Fintech giant eToro has announced the inclusion of Solana (SOL) and Ethereum (ETH) in its staking program, allowing eligible users to earn rewards by holding these cryptocurrencies. This expansion builds upon the platform’s existing staking services for Cardano (ADA) and Tron (TRX).
To participate in the staking program, users must meet specific criteria. Firstly, they must reside in a jurisdiction where staking is permitted. Secondly, they need to hold an open position in the chosen cryptocurrency for a predetermined period known as ‘intro days’. It’s important to note that positions held through CFDs, CopyTrader, Smart Portfolios, or short positions do not qualify for staking rewards.
Staking: A Double-Edged Sword
While staking can offer potential rewards, it’s essential to understand the associated risks. eToro retains a portion of the staking yield to cover operational costs, and the value of staked assets can fluctuate. Moreover, the possibility of penalties or ‘slashing’ exists if a validator breaches protocol rules.
Adi Lasker Gattegno, Director of Crypto Desk at eToro, emphasized the significance of staking in securing blockchains and the potential benefits for investors. eToro aims to simplify the staking process for users by handling the complexities on their behalf.
How it Works
For Solana, users are automatically enrolled in staking once they open a position. However, Ethereum staking requires an active opt-in. eToro will provide regular updates to eligible users regarding their staking rewards and calculation methodologies. Users also have the flexibility to opt out of the staking program at any time.
eToro’s expansion into Solana and Ethereum staking is a strategic move to cater to the growing demand for staking services. By offering a user-friendly platform and managing the complexities of staking, eToro aims to attract more investors to its platform.
As the cryptocurrency market continues to evolve, it is likely that we will witness further advancements in staking services and other crypto-related offerings from major financial institutions.