eToro Launches Solana And Ethereum Staking Services
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eToro, a trading and investing platform, announced that it has started staking services for Ethereum (ETH) and Solana (SOL). This new feature lets users gain rewards by joining in staking activities.
People who stake coins on eToro earn extra rewards without doing much by helping the network. They do this by checking transactions and keeping the network safe. These rewards can change due to network inflation, the number of coins people stake, the fees the validators charge, and market changes.
eToro Has Expanded Its Staking Services With the Latest Staking Option
The new staking service increases eToro’s current staking options, which include Cardano and Tron. To earn staking rewards, users must live in a country where staking is allowed and must have owned the staked cryptocurrency for a certain number of days, called ‘intro days’.
Users with investments made through CFDs, Smart Portfolios, CopyTrader, or short positions are not yet allowed to get staking rewards. eToro holds back a portion of the staking returns to handle operational, legal, and technical fees.
The broker said during the staking time, assets might have less or no liquidity, meaning they can’t be easily bought or sold, and their value can change. Furthermore, if a blockchain validator breaks the rules, the network might apply penalties or take a portion of the staked assets.
Users who have an open Solana position will be automatically enrolled in staking, but those who want to stake Ethereum need to join the program on their own. Eligible users will get monthly emails explaining their staking rewards and how they were calculated. Users can leave the staking program whenever they want.
The head of the cryptocurrency business at eToro said staking is crucial for blockchains that utilize a proof-of-stake method, like Ethereum and Solana.
It helps confirm and secure transactions without needing a payment processor. For investors, staking their cryptocurrency assets can provide the extra advantage of token rewards.
eToro Users Will Receive Rewards For Just Keeping Tokens On Its Platform
Staking allows users to gain interest or dividends on their digital assets as they help validate transactions. It also gives them the right to vote on blockchain changes. Users are rewarded for simply keeping their coins on the eToro platform as they usually would.
Earlier this year, eToro revealed a significant update regarding the management of cryptocurrency assets for customers residing in Germany. These assets were handed over to Tangany GmbH, a company based in Munich that provides crypto custody services.
Following this update, eToro Germany stopped providing cryptocurrency custody services. However, customers can still transfer or sell their cryptocurrencies to another custodian using the eToro platform. Once assets are transferred to another custodian, they cannot be sold through eToro anymore.
