Stake with Ledger wallet

[koohl]

Can someone explain to me what the risk is to Stake my Ethereum with Ledger?

Of course, I would like to make money from having my cryptos deposited in my Ledger hardware wallet. And they offer to Stake them. Is there any risk and can I get my money back quickly if I need it?

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[bb8]

It depends where you are staking it; If you are staking ETH 2.0, then it is quite safe (more info here: Ethereum staking | ethereum.org) there is a current APR of around 4.7%.
There is very very little risk involved in ETH 2.0 staking and personally I think it's a good idea to put some ETH laying around to work.

Through your ledger you should be able to stake through a service like Lido (pooled staking like in the article above explains) or something similar - it means you won't have to provide the entire 32 ETH 'deposit' to start a validator.

If you're staking your ETH somewhere other than ETH 2.0 then there is no way for us to calculator your risk at all. (and I personally recommend you don't do it unless you 100% know what you're doing)

 

[troubled soul]

Recent hacker attack on stacking raise so many doubt about its security...better to avoid it

 

[JackAlabama]

koohl said:
Can someone explain to me what the risk is to Stake my Ethereum with Ledger?

Of course, I would like to make money from having my cryptos deposited in my Ledger hardware wallet. And they offer to Stake them. Is there any risk and can I get my money back quickly if I need it?
Click to expand...

it is not risk free at all.
You also face future regulatory risk, since eth is an unregistered security.

You need to analyze how they will do the staking for you in case you move forward. There are several ways it is being done, all with different risk reward profile.
Eventually, you also can explore staking options yourself by using ledger as only the keyholder of your metamask (and do staking "yourself").

 

[legrant]

JackAlabama said:
it is not risk free at all.
You also face future regulatory risk, since eth is an unregistered security.

You need to analyze how they will do the staking for you in case you move forward. There are several ways it is being done, all with different risk reward profile.
Eventually, you also can explore staking options yourself by using ledger as only the keyholder of your metamask (and do staking "yourself").
Click to expand...

ETH is not an unregistered security. in fact, CFTC has said ETH is a commodity. However it's still probably not one or the other yet.

koohl said:
Can someone explain to me what the risk is to Stake my Ethereum with Ledger?

Of course, I would like to make money from having my cryptos deposited in my Ledger hardware wallet. And they offer to Stake them. Is there any risk and can I get my money back quickly if I need it?
Click to expand...

You should stake ETH using Lido, which is the biggest staking platform for it, over $11B worth of ETH is being staked with them. Connect your Ledger to Metamask or Rabby (Rabby is probably more user friendly). Go to Lido's website, click on the "Stake" button for ETH, connect your wallet, set the amount to stake and then sign all the transactions. Once you do that, you'll receive 1 stETH, which should be worth same as 1 ETH. As long as you hold that stETH, you have the rights to unstake 1 ETH from their platform once the staking period is over. You can trade your stETH for other cryptos but you won't be earning any yield if you do, same on reverse, you can directly buy stETH and earn yield without staking it directly.

 

[TracaChang]

koohl said:
Can someone explain to me what the risk is to Stake my Ethereum with Ledger?

Of course, I would like to make money from having my cryptos deposited in my Ledger hardware wallet. And they offer to Stake them. Is there any risk and can I get my money back quickly if I need it?
Click to expand...

The risk is not related with Ledger (if we do not take into account their database hack were all info about ledger buyers was leaked) but about ethereum contracts itself, there is a long list about hacks because of contract bugs so that would be the main risk.

The second risk is depending on the stake service you use, may fail, bank run, or due to a bad strategy loose your funds, it is not the first time that it happens either.

And finally I would like to add that ethereum it is a scam itself, so better avoid shitcoins for the long term.

 

[JackAlabama]

legrant said:
ETH is not an unregistered security. in fact, CFTC has said ETH is a commodity. However it's still probably not one or the other yet.
Click to expand...

It is an unregistered security. Free alpha here:
Check roadshow, team, hidden control, roadmaps, foundation and do not listen to the narrative pushers etc. Then it becomes very clear. 😉
It does not matter what cftc says, sec says something different too for example.

TracaChang said:
The risk is not related with Ledger (if we do not take into account their database hack were all info about ledger buyers was leaked) but about ethereum contracts itself, there is a long list about hacks because of contract bugs so that would be the main risk.
Click to expand...

As long as the cronies around vitalik and lubin are affected, the damage will be taken care of and rules will be amended ad hoc like with the dao hack.. 😉

TracaChang said:
The second risk is depending on the stake service you use, may fail, bank run, or due to a bad strategy loose your funds, it is not the first time that it happens either.

