.
- Now you need to pass identity verification and activate additional security settings. You will need personal data, a copy of the passport (old documents are accepted) ID-card or driver’s license, and a portrait photo. To complete the second stage of KYC, you will need to pass a dynamic face check.
It is not necessary to confirm the address yet, so if you are told that the main verification has been passed, you can use all Binance services, including connecting to ETH stacking.
The minimum fee of 0.001 ether, you need to transfer money from a personal wallet or buy for another cryptocurrency or fiat directly on the exchange. If you have a cryptocurrency, deposit it and then exchange it for ETH. Binance supports many commercial trading pairs. If you have a ruble or other national currency, you can use it to buy Ethereum cryptocurrency in three ways:
- Top up your deposit and buy ETH at auction.
- Buy directly from a credit card.
- Find a suitable offer on the P2P platform.
