Ethereum is the second strongest token after Bitcoin in terms of market cap and price.
Ethereum’s blockchain transitioning to a more effective proof-of-stake consensus mechanism is making ETH2 more scalable, secure, and sustainable to the benefit of the crypto ecosystem.
Instead of becoming a miner for the PoW system, Ethereum miners are regarded as Validators.
Thankfully, Ethereum validators can earn rewards by staking their token which is required to verify and add transactions into the blockchain. Validators serve as auditors and form the backbone of the Ethereum blockchain.
In this article, I will explain who an Ethereum validator is and how much you can earn if you want to become one.
• Becoming an Ethereum validator could be rewarding, but not everyone can afford to become an Ethereum validator due to the high minimum amount of 32 ETH.
• As an Ethereum validator, you can earn as much as 10% of whatever amount you stake depending on the exchange, which means going by the 32 ETH minimum rule, your earnings would be $9292 or 3.2 ETH annually.
• Ethereum validation is a lucrative venture because of its high value, as not all cryptocurrencies are worth validating for.
• Ethereum validation is a passive activity, which means you should not depend on it as your major source of income.
SEE ALSO: Quick Steps To Stake Tezos On Coinbase
Who is an Ethereum Validator?
An Ethereum validator is an individual who operates via the proof of stake mechanism and is randomly selected to participate in the validation and verification of Ethereum transactions and the creation of new blocks.
For you to even have a chance of being selected for the task, you must have staked a particular amount of ETH for a given period, after which, if selected to carry out the task of verifying transactions, you would be rewarded with a specific amount of crypto for your efforts.
Moving on, you might be wondering what exactly it takes to become an Ethereum validator.
Well, just as I mentioned earlier, you would have to have been staking a minimum amount of ETH for a particular period to be considered an Ethereum validator.
Bear in mind that because Ethereum is a top-notch cryptocurrency, it is quite difficult to become an Ethereum validator because of the minimum amount of 32 ETH that you can stake and 1 ETH that you should have to be able to pay for gas fees.
Given how huge that amount is, especially when converted to fiat, which would be $92,921, you would see that not everyone can afford to stake such figures, reducing the list of validators to only a select few.
Nonetheless, the rewards you would earn from being an Ethereum validator are well worth the minimum staked amount of 32 ETH, unlike some other cryptocurrencies which offer far fewer conditions but may not be worth your time if you become their validator.
How Much Can an Ethereum Validator Earn?
As an Ethereum validator, you stand to earn 6% of whatever amount of Ethereum is staked by you, although this could vary depending on the exchange as some can earn as much as 10%.
But for this illustration, I will be making use of 6%. This means that since the minimum amount of ETH you can stake is 32 ETH which is $92,921, you will be earning $5,575 or 1.92 ETH annually or $464 or 0.16 ETH monthly.
At first glance, this may not seem like a very high return, but remember that Ethereum validation is a passive role, which means that while you cannot live off of it for your survival, it will make a good side hustle in addition to your major source of income.
Also, the higher the amount of Ethereum you stake, the higher the amount of money you will earn as a reward for your effort.
Ethereum staking, while lucrative, is best utilized if you have a large amount of ETH lying around.
Rather than doing nothing about it, you could simply put it to work and let it earn profits for you, which you can use to carry out other activities without making use of your major source of income.
Of course, having 32 ETH alone to stake should be a sign that you are doing very well, so you shouldn’t have any problems leaving it to earn interest while you focus on your major source of income.
Becoming an Ethereum validator can be quite difficult, especially with 32 ETH being the minimum amount required for staking. Nonetheless, the activity can be quite rewarding, although not without some risks.
If you have 32 ETH to spare, you may as well go on to stake it and become an Ethereum validator.
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