Crypto staking: a new way to earn passive income

Crypto staking: a new way to earn passive income

By eToro
16 May 2022
Partner Content

You may be familiar with traditional ways of earning passive income such as trading stocks, subletting property and dropshipping, but have you ever tried staking cryptoassets?

Using eToro’s dedicated staking service, you can grow your crypto holdings just by having it sit in your portfolio – reaping rewards with no action required.  

What is staking?

Staking derives from a Proof-of-Stake cryptoasset mechanism used by a distributed blockchain network where miners can mine or validate block transactions based on how many coins they own. The more coins a miner holds, the more mining power they have.

Rewards from staking are shared with users who own the cryptoassets like Cardano (ADA) and Tron (TRX) who delegate their voting rights to staking pools. The more validations delegated to a staking pool, the greater chance a user is elected to validate transactions and receive crypto rewards.

Using eToro’s staking service, users who own coins like ADA and TRX earn those additional rewards just for holding them - much in the same way people earn interest on money in their savings account.

Staking with eToro

If you’d like to begin staking, you can open an account with eToro and make your first deposit onto the platform.

To make sure you earn rewards, add supported cryptoassets (like ADA and TRX) to your portfolio. From there, you need to hold an open position for a certain period of time before being eligible for staking rewards.

For example, Cardano must be held in an open position for a minimum of nine days before users are eligible to be included in the staking pool.

After the designated time period ends, sit back and relax as your staking rewards come in each month. It’s just that easy.  

“The staked cryptoassets remain the property of the eToro users; in turn, eToro users entrust eToro to execute the entire staking procedure for them, securely and effectively,” said Oded Ben-Dror, Director of Marketing, Crypto at eToro.

“eToro takes great care to protect our users’ cryptoassets against exposure to any additional risks, sparing them the hassle and complication of staking on their own.

“Consequently, eToro retains a small percentage of the yield as a fee, as well as to cover the various operational, technical, and legal costs involved.”

The benefits of staking with eToro

If you join eToro - the smarter way to stake – you may receive the following benefits:

  1. High yield: eToro’s staking rewards are one of the most generous in the market, offering between 75 per cent to 90 per cent of the staking yield.
  2. Compound: Your staking rewards grow larger each month as you hold more crypto from which to yield rewards.
  3. Simplicity: You receive your staking rewards each month, with no action required on your part.
  4. Transparency: eToro provides complete transparency on how your monthly rewards are calculated.

“Staking allows users who own and hold supported cryptoassets to earn rewards of more of these cryptoassets just for holding them, meaning that users grow their holding in much the same way as they would earn interest on their savings,” Ben-Dror said. 

“Staking helps to secure blockchain networks and introduce new tokens into circulation meaning token holders are participating in the network's governance, whilst receiving a benefit from doing so.”

Using eToro’s dedicated staking service, you can enjoy simple, secure and hassle-free growth.

eToro is the world's leading social trading platform, which offers both investing in stocks and cryptocurrencies, as well as trading CFD with different underlying assets.

eToro - the worlds leading social trading and investing platform now launching commission-free stock offerings for Australia

More from Etoro

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
The Top 5 Strategies to Get Financially Fit
Partner Content
Investing your money early is one of the most powerful ways to secure your financial fu...
ASX trading is now available on eToro with 0% Commission - here’s how to get started
Partner Content
eToro, the world’s leading social trading platform, has recently made stocks list...
How to start investing: a guide for beginners
Partner Content
To a first-time investor, the global market can seem daunting. But with the right knowl...