How Traders Are Gaining By Holding Crypto: Staking Tron (TRX) And Cardano (ADA)

If like many people you are interested in the cryptocurrency market but the frequent price fluctuations seem too risky, crypto staking is an investing strategy that you may want to consider. Staking actually allows you to grow your crypto investment over time, simply by holding the supported cryptoasset – no matter if the market goes up or down.

What is crypto staking?

To put it simply, think of staking as “cryptocurrency mining” without the need for any hardware; or in more traditional terms, a lot like depositing money in a bonus interest savings account. Staking acts as a support to the operation and security of the blockchain network to which the token belongs, while offering a reward for your investment. This reward is in the form of more of that cryptoasset, paid automatically and monthly according to the percentage yield.

Staking Cardano

Cardano, also known as ADA, is a fully open-source, decentralized public blockchain and cryptocurrency project. In July 2020, Cardano’s Shelley upgrade was implemented to make the cryptoasset’s protocol completely autonomous by decentralizing its internal operational activities. More significantly, the most anticipated feature of this update was the introduction of staking for ADA.

Fundamentally, Cardano works like any other cryptocurrency staking system. By holding and staking its tokens, you assist the network with validating blocks on the protocol and receive a return on your investment. However, Cardano does not permit solo staking – you can either opt to run a staking pool that other participants can join, or delegate your holdings to someone else’s pool. This is to ensure that there are enough node operators within the network.

So, how can an individual crypto investor stake Cardano without all the hassle? Through a reliable and regulated platform. eToro is one of the first regulated platforms to offer a staking service for Cardano (ADA).

eToro’s staking service is a process that allows you to earn staking rewards on Cardano every month, automatically and with absolutely no action required on your part. The staked cryptoassets remain yours and are held in your investment portfolio. eToro executes the entire staking procedure for you, protecting your assets against exposure to any additional risks and handling all the necessary procedures behind the scenes. Furthermore, eToro’s staking rewards are among the most generous in the market, offering from 75% and up to 90% of the staking yield, with complete transparency regarding the way your monthly rewards are calculated.

Staking TRON

In addition to Cardano, eToro also offers staking for TRON (TRX). Justin Son, TRON’s founder, said,

“We are thrilled that eToro has chosen TRON as one of the first assets to be offered on their new staking service. Services such as eToro’s staking service takes the complexity and confusion out of the staking process, and makes it accessible to everyone.”

Again, the process for earning your monthly staking rewards for TRON is as easy as just holding your coins in your eToro portfolio.

eToro, a multi-asset trading platform with over 10 million registered users, is working on offering future staking rewards for other cryptoassets soon, including NEO, Tezos, EOS and ETH 2.0. You can check out eToro’s entire offering of seamless crypto services. Sign up and open an eToro account for free here.

For more information about staking, click here.

This post originally appeared on the eToro blog.

Cryptoasset investing is unregulated in most EU countries and the UK. No consumer protection. Your capital is at risk.

This is a marketing communication and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without having regard to any particular investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past performance of a financial instrument, index or a packaged investment product are not, and should not be taken as a reliable indicator of future results.

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Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.