How to Buy Lido Staked ETH (stETH)

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Contributor, Benzinga
June 28, 2023

Liquid staking is now a larger sector of crypto than lending, exchanges and non-fungible tokens (NFTs). While still a relatively new industry, it has attracted tens of billions of dollars in investment. Since liquid staking’s inception, the leading provider has been Lido Staked ETH with its liquid staking token (LST) stETH. 

In this article, Benzinga explores how you can buy Lido Staked ETH, gives details on its background and provides insights on its performance. Whether you're a seasoned investor or a newcomer to the crypto sector, understanding how to buy Lido stETH can help you participate in the growing sector of liquid staking.

Disclosure: eToro supports the following currencies: BTC, ADA, DASH, DOGE, EOS, ETH, LTC, NEO, XLM, XTZ, TRX, ZEC. eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. T&Cs apply. *The bonus is available to Benzinga readers in the US for open states only. Served by eToro USA LLC.

What is Lido Staked ETH?

Lido Staked ETH, or stETH, is a tokenized representation of Ethereum that allows users to participate in Ethereum's proof-of-stake (PoS) network while eliminating key barriers from traditional Ethereum staking. Traditionally, users would need to stake a minimum of 32 ETH, maintain validator nodes and own specific hardware to earn staking rewards. Lido disrupted the staking process, making earning rewards as easy as owning a token. 

Lido offers an alternative approach to Ethereum staking, where users can delegate their ETH to Lido's staking infrastructure and receive stETH in return. By holding stETH, investors can enjoy Ethereum staking rewards while maintaining liquidity on their tokens.

Brief History of Lido Staked ETH

Lido Staked ETH has quickly gained popularity since its launch. It was introduced to the market in late 2020 as a solution to unlock the value of staked Ethereum. Notable investors and entities, including industry-leading projects such as ParaFi Capital and Chorus One, have supported Lido Staked ETH, adding credibility and confidence to the project.

To date, Lido Staked ETH has experienced a remarkable performance, especially relative to the rest of the crypto markets. While it’s important to note that past performance does not guarantee future results, it’s worth considering that Lido Staked ETH has delivered competitive yields and demonstrated its value as a reliable staking solution for Ethereum investors.

How to Buy Lido Staked ETH (stETH)

To acquire Lido Staked ETH and participate in Ethereum staking, follow these steps:

Step 1: Open an online account

First, you need to find a reputable cryptocurrency exchange that supports Lido Staked ETH. Compare exchanges based on factors such as fees, security measures and user experience. The exchange you choose will need to offer a Lido stETH trading pair.

Lido stETH is available on Huobi Global, Bitstamp and other centralized exchanges. Alternatively, you can swap ETH for stETH on a DEX, such as Uniswap or Curve. 

Step 2: Buy a wallet (optional)

While not mandatory, using a wallet to store your Lido Staked ETH is highly recommended for added security. Two popular options are the Ledger Nano S hardware wallet and Coinbase Wallet. The Ledger Nano S is a hardware wallet that provides robust protection for your assets, while Coinbase Wallet offers a user-friendly software wallet solution.

Best Hardware Wallet: Ledger Nano S

Ledger is one of the leading cryptocurrency hardware wallet manufacturers. The company has been making crypto wallets since 2014, selling millions of units to date. 

Cryptocurrency investors trust Ledger to store their crypto assets as it offers industry-leading security features and supports a variety of cryptocurrencies. The Ledger Nano S supports over 1,000 cryptocurrencies, including Bitcoin, Ethereum, Litecoin and Lido stETH.

The Ledger Nano S comes in at an affordable price of just over $50 on Amazon. Ledger also yields a more premium hardware wallet, the Ledger Nano X, and it offers a few extra features like Bluetooth connectivity. The Ledger Nano X can be bought at a retail price of $119.

Step 3: Make your purchase

Once you have selected a cryptocurrency exchange and set up your wallet, follow the exchange's instructions to deposit funds, such as Ethereum or another supported cryptocurrency. Then, navigate to the trading section and search for the stETH trading pair. Place your buy order, specifying the desired amount of Lido Staked ETH you wish to acquire.

Trade, Sell or Convert your Lido Staked ETH

At any point, if you decide to trade, sell or convert your Lido Staked ETH, you can do so on supported cryptocurrency exchanges. Trading involves exchanging stETH for other cryptocurrencies or stablecoins, whereas selling allows you to convert stETH back to the native Ethereum cryptocurrency, ether. 

The availability of trading pairs and conversion options may vary across exchanges, so it's important to research the specific options available to you.

Current Crypto Prices

If you’re planning to invest in the short- or mid-term, it’s important to actively monitor the crypto markets. By regularly monitoring market fluctuations, you can make informed decisions about buying, selling or holding your Lido Staked ETH. Since Lido’s price is pegged to the price of ether, it’s sufficient to monitor the price of ETH to have an idea of your gains or losses. Keep an eye on reputable cryptocurrency tracking websites or use the tool provided below to access real-time price data.

Is Lido Staked ETH a Good Investment?

As with any investment, it's essential to conduct thorough research, assess your risk tolerance and consult with financial advisers before making investment decisions. While Lido Staked ETH presents an intriguing opportunity for investors seeking exposure to Ethereum staking, it's important to evaluate factors such as market conditions, project developments and potential risks. Stay informed about upcoming events, partnerships and updates related to Lido Staked ETH, as these can impact its future performance.

Buying Lido Staked ETH, or stETH, allows investors to participate in Ethereum staking while enjoying the benefits of liquidity. By following these steps and considering the historical performance and market conditions, you can make informed decisions regarding your investment in Lido Staked ETH. 

Liquid staking is still in its infancy, with withdrawals for staked ETH just commencing earlier in 2023. The sector has seen higher growth than any other part of crypto this year, making many investors bullish on the space as the market matures. 

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts
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