Discover the Benefits of Ethereum Staking with Gemini

As the cryptocurrency landscape evolves, staking has become an increasingly popular way for crypto enthusiasts to earn rewards on their holdings. In this blog, we’ll explore what staking is, how it differs from DeFi and traditional lending, and why Gemini’s ethereum staking products are the ideal choice for your investments.

What is Staking?

Staking involves participating in the validation of transactions on a proof-of-stake (PoS) blockchain like Ethereum. By holding and locking up a certain amount of ether in a wallet, you contribute to the network’s security and operations. In return, you earn rewards in the form of additional ether.

• Staking: You lock up your ether to support the Ethereum network, earning rewards directly related to your participation in the network’s validation process.
• DeFi (Decentralized Finance) Lending: DeFi involves using decentralized applications (dApps) to lend, borrow, or trade assets. Unlike staking, DeFi typically involves interacting with smart contracts to earn interest or other forms of rewards.
• Traditional Lending: This involves depositing money into a bank, which then lends it out to borrowers at a higher interest rate. The bank keeps a portion of the interest as profit, passing a smaller percentage back to you.

At Gemini, we offer two ethereum staking options to cater to different needs:

• Pooled Staking: Designed with simplicity in mind and allows you to start earning rewards without the technical requirements of running a validator. You can join a pool with other users, making staking accessible even if you don’t have the full 32 ether required to run your own validator.
• Staking Pro (segregated): Provides more control and transparency and lets you run your own validator and view your activity on-chain. This option offers a deeper level of involvement and the ability to monitor your staking performance directly.

Why Stake with Gemini?

• Competitive APR Rates: Maximize your earnings with some of the highest Annual Percentage Rates (APR) in the market. Our use of maximal extractable value, or MEV, boosts your rewards by up to 40%, with 24/7 monitoring of validators. As of June 9, 2024, Gemini's ETH staking APR is 3.73%, placing it in the 95th percentile among major staking pools.*
• More than $400M in Assets: Our staking products have attracted over $400 million in assets from institutions and high-net-worth individuals, reflecting the trust and confidence of our user base. Since inception in November 2022, Gemini users have earned more than $14 million in staking rewards.
• Detailed Reporting: Stay informed with comprehensive staking transaction history and monthly reports.
• Tax Forms: For users who generate more than $600 (USD equivalent) in annual staking income, we provide a Form 1099-MISC to simplify your tax reporting.
• Enhanced Security: The private keys controlling our staking wallets are held offline in an air-gapped system, ensuring high security.

How To Get Started:

• Sign Up or Log In
• Deposit ETH / Buy ETH
• Go to Staking
• Select a Currency
• Start the Staking process

Staking is a powerful way to enhance your ether portfolio while supporting the Ethereum network. Whether you prefer the simplicity of pooled staking or the transparency of segregated staking, Gemini has a solution for you. Start staking with Gemini today and take advantage of all the benefits we offer.

Onward and upward,
Team Gemini