CEX vs Self-Staking

Staking through exchanges is one-click; self-custody staking via hardware wallet and solo or liquid protocols preserves control. The tradeoff is convenience versus counterparty risk and sovereignty.

CEX staking offers customer support and often flexible lockups — but the FTX lesson applies. Exchange-held assets can be frozen, and regulatory pressure has targeted staking-as-a-service in the U.S.

Self-custody paths include solo staking with 32 ETH and technical expertise, or liquid staking protocols that deliver an LST directly to your wallet. Regulatory treatment differs between exchange earn programs and self-custody liquid staking, but rules continue to evolve.