And finally I would like to add that ethereum it is a scam itself, so better avoid shitcoins for the long term.
Click to expand...

Good call. One needs to be careful of that and observe the eth foundation to figure out when they start dumping on retail (and align own trading with this).

koohl said:
Can someone explain to me what the risk is to Stake my Ethereum with Ledger?

Of course, I would like to make money from having my cryptos deposited in my Ledger hardware wallet. And they offer to Stake them. Is there any risk and can I get my money back quickly if I need it?
Click to expand...

You could also switch your eth to Atom / Cosmos and just stake it as well. Your return will also be higher than these measily 5%.

 

[void]

JackAlabama said:
It does not matter what cftc says, sec says something different too for example.
Click to expand...

let the criminal organizations fight and don't waste your time
if there is someone to be sued or if it can be shutdown using force then it's not a property, hence it's bad money no matter what features it has
what's left is bitcoin and couple of other meaningless, most probably dying ones, like BCH or LTC

 

[JohnnyDoe]

JackAlabama said:
You could also switch your eth to Atom / Cosmos and just stake it as well. Your return will also be higher than these measily 5%.
Click to expand...

the minimum inflation rate of Atom is 7%. Always know what you are buying.

void said:
what's left is bitcoin and couple of other meaningless, most probably dying ones, like BCH or LTC
Click to expand...

both are btc forks and are not meaningless at all.

XMR is a strong alternative.

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[void]

JohnnyDoe said:
the minimum inflation rate of Atom is 7%. Always know what you are buying.
Click to expand...

maybe he thinks dilution is not a bug but a feature 😀

JohnnyDoe said:
both are btc forks and are not meaningless at all.
Click to expand...

I'm well aware of what these are and I'm interested why do you think they have their future - let's open a new thread

JohnnyDoe said:
XMR is a strong alternative.
Click to expand...

yes, that's another animal and the one I would personally go with if asked to pick the second one that will survive long-term

 

[JohnnyDoe]

void said:
I'm well aware of what these are and I'm interested why do you think they have their future
Click to expand...

I don't know the future. I know from looking at the past that the future is unpredictable. Not necessarily the best product wins: see Betamax vs VHS.
Therefore, I follow an index investing approach and hold all the top 30 crypto.

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[legrant]

JackAlabama said:
It is an unregistered security. Free alpha here:
Check roadshow, team, hidden control, roadmaps, foundation and do not listen to the narrative pushers etc. Then it becomes very clear. 😉
It does not matter what cftc says, sec says something different too for example.


As long as the cronies around vitalik and lubin are affected, the damage will be taken care of and rules will be amended ad hoc like with the dao hack.. 😉


Good call. One needs to be careful of that and observe the eth foundation to figure out when they start dumping on retail (and align own trading with this).


You could also switch your eth to Atom / Cosmos and just stake it as well. Your return will also be higher than these measily 5%.
Click to expand...

Fair, SEC says one thing, CFTC says another. Nothing law has been passed for ETH to be considered either things, so no, it is not a security nor it's a commodity, officially.

 

[void]

legrant said:
Fair, SEC says one thing, CFTC says another. Nothing law has been passed for ETH to be considered either things, so no, it is not a security nor it's a commodity, officially.
Click to expand...

ETH is a security, no doubt - there is a small group of people that controls the whole thing and it can be stopped by the authorities
you can't do it with BTC or gold or eggs

 

[legrant]

JackAlabama said:
It is an unregistered security. Free alpha here:
Check roadshow, team, hidden control, roadmaps, foundation and do not listen to the narrative pushers etc. Then it becomes very clear. 😉
It does not matter what cftc says, sec says something different too for example.


As long as the cronies around vitalik and lubin are affected, the damage will be taken care of and rules will be amended ad hoc like with the dao hack.. 😉


Good call. One needs to be careful of that and observe the eth foundation to figure out when they start dumping on retail (and align own trading with this).


You could also switch your eth to Atom / Cosmos and just stake it as well. Your return will also be higher than these measily 5%.
Click to expand...

The question by OP is staking ETH, not another coin. You're recommending OP change to coins with 80 times less market cap and way less relevance. He may as well buy a random crypto and stake for absurd APY's.

void said:
ETH is a security, no doubt - there is a small group of people that controls the whole thing and it can be stopped by the authorities
you can't do it with BTC or gold or eggs
Click to expand...

