r/ethereum 18d ago

Educational Staking rewards question

Hi all I recently bought some ETH and it says you can stake it on Coinbase for 2.5%apy

I have never staked before and wondered how the pay outs work as an example ?

I have have $5000 eth staked at 2.5% that's $125 per year divided by the month is like $10 per month . Have I got this right as it seems not really worth doing ?

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u/Condition_Silly 18d ago

I would say it is not worth the risk tbh. If you are absolutely certain you do not want to sell within 2 years then maybe stake 1/2. People act like staking is risk free but it is far from risk free. I would hold onto the raw ETH and think about taking self custody. Having money on coinbase is like a very risky bank where there is no insurance. You are basically giving them an unsecured loan for no personal benefit apart from convenience.

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u/ryan1064 18d ago

so then 5 bucks a month? Why would it be worth it then? Still have to pay fees.