eToro has launched a new staking service, initially available for the Cardano (ADA) and TRON (TRX) cryptocurrencies.
Yoni Assia, CEO and co-founder of eToro, commented:
“eToro has a broad and active crypto-community and our goal is to offer them even better products and services. We are happy to launch our Cardano and TRON staking service, with a highly competitive offer on the market. Being one of the first regulated platforms to offer a staking service for Cardano is a reason for us to be proud. But we do not want to stop there: over the next few months, we will further expand our service”.
Simon Peters, Crypto Analyst at eToro, added:
“I believe that staking, along with lending cryptocurrencies to earn interest, is one of the key components in the evolution of crypto as a mainstream investment product”.
What is staking?
Staking allows locking a digital asset in exchange for rewards in the form of cryptocurrencies.
It is a procedure involving blockchains with a Proof of Stake (PoS) consensus mechanism, where participants can validate block transactions based on the number of coins they hold. The greater the number of cryptocurrencies held, the greater the power of validation.
Holders of digital currencies do not risk their initial cryptocurrency positions by staking, although the value of the position held depends on the price of the underlying asset and, if this varies, their investment may also increase or decrease as a result. Liquidity depends on the network’s staking rules.
For example, some staking services require a minimum number of days before cryptocurrency holders can withdraw their assets, whereas with eToro, users are not subject to these restrictions.
Staking Cardano and Tron with eToro
eToro automatically distributes rewards to users every month – for the staking service performed during the previous month and for the specific crypto asset supported – without any action on the users’ part. The staked assets remain the property of eToro users.
Justin Sun, founder of TRON and CEO of BitTorrent commented:
“We are delighted that eToro has chosen TRON as one of the first assets to be made available to users for their new staking service.
While we continue to see declining returns on CeFi services, DeFi services continue to expand. Services like the one offered by eToro eliminate complexity and confusion from these processes, making them accessible to all”.
In addition to automatically receiving rewards, users will also receive an email detailing how much has been paid and how the reward has been calculated for each of the crypto assets.
eToro continues to work to include additional crypto assets, including NEO, Tezos, EOS and will also support ETH 2.0.