Ethereum is ran by full node operators, there are 10796 at the moment
BTC's 2 biggest pools control over 50% of the hashrate in comparison.

Last edited: Apr 8, 2023

 

[void]

legrant said:
Ethereum is ran by full node operators, there are 10796 at the moment
Click to expand...

the highest priest(s) and the whole ethereum foundation (can) do whatever they want with the network

legrant said:
BTC's 2 biggest pools control over 50% of the hashrate in comparison.
Click to expand...

miners are in charge, no problem in my opinion

 

[legrant]

void said:
the highest priest(s) and the whole ethereum foundation (can) do whatever they want with the network


miners are in charge, no problem in my opinion
Click to expand...

Yeah no that's not how it works, you should take a look at the docs. All Ethereum code is maintained by thousands of developers (you can work on it too), then the code is tested, audited, then it's put on testnet and then, to be put on the main all nodes voluntarily have to update their code.

Seems you don't know how Bitcoin mining works either, most if not all miners work in pools, those pools control what miners do so a pool with more than 51% hashrate can effectively overturn transactions. It happened with one of Bitcoin's hard forks which runs the same code as Bitcoin, twice.

 

[void]

legrant said:
Seems you don't know how Bitcoin mining works either, most if not all miners work in pools, those pools control what miners do so a pool with more than 51% hashrate can effectively overturn transactions. It happened with one of Bitcoin's hard forks which runs the same code as Bitcoin, twice.
Click to expand...

miners decide which pool to use, 51% share is not in anyone's interest, they would migrate to another pool
the position of miners will be even stronger after stratum v2 adoption

 

[JackAlabama]

legrant said:
Yeah no that's not how it works, you should take a look at the docs. All Ethereum code is maintained by thousands of developers (you can work on it too), then the code is tested, audited, then it's put on testnet and then, to be put on the main all nodes voluntarily have to update their code.

Seems you don't know how Bitcoin mining works either, most if not all miners work in pools, those pools control what miners do so a pool with more than 51% hashrate can effectively overturn transactions. It happened with one of Bitcoin's hard forks which runs the same code as Bitcoin, twice.
Click to expand...

the pools are only a vessel to guarantee a steady cashflow, not much more.

most eth nodes run on aws, so easy to control it from that angle too while most bitcoin nodes can and are run on cheap laptops/rasberry pis.

legrant said:
The question by OP is staking ETH, not another coin. You're recommending OP change to coins with 80 times less market cap and way less relevance. He may as well buy a random crypto and stake for absurd APY's.
Click to expand...

Since OP likes to gamble by having money in eth, he can pick easily any other coin as well.

 

[legrant]

void said:
miners decide which pool to use, 51% share is not in anyone's interest, they would migrate to another pool
the position of miners will be even stronger after stratum v2 adoption
Click to expand...

Most miners mine on the pools that turn the most profit, that's the reason the top 5 pools make up 83.41% of the hashing rate. Joining the top 2 could make it feasible to reverse transactions. Yeah, they could migrate to another pool, which will have the same or even more hashing than the one being left.
On the other hand, two countries also have +50% of the hashing capacity, which are US and China (Jan data), and both have been very negative about Bitcoin in the past and present.

JackAlabama said:
the pools are only a vessel to guarantee a steady cashflow, not much more.
Click to expand...

I recommend you learning how they work.

JackAlabama said:
most eth nodes run on aws, so easy to control it from that angle too while most bitcoin nodes can and are run on cheap laptops/rasberry pis.
Click to expand...

Most Ethereum nodes do run on aws, but even if aws shut all nodes off, stakers would just switch to another provider as them being offline makes them lose ETH.
Bitcoin Nodes do run in a more "decentralized" way, but they most likely run on the US, Germany, France, China and some more. 60% of reachable nodes don't specify location because they're running on Tor. But taking the location of those that are not on Tor, 10% are on the US, 8% on Germany and 3% on France. So you can easily guess where the rest are located too. Hetzner and AWS are the main providers for them too (for reachable non-tor ones)

JackAlabama said:
Since OP likes to gamble by having money in eth, he can pick easily any other coin as well.
Click to expand...

Wouldn't call it gambling, but he mentioned ETH, not any other coin.

 

[koohl]

JohnnyDoe said:
XMR is a strong alternative.
Click to expand...

Can you stake with XMR ?

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My Journey to successful card processing for Replica, IPTV, Adult and Gaming business.
I keep my journey in the closed forums in Mentor Group for less saturating methods.
Please understand that I don't sell any services or do consultancy, you don't need to contact me about that!