eToro users can now get monthly staking rewards on Ethereum (ETH).
eToro is one of the few globally regulated platforms to enable its 20 million registered users the ability to stake their ETH using the eToro wallet, ahead of the highly anticipated blockchain network upgrade to Ethereum 2.0. ETH 2.0 staking on eToro is, as always, an innovation with benefits for holders of the Ethereum token. The purpose of the staking of ETH is to help support the ETH 2.0 upgrade, which is expected to improve ETH network efficiency.
This is eToro’s latest addition to its crypto offering, having launched its staking service in October 2020 for Cardano (ADA) and TRON (TRX).
Who can receive staking rewards?
The ETH staking service was initially launched in Belgium, Denmark, and the Czech Republic, with a gradual rollout to other regions. The rewards for users’ staked ETH cryptoassets will be distributed every month for the previous month’s staking, with no action required on the part of the users.
How is staking ETH different to other staking services on eToro?
Staking ETH 2.0 on eToro differs from eToro’s existing staking services in several ways.
1. eToro Money Crypto Wallet
The ETH 2.0 staking service will be executed through the eToro Money crypto wallet mobile app rather than the eToro investment platform.
- eToro users who are eligible for staking and who hold ETH can transfer it to the crypto wallet to stake.
- Users of the crypto wallet who already own other cryptoassets there, can convert these assets to ETH, and then stake them.
- Those who hold ETH in an external wallet can transfer it to the eToro Money crypto wallet to start benefitting from our staking program.
All users will be able to see both their staked ETH and their rewards within their crypto wallet at all times.
2. Staked ETH is Locked
Unlike other crypto staking on eToro, staked ETH will be locked until such time as Ethereum launches the ETH 2.0 blockchain network. When this happens is entirely at the discretion of the Ethereum Network, and is expected to be some time within the next 12–24 months.
Users will be able to see their original ETH and the rewards they have accrued in their eToro Money crypto wallet at all times. Users will also receive a monthly email letting them know how much their staked ETH has increased.
Staking With eToro — How You Benefit
Staking with eToro is simple, secure and hassle-free. Staking rewards are paid out to users every month, in ETH. Users who have staked their ETH are not required to do anything further. These rewards are paid into users’ eToro ETH crypto wallet, counting towards the principal ETH balance, and they remain locked together with the user’s staked ETH.
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.
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.
What does staking mean?
Staking is a process that allows users who own and hold supported cryptoassets to earn rewards — just for holding them. Rewards are earned in the same cryptoasset that was staked, which means that users grow their holding in much the same way as they would earn interest on money.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.