Staking crypto has become the new trend for earning passive income. It’s great to get into if your not someone who trades a lot, and it’s also fun to see those little payments hit your account every month. For me that’s been the case with using eToro. I get those nice little crypto dividend payments every single month! There is more to staking with eToro that you need to know. So lets explore.
Why Get Involved In Cryptocurrency?
Most people often wonder whether it is worth spending time participating in the rapidly growing cryptocurrency world. The truth is that this is the direction where currencies are headed, and whoever delays embracing it will be left behind. There are a couple of benefits that you can expect when you take part in cryptos:
- It Is a Tool for Investment
One of the most prominent reasons you may want to participate in cryptos is the investment opportunities that it presents you. Unlike fiat currency and stock trades, almost anyone can take part in crypto investment. That’s because it tends to have fewer restrictions to get involved. Any seasoned investor understands that cryptos value is meant to grow for the forecasted period.
- The World Economy Is Headed to Cryptocurrencies
Countries all over the world are gradually digitizing their economic landscape. As they become paperless to save on transactions, cryptocurrency has strategically positioned itself as the go-to solution that fits this use case. Cryptos stand out as a payment model meant to fuel the exchange of digital data, a key component to the digitization of the world economy.
- Quick settlement
Fiat currency often causes a delay in payments or receiving funds as you have to wait for the financial institution to process transactions. That is a thing of the past when you talk of cryptocurrencies. Its ease of use and the faster rate at which transactions are settled makes it more attractive to business owners and the average user at large.
Benefits To Staking Crypto
Staking crypto has several benefits, as described below:
- Receive Interest Payments Monthly
No one stakes crypto for the sake of it. We are all on a mission to make money from the process, and cryptocurrencies have a way to continuously reward us for our efforts. When you stake crypto, you can expect to earn rewards, just as saving money in the bank accumulates interest over time.
- Enhances The Cryptocurrencies Value
Cryptocurrency value normally improves over time. That happens because as more people get the cryptos, the rate at which mining takes place reduces, gradually ensuring that there are lesser quantities. This translates to the enhancement of cryptos value with time.
You can help with the value improvement through staking. Doing so means you take out a portion of tokens from circulation. That creates a shortage while demand remains the same or even increases. The laws of demand and supply state that the value of the cryptos increases when demand is high and supply low.
Intro To Staking Crypto On eToro
Staking crypto on eToro makes it possible for cryptocurrency enthusiasts to own and hold particular crypto assets for a specified period in exchange for earning rewards. You do not have to worry about the complexity of staking when using eToro because the platform does so on your behalf.
Users receive rewards in the form of more crypto assets, meaning that your quantity and value improves as you continue staking on the platform. You can view this in the same way that you would earn interest on your money saved for the long term at the bank.
eToro users stand a chance to get rewards as long as they hold the supported crypto assets on eToro (Europe) Ltd, eToro (UK) Ltd. Or eToro USA LLC. To get these rewards, you need to ensure that your position remains open for a predefined number of days. Please note that this period varies from one blockchain network to another.
Coins Available for Staking On eToro
The supported crypto assets on eToro and their respective rewards are as shown below. The rewards vary depending on the membership that the individual holds.
|Cryptoasset||Reward per membership||Staking days|
|Diamond, Platinum+||Silver, Gold, Platinum||Bronze members|
|Tron (TRX)||90%||85%||75%||Seven days. Reward from the 8th day|
|Ethereum (ETH)*||90%||85%||75%||Varies as explained below|
|Cardano (ADA)||90%||85%||75%||Nine days reward from the 10th day|
Staking ETH takes place exclusively in the crypto wallet embedded in the eToro Money app. It is worth noting that Ethereum entirely determines the go-live date for ETH 2.0 and that eToro has no control over that date.
For you to stake ETH, you would have to first download the eToro Money app. You can then load ETH into the eToro Money app from the eToro investment platform. Another key point worth considering is that you will not transfer back money from the eToro Money app once loaded.
When Is Interest Paid for Staking?
The reward for staking is paid per particular month within 14 days the next month. The user does not need to take any action to get this payment.
Please note that you should have satisfied the staking requirements for you to receive the rewards. How long you have to keep your position open depends on the cryptoasset in question and the blockchain rules.
As far as receiving the reward is concerned, it is worth understanding that you do not get the whole staking amount. Instead, users are paid a percentage of the staking yield. eToro has the most favourable payment rate in the market, currently at a minimum percentage of 75%. The remaining percentage is retained as a fee that covers legal and technical expenses.
Benefits To Using eToro for Crypto Staking
eToro is the go-to platform for staking cryptoassets thanks to its ability to operate transparently to all users. The platform shares crucial details regarding the calculation of the monthly distribution of rewards for all users. That means you can easily tell the reward you should expect during the next payout.
- Earn Passive Income
eToro boasts as the leading platform as far as rewards rate is concerned. Users get a reward percentage depending on their membership. The minimum percentage currently stands at 75%, making it the best in the market. You can get higher rewards of up to 90% by going with the Diamond, Platinum+ club membership.
- Simple, Secure, and Hassle-Free
Staking with eToro gives you a seamless encounter in your stakes. The platform handles the entire process for you so that you do not strain at any point. Additionally, you do not need to take any action at the end of the month to receive your staking rewards.
eToro staking is not only a fun experience but also one that rewards you handsomely. The platform is designed to ensure that users can stake without feeling strained or stressed about it. Take this as an opportunity to participate in the crypto world by staking with eToro. As you do so, carefully choose your membership since that influences the percentage of your rewards.
Disclaimer: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.