We’re opening the ETH/ETH2 trading pair which should come as a delight to all who have staked or plan to stake your ETH. It means you can now trade your staked ETH - which is converted to ETH2 at the moment of staking - back to ETH.
Not sure what we’re talking about? And what on earth is ETH2? We have no doubt you’re familiar with ETH, the coin powering the Ethereum network. In a nutshell, ETH2 represents ETH that you have staked on the Ethereum 2.0 network, which is an upcoming set of upgrades to Ethereum that's intended to make it faster, less expensive, and more scalable. As part of the upgrade, you can stake your ETH in exchange for rewards to help secure the network and lock it in the process in the form of ETH2 which represents your stake. This is how you end up holding ETH2, which is automatically staked and locked until the upgrade to Ethereum 2.0 is completed.
This new update to our exchange means you don’t have to wait anymore to release your ETH2 which is locked, but you can easily and at any time trade it back for ETH. Where? Right here. By doing that you’ll stop receiving rewards, which are currently up to 5.58% of your staked ETH per year.
If you want to read more on staking in general, be our guest and open this blog post.
If you have some questions regarding ETH staking, here’s the FAQ.
And now that you know you can easily and effectively opt out of staking by trading your ETH2 back to ETH, you might want to start earning a passive income. You can start here.
Please note that the ETH/ETH2 trading pair is for the moment not available in the U.S.
FAQs
It can be staked, deposited, traded and withdrawn. Prior to the Shapella upgrade, the ETH2 ticker on Kraken represented ETH that was earned as staking rewards through Eth2 staking. ETH2 could not be staked, deposited, traded or withdrawn.
Can you unstake ETH2? ›
To learn more about staking types, benefits, and risks, see Understanding Staking. With the Merge and the Shapella upgrade done, users can now stake and unstake ETH at any time. In addition, staking rewards will be deposited to staker withdrawal addresses automatically through a regular 'sweeping' process.
Can I buy ETH2? ›
You can refer to Coinmarketcap.com's Markets section to find the list of centralized exchange the coin is listed on. Another option to buy the ETH 2.0 is through a decentralized exchange (DEX) which supports the blockchain where your ETH 2.0 resides.
How long is staked ETH locked? ›
Staked Ether Is Locked
This ETH cannot be used or transferred until the validator requests that the network release (unstake) it. This process can take several days to complete, as the network is limited to 16 withdrawals per block or 115,200 validator withdrawals per day.
When can I trade ETH 2.0 on Coinbase? ›
Staked ETH (and rewards) can't be unstaked until Ethereum 2.0 fully launches, which most experts estimate will happen sometime in 2023. If participants want to sell, send, or use their staked ETH they can do so by converting it to cbETH, Coinbase's Wrapped Staked ETH token.
How do I cash out ETH2? ›
You can send Ethereum to online exchanges, trade with others, use Ethereum cash machines, or spend with crypto debit cards.
- Transfer Ethereum via Crypto Exchange. ...
- Turn Ethereum into Cash via Crypto Card. ...
- Direct P2P Exchange. ...
- Withdraw Fiat to Your Bank Account.
Unstaking ETH using Coinbase Wallet
Navigate to the DeFi tab or the Ethereum asset detail page. Select the Unstake button. Enter the amount you want to unstake, and confirm the transaction.
What will happen to my ETH2? ›
Your existing ETH tokens will be transferable to the Ethereum 2 chain. The legacy proof-of-work Ethereum chain will continue alongside the new Ethereum 2 chain initially. At a later phase (1.5) the legacy chain will be incorporated into the Ethereum 2 blockchain as a shard.
What happens if you unstake? ›
Staking is a way to earn rewards (cryptocurrency) while helping strengthen the security of the blockchain network. You can unstake your crypto at any time, and your crypto is always yours. You can stake from your Coinbase primary balance. Business accounts and funds stored in a vault aren't eligible for rewards.
Can I sell ETH2 for cash? ›
Yes, you can buy and sell Ethereum using USD on Kraken. We support a diverse network of payment processors around the world that make it easy to sell Ethereum.
When will Ethereum 2.0 be fully launched? The exact timeline for Ethereum 2.0's full launch is uncertain, with the final phase expected to be implemented around 2024 or later. However, this is subject to change depending on development progress and unforeseen challenges.
Is ETH and ETH2 the same coin? ›
How are Ethereum and Ethereum 2.0 different? The most impactful difference between Ethereum and Ethereum 2.0 is the introduction of a proof-of-stake consensus system, which makes the network faster, more secure, and more scalable, while reducing the amount of resources needed to generate new ETH.
Can I lose my ETH if I stake it? ›
Smart contracts on the Ethereum network are not impervious to vulnerabilities or hacks. Validators essential to preserving network security, risk fines if their nodes stop working or don't correctly validate transactions. They may lose some of their staked Ethereum to this penalty, also called slashing.
Is there a fee to unstake ETH? ›
The minimum amount you can stake is 0.1 ETH. Each time you want to stake more, you must also stake at least 0.1 ETH. Each time you stake ETH, you will also need some ETH to pay the stake transaction fee.
Can you withdraw from locked staking? ›
Yes, you can choose to redeem in advance. After choosing early redemption, your subscribed crypto (the principal) will be returned to your Spot Wallet and the distributed interest will be deducted from the refunded principal. Please note that it might take up to 48 - 72 hours for your crypto to arrive in your wallet.
Can you transfer ETH2? ›
ETH2 transfers are not enabled until at least Phase 1 (learn more about ETH2 phases). A One-time payment will cover your validators until Phase 1 or when transfers become available. Monthly payments are a recurring bill, charged monthly for the number of validators you have.
Can you sell cbETH for USD? ›
You can use our cbETH to USD calculator at the top of this page to convert any amount of cbETH to USD. We've also created a couple of quick reference tables for the most popular conversions. For example, 5 USD is equivalent to 0.0014 cbETH. Inversely, 5 cbETH will cost about 18,505 USD.
Why can't I sell my staked Ethereum? ›
The balance you stake will be unavailable to sell or send until you unstake it. You can ask us to unstake at any time, but the process can take from a few hours to a few weeks, depending on the asset.
Will my ETH automatically convert to ETH2? ›
At a later phase (1.5) the legacy chain will be incorporated into the Ethereum 2 blockchain as a shard. Your ETH tokens which are held on the current Ethereum chain, will automatically be accessible on the Ethereum 2 chain and you do not need to do anything.
