If, like many people, you are interested in the cryptocurrency market but the frequent price fluctuations seem too risky, crypto staking is an investing strategy that you may want to consider. Staking actually allows you to grow your crypto investment over time, simply by holding the supported cryptoasset — no matter if the market goes up or down.
What is crypto staking?
To put it simply, think of staking as “cryptocurrency mining” without the need for any hardware; or, in more traditional terms, a lot like depositing money in a bonus interest savings account. Staking acts as a support to the operation and security of the blockchain network to which the token belongs, while offering a reward for your investment. This reward is in the form of more of that cryptoasset, paid automatically and monthly according to the percentage yield.
Cardano, also known as ADA, is a fully open-source, decentralised public blockchain and cryptocurrency project. In July 2020, Cardano’s Shelley upgrade was implemented to make the cryptoasset’s protocol completely autonomous by decentralising its internal operational activities. More significantly, the most anticipated feature of this update was the introduction of staking for ADA.
Fundamentally, Cardano works like any other cryptocurrency staking system. By holding and staking its tokens, you assist the network with validating blocks on the protocol and receive a return on your investment. However, Cardano does not permit solo staking – you can either opt to run a staking pool that other participants can join, or delegate your holdings to someone else’s pool. This is to ensure that there are enough node operators within the network.
So how can an individual crypto investor stake Cardano without all the hassle? Through a reliable and regulated platform. eToro is one of the first regulated platforms to offer a staking service for Cardano (ADA).
eToro’s staking service is a process that allows you to earn staking rewards on Cardano every month, automatically, and with absolutely no action required on your part. The staked cryptoassets remain yours, are held in your investment portfolio, and eToro executes the entire staking procedure for you, protecting your assets against exposure to any additional risks and handling all the necessary procedures behind the scenes. Furthermore, eToro’s staking rewards are among the most generous in the market, offering from 75% and up to 90% of the staking yield, with complete transparency regarding the way your monthly rewards are calculated.
In addition to Cardano, eToro also offers staking for TRON (TRX). “We are thrilled that eToro has chosen TRON as one of the first assets to be offered on their new staking service,” said Justin Sun, TRON’s founder. “Services such as eToro’s staking service takes the complexity and confusion out of the staking process, and makes it accessible to everyone.”
Again, the process for earning your monthly staking rewards for TRON is as easy as just holding your coins in your eToro portfolio.
eToro, a multi-asset trading platform with over 10 million registered users, is working on offering future staking rewards for other cryptoassets soon, including NEO, Tezos, EOS, and ETH 2.0. You can check out eToro’s entire offering of seamless crypto services. Sign up and open an eToro account for free here.
Trading Cryptoassets with leverage is regulated and comes with a high risk of losing money. Buying Cryptoassets is unregulated in most EU countries and therefore is not supervised by EU regulatory framework and carries no EU protections. Your capital is at risk.