In this article, I will discuss how Revolut staking works, explaining how you can earn rewards by staking your cryptocurrency through the Revolut app.
I’ll cover the step-by-step process, the types of supported cryptocurrencies, potential earnings, and how Revolut compares to other staking platforms. If you’re looking to make the most of your crypto, this guide will help you get started.
What Is Revolut Staking?
Revolut staking works the same way as standard staking, where certain funds are locked in for a period of time, which allows users to earn rewards through the secured cryptocurrency’s networks. This means, of course, that all actions are performed on the Revolut application as this is Revolut staking.
For the blockchains using Proof of Stake, Staking is very beneficial, as it assists in validating transactions while improving the network security.
While it is true that it is to a certain extent, analogical to mining, staking, in comparison, does not demand expensive computer systems and power making it more user friendly and environmental friendly.
The company added the new feature of staking in 2023 to help the company wider its offers in the zone of cryptocurrencies, and as stated on the company’s website, the process aids users to “earn rewards effortlessly.”
How Does Revolut Staking Work
Purchase Cryptocurrency
Create an account and get verified. Afterwards, head over to the market place and buy the desirable coin.
Select Cryptocurrency
Select from the available currencies like Ethereum (ETH), Solana (SOL), Polkadot (DOT), Cardano (ADA), Tezos (XTZ), and Polygon (POL).
Lock Funds
Proceed to your portfolio, tap on your crypto, select the 3-dot menu and choose “Stake”.
Set Lock Period
Choose a time frame that works for you and stake your funds.
Earn Rewards
Sit back and let your chosen currency earn rewards via APY .
What Cryptocurrencies Can You Stake on Revolut?
At the moment, Revolut allows staking in six cryptocurrencies: Ethereum (ETH), Solana (SOL), Polkadot (DOT), Cardano (ADA), Tezos (XTZ), and Polygon (POL, formerly MATIC). The earnings received from staking depend on the type of cryptocurrency and the amounts that are staked.
For example, staking 1 ETH will yield lower rewards than staking 1,000 ETH. Furthermore, people who lock up their funds for a certain period of time will have their funds released to them along with the earned staking rewards after the period has elapsed.
Revolut Staking APY and Rewards
Polkadot (DOT)
At this time, when you intend to stake DOT on Revolut, the APY is on a maximum of 12.30%. The rewards for Polkadot staking are on a weekly basis with a waiting period of around 2 days before the rewards are credited to the account.
Additionally, while staking in Revolut, it is important to take note that the DOT coins have a 30 days lock-up period. In simpler terms, after you unstake DOT, it will take a whole month before you can actually access the funds. Furthermore, you will be forced to not sell the locked balance of DOT coins.
Tezos (XTZ)
On revolut, the staking of tezos shows an Annual Percentage Yields of 5.76%. Also, remember that the reward does not stay constant and depends on the condition of the network and in example even if you are provided with the estimated reward while situating the staking, you might get more or less than the average. This is the result of how the market shifts.
The users that stake Tezo will have to wait for the approximate 24 days to receive the rewards. Likewise, because the reward depends on the monitor setting there is no standard period to get the incentives .
Cardano (ADA)
Always keep in mind that the APY for Cardano on Revolut is 2.09% and the rewards fluctuate depending on network conditions as you decide to stake.
Similar to Tezos, the waiting time is variable and heavily dependent on network conditions. The rewards from staking will be restaked automatically to increase your earnings.
Ethereum (ETH)
Those aiming to stake ETH on Revolut will need to wait approximately 2 days before they are able to access their rewards due to the waiting period. However, the APY for staking Ethereum stands at 2.95%.
When dealing with Ethereum, one must take into account that once unstaked, you have a mandatory 10-day waiting period before you can access the balance.
Tips for Successful Staking
Understand the Risks: The value of stakes could change while your assets are locked for a period of time. Other risks include slashing and downtimes.
Choose the Right Cryptocurrency: Different assets check different levels of risk, APY, and reward. Ensure to evaluate your investment objective when choosing an option.
Stay Informed: Remember to pay attention to the value of your staked assets and any information posted by Revolut with respect to policies and rewards.
Use Trusted Platforms: Revolut uses third parties to help secure your funds. Also, remember to use trusted platforms for staking.
Pros and Cons of Revolut Staking
| Pros | Cons |
|---|---|
| Easy to use: Revolut offers a simple, user-friendly interface for staking. | Limited cryptocurrencies: