How to stake cryptocurrency: a step-by-step guide
Stake crypto by locking a coin through a wallet, exchange or pool on a proof-of-stake chain. Rewards pay for validating, and lockups delay exits.
Vahe HakobyanEditor-in-chief
Updated Oct 5, 20264 min readFact-checked
On this page
- Solo validation on Ethereum needs 32 ETH and a computer left online.
- Delegated staking works better when you hold the withdrawal keys.
- Rewards count as income on the day you receive them.
- Fake staking sites copy real brands and ask for your coins.
Proof-of-stake networks use validators to propose new blocks and check each other's work. Staking helps keep a network secure, because an attacker would need to hold most of the staked cryptocurrency to take it over, and the network pays rewards to those who help. The Ethereum blockchain works this way. How you stake cryptocurrency depends on whether you run a validator yourself or let a service do it.
What do you need to stake crypto?
You need an eligible coin, a wallet or exchange that supports staking for it, and enough to meet the network minimum. Networks set their own minimums, and pooled services accept smaller amounts than solo validation. On Ethereum, running your own validator takes 32 ETH and a dedicated computer that stays online.
How do you stake cryptocurrency step by step
The steps differ by method. Solo validation takes the most setup, while delegated, pooled, and exchange staking do more of the work for you.
- 1Choose a methodSolo validation, delegated staking, pooled staking, and exchange staking differ in minimums and control.
- 2Get the coinBuy the coin or move it to the wallet or exchange you will use, and confirm the network first.
- 3Meet the minimumOn Ethereum you need 32 ETH to run your own validator, while a pool takes less.
- 4Create credentials and delegateYou create validator credentials, upload your signing keys to the provider, and deposit your 32 ETH.
- 5Keep your withdrawal keysHold the keys that let you withdraw your ETH yourself, which limits counterparty risk.
- 6Start stakingOnce the validator is active, it earns rewards for proposing and checking blocks.
What should you do after you stake?
The IRS treats cryptocurrency as property, and staking rewards count as income when you receive them. You report that income at the fair market value on the day you get each reward, even if you do not sell the crypto.
Which staking mistakes and scams should you avoid?
Fake staking sites copy real brands and ask you to send coins to a lookalike address. Rewards depend on network conditions, so treat a promise of a set return as a warning sign. Pooled staking is not built into the network, and rewards go to the pool's validators rather than straight to you.
Frequently asked questions
Your coins stop earning rewards and become available to withdraw, usually after a waiting period that the network or service sets.
No. You can delegate through a wallet, join a pool, or use an exchange staking service.
Yes. A validator that stops participating forgoes rewards and has a little crypto taken away, and proven misbehavior leads to slashing.
Coins on proof-of-stake networks, such as Ethereum, Solana, and Cardano. Not every coin supports staking, so check the network.
