Coinspeaker eToro Introduces Staking for Solana and Ethereum
eToro, a well-known trading platform, has expanded its staking services to include Solana (SOL) and Ethereum (ETH). This new offering allows users to earn rewards by staking these cryptocurrencies on the platform.
New Staking Options
eToro’s staking services initially included Cardano (ADA) and Tron (TRX). Now, with the introduction of Solana and Ethereum, users have expanded choices for earning rewards through staking. Solana users are automatically enrolled in staking upon opening a position, while Ethereum users must actively opt into the staking program to participate.
To qualify for staking rewards, users need to be located in a country where staking is permitted and must have maintained their positions for a specified duration, referred to as ‘intro days.’ Positions held via CFDs, CopyTrader, Smart Portfolios, or short positions are not eligible for rewards.
eToro handles the complete staking procedure for users, ensuring it is straightforward and secure. Qualified users will get monthly updates on their staking rewards and the calculations behind them. They also have the option to opt out whenever they wish.
Staking services will not be available to eToro users in Germany, the United States, or certain UK users. In the UAE, users can stake Cardano, Solana, and Ethereum, with Solana staking becoming available in Australia from August 1, 2024.
Adi Lasker Gattegno, eToro’s Director of Crypto Desk, highlighted the significance of staking for proof-of-stake blockchains like Solana and Ethereum. She pointed out that staking boosts transaction security and provides investors with an opportunity to earn rewards from their cryptocurrency investments.
Potential Benefits and Risks of Staking
Staking offers potential rewards but also involves risks. eToro will retain a share of the staking yield to cover operational and compliance expenses. Users can earn between 45% and 90% of the staking yield, depending on their eToro Club tier and the conditions of their staked assets.
Staking carries risks such as reduced liquidity of assets and potential value fluctuations during the staking period. Furthermore, if a blockchain validator breaches protocol rules, the network could impose penalties, commonly through confiscating a portion of the staked assets. eToro advises users to understand and carefully consider the risks associated with staking.
Solana Staking Outpaces Ethereum
A July 2024 Crypto Market Report by AMBCrypto revealed that the Solana staking system has amassed $61 billion, surpassing Ethereum’s. Solana’s staking system stands out for its user-friendliness compared to Ethereum’s. While 65% of staked ETH remains liquid, only 6.5% of Solana’s staked SOL is liquid, making it more appealing to users. Regardless, staking remains an attractive venture for crypto investors, and institutional players have taken notice.
eToro’s expansion into staking for Solana and Ethereum highlights a growing trend among trading platforms to offer more ways for users to engage with their cryptocurrency holdings and earn rewards.
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eToro Introduces Staking for Solana and Ethereum
