What is Cryptocurrency staking?
Cryptocurrency staking is an investment strategy that requires crypto investors to “lock” a certain amount of coins based on the Proof-of-stake (POS) consensus algorithm or many of its varieties. Investors typically receive the right to vote and participate in the governance of the network. For their participation in the network’s governance, the stakers receive a reward.
Crypto staking has become quite popular over the past year, and eToro is among the latest to get on board. In a press release seen by AtoZ Markets, the firm with over 14 million users globally announced that it will launch a digital asset staking service later in October.
Commenting on the launch, eToro’s Co-Founder, and CEO, Yoni Assia said that the platform already has a “large and active crypto community and our goal is to ensure that we are always offering them the very best products and services.”
eToro plans to distribute the staking rewards once per month with “no action required on the part of the users themselves.” The platform will “effectively and securely execute the entire staking procedure,” and will take “great care to protect its users’ crypto-assets against exposure to any additional risks.”
eToro begins staking service with Cardano And Tron
According to the announcement, the eToro staking service will begin with two digital assets – Cardano (ADA) and TRON (TRX).
“We are excited to launch our staking of Cardano and TRON, providing a highly market-competitive offering.” Assia added that eToro will be among the first “regulated platforms to offer a staking service for Cardano.”
Justin Sun, the founder of Tron and CEO of BitTorrent, said, in a release:
“As we continue to see diminishing returns from traditional CeFi services, DeFi is continuing to expand. Services such as eToro’s new staking service takes the complexity and confusion out of the staking process and makes it accessible to everyone.”
eToro’s has also revealed plans to expand its staking service to include other cryptocurrencies such as Tezos, EOS, NEO, and Ethereum 2.0.
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