eToro Staking - How to Earn Rewards for Holding Cryptocurrencies

How Staking Works on eToro

Staking on eToro is an easy process that does not require you to monitor trades or perform any other action. All you need to do is to buy, own, and hold the supported crypto asset. eToro then pays the staking rewards monthly to users who qualify. 

The assets will belong to the user while eToro safeguards the staking procedure at no risk to the user. However, eToro charges a small part of the yield as payment for the technical, operational, and legal costs it accrues while staking. 

 The user will get a minimum of 75% of the yield.

What Can You Stake?

eToro allows staking for assets such as Cardano (ADA), Tron (TRX), and Ethereum (ETH). However, ETH staking is only available to certain users. The rewards percentage available to a user depends on their membership level. 

eToro USA LLC does not offer CFDs, only real Crypto assets available.

For ADA, bronze members and all users in the United States will receive 75% of the monthly staking yield. Silver, Gold, and Platinum members will receive 85%, while Diamond and Platinum+ members will receive 90% of the monthly staking yield. 

There are 9 staking intro days for holding ADA and the rewards will start on the 10th day of holding the asset. Tron (TRX) also has the same reward percentage formula as ADA for its club members but with 7 staking intro days. 

The rewards begin on the 8th day. ETH staking also follows the same reward percentage. However, ETH staking will be locked until ETH 2.0 is launched. This means you’ll only have access to the rewards on the staked ETH when the ETH 2.0 blockchain goes live. 

It is important to note that certain users are not eligible to receive staking rewards. For ADA and TRX, users in the UK who signed up on eToro on or after February 8, 2022 are not eligible for staking rewards. 

UK residents who registered on or after February 1, 2022 are not eligible to receive staking rewards for ETH 2.0. Also, eToro staking does not apply to cryptocurrency assets that are held using copy trading, copy portfolios, CFDs, and short positions. 

How Much Do You Need to Get Started?

eToro takes a daily snapshot of your holdings at 00:00 GMT. The total will then be divided by the number of days in the month and the result is used to calculate the average daily amount. The average daily amount will be used to calculate the monthly reward. 

The staking rewards will also be calculated using the applicable percentage of the user’s club membership. The minimum payable amount must be worth more than 1 USD in value. 

However, eToro pays staking rewards with the same crypto asset you stake. All staking rewards for a particular month will be paid within 14 days of the next month. All you need to do is to own and hold the supported crypto asset. 

The rewards will be shared automatically once they are available. eToro also provides an email containing the full details about the amount, the monthly yield, and a link containing the formula used for calculating eligibility, staking fees, and other necessary information. 

Remember to buy cryptos without using leverage. Otherwise, you'll only be purchasing crypto CFDs that don't give out any rewards. Moreover, you'll also be charged overnight fees on eToro.

Conclusion

eToro allows users to grow their crypto assets just by owning and holding them. Provided that you meet the requirements, you can enjoy a hassle-free increase on your assets through staking. Alternately, you could store them in your eToro wallet, but you won't be eligible for rewards.

For more information about the broker, read our eToro review.

Disclaimer

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. 76% 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.

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.