Bodax provides the premier solution for cold storage crypto, offering unmatched offline asset security, ensuring the utmost safety and integrity of your digital investments
Offline Assets
Cold storage in cryptocurrency refers to keeping digital assets offline, typically on hardware or usb wallets. This method protects against online threats, like hacking, ensuring enhanced security for long-term asset preservation. It's ideal for those seeking to safeguard significant crypto investments from cyber risks.
Whats is Cold Storage
Ethereum 2.0 (ETH2) is an upgrade to the entire Ethereum network that aims to improve the network’s security and overall scalability. This upgrade involves Ethereum shifting their current mining model from PoW (proof-of-work) to a staking model called PoS(proof-of-stake).
ETH2 (Ethereum 2.0) is staked ETH. Bodax offers our customers the ability to stake their current ETH to earn rewards. What this means is when you stake your existing ETH (or any amount of ETH you choose), it converts to ETH2. The price of ETH2 is identical to ETH. Once the Ethereum network upgrade has been completed, your ETH2 will revert back to ETH.
Staking is the process of actively participating in transaction validation, like mining. The main difference is instead of the typical proof-of-work (PoW) style blockchain the transactions are validated on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards. For additional information on how staking works on Bodax, check out this help section.
You may earn up to 6% APR on any ETH that you stake as a reward for helping secure the network! ETH2 staking rewards are given in accordance to how much ETH is validating and what rewards the network is offering over a period of time. When there is minimal ETH staked, the protocol rewards increase! Kind of like an incentive for more ETH to be brought to the table to be staked. On the flip side of that positive notion, when there’s already a lot of ETH staked, that reward is reduced. To check out the current amount of ETH staked at this very moment, click here.
At Bodax, we make sure that our customers are protected at all times, and provide all information up front. This is why we advise reading these disclosures along with our User Agreement regarding the ETH staking service and any additional terms that may be presented at the time you choose to stake. At the end of the day, Bodax wants our customers to understand that ETH staking is experimental and involves some risks including possible failure of the network. Please make sure that you solely understand, assess, and accept the related risks prior to deciding to stake.
The most important risk to be aware of is the possibility of losing your staked assets (also referred to as your “principal funds'') due to slashing. Although highly unlikely, Slashing is a penalty enforced at the protocol level associated with a network or validator failure.
Bodax has taken multiple measures to minimize the risk of slashing, and are confident that our customers feel the same. However, slashing can be caused by events outside of our control entirely that could lead to the loss of some or possibly all staked ETH. If a slashing event were to occur, Bodax will replace your slashed principal promptly at no extra cost. If you started staking after October 1, 2021, Bodax will only cover slashing penalties to the extent they are a result of an action or omission within our reasonable control.
There are no minimums to stake on Bodax. There is a maximum amount of ETH that each customer can stake to help manage network limits. This maximum amount will change over time and is not specific to your individual account.
To be eligible to stake ETH, you must:
Hold ETH in your Bodax account.
Live in an eligible country for ETH staking.
Complete identity verification and ID document verification.
Read and understand the terms and conditions associated with ETH staking.
Important: Currently only individual accounts are eligible for staking, not businesses accounts.
North America
South America
Europe
Middle East
Asia
Africa
Go to the Ethereum asset page under your Portfolio on a desktop browser or mobile device on the Bodax App and follow the respective prompts. If you're signed in and eligible (see eligibility above), you may be able to convert your ETH to ETH2 and start staking immediately!
If you’re on the waitlist, you'll need to wait to be removed from it before you can start staking ETH. Don’t worry! We’re working to make this feature available to more customers and will notify you immediately when you’re off the waitlist!
Note: Bodax Support cannot verify if you’re on the waitlist, your place in line, or when you will be given access to the feature. Patience Grasshoppa! Patience!
If you’re experiencing issues with staking, please make sure you’re using the latest version of the Bodax mobile app.
As expected during the initial launch you won’t be unable to send, sell, or trade the amount of ETH you’ve staked. Good news is later this year we expect to enable liquidity of your staked ETH funds.
Your staked ETH will appear in your ETH2 wallet, just like any other cryptocurrency asset. This is because Bodax converts your ETH to ETH2 when you decide to stake. Please note that ETH2 tokens are specific to Bodax and cannot be traded or sent off platform.
At this time, staking rewards will not be added to your staking balance and you will not be able to access them. ETH2 staking rewards will be reflected in your account under Bodax Rewards and will be updated on a regular basis.
Bodax customers who are in the U.S. who are subject to U.S. tax reporting are required to report their earnings from Staking rewards. U.S. customers that earn over $600.00 in Staking rewards will receive a 1099-MISC from Bodax. You can learn more about the 1099-MISC on the official website of the IRS.
Of course. When you join the ETH staking waitlist, you're simply letting us know you’re interested in ETH staking. You're not committing to staking ETH and it will not be staked automatically - your funds will not be staked without your expressed permission.
If you’re no longer interested in staking ETH then there is no obligation to do so when you become eligible to stake.
Frequently Asked Questions
Cold storage is crucial in cryptocurrency for its enhanced security. By keeping assets offline, it shields them from online vulnerabilities like hacking and cyber theft, ensuring the safekeeping of significant investments. This method is especially vital for long-term storage, offering peace of mind against wrongdoers and any digital risks.