What does crypto staking mean?
Crypto staking is possible on blockchains that use the Proof of Stake model. On them, new blocks are not confirmed by miners but by validators who have locked their own coins in the network as collateral. The network pays a reward for honest work and can cut the collateral for breaking the rules.
The best-known example is Ethereum, which moved to Proof of Stake in September 2022. Staking is also used on Solana, Cardano and Polkadot, for example. Bitcoin has no staking, because it is based on mining.
For an ordinary investor, crypto staking in practice means that coins are locked for the network's use and rewards accrue in the same coin. The reward is not interest but compensation for securing the network, so the amount varies.
Three ways to stake crypto
| Method | How it works | Keep in mind |
|---|---|---|
| Exchange staking service | The exchange locks customers' coins together with a validator partner and passes the rewards on to customers | The easiest way. The exchange takes a share of the rewards, and the funds are held by the exchange. |
| Liquid staking | Coins are locked in a smart contract and you get a tradable token in return (e.g. Lido's stETH) | Funds stay usable as a token, but there is smart contract risk. The Finnish Tax Administration may treat the locking as a swap. |
| Your own validator | You run a validator node on your own hardware | On Ethereum this requires at least 32 ETH plus technical skills and ongoing maintenance. |
For most beginners an exchange staking service is clearly the easiest option. It is then important that the service holds a licence under the MiCA regulation and that you have read its staking terms.
Crypto staking on Finnish and European exchanges
Some of the exchanges we review offer a staking service. The selection and terms change, so always check current information in the service before activating it.
| Service | What we know about its staking service |
|---|---|
| Northcrypto | ETH and SOL. Fee 25% of gross rewards received (includes the share of validator partner Figment). Rewards are credited weekly. Checked on the service's staking page on 13.10.2026. |
| KvarnX | ETH staking with the Danish Northstake (announced in April 2024). |
| Bitpanda | Several stakeable coins, including ETH. Rewards are distributed weekly, and according to its support page unstaking ETH has a two-day waiting period. |
| Coinbase | Staking service for several coins, including ETH. Check the reward share in the service's terms. |
| Crypto.com | Staking service for several coins. Check the coin-specific terms in the app. |
If you want to buy stakeable coins first, see our guide to buying Ethereum in Finland.
How much does crypto staking earn?
The size of the staking reward depends on the network. It is affected by, among other things, the rate at which the network issues new coins, how large a share of coins is staked and the network's transaction fees. The more people stake, the smaller each participant's share of the rewards usually is.
The annual yields stated by exchanges are estimates, not promises. In addition, the service deducts its own share from the rewards, so the yield you keep is always lower than the network's gross yield.
Worked example: how the service fee affects the yield
The example is hypothetical and not a forecast. Suppose you stake 2 ETH and the network's gross yield is 3% a year. The gross reward is then 0.06 ETH. If the service takes 25% of the rewards, you keep 0.045 ETH, so the net yield is 2.25%. The result in euros also depends on how the price of ETH changes during the same period.
The most important thing to remember is that the staking reward is paid in the same coin. If the coin loses 30% of its value in a year, a reward of a few percent does not make up for the loss.
Crypto staking: risks you should know
- Price risk: the rewards and the locked coins are the same crypto, whose value can fall quickly.
- Lock-up and waiting time: releasing funds can take from hours to weeks depending on the network queue, and you may not be able to sell them immediately.
- Slashing: if a validator behaves incorrectly, the network can cut rewards or the locked collateral.
- Counterparty risk: funds held by an exchange are not covered by deposit protection or the investor compensation fund.
- Smart contract risk: in liquid staking, a software bug or hack can take the funds.
- Changes in regulation and terms: the service can change its reward share or stop staking for a particular coin.
The FIN-FSA reminds consumers that customers of crypto-asset service providers are not protected if the provider becomes insolvent. This also applies to funds in a staking service.
Crypto staking taxes in Finland
According to the Finnish Tax Administration's guidance of 18 December 2025, staking rewards are taxed as capital income. The income arises at the moment the new coins come under your control, and its amount is the fair value of the coins in euros at that moment. The same amount later becomes the acquisition cost of those coins when you sell them.
- Locking itself: is not a taxable disposal when the coins remain in your ownership.
- Locking in a pool in exchange for a token: if you receive another token in return for the locked coins, the Tax Administration may treat the locking as a crypto-to-crypto swap, which triggers taxation.
- Selling: when you sell staked coins or rewards, a capital gain or loss arises in the usual way.
Staking rewards must be reported to the Tax Administration even if you haven't sold anything. Read more about the taxation of mining, staking and airdrops in our guide to crypto taxes in Finland.
Crypto staking in Finland: frequently asked questions
Is crypto staking a risk-free return?
No. The staking reward is paid in the same coin, whose price can fall, and there are also lock-up, counterparty and technical risks. Staking is not covered by deposit protection either.
Can you stake bitcoin?
Not really. Bitcoin is based on mining, not Proof of Stake, so crypto staking applies to other coins. Services promising "bitcoin staking" are usually lending or other products with different risks.
How much Ethereum does crypto staking require?
Your own validator requires 32 ETH. With exchange staking services you can usually start with a much smaller amount, because the exchange pools customers' funds.
How are crypto staking rewards taxed in Finland?
According to the Tax Administration's guidance, crypto staking rewards are capital income at their fair value at the time of receipt. That value is also the rewards' acquisition cost when they are later sold.
Can I stop crypto staking at any time?
Usually yes, but releasing the funds is not always immediate. The blockchain's own queue or the service's terms can delay the return from hours to several days or longer.
Sources
- Finnish Tax Administration: Taxation of crypto-assets (18.12.2025, in Finnish), sections 2.11.1 and 2.11.2
- ethereum.org: Ethereum staking
- Northcrypto: staking service
- FIN-FSA: crypto-assets for consumers
This content is general information, not investment advice. The value of cryptocurrencies can fall quickly, and you can lose the money you invest.
