The release of Ethereum 2.0 piqued everyone’s curiosity by staking their current crypto holdings for a profit. However, staking Ether isn’t as easy as depositing coins and then sitting back to watch your earnings grow, at least not without the help of third-party solutions.
Rocket Pool allows anyone to contribute to the new Ethereum network without having to configure and maintain a node. This not only makes it easier to onboard new users to Ethereum 2.0, but also allows less technically savvy users to participate in staking.
Staking isn’t for everyone, especially since Ethereum’s mint mechanism makes it easy to lose money for acting maliciously, even if it’s unintentional. As a result, it looks like staking pools are the only choice, with Rocket Pool being the best platform.
Read this guide to learn more about the decentralized Ethereum staking protocol Rocket Pool and how to trade Rocket Pool on CoinStats in a few simple steps.
Let’s dive!
What is the Rocket Pool
Rocket Pool is a network of decentralized nodes that provide Ethereum 2.0 blockchain validation services. Its goal is to give users who do not have the required minimum number of ETH tokens to stake, as well as those who do not have the technical expertise required to maintain a node, access to the network.
Rather than depositing the required minimum of 32 ETH, investors can stake with as little as 16 ETH. Additionally, Rocket Pool automates the entire process and handles all validators without requiring user involvement.
However, even though using Rocket Pool, Ethereum investors who want to participate still end up with the long-term commitment of locking up the tokens. Once staked, all assets are locked until the Ethereum proof-of-stake implementation reaches phase 2.
While Rocket Pool can’t undo this lock, it does a decent job of balancing risk through token staking.
When a user stakes 16 or 32 ETH, they are rewarded with the rETH token which represents two things: the stake and the return. Like any other ERC-20 token, stakeholders can use rETH while assets are locked by selling it, using it on DeFi platforms, or storing it in cold storage.
RPL token and Tokenomics
RPL is an ERC-20 token that serves as the primary protocol token. Users who want to make the project more secure can stake it on Rocket Pool nodes. However, it is not necessary to run a node.
Rocket Pool users who stake RPL in conjunction with at least one minipool validator earn an additional commission based on the size of their security deposit. However, if the user fails to complete their node tasks and ends up with less than 32 ETH as a result of a drawdown, their RPL deposit will be burned in proportion to the losses incurred in ETH.
RPL has a fixed quantity of 18 million tokens, of which 16 million are already in circulation. According to CoinStats, the market cap of the asset is $496.8 million at a price of $31.08 per token at the time of writing.
The coin also has speculative value, as investors are betting on the future success of the project as a top ETH2 staking platform. The RPL rose from $0.4 to $2.81 by 2020. Its value skyrocketed in 2021, reaching an all-time high of $58.40.
How to Trade Rocket Pool on CoinStats
Users can trade crypto tokens on CoinStats using the built-in trading tool. CoinStats provides the best swap rate by combining all of its decentralized exchange aggregators (1inch, 0x, etc.).
Let’s take a look at How to trade Rocket Pool to ETH on CoinStats
Step 1: Connect your wallet
Go to coinsstats.app and search for RPL price in the search bar. Scroll down to “swap” features and connect the wallet in which you have the RPL token.
Once you click on the “Login” button, you will be able to see different choices of wallets offered by CoinStats. Find your wallet and connect it.
You can connect it by scanning the QR code via WalletConnect or manually adding the Blockchain/Crypto and Wallet address in your web or mobile app.
Step 2: Select the token
After successfully linking your wallet, choose the token to trade by providing the data in cryptocurrencies or USD/EUR.
For example, we trade RPL for ETH.
In the “From” field, select the RPL token from your wallet, and in the “To” field, select “ETH”.
Step #3: Click Redeem
Click Advanced Options to change drag and throttle settings. When you’re done customizing, scroll down to the bottom of your screen and click the “Submit Trade” button.
After submitting your exchange request, you will be prompted to confirm it. To begin the trade, review the information appearing on your web or mobile application screen, then click the “Confirm” button.
Your transaction is being processed. The pace of your transaction will vary depending on the gas settings you select. You can track your transaction from the feeder appearing in the bottom right corner or from the wallet homepage.
REMARK: You will be charged network transaction fees, also known as gas fees. These are the fees required to complete a transaction on Blockchain. Essentially, gas fees are paid in the native currency of the network, i.e. Ethereum for the Ethereum network. CoinStats also charges a small exchange fee in addition to gas fees.
Final Thoughts
This year, Ethereum is enjoying a resurgence as institutions that are done accumulating Bitcoin are now turning their sights to the blockchain industry’s largest smart contract ecosystem. While Grayscale and other companies may buy ETH in bulk for speculative purposes, we are sure some investors will choose to diversify their holdings via staking.
Currently, staking pools are the only viable option for people who lack technical knowledge about computers and blockchain technology. Fortunately, platforms like Rocket Pool simplify supporting the Ethereum 2.0 network by depositing assets and delegating control to a node operator. And the best part? You don’t even need 32 ETH to join a mini-pool, 16 ETH is more than enough!
Rocket Pool has filled a critical void for ETH2 bettors in terms of minimum requirements and faster rewards. So, you can now start staking your own token without having to worry about infrastructure, incentives, and commissions.
You can also visit our CoinStats blog to learn more about wallets, cryptocurrency exchanges, wallet trackers, tokens, and more, and explore our in-depth buying guides on buying various cryptocurrencies , such as How to Buy NEXO, What is DeFi, How to Buy Cryptocurrency, etc.
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