Topic: Earn passive income with ethereum 2.0 (Read 415 times)

binance already offers this possibility to stake eth and obtain interest in eth 2.0 but this type of investment has a strong contraindication the eth invested can no longer be withdrawn until the actual arrival of eth 2.0, then also putting on an own node will require 32 eth a considerable amount but surely pools (official and not) will arrive to do this

If you have multiple Ethereum coins, you wouldn't want to use those coins for staking.
A very small percentage, and if you use smart contracts, you will pay several hundred dollars in transaction fees, which will make your profit minimal.
And it is dangerous to store on centralized exchanges, I have been trying not to do this lately.

Ethereum is likely going to be the  first  big cap altcoin that is energy efficient! This will attract big investment and demand for ethereum network!  The passive income inclusion as a result of network upgrade from proof of work (pow)  to proof of stake (pos) is another bullish signal for ethereum value in the future,  there will be gradual price increase of ether in the coming days and months!

To earn on Ethereum 2.0. you don't even have to have 32 ETH.
To become a validator you can:
Launch your own node by staking 32 ETH;
Join via non-custodial validators (for example, p2p.org);
Join via custodial services (crypto exchanges-Kraken);
decentralised pools. This way is the healthiest as it doesn’t make this system centralised and it is acceptable for small investors.

This is cool but still a risky gamble. We all knew that once staking is up for eth2, it will be subjected yo heavily volatility. The part of passive invome is there, provided that eth value is steadily increasing. However do we find it survivable when the bear market kicks in and a heavy drop happened on the market once again? Staking is good but when its value decreases it also got affected.

As you said, you don’t necessarily need 32 ETH to become a validator. Apart from decentralised pools, we can become a validator via non-custodial validator (for example, p2p.org) or via custodial services (crypto exchanges). In terms of what exchanges offer such opportunity, I can name Kraken, Binance as the most popular. Personally I like decentralised pools more than others. They are optimal for people with small capitals and don’t make this system centralised.

Once ETH 2.0 officially launched they will change the whole system of earning the tokens, from mining to PoS which will make the coins is so much valuable. I wonder why the price is still low right now maybe people are still waiting for this launched before the price going to the moon

The staking of Ethereum 2.0 (for passive income) looks complex. Since the aim is on supporting Ethereum 2.0 for the future, are there no simpler and affordable means of earning passive income using Ethereum 2.0? It appears this is for the big guys? Or can this be done in a pool? It is going to be challenging because there are other attractive upcoming packages especially as the requirement is on the high side.

This type of offer is for the selected few no doubt, not very many people can easily have 32 eth to run a node as a validator, that's quite high to begin with, and as for joining a pool, like someone already mentioned above there will be many fake ones out there, the risk of falling into the wrong ones is very high, from all indication this is not an easy way to earn passively, not in favor of the smaller guys, better to look out for other options with less risk.

I personally love crypto because of your ability to earn a crazy amount of passive income. I personally eat most of my passive income on NEAR. NEAR gives me 11.2% liquidity staking and in mid august is starting metapool which allows you to earn 10% staking for NEAR tokens and the other tokens in the pool, it’s an amazing concept and I can’t wait for it. I also mint NFTs MINTBASE which only cost me 7 NEAR to start my store and the gas fees on there are basically non existent. It’s so easy to mint on MINTBASE, so it’s been another great place for me to earn passive income. There are also amas where you ask questions and if yours is selected for the ama you make money, you can also make price charts, memes and more ways to earn income as well. It’s a great place for a side hustle especially when your earning tokens that could eventually be worth a lot more than they are now.

this is a good breakthrough for ethereum to provide passive income for those who want to invest into eth 2.0 with the presence of hardfork yesterday causing the price of eth to rise high and create a new ath.in the future eth 2.0 will be eagerly awaited new breakthroughs given to eth it seems that eth has begun to realize the existence of a signal of revival bnb to rival the success of eth during this time.I hope this eth 2.0 project will be successful I am interested to follow this eth staking pool.

You can stake ETH now on Lido and you don't need 32 ETH. They give you stETH so you can participate in DeFi with your ETH, it's not locked. I took a loan on my ETH and bought NEAR. I'm staking NEAR for almost 12% APY so I'm making more profit.

I will just keep 27 ETH in my wallet and use 5 ETH to trade than staking because the reward will need to wait until it can pay the fees. Besides that, I can make more ETH from trading, especially since the Ethereum market has become better than before. Even if the Ethereum market is not better, I will still try to make more Ethereum instead of waiting for the reward from staking. I can not accept the risk inside the staking as I do not hold the ethereum in my wallet.

This is again a great point to add to the question raised here about the difference between bitcoin and Ethereum. In Bitcoin, anybody can be a miner and earn a proportionate income depending on their initial investment. With this 32 ETH requirement, you can be sure that only the old and already rich will be able to take part in the network.

