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?

 

[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]

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?

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]

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").

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.

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?

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]

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?

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]

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.

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.

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.

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..

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.

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).

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?

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]

It does not matter what cftc says, sec says something different too for example.

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]

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%.

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

what's left is bitcoin and couple of other meaningless, most probably dying ones, like BCH or LTC

both are btc forks and are not meaningless at all.

XMR is a strong alternative.

 

[void]

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

maybe he thinks dilution is not a bug but a feature

both are btc forks and are not meaningless at all.

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

XMR is a strong alternative.

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]

I'm well aware of what these are and I'm interested why do you think they have their future

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.

 

[legrant]

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%.

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]

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.

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]

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%.

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.

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

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.

 

[void]

Ethereum is ran by full node operators, there are 10796 at the moment

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

BTC's 2 biggest pools control over 50% of the hashrate in comparison.

miners are in charge, no problem in my opinion

 

[legrant]

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

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]

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.

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]

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.

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.

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.

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

 

[legrant]

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

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.

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

I recommend you learning how they work.

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.

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)

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

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

 

[koohl]

XMR is a strong alternative.

Can you stake with XMR ?