How to Stake with eToro?
By simply holding crypto assets with eToro, you'll be able to get a reward automatically every month!OPEN REAL ACCOUNT Get a $100,000 Practice Account
* 78% of retail CFD accounts lose money
Regulated by trusted financial authorities
No commission on stock trading
Customer service available 24/7
Unlimited Demo Account
In eToro, staking is a way for cryptocurrency holders to receive rewards just for holding the crypto assets they own. eToro takes care of the staking process on their behalf. In this article, we learn more about staking and how traders can use it to their advantage. Once your done reading, we recommend that you also check out our comprehensive evaluation so you will know more about the full features of eToro.
If you're ready to stake with eToro, then the very first step to take is to open an account. To make things easier, you just need to click on the button to get started.
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Derived from the PoS mechanism (Proof-of-Stake), Staking is a concept in trading that reward traders for holding on for a specific crypto coin. It involves the process of committing crypto assets to confirm transactions and support a blockchain network. It is only doable with cryptocurrencies that utilize proof-of-stake models.
The blockchain mining network uses this mechanism to allow miners to validate, mine, and block transactions based on how many crypto coins they own. Simply put, the more coins you own, the more mining power you hold.
No. Because Staking is only made possible on crypto assets that uses the PoS (Proof-of-Stake) mechanism, you cannot stake Bitcoin since it applies a PoW (Proof-of-Work) mechanism.
As mentioned, cryptos that confirms transactions via a proof of stake are the only cryptos that offer staking. Here are some examples of major cryptocurrencies available for staking:
Currently, eToro supports only two cryptos: Tron (TRX) and Cardano (ADA). A third crypto, ETH 2.0 was included after February 1, 2022 to all US and UK users of eToro.
Good news though, eToro is planning to support more cryptocurrencies for staking soon.
Participation in staking is generally open to anyone. However, to maximize potential in staking requires a substantial investment. For example, with ETH, you will be required a minimum investment of 32 ETH. This plus a wide technical knowledge, and a powerful computer that can perform numerous validations 24 hours and 7 days a week.
Staking is initiated by purchasing and owning one or more of the supported crypto assets, and then holding the open position of the staked crypto asset for a given length of time.
Each cryptocurrency requires a particular period before it becomes eligible for staking, as dictated by its blockchain, and depending on when it is included in the staking pool.
The reward percentage per level of the monthly staking yield for Cardano (ADA) in eToro is at 75% for Bronze members and all US users, 85% for Silver, Gold, and Platinum Club members and 90% for Diamond and Platinum Plus Club members.
Staking rewards starts on the 10th day of holding following a period of 9 intro staking days.
The reward percentage per level of the monthly staking yield for Tron (TRX) in eToro is at 75% for Bronze members and all US users, 85% for Silver, Gold, and Platinum Club members and 90% for Diamond and Platinum Plus Club members.
Staking rewards starts on the 8th day of holding following a period of 7 intro staking days.
The reward percentage per level of the monthly staking yield for Ethereum (ETH) in eToro is at 75% for Bronze members and all US users, 85% for Silver, Gold, and Platinum Club members and 90% for Diamond and Platinum Plus Club members.
ETH 2.0 staking is available for the following countries:
Andorra, Arab Argentina, Australia, Austria, Azerbaijan, Bahrain, Belgium, Bolivia, Brazil, Bulgaria, Cayman Chile, Colombia, Croatia, Cyprus, Czech Denmark, Dominican Ecuador, Emirates, Finland, Georgia, Gibraltar, Greece, Guernsey, Hungary, Iceland, Ireland, Island, Islands, Isle Israel, Italy, Jersey Kazakhstan, Kenya, Kingdom, Korea, Kuwait, Latvia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Man, Mexico, Monaco, Norway, Of Oman, Peru, Philippines, Poland, Portugal, Republic, Romania, Slovakia, Slovenia, South Spain, Sweden, Switzerland, Taiwan, Thailand, Ukraine, United Uruguay, and Vietnam.
Since the main goal for staking is to get additional cryptos, you will depend on interest rates that can be quite substantial. You can sometimes achieve more than 10% or 20% per year.
In calculating the monthly yield for each supported cryptos, eToro follows this sample formula.
In the month of November, 600,000 ADA coins were received as staking reward on eToro.
During the same month, the daily average of ADA kept by staking users totaled 11,000,000 ADA coins.
Hence, the computation would be 600,000 divided by 11,000,000 for a monthly yield of 0.54%.
Computing staking percentage is a very complex process. The best way is to use various Staking calculators online. But on a nutshell, the basic formula is as follows:
For example, you are staking Cardano (ADA) with 7% per year of 100. The formula would be: 100 x 7% = 7 (You will earn 7 ADA a year if you have 100 ADA)
eToro computes the staking reward in this order:
eToro's staking is guaranteed safe. The staked crypto assets instantly become the property of eToro's users. eToro meanwhile, gains the trust of eToro's users by executing the entire staking procedure on their behalf, in a safe, effective and secured manner.
If you prefer to opt out from the staking rewards on your eToro trading platform, simply submit a request to stop staking rewards by going to this link: etoro.com/crypto/staking
Staking rewards are automatically given inside 14 days of the following month. You will regularly get a monthly email from eToro regarding your staking earnings and this includes a table for your rewards.
Staking wouldn't become a hit among traders and investors without these benefits:
As a result of staking, your cryptocurrency is often locked up for a period of time, where it can't be transferred. This can be a drawback since you cannot trade staked tokens during this time, regardless of price changes.
You have reached this part of the article so most likely, you are. Opening an account at eToro is the first step in taking this opportunity. Just click on the button to get started!
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.