eToro starts providing staking rewards for Cardano (ADA) and Tron (TRX)
- Through its staking service, eToro aims to offer its users a way to grow their crypto investments.
- According to eToro, all users with open positions will receive staking rewards monthly.
- For users to receive rewards, their monthly payouts must exceed £0.77.
eToro has started offering staking rewards for Cardano (ADA) and Tron (TRX). A blog post unveiled this news on October 1, noting that this service will see eToro users start earning monthly rewards just for owning TRX or ADA. Allegedly, this service will see the exchange’s users enjoy easy, secure, and seamless growth on their crypto investments.
According to the blog post, eToro will complete the staking process on behalf of its users. As such, the exchange’s customers will be able to earn crypto on crypto in the same way they can earn interest on money. By leveraging this opportunity, the users will be able to stake their crypto in a secure environment and contribute to the validation process of multiple blockchain networks.
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eToro went on to assert that only users on eToro USA LLC, eToro (UK) Ltd, or eToro (Europe) Ltd will be eligible for the staking program. However, to receive the rewards, the users will need to have opened their positions for a specific number of days. The number of days will vary depending on the blockchain network of the crypto asset in question.
Benefits of staking with eToro
Outlining the benefits of its dedicated staking service, eToro said that its staking process is simple, secure, and hassle-free. The exchange added that it would pay out staking rewards every month starting November in ADA and/or TRX. Per eToro, the payout process will be straightforward seeing as it will not require any action from its users.
Additionally, eToro noted that users will have full ownership of their staked cryptocurrencies. Through staking their ADA or TRX, the clients will have entrusted their funds to the exchange to complete the entire process securely and effectively on their behalf.
Apart from this, eToro noted that its exercises great caution to protect the crypto assets that its users have entrusted it to prevent exposure to additional risks. In doing so, the exchange spares the users the challenges involved in staking on their own.
The procedure of calculating monthly rewards
Per eToro, transparency towards its users is key in its operations. As such, the exchange provided a detailed explanation of how it calculates the monthly rewards for each user. This process involves the system capturing a daily snapshot of each users’ holdings at 00.00 UTC. Allegedly, this step helps show a user’s eligible staking units for all open positions.
At the end of each month, the system divides the total of the month’s snapshots by the number of days in the month to obtain an average daily amount. Afterwards, the system uses the average daily amount as the basic amount through which it calculates the monthly reward. After this, the exchange calculates the monthly yield percentage and then adds it to the applicable club member percentage. The exchange then pays out the reward provided it is above £0.77.