Hello!
Welcome to this tutorial: I’ll show you a strategy on how to profit from Staking on eToro for holding cryptoassets. So that you can build up a constant income.
What is Staking?
Staking is a process that allows rewards to be earned by holders of a specific coin. Staking derives from the PoS (Proof-of-stake) mechanism, used by a distributed blockchain network, where blockchain miners can mine or validate block transactions according to how many coins they have. That means the more coins you hold, the better is your reward.
What coins are supported?
EToro currently supports staking for Cardano (ADA) and Tron (TRX), and is working on plans to support more cryptoassets.
How do you start coin staking on Etoro?
To begin staking you need to purchase and own one or more of the supported cryptoassets, so TRX or ADA. Then you need to hold the open position of the staked cryptoasset for a certain period of time. The time period for when a user becomes eligible differs per cryptoasset; according to the blockchain of the specific cryptoasset, and how long it takes for it to be included in the staking pool. Keep in mind you have to buy those cryptoassets in the eToro trading platform only! Not in the exchange Platform.
How long do I have to be holding the coins to receive staking rewards?
The time period for you to become eligible differs per cryptoasset; according to the blockchain of the specific cryptoasset, and how long it takes for it to be included in the staking pool. For Cardano, the position must have been open for at least nine days, with users becoming eligible from day ten. For Tron, the position must have been open for at least seven days, with users becoming eligible from day eight.
When do I receive my staking rewards?
Staking rewards will be distributed for a specific month within 14 days of the following month. You action is required from your side.
What is the minimum amount that a reward can be?
The amount of a reward must be of a value that is more than 1 USD. (more in "How do I calculate my staking rewards on eToro?")
How is the monthly yield per cryptoasset calculated?
o calculate the monthly yield per cryptoasset eToro divides the total number of new coins (AKA the total sum of the reward) for the month by the total average daily amountof all eligible staking users.
Example:
In the month of September 500,000 ADA coins were received on eToro as the staking reward.
For the same month, the total average daily amount of ADA held by eligible staking users was 10,000,000 ADA coins.
Therefore, the calculation will be 500,000 divided by 10,000,000, resulting in a monthly yield of 5%.
How do I calculate my staking rewards on eToro?
First of all in the first picture you can see differened reward levels (bronze beeing the first and diamond the last tier you can get). To get those tiers you need to meet the equity requirement (Silver: $5,000, Gold: $10,000, Platinum: $25,000, Platinum+: $50,000, Diamond: $250,000). Back to the question: Here is how the staking rewards are calculated:
First a daily snapshot of your holdings is taken each day at 00:00 GMT.
Second at the end of each month, the total of all the month’s snapshots are divided according to the number of days in the month, producing an average daily amount.
And Last the average daily amount is the basic amount on which the calculations are made to get the your monthly rewards. The monthly yield percentage (see “ How is the monthly yield per cryptoasset calculated?”) is calculated, and then the applicable club member percentage is calculated on that.
How does eToro calculate the eligibility of a reward?
Etoros Formula:
Example: You bought 50$ worth of ADA on September 1st (For further calculations those are equal to 460 units)
A: September’s ADA Staking
You are a Bronze tier member on eToro and get a 75% yield for your staking rewards.
Your position on ADA was open for 29 days in September (First day does not count).
First you need to take minus the nine intro days for ADA, leaving you with 20 eligible days.
Then you multiply your ADA units from your position (460 ADA units x 20 days = 9200)
B: Calculable cryptoassets
At the end of September, we calculate the sum of all eligible staking units meaning:
You have 9200 ADA eligible staking units, the Average Daily Position should be: 9,200 divided by 30 days in September = 306.67.
C: Your Final Staking Reward
For the month of September, the calculation yield for cardano (ADA) was 5% meaning:
306.67 ADA units x 5% or 306.67 x 0,05 = 10,22 ADA units
Remember in this scenario you have a bronze membership meaning 75% yield:
(75% of 10,22 ADA units = 7,67 ADA Units)
Total:
You are going to get 7,67 ADA units as a staking reward
By the current market value (on etoro 0.108) of ADA that would be 0,83$ per month or 9,96$ per year
(Nevertheless, the staking rewards are going to get added to your account and are calculated every month, which of course increases your profit exponentially every month!)
So if you want to build you a passive Income Invest in ADA or TRX but beware of the risk! www.etoro.com