Ethereum has successfully transitioned to Proof-of-Stake, which means you can now earn passive income by staking your ETH. With a Ledger hardware wallet, you can stake Ethereum while keeping your private keys offline and secure.
In this guide, we will walk through the different ways to stake Ethereum using your Ledger device, the pros and cons of each method, expected returns, and the risks you need to understand before locking up your ETH.
Before starting, if you want to check live Ethereum prices, our Price Tracker at Coin Advice gives you real-time market data.
What is Ethereum Staking?
When Ethereum operated on Proof-of-Work (mining), new blocks were created by miners using massive computing power. The Merge in 2022 transitioned Ethereum to Proof-of-Stake, where new blocks are validated by "validators" who stake 32 ETH to participate.
For regular users who do not have 32 ETH (worth tens of thousands of dollars), staking pools like Lido, Kiln, and others allow you to stake any amount and earn rewards proportionally.
Current Staking Rewards (2026): Approximately 3-5% APY, depending on network activity and the staking provider.Staking Options Through Ledger Live
Ledger Live integrates with several staking providers, making it easy to stake ETH directly through the interface. The main options are:
1. Lido (stETH)
Lido is the largest liquid staking provider. When you stake through Lido, you receive stETH tokens in return, which represent your staked ETH plus rewards. stETH can be traded, used in DeFi, or held like regular ETH.
- Minimum stake: Any amount
- Rewards: ~3-4% APY
- Liquidity: High (stETH is widely tradable)
- Risks: Smart contract risk, Lido centralization concerns
2. Kiln
Kiln is a trusted institutional staking provider that offers native Ethereum staking through Ledger Live. Unlike Lido, Kiln does not give you a liquid token—your ETH is staked directly, and rewards accrue in your account.
- Minimum stake: Varies (often 32 ETH for native, but pools available)
- Rewards: ~3-5% APY
- Liquidity: Lower (withdrawals may take days)
- Risks: Smart contract risk, validator slashing risk
Step-by-Step: Staking via Lido on Ledger Live
- Open Ledger Live and go to the "Ethereum" account
- Click "Stake" or "Earn"
- Select "Lido" as the provider
- Enter the amount of ETH you want to stake
- Review the terms and expected APY
- Click "Continue" and connect your Ledger
- Open the Ethereum app on your Ledger device
- Verify the transaction details on your Ledger screen
- Confirm the transaction by pressing both buttons
- Wait for the transaction to confirm on the blockchain
- You will receive stETH in your account, representing your staked position
Step-by-Step: Staking via Kiln on Ledger Live
- Open Ledger Live and go to your Ethereum account
- Click "Stake" or "Earn"
- Select "Kiln" as the provider
- Enter the amount to stake (may have minimums)
- Review the terms, fees, and withdrawal conditions
- Click "Continue" and connect your Ledger
- Open the Ethereum app on your Ledger
- Verify all details on your Ledger screen
- Confirm the transaction
- Your ETH is now staked, and rewards will appear periodically
Understanding the Risks
Smart Contract Risk
All staking through third-party providers involves smart contracts. While Lido and Kiln are reputable and have been audited, smart contract bugs or exploits could lead to loss of funds. This is a risk you must accept when staking.
Slashing Risk
For native staking (32 ETH validators), there is a risk of "slashing" if the validator misbehaves (goes offline, double-signs, etc.). This can result in a loss of some staked ETH. Pooled staking like Lido spreads this risk across many validators.
Liquidity Risk
When you stake natively or through some providers, your ETH may be locked for extended periods. Even after Ethereum enabled withdrawals, there can be queues and delays. If you suddenly need your ETH, you might not be able to access it immediately.
Counterparty Risk
You are trusting the staking provider to operate honestly and competently. While Lido and Kiln are well-established, the crypto space has seen even reputable projects fail.
If you are exploring DeFi while staking, use our Token Checker to assess risks of new tokens you encounter.
Checking Your Staking Rewards
In Ledger Live:
- Go to your Ethereum account
- Look for the "Staked" or "Earnings" section
- Your staked balance and rewards will be displayed
- Rewards typically update daily
You can also check your stETH balance on Etherscan.io by searching your wallet address.
Unstaking and Withdrawals
Lido (stETH)
You can swap stETH back to ETH on decentralized exchanges like Uniswap or through Lido directly. However, there may be slippage or fees depending on liquidity.
Kiln and Native Staking
Withdrawals require initiating an unstake request. After a waiting period (which can be days to weeks depending on network conditions), your ETH will become available to withdraw to your address.
Tax Implications
Staking rewards are typically treated as income in many jurisdictions when received, and selling the rewards later may trigger capital gains tax. The initial staked ETH maintains its original cost basis.
Important: Consult a tax professional familiar with cryptocurrency in your country. Tax laws vary significantly and change frequently.Using stETH in DeFi
One advantage of Lido is that stETH is a liquid token you can use in DeFi:
- Provide liquidity on Uniswap or Curve
- Use as collateral on Aave or MakerDAO
- Trade on decentralized exchanges
To use stETH in DeFi while keeping keys secure, connect your Ledger to MetaMask. For finding the best DEX prices, 1inch aggregates liquidity across multiple exchanges.
Should You Stake Your ETH?
Stake if:
- You plan to hold ETH for the long term (1+ years)
- You want to earn passive income on your holdings
- You are comfortable with the risks mentioned above
- You do not need immediate access to the staked funds
Do Not Stake if:
- You might need to sell ETH in the short term
- You are uncomfortable with smart contract risks
- The amount you are staking is a large portion of your net worth
- You do not fully understand the risks involved
Other Ways to Earn Yield
If staking directly is not for you, consider:
- DeFi lending on Aave or Compound (variable rates)
- Centralized lending on Nexo (earn interest on ETH)
- Liquidity provision on DEXs (higher risk/reward)
For calculating your staking returns, our Profit Calculator can help you project earnings based on APY rates.
Final Thoughts
Staking Ethereum on your Ledger is a great way to earn passive income while keeping your keys secure. Lido offers the most flexibility with liquid stETH, while Kiln provides a more traditional staking experience.
Remember, staking is not risk-free. Understand the smart contract risks, liquidity constraints, and tax implications before committing your ETH. And never stake more than you can afford to lose.
To buy ETH for staking, platforms like Coinbase, Binance, and Bybit offer easy purchasing options. Withdraw to your Ledger-secured address, stake through Ledger Live, and watch your ETH grow.
For broader market context while your ETH is staked, check our Global Stats page for live Ethereum market data and network statistics.