Earn money on your cryptoassets without doing a thing
If you own crypto, then you could be getting even more from your investments by staking your assets. This is what you need to know:
What is staking?
Staking is a way to earn rewards on the specific cryptoassets you own. It allows you to grow your crypto investment over time, simply by holding the cryptoasset, regardless of whether the market goes up or down – almost like depositing money in a bonus interest savings account. Staking acts as a support to the operation and security of the blockchain network that supports the cryptoasset, and in return offers a reward for your investment. It’s paid automatically and monthly, according to the percentage yield.
Staking can help you use your crypto to generate passive income, with many cryptoassets offering high interest rates for staking. If you have crypto that you aren’t planning to trade any time soon, it’s worth staking it.
How does staking work?
When you stake your crypto, it still belongs to you. You’re pledging your coins to the blockchain, which is essentially supporting the system you’ve invested in. Crypto relies on investors staking to verify transactions and keep the crypto running smoothly.
Can I stake all cryptoassets?
It’s not possible to stake Bitcoin. Staking derives from a Proof of Stake (PoS) mechanism which allows blockchain miners to mine or validate block transactions depending on how many coins they have – in other words, the more coins they hold, the more mining power they have. Bitcoin works on a Proof of Work (PoW) mechanism where this isn’t possible. Investors are eligible for staking rewards if they’ve held the cryptoasset for a certain period of time; this differs according to the cryptoasset, but is usually around one to two weeks. eToro supports staking for Cardano (ADA), and Tron (TRX), and plans to support more cryptoassets in the future.
Can I unstake crypto?
Yes, if you want to trade crypto, you’ll need to unstake it. Some staking requires you to lock up your coins for a certain amount of time, so you’re unable to sell them during that time period. When you want to unstake your crypto, there can be a period of around seven days, so be mindful to give yourself enough time if you’re wanting to trade your cryptoassets.
How to start staking with eToro
Staking with eToro is simple and secure; investors’ cryptoassets are protected from exposure against additional risks, and you’re saved the hassle of staking on your own. When you buy crypto with eToro, you automatically receive staking awards from Cardano (ADA), and Tron (TRX). These come through directly, with no action required. In order to be eligible for a staking reward, all you need to do is hold the staked cryptoasset for a certain amount of time; for Cardano (ADA) this is at least nine days, and for Tron (TRX) it’s seven days. Investors also get a monthly email explaining the rewards they received that month, the aggregated monthly yield, the total reward given, and how it was calculated for each of the supported staked cryptoassets. Rewards will be shared in the same cryptoasset that was staked. If you want to stop receiving staking, all you have to do is submit a request, and your crypto will be unstaked.