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Users often begin with broad discovery pages, then quickly move to payment-focused checks. Our editorial team verifies all claims against primary sources and current market data before publication. Only move to trading once you've experienced both bull and bear markets. Start with a "buy and hold" strategy for 6-12 months to learn how markets work. This applies to all staking rewards, even if you immediately reinvest them. You must report it at fair market value on the day received, not the date you sell.
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According to Rated, the all-time average staking reward rate on Ethereum is around 3.4%, of which about 2.8% was attributable to consensus layer rewards and 0.6% is attributable to execution layer rewards. Once active, a validator is eligible to to be assigned duties and earn staking rewards in return. The validator will begin signing attestations and occasionally proposing blocks, earning ETH rewards. The validator must first go through an activation process before it becomes eligible to start doing jobs on the network, and can start earning rewards in return. After receiving the staked ETH, the deposit contract emits an event that the consensus layer listens for. This post provides a step-by-step explanation of how Ethereum staking works, covering the entire lifecycle of a validator, from staking ETH to activating a validator, earning and receiving rewards, and finally, exiting and withdrawing the staked ETH.