Ethereum is undergoing a major change. In short, the system will change from proof-of-work to proof-of-stake. Meaning you’ll have to stake (invest) coins to get a return on your investment, rather than mine with your graphics card. Also, the new chain will implement a burning tokens feature. This will help DApp developers to burn projects that might have been hacked, and it will also reduce the amount of tokens available, bringing the Ethereum blockchain closer to the scarcity of Bitcoin.

Whatever the result may be, there will be changes. Ethereum is the second-most popular crypto after Bitcoin, in the sense that it provides an infrastructure for DApps, DeFi, NFTs and DAOs. That’s a lot of stuff to handle and we’ve only begun to scratch the surface.

Note: This is not financial advice. You should consult your accountant or your financial advisor for any decisions you make.

Now, you can read more on Ethereum 2.0 on Binance. The way I understand it, they’re implementing the changes into a forked chain and the developers will merge the two chains sometime in 2022. Until then, it feels like a good investment to stake some Ethereum in there and see what happens.

There’s a way to stake Ethereum 2.0 on your own.

You need:

  • A node of your own (technical knowledge and a spot on the waiting list.)
  • 32 Ether.

Both are quite tricky. Even if you have both, you’ll still have to wait your turn in the system, and it’s a long waiting list. And even then you have to maintain some strict standards.

What if there was a way to just stake some coins and leave it to the experts?

Well, thankfully Binance provides us with that option.

All you need is an account on Binance, you can sign up here and get a 10% discount on fees forever. Those tend to add up, especially when you plan to invest for the long term.

  • Sign up at Binance. Verify your account, load up some fiat money and buy Ethereum, or send Ethereum from somewhere else.
  • Navigate to the Earn Tab. You’ll find a button under Fixed Terms, called “ETH 2.0 Staking.”
  • You should read everything on that page so you understand what you’re getting into. Frankly, the info isn’t enough, you should also research it on your own from other sources and decide whether you want to invest into this.

In short:

  • There are no guarantees.
  • Your staked Ether will not be available for close to a year, maybe even two.
  • You get BETH back for your ETH stake.
  • Your only proof-of-stake is your BETH position.
  • What the fuck is BETH? I don’t know. I think it’s the forked chain that they’re tinkering with. It’s just some other form of ETH, which you can swap in the Binance Marketplace at a near 1:1 ratio. There’s usually a loss of about 1%. Yes, you can just swap your BETH to ETH and Stake them again, but you’re gonna end up with less and less each time (I think 15% less.)
  • You’ll be paid out in BETH according to your held BETH. So, it’s time to HODL to that BETH.
  • AGAIN, because it wasn’t clear to me when I first did that, you need to hold onto that BETH. It doesn’t matter how much ETH you’ve staked, you get nothing if you don’t have BETH in your spot wallet.
  • The system doesn’t tell you how much the payout will be. I don’t really care as long as I’m getting dividends, since I like Ethereum and believe in it long term. If you’re in the mood to make calculations, go ahead. Here’s mine so far:

As you can see there’s a payout at the same time every day based on your BETH position, so again, HODL onto that BETH. I think it needs to be available in your Spot wallet. If you swap it back to ETH it won’t work, and if you stake it again it won’t work.

So, that’s it in short. I don’t know if the change is gonna work out, but I’m sure it’s gonna be big. And with the number of DeFi etc projects running on Ethereum right now, I want to believe that the developers have thought this through. I have a small amount invested in this, remember from the top of the post that you need 32 Ether to do this on your own, whereas this way it’s just whatever you’re comfortable with risking in this.

The payout adds up so it’s also compounding. My initial funds are small and the result won’t be impressive after two years, but with a bigger amount I might see some nice compound interest at the other end.

This is not financial advice. But if you want to, sign up for Binance and get 10% off on fees forever. And then hit that Stake button to put your money where you mouth is and invest in the future of cryptocurrency.

BullionVault

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