eToro now offers staking for Cardano and Tron
The platform is also working on expanding staking services to other digital currencies
eToro, one of the world’s most prominent social trading and multi-asset brokerage companies, has started offering staking services for Cardano (ADA) and Tron (TRX). The company has also revealed that it is planning to expand this service to several other digital currencies.
Users of the social trading platform can stake their digital assets through eToro and subsequently earn rewards, which will automatically be paid out on a monthly basis.
The advantage to using eToro is that users can stake their digital assets in a secure environment and help contribute to the validation processes of various blockchain networks.
It is well known that digital currency markets are highly volatile. However, staking gives investors the opportunity to generate returns regardless of whether the price of the currencies rise or fall.
However, staking does come with some unique disadvantages. One such drawback is that it has a lockup period during which the delegated tokens cannot be sold or otherwise used in transactions.
Multiple reliable crypto exchanges offer staking services, such as Coinbase, Kraken and Binance. Coinbase announced earlier in July that it would allow users to stake ADA tokens by the fourth quarter of 2020.
Market participants are reminded that investing in crypto coins or tokens is a highly speculative activity, and the market itself is largely unregulated. Staking through an exchange also comes with its own unique risks, as numerous hacks and service outages have pushed customers away in the past.
The founder and CEO of eToro, Yoni Assia, emphasised the platform’s capacity to provide a safe space for users interested in staking digital currencies.
“Staking is an important development in the crypto market but it’s difficult for people to access its benefits on a secure platform, which is what we’re enabling our global community of investors to do by offering this new service.” Assia said.
“We are proud to be one of the first regulated platforms to offer a staking service for Cardano and will be further expanding our staking service in the coming months,”
The CEO added that eToro is currently working on the capacity to offer future staking rewards on other crypto assets, such as NEO, Tezos and EOS.
The founder and CEO of Tron, Justin Sun, expressed his optimism for the new staking service.
“We are thrilled that eToro has chosen TRON as one of the first assets to be offered on their new staking service. As we continue to see diminishing returns from traditional CeFi services, DeFi is continuing to expand.” he said.