Introduction
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.
| 🪙 Cryptos to Stake | Cardano, Tron, Ethereum |
| 💰 Reward Percentage | 75% to 90% |
| 📆 Reward Distribution | Within 14 days of the next month |
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What is Staking?
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.
Staking Bitcoin on eToro
Staking Bitcoin (BTC) on eToro (and any other platform or exchange) is not possible. Staking can only be done on cryptoassets that uses the PoS (Proof-of-Stake) mechanism. You cannot stake Bitcoin since it applies a PoW (Proof-of-Work) mechanism.
Which Cryptocurrencies Can Be Staked on eToro?
Currently, eToro supports only 3 cryptos: Tron (TRX), Cardano (ADA), and Ethereum (ETH).
Good news though, eToro is planning to support more cryptocurrencies for staking soon.
Who is Eligible for Staking?
Staking rewards are available to eToro users who hold any of the supported cryptoassets, except for those residing in the UK who registered with eToro on or after February 8, 2022, and all eToro US users, who are not eligible to receive staking rewards for Cardano and Tron.
Similarly, UK residents who registered with eToro on or after February 1, 2022, and all eToro USA users are not eligible to receive staking rewards for ETH 2.0. It's important to note that these restrictions are subject to change based on eToro's policies and regulations in different jurisdictions.
How Do I Start Staking on eToro?
To qualify for a staking reward on eToro, you must hold an open position of the staked cryptocurrency for a specific duration of time. The length of this period varies depending on the blockchain of the specific cryptoasset and the time it takes for it to be included in the staking pool.
For instance, to be eligible for staking rewards for Cardano, your position must be open for a minimum of nine days, meaning you will become eligible on the tenth day. On the other hand, for Tron, your position must be open for at least seven days before you become eligible for staking rewards, meaning you will become eligible on the eighth day.
It's important to note that the eligibility period for staking rewards may differ for each supported cryptoasset on eToro.
Cardano (ADA) Staking on eToro
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.
Tron (TRX) Staking on eToro
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.
Ethereum (ETH) Staking on eToro
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, Argentina, Australia, Austria, Azerbaijan, Bahrain, Belgium, Bolivia, Brazil, Bulgaria, Cayman Islands, Chile, Colombia, Croatia, Cyprus, Czech Republic, Denmark, Dominican Republic, Ecuador, Finland, Georgia, Gibraltar, Greece, Guernsey, Hungary, Iceland, Ireland, Israel, Italy, Jersey Islands, Kazakhstan, Kenya, Kuwait, Latvia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Mexico, Monaco, Norway, Oman, Peru, Philippines, Poland, Portugal, Romania, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Ukraine, UAE, Uruguay, UK (members who opened an eToro account before February 1, 2022), Vietnam
Staking Rewards on eToro
Your monthly staking yield reward percentage on eToro varies between 75% to 90%, depending on your eToro Club membership tier. The reward rate increases as you move up to a higher level of membership.
| Crypto | Bronze Members, US Traders | Silver, Gold, Platinum Members | Diamond, Platinum+ Members |
|---|---|---|---|
| Cardano | 75% | 85% | 90% |
| Tron | 75% | 85% | 90% |
| Ethereum | 75% | 85% | 90% |
Staking Reward Distribution
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.
Benefits of Staking Crypto Assets
Staking wouldn't become a hit among traders and investors without these benefits:
- Staking is more environment-friendly as compared to the energy-consuming crypto mining.
- Staking gives you another passive income avenue through the interests from your crypto holdings.
- By staking, you help in the improvement of security and maintaining the efficiency of the crypto's blockchain network.
- Staking requires no additional equipment like a powerful computer as compared to crypto mining.
Risk of Crypto Staking
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.
Frequently Asked Questions (FAQ)
How is eToro's monthly staking yield is computed?
In calculating the monthly yield for each supported cryptos, eToro follows this sample formula.
Example:
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%.
How does eToro compute the staking percentage?
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)
How does eToro compute the staking reward?
eToro computes the staking reward in this order:
- Calculate the number of eligible days for the month by deducting the intro days from the total days between the open position and close position date.
- Compute the average daily position using this formula: (Staked amount) x (number of eligible day) / (number of days in the month)
- Compute the final staking reward by using this formula: (Average daily position) x (monthly yield) x (revenue share) = Total Units x (monthly staking yield et. al 75% if Bronze member, 85% if Silver, Gold members and so on)
Is staking cryptos on eToro safe?
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.
How do I stop receiving staking rewards from eToro?
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
Can I unstake my cryptocurrency on eToro at any time?
Yes, you'll be able to unstake your cryptocurrency on eToro at any time. To do this, you simply need to navigate to the staking section of your eToro portfolio and click the "unstake" button for the cryptocurrency you wish to remove from staking. Once you confirm the action, your staked cryptocurrency will become available in your portfolio for trading or withdrawal. However, it's important to note that unstaking may result in a loss of any accumulated staking rewards for the period that the cryptocurrency was staked.
What happens if the price of the cryptocurrency I'm staking goes down on eToro?
If the price of the cryptocurrency you're staking goes down on eToro, the value of your staked cryptocurrency will also decrease. However, this does not affect your staking rewards. The staking rewards are calculated based on the amount of cryptocurrency you have staked and the staking rewards rate, which is usually fixed or predetermined by the cryptocurrency's protocol.
What happens if eToro discontinues staking for a particular cryptocurrency?
In the event that eToro has decided to discontinue staking for a specific cryptoasset, you will no longer be able to stake on it via the platform. However, any crypto that is currently staked will remain staked until the end of the staking period.
In most cases, eToro will provide advance notice to users before discontinuing staking for a particular cryptocurrency, so you have ample time to unstake your cryptocurrency before the staking feature is removed.
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. 77% 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 does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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