32 ETH is a lot of money if you weren't here since 2013-14. So, the PoS system just reinforces the "Rich get richer" mechanism despite crypto supposedly being a way out of this. I think Vitalik and Co.. knew this all along. The promise of decentralized finance on decentralized smart-contracts is turning out to be a false one to prop up a private corporation. It would be so much better to stick to PoW. Ethereum is working fine and already so much value has been deployed. L2 solutions are also on the way. Despite these developments. Switching to PoS is akin to corrupting your roots in order to have more business. This has been a reaction to other centralized chains and will only make Ethereum lose its one real USP over these other smart-contract platforms.

What I think in my head is this way is look like staking Dash which needs a big number of ethereum 32 ETH

But congratulation to people who did stake ETH and earned passive income. But for common people, can not participate in the staking rewards. Having 32 ETH now means a lot and most people have less than 32 ETH. This is the way to make the rich still richer and add more money to their wallet.

As usual, high risk can give high rewards. Research before you take part in that and knowing the risk will be important.

Ethereum is the second most popular coin in the coin market at the moment.  It is not possible to make a short time profit by investing in small investments here.  Ethereum 2.0 is the biggest opportunity for big investors right now.

You get the logic the minimum of 32 ethereum is one of the major obstacles standing in the way of smallholders of Bitcoin from staking with the first option, but again the second staking option allows a user to stake any amount but with conditions and a small percentage in reward.

When talking about centralization/ decentralization, i think it is always about who can control the chain. In PoS, all you need to control/ re-org the chain is stake. In PoW, even if you need a lot of resources for mining, you do not invest those resources into "stake", you invest it into hardware which provides you an income. It does not give you a "say" in the network.

My line of thinking is that having the ability to mine more coins does not make you have control over the chain. In PoS, there will always be a central party, a corporation, a foundation deciding on a variety of parameters to set which determine how the chain proceeds. Those decisions can easily be influenced by those who have the most money to invest into buying "shares".

If you see what has happened with MEV (Bots essentially bribing miners for transaction bundles that sandwich other people's transactions), it seems to me that even PoW is not suitable for something like smart-contracts on-chain involving huge transactions. It is not a purely decentralized version that is sold to investors and people around the world. Its an esoteric world where bots are making 100s of ETH at the expense of users. Nobody talks about it and nobody cares. Imagine if a bank infrastructure provider was guzzling away millions of dollars in transaction fee, would it be considered trustworthy?

I think the problem of MEV will only exaggerate with PoS. If you think its otherwise, then I'll be glad to discuss. You see, I have been looking for a good Pro-ETH user on the Altcoin section for sometime to discuss this stuff. Yet, there are mostly just farmers and spammers here. Good to have you.

I agree that from the "fee distribution" point of view, this sounds better. Yet, how is this different from mining where you can have the same earning by directing your hashpower to a pool and getting the BTC depending on your portion of the hashrate??

Everything has its risks however.
Having a node means you're at risk of someone hacking it.
Joining a pool has a risk of pool ghosting away with the funds. Just be sure to DYOR before joining any however, there will be MANY fake ones

It may be seems the concept of rich richer,but if we make some efforts and get into the validator.Even we can some good Capital.Important one is,you need to find up he legit people.Many scammers in this field.You should not get into the scammer to lose your money.Passive income was essential on for all the people in this world for now.

POS make dev and old members a way to make fast earning. It represents the easiest solution to the problem of fees that most currencies suffer from, but it does not mean the desired decentralization.

Profit will not be easy, you need about 32 Ether, which is not a small amount.

Other than that, all types of stamping involve little risk or dependence on a third party.

Yeah. By definition of passive income, You will gain profit without a risk of losing you original investment(ETH). Trading can't be consider as passive income because there's no guarantee that you will get profit consistently. Staking and Lending are the current method available right now to earn passive income via Ethereum. Where do you stake your ETH and what is the APR you are getting on it??

I don’t agree with you that trading is not the only way to earn passive income with Ethereum trading is one of the riskiest aspects of the cryptocurrency investment option as one can lose all your funds because of bad trading decisions.

I still think staking is the most lucrative and less risky investment in cryptocurrency so far.

There will be sure price action as there are whales that will move the market from time to time. That's for sure no matter what happens, there's no assurance that it will only stay to one price.
Assuming that it's already on the go, there's just the confidence that there's going to more favor to the holders and stakers but never forget, this is cryptocurrencies.

This transition from PoW to PoS is a significant milestone towards becoming influential towards the #1 race in the cryptocurrency space. I don't think it will ever beat Bitcoin, but ETH is easily one of the best. This is one reason why ETH is continuously rising in price, and it seems that it's not that far from reaching higher prices like, let's say $10k.

Understandably, APY would change because of the fluctuations and all the inevitable losses that could happen while staking. That's just the risk towards it. This makes me feel that I need to buy more ETH.

There is a major difference when you own a mining farm to mint POW initially you are taking the risk and spending money to maintain the network and even after that you need to sell the minted coins to maintain the farm and they cannot hoard the coins indefinitely unlike staking where you are holding the coins and there is no resources to pay and you can hold them indefinitely and have the absolute governing power.

