What is the Difference Between Liquid Staking & Self-Staking
Ethereum’s transition to Proof-of-Stake broadened the participation threshold to validate transactions on the network. Users could self-stake ETH, but strict requirements gave rise to liquid ETH staking platforms.
The requirements for self-staking on the Ethereum network are strict. Users must stake exactly 32 ETH per validator, have the technical knowledge to set up a node and have a dedicated computer with 24/7 internet access. Self-stakers do not receive a token representing their stake or rewards.
Liquid ETH staking platforms are usually user-friendly. There is no need for technical knowledge or a dedicated computer as the platform manages these aspects. Users who stake ETH with a liquid staking platform receive a “liquid” token representing their stake, which users can trade. At Hord, stakers receive hETH which represents their stake combined with rewards.
Liquid ETH Staking is More Convenient for Casual Users
The requirements for self-staking on the Ethereum network are strict. Users must stake exactly 32 ETH per validator, have the technical knowledge to set up a node and have a dedicated computer with 24/7 internet access. Self-stakers do not receive a token representing their stake or rewards.
Liquid ETH staking platforms are usually user-friendly. There is no need for technical knowledge or a dedicated computer as the platform manages these aspects. Users who stake ETH with a liquid staking platform receive a “liquid” token representing their stake, which users can trade. At Hord, stakers receive hETH which represents their stake combined with rewards.
Liquid ETH Staking is More Convenient for Casual Users
Updated on: 20/12/2023
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