- How do I add my ETH 2.0 staking transactions to ACCOINTING.com?
- What is the ETH2 Token and why is it listed under unknown currencies?
- How is ETH 2.0 staking different from any other staking transactions?
If you’ve ever had any of these questions related to ETH 2.0 staking transactions or the ETH2 Token, this article is for you. In this article we will try to answer these questions, and more.
(Notice: This article is for ETH 2.0 staking transactions, which is not the same as any other staking transaction. If you are looking for handling regular staking transactions, you can view that article here.)
ETH 2.0 Staking Explained
According to this Coinbase article, the ETH 2.0 network is an upgrade to the ETH network that is transitioning from being mining-based to being staking-based. Either network you use, you’ll be using the same ETH asset. Staking ETH into the ETH 2.0 network is unlike traditional staking because exchanges like Coinbase give you an ETH2 token in return. Many platforms like Coinbase and Kraken have a crypto staking rewards calculator which calculates all staking rewards automatically and sums it up in a detailed report. That token is nothing more than a receipt for your invested ETH and will convert into ETH when the ETH 2.0 network goes live.
You may wonder how you handle the ETH2 Token transactions, and we will go over that next.
Handling the ETH2 Token Transactions
Since ACCOINTING.com does not know what the ETH2 token is, we will need to fix that problem. The following example is what the default transaction looks like when staking ETH into the ETH 2.0 network.
Example of the ETH2 token transaction when staking ETH into the ETH 2.0 Network.
In that example, you can see the problem mentioned above. To fix this we just need to classify the ETH2 token under “Unknown Currencies” in the dashboard. The screenshot below shows where we can do so.
Example of the ETH2 token being listed under “Unknown Currencies”
In this section, we can classify the ETH2 token as ETH. We can do so because ETH2 is always going to be the same value as ETH, and is going to convert back to ETH in the future.
Once you classified the ETH2 Token, we just need to remember to classify the deposit transactions of any staking rewards as “Staking”.
So in summary, ETH 2.0 staking differs from regular staking because it gave you an ETH2 token in return. We should classify the ETH2 token as regular ETH since they will eventually exchange it for the regular token, anyway. By doing so, it will handle your transactions automatically.