Recently, Revolut, one of the most popular digital banks in the world, introduced staking on its platform. And in this article, we will discuss how Revolut staking works, what are the benefits of this process, and whether there are some risks and requirements involved.

What is Revolut Staking? 

Just like the original staking process, Revolut staking implies temporarily locking some funds to secure a cryptocurrency’s network and getting rewarded for it.   

Staking is suitable for Proof of Stake blockchains and is extremely helpful in supporting the network’s security and contributing to the validating process. Even though it is similar to mining, staking requires less hardware and energy, thus being more accessible and eco-friendlier.   

Revolut launched its staking feature as part of its plan to expand its crypto-related services, and according to its official website, the process helps investors to “earn rewards effortlessly.”   

How Does Revolut Staking Work? 

In some cases, staking may be pretty complicated, especially for users who perform such activities only sometimes or are beginners in the industry.

However, when it comes to Revolut staking, the process is extremely straightforward. And it is no surprise, as the whole Revolut app is intuitive and user-friendly. 

Thus, when it comes to staking on Revolut, users just have to buy some crypto (if they do not hold crypto on Revolut already) and lock it for a set period of time to get rewards based on the amount of crypto staked.    

What Cryptocurrencies Can You Stake on Revolut? 

At the moment, Revolut supports 4 cryptocurrencies for staking: Ethereum (ETH), Polkadot (DOT), Cardano (ADA), and Tezos (XTZ).

Depending on the cryptocurrency you choose for staking, you can earn various rewards. The rewards strongly depend on the amount of crypto staked, too. For instance, if you stake 1 ETH, you will not be rewarded as much as you would be if you stake 1,000 ETH. However, those temporarily locking their funds will receive a staking reward after a set period.

Revolut Staking APY and Rewards 

Revolut provides extensive information regarding the rewards users can get through staking. However, investors can earn up to 11.65% APY with Revolut staking.  

SIDENOTE. In staking, the APY (Annual Percentage Yield) tells you your compounded return per year as a percentage figure. For instance, if you stake 1 DOT and the APY is 11,65%, you will get an annual reward of 0.1165 DOT for the amount staked.

Polkadot (DOT) 

If you want to stake DOT on Revolut, you will work with an APY of 11.65%. Rewards for staking Polkadot are delivered daily, after a waiting period of around 2 days. Your rewards will be automatically restaked to increase your earnings.   

It is important to note that the DOT staked on Revolut has a lock-up period of 29 days. Thus, once you unstake DOT, you will have to wait 29 days before accessing the balance. Meanwhile, you will not be able to sell the locked balance of DOT coins. 

Tezos (XTZ) 

On Revolut, staking Tezos comes with an Annual Percentage Yield of 4.40%. Keep in mind that the reward varies based on network conditions, and even if you get an estimated reward when confirming the staking process, you may receive more or less, depending on how the market fluctuates.   

Those staking Tezos will be rewarded every 3 days after a waiting period of approximately 24 days. The reward timing varies based on network conditions. The rewards you get from staking XTZ will be automatically restaked to increase your earnings.

Cardano (ADA) 

If you decide to stake Cardano on Revolut, remember that the APY stands at 3.24%, and the rewards vary based on network conditions.  

The staking rewards for ADA are delivered every 5 days after a waiting period of around 3 weeks. Just as in Tezos’ case, the waiting period can fluctuate based on network conditions. The rewards will be automatically restaked to increase your earnings. 

Ethereum (ETH) 

The APY for staking Ethereum stands at 2.99%, and those aiming to stake ETH on Revolut will receive their rewards weekly after a waiting period of approximately 7 days. Also, the rewards are automatically restaked on the platform.  

In Ethereum’s case, unstaking is temporarily unavailable. The amount of ETH staked on Revolut will be locked until the Ethereum upgrade is completed. This is expected to take place in the first half of 2023. Until then, you will not be able to sell your staked balance, even if it loses value. 

Revolut Staking Step-by-Step 

Open the Revolut app and make sure that it is up to date; 

Go to the Revolut Hub. You may also have received a notification about staking; 

Select “Crypto” and go to “Staking”; 

Here you will find the cryptocurrencies available for staking and you can choose your option. For this guide, we will choose Polkadot (DOT); 

If you have not bought DOT before, you will be required to purchase some coins now. You will also have to pay a small transaction fee; 

After you bought DOT, you can click on “Stake”. Read the details carefully, so that you make an informed decision regarding your assets. Then, you can click “Continue”; 

Select the amount of DOT you want to stake. Below you will see more details about the estimated annual rewards you will get. Afterward, click “Confirm”; 

You can learn more about the coins you stake, such as when you will get your first reward, what is the staked value (in fiat), and what is the estimated rewards rate. 

Risks, Conditions, and Requirements 

Staking on Revolut is a straightforward process, and it is a way of incentivizing users even more, as they are rewarded for locking crypto on the platform.   

Nonetheless, staking crypto still implies some risks. And one of the most important is that the market can fluctuate quickly. This way, even if you get an estimated annual reward when you stake your coins, you may receive a smaller reward. In the worst-case scenario, you can end up with no reward.   

But even when considering this risk, Revolut staking seems an excellent option for those who want to experiment with crypto simply and quickly.   

It is essential to note that Revolut staking is currently available only in the UK and in around 30 EEA markets. It is still to see if Revolut will make this feature available in other countries. 

In Conclusion 

Staking is an excellent way of increasing your crypto assets. Furthermore, unlike mining crypto, staking does not require expensive hardware or tremendous amounts of energy.  

Revolut has recently introduced staking on its platform. The feature is available in the UK and 30 other European countries.   

At the moment, those aiming to stake crypto on Revolut can choose from 4 cryptocurrencies: Polkadot, Tezos, Cardano, and Ethereum.   

The rewards depend on the cryptocurrency staked, the locked amount, and the network conditions. Currently, the highest APY for Revolut staking is the one of Cardano, which stands at 11.65%.   

The post How Does Revolut Staking Work? appeared first on Coindoo.

---

Filed under: Bitcoin - @ February 20, 2023 8:22 am