How to stake ETH 2.0 with Binance feature image

Stake ETH 2.0 with Binance Profitability – Pros and Cons

Binance just launched ETH 2.0 staking and we will explain how to stake at Binance. Binance is one of the top Bitcoin trading sites.

ETH 2.0 is the next generation of Ethereum and uses proof-of-stake(PoS) instead of earlier proof-of-work(PoW).

PoS can generate income to stakers. However, the minimum amount to stake is 32 ETH or almost $20.000. Binance has lower the treshold for its users by creating Binance staking which only requires 0.0001 ETH.

You’ll have the opportunity to participate in ETH 2.0 staking and receive BETH at a ratio of 1 ETH = 1 BETH.

In addition, your ETH 2.0 staking rewards will be distributed daily in the form of BETH. 

Summary of Binance ETH 2.0 Staking

  • Reward period begins: 2020/12/02 0:00 AM (UTC)
  • Minimum stake amount: 0.0001 ETH
  • Staking APY: 5%-20%, based on actual on-chain staking income
  • Reward calculation: During the ETH 2.0 staking period, BETH rewards will be distributed daily based on user BETH holdings.  
  • In the future, if BETH is made available for trading, users will be able to trade between ETH and BETH freely. (Note: The trading price is determined by the market, and the spread caused by the transaction shall be borne by users).

Why you should stake ETH 2.0 with Binance

There are many reasons why you should stake ETH 2.0 with Binance staking.

Here are some:

  • Binance will cover all validator operating expenses for users
  • Binance will bear the risk of on-chain penalties
  • Binance will distribute on-chain staking rewards to users
If you are interested in more general information about the Binance trading platform, see our full Binance review.

How to stake ETH 2.0 with Binance

To be able to stake on Binance, you need an account with Binance and an ETH balance.

  • Sign up with Binance and deposit Ethereum.

Get -20% on all fees from Binance with our referral ID.

When you have created an account and deposited Ethereum to Binance you can stake ETH 2.0 by following these steps.

Logín to your Binance account

Go to Binance ETH 2.0 staking page. As you can see in the screenshot below, click on the yellow button “Stake now”.

Binance staking 2.0 page screenshot

Now, you will be asked what amount you want to stake into Binance ETH 2.0 staking, as you can see in the screenshot below.

Make sure to read the notes that your funds will be locked for a certain time that can be over 2 years.

If you choose to proceed you will get a second confirmation window, as you can see in the screenshot below.

Read all the agreements carefully and check the boxes.

After this, you can click on the final confirmation.

Congratulations, you have now staked into ETH 2.0 and you contribute to the security of the network.

Stake ETH 2.0 at Binance second confirmation agreement screenshot

How To Trade or Withdraw the Ethereum 2.0 Staking with Binance?

In general, there is no way to withdraw or cancel your Ethreum ETH 2.0 staking before the PoS network is launched.

However, Binance has created a secondary market for the Ethereum ETH staking contract.

What does this mean for you?

If you want to buy or sell ETH staking contract you can look for the BETH/ETH market and here you can trade your ETH 2.0 staking contract.

The best part is that this contract is trading at 0.93 which means you will get 7% more Ethereum 2.0 staking than you hold in Ethereum 1.0.

Binance VS Kraken Ethereum ETH 2.0 Staking

Both Binance and Kraken offer Ethereum ETH 2.0 staking. Also, they are both offering a secondary market described above.

In addition, they are offering similar staking rewards so it´s up to you which on e you want to use.

In general, we prefer Binance because they have a bit lower fees and more features but if you are a US citizen you can´t go with Binance and therefor you might want to stake ETH 2.0 with Kraken or Coinbase. Kraken gives a bit higher yield than Coinbase in general which is also true for ETH 2.0 staking.

How To Trade or Withdraw the Ethereum 2.0 Staking with Binance?

Yes, you must pay tax on Ethereum ETH 2.0 staking rewards. Luckliy, there is an easy way to pay tax on your staking payouts from Binance.

You should sign up with one of the best crypto tax software and they will help you to automate all crypto tax calculations, including staking rewards from Ethereum.

We recommend Koinly but you can read our article for a full comparison between the best crypto tax software available on the market.

Crypto trading tax software Koinly logo

Ethereum ETH 2.0 Price Predictions

There are many price predictions and analysis for Ethereum 2.0. 

Ethereum 2.0 is a huge upgrade for the network and it comes in several steps. Two of the main purposes are to upgrade the scalability and lower the network fees.

Many believe the price will skyrocket if this implementation gives more value to the Ethereum network.

Read more about Eth 2.0 price predictions and analysis to build your own opinion.

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