How to join Staking after owning 32ETH.

Source: Ebunker Chinese Blog

In the past few years, the cryptocurrency market has grown exponentially, and more and more people have joined and accumulated assets through various means, including NFT trading, DeFi, and exchange trading. As the market continues to mature, many investors, once they hold a certain amount of assets, are no longer interested in high-risk investments or active trading. Instead, they begin to consider putting some of their assets in more stable and secure places.

One option is to join ETH staking and receive a stable annual return of 6%-8%. Staking is a consensus mechanism that allows users to participate in network validation and receive rewards. This process requires users to hold at least 32 ETH to participate in the investment, making it an attractive option for investors who have accumulated a large amount of wealth in the cryptocurrency market.

There are four main types of ETH staking: centralized platform staking (CEX Staking):

CEX staking requires you to store your ETH on centralized exchanges such as Binance and Coinbase, which handle the staking process for you. The benefit of this option is that it is a simple and convenient way to earn ETH without having to set up and maintain validator nodes. Additionally, compared to other options, you can usually withdraw your staked ETH at any time.

Large Pool Staking:

In this type of staking scheme, investors pool their ETH with others to create a large validation node, thereby increasing their chances of receiving rewards. Examples of large pool staking include Lido and Rocket Pool. The benefit of this option is that it provides a higher chance of receiving rewards and allows investors to participate with a lower amount of ETH compared to solo staking. Additionally, large pool staking does not require investors to run their own validator node, making it more accessible for those who are not familiar with the technology.

Solo Staking:

Solo Staking requires you to run your own validator node, which requires technical knowledge and the ability to maintain the node around the clock. Compared to other options, the benefit of Solo Staking is that it provides the highest return, as no fees need to be paid to third parties. In addition, investors can have full control over their ETH holdings and can participate in network governance.

Validator-as-a-Service (VaaS) Staking:

VaaS staking is similar to the previously mentioned pool staking, but instead of depositing your ETH into a third-party platform, it is directly deposited into the official ETH 2.0 protocol, with a third-party service provider running the validation node for you. The benefit of this option is that it provides a lower entry barrier, without requiring technical knowledge or node maintenance.

Some VaaS providers, such as Ebunker, allow users to retain control over their "extract private key" function, making the security level of VaaS comparable to Solo Staking and making it the safest method.

Risk assessment

However, before staking, users need to understand some risks.

Putting 32 ETH on CEX seems like a simple choice, but it also comes with regulatory risks. CEX is often restricted by FUD, and regulatory authorities may impose stricter regulations on these platforms in the future. In addition, users cannot control the verification process and rely on exchanges to represent themselves for verification.

Staking in a large pool seems to be a safer choice, but it also comes with some risks. Users need to trust the honesty of the staking pool operator to create/redeem. You may hesitate to take on potential third-party risks because entrusting your private key to a third party is not the practice of a true holder.

Solo Staking includes running a validator node by oneself, which allows users to have full control over the validation process. However, running a validator node is technically challenging and users may need to become technical experts themselves or hire others to help them set up and maintain the node. In addition, Solo Staking requires server costs of over $1000 per month, which may be discouraging for some users.

VaaS Staking is a very attractive option that has recently become very popular. It delegates the validation process to professional service providers who operate the validation program nodes on behalf of users without touching their private keys.

VaaS Staking is easy to set up and maintain. Users can flexibly choose from different service providers based on cost and service. Users do not need to purchase hardware devices or software themselves, they can personally manage their private keys to stake ETH.

Specifically, VaaS service providers (such as Ebunker) perform verification work for users while allowing them to fill in their own Ethereum withdrawal addresses. Users' funds are never misappropriated by third parties and can only be transferred to the Ethereum address they have filled in.

This is a very secure way, also known as "non-custodial". At the same time, VaaS service providers charge relatively low service fees because they do not need to spend money to maintain the liquidity of LSD or distribute it.

After weighing the pros and cons of each option, it is clear that for investors looking to earn stable annual returns with 32ETH, VaaS is the best choice. VaaS Staking provides non-custodial, secure, and low-cost services, making it the top choice for many low-risk tolerance users. Therefore, if you are looking for a reliable and worry-free way to join Staking, VaaS Staking is your choice.

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