Crypto Info

How to Stake Ethereum on Lido for Passive Income

Step-by-Step: How to Stake Ethereum on Lido

Let’s be honest—earning passive income with crypto sounds great, but it can feel like trying to read a map in a language you don’t speak. You might be asking: How do I even start? Or maybe: Do I need 32 ETH to stake? (Spoiler: Nope!)

Here’s the good news: With Lido, you can stake any amount of ETH and still earn rewards.

In this guide, we’ll break down how to stake Ethereum on Lido, step by step, using plain language and real examples. Whether you’re a crypto newbie, a small business owner, or just curious about earning on your idle ETH, you’re in the right place.

What is Ethereum Staking?

Think of staking like putting your crypto to work. When you stake Ethereum, you’re helping secure the network and, in return, you get rewards.

It’s kind of like earning interest at a bank—but in crypto style.

Quick Facts:

Ethereum uses Proof of Stake (PoS)
You get rewards for locking up ETH
Normally, you need 32 ETH to run your own validator

Problem: Most folks don’t have 32 ETH lying around. That’s where Lido steps in.

What is Lido?

Lido is a liquid staking platform. That means you can stake small amounts of ETH, and you get a token called stETH in return.

Here’s what makes Lido a game-changer:

No 32 ETH requirement
Earn daily staking rewards
Use stETH in DeFi apps

Real-World Example:
You stake 1 ETH on Lido. You get 1 stETH back. This stETH earns rewards and can also be traded or used in apps like Aave.

💡 Pro Tip: stETH value may slightly differ from ETH due to how rewards are calculated.

Why Stake Ethereum on Lido?

Here are some solid reasons:

Low entry barrier: Stake as little as 0.01 ETH
No lock-ups: Unlike native staking, you can sell or swap stETH anytime
Earn daily rewards: They get added automatically
Secure and trusted: Lido has over $15B in staked assets (as of 2024)

Step-by-Step: How to Stake Ethereum on Lido

Let’s break it down in simple steps.

Step 1: Set Up a Wallet (If You Don’t Have One)

If you haven’t already, get a wallet like MetaMask.

Go to metamask.io
Download the extension/app
Create your wallet and save your recovery phrase

Step 2: Get Some ETH

You can buy ETH from:

Transfer the ETH to your MetaMask wallet address.

💡 Tip: Leave a little ETH for gas fees (usually $5-$10 depending on network congestion)

Step 3: Visit the Lido Website

Go to https://stake.lido.fi
Click “Connect Wallet”
Approve the connection in MetaMask

Step 4: Stake Your ETH

Enter the amount of ETH you want to stake
Click “Submit”
Confirm the transaction in your wallet

After a few seconds, you’ll get stETH in your wallet.

💡 Pro Tip: You can check your stETH balance in MetaMask under the “Assets” tab

How Much Can You Earn?

Lido pays around 3.5% to 5% APR (as of early 2025). Rewards are auto-compounded and reflected in your stETH balance.

Table: Estimated Rewards for 1 Year

Amount Staked	APR	stETH After 1 Year
1 ETH	4%	1.04 stETH
5 ETH	4%	5.20 stETH
10 ETH	4%	10.4 stETH

Note: APR may change with network conditions.

What is stETH?

stETH is a token you get when you stake ETH with Lido.

It’s like a receipt
It earns rewards daily
You can use it in other DeFi protocols

What Can You Do with stETH?

Hold and earn passive rewards
Trade it on platforms like Curve or 1inch
Use it as collateral in apps like Aave

Risks of Staking with Lido

Let’s keep it real. No investment is risk-free.

Potential Risks:

Smart contract bugs: Though audited, nothing is 100%
ETH price volatility: Your stETH is tied to ETH’s value
Protocol changes: Future upgrades could affect rewards

⚠️ Pro Tip: Don’t stake your rent money. Only invest what you can afford to leave untouched for a while.

How to Unstake or Exit

Lido recently added an Unstaking option:

Visit https://stake.lido.fi
Connect wallet
Click “Withdraw”
Enter the stETH amount
Confirm transaction

⚠️ Heads Up: Unstaking takes time (may vary from a few hours to days).

Alternative: You can also sell stETH instantly on Curve or other DEXs.

Common Questions Answered

Is Lido safe?
Yes, it’s trusted by millions. But always DYOR (Do Your Own Research).

Can I lose money?
Yes, especially if ETH’s price drops or a smart contract bug happens.

Do I need 32 ETH?
Nope. Lido lets you stake any amount.

Is stETH the same as ETH?
Not exactly. It represents staked ETH + rewards. Its value is usually close but not identical to ETH.

Bonus Tips for Beginners

Bookmark Lido’s site to avoid phishing scams
Enable alerts in MetaMask to track stETH changes
Join the Lido community on Discord or Twitter for updates
Double-check fees before staking or withdrawing

✨ Fun Fact: As of January 2025, Lido holds over 30% of all staked ETH globally.

Final Thoughts

Staking doesn’t have to be scary. With Lido, you can dip your toes into Ethereum staking without needing 32 ETH or running a validator.

You don’t need to be a tech wizard. Just follow a few steps, and you’re set.

Ready to earn passive income? Head over to Lido and stake your Ethereum today. Your future self might just thank you!

Want to Read More?

Want to learn how to use MetaMask? Read our easy guide.

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Disclaimer

We share experiences and research, but this is not financial, investment, or legal advice. Cryptocurrencies are volatile, and markets can change rapidly. Always consult a licensed financial advisor before making decisions. We are not responsible for any losses, damages, or legal issues arising from your use of this information. Past performance does not guarantee future results. Do your research, assess your risk tolerance, and never invest more than you can afford to lose. By reading this, you agree that you alone bear responsibility for your choices.

Stay informed, stay safe.