Anyone who is willing to spend money can set up a farm and compete with other mining farms in POW, can you absolutely say that with POS, new entrants even with money and willing to spend can farm as a main node or will it be restricted for a selected few, a new world of centralized cryptocurrency.

But to a certain degree the possibility for everyone to stake might already have been priced in right now. People buy Ethereum now in anticipation to soon be able to stake their Ethereum with the 2.0 upgrade. I think there will still be some good price action, but probably not as much as many might think. Most of the investors now buy with the plan to once stake it or even dump some of it as we get closer to the release of staking to the public.

The whole idea of Ethereum staking is good and at the moment the APY is OK to me but can not compare with that of other coins offering stake and farming, the only disadvantage is that since ethereum staking come with a lock period what happen when the price change when the coin is Still locked in the staking pool.

That's for sure, while there's not that much attention that's being put into staking ethereum. It's just for now but once it's fully rolling and the entire announcement is official about staking.
You'll see that bunch of holders will come out of their caves and will start to stake their Ethereum on those different platforms or pools.

Agreed and remember if there would be a locking period for the ethereum that already staked in the network. The price change can affect the capital value that being used to stake ethereum.
It's not always profitable to stake the major coins. is not it APY that offered by cake on stable coin pool was bigger than near?

The current rate on Stakewise is not attractive compared to other farming and staking sites, but since we are talking about Ethereum, the second most popular coin in the market, it will still attract more investors to pool their Ethereum, I'm sure whales will take this opportunity to earn more , not really for us small-time investors.

well it's impossible to make the apy stay still unless your coin infinite supply, which will affect supply and demand. imo a decrease on apy with an increase of price is what most people seek, so it's not a huge problem if the project has solid foundation.

Although it's going to be a good passive income in the future, the APY shall change overtime due to the demand just like the other coins that have been into staking.
As start, the APY seems to be good but I guess as time passes by, it'll change and might decrease.

https://stakehound.com/blog-post/fireblocks-eth-2-key-management-incident/
"June 22 2021 — On the 2nd of May 2021, we were informed by one of our custody providers, Fireblocks, that 38,178 of our staked Ethereum may have been rendered inaccessible because of a failure by Fireblocks to secure the cryptographic keys as they were required to do."

I also like to give links to articles
If you use non-official services, then think carefully about whether you should trust them with coins that could make you a millionaire.

Why POS makes the system centralized in your opinion? Because rich people will own majority of "shares/ stock/ equity" = voting power? Isn't it even worse with POW, where rich people with resources can set mining farm in most profitable location all around the globe, negotiate lower hardware prices, negotiate lower energy price = can mine cheaper than others with less money? With POS you need 32 ETH and you can mine as efficient as a hodler with 100k ETH (profit from 1 ETH will be constant).

You can stake Ethereum but you will need to use a third party service to do it unless you are very computer savvy and have a good home computer with reliable electricity and internet 24/7. Every outage means that you get slashed and lose money. It's a lot easier to stake NEAR in your wallet for 11% APY.

The SEC has been clarifying that if you solicit funds from investors and if buyers bought into funds hoping to profit from deployment of some technology then that is a security. This will definitely make Ethereum a security.

The move to PoS means that those with the greatest amounts will have the "shares/ stock/ equity" of Ethereum locked up for a fixed income, similar to dividends. With PoS, the transformation of Ethereum into a corporation will be complete. Ethereum can no longer claim to be a software stack to build smart contracts on. It will be defined by a set of rich stakers providing infrastructure for a business and profiting from the rent they receive on the usage of that infrastructure.

This just begs the question that while Vitalik and co. always knew that what they were promising (smart contracts) is only possible in a centralized system like this, why'd they galvanize the community with the promise of decentralization. Like, all of this community was shown a vision of a decentralized, permissionless compute-on-the-blockchain system. Vitalik is too smart to not realize that this was not possible. Ultimately, things have moved to a centralized system where you have rich rent seekers being paid for an apparent service that was supposed to be owned by everybody.

Was this intentional or not is something that the people at SEC will be scratching their heads to understand.

The last few weeks have been so exciting in the entire crypto currency space, With ethereum achieving one of it major upgrade with the London hard fork which is the latest series of development which sees to the transition of the ethereum network from proof of work to proof of stake model Which includes, EIP-1559 change in the ethereum transaction fees market.

Ethe2 gives token holders the ability to stake their ethereum in a wide range of ways and earn passive income through one of the options are.

1: ehtereum holders with at list 32 Ethereum can operate a validator node to verify transactions on the network.

To help achieve this several options including staking pool, and centralized exchange staking has been adopted to aid Ether2 token holders access to earn income while they sleep.
More info here:
https://cointelegraph.com/news/altcoin-roundup-hodling-ethereum-here-s-how-and-where-to-stake-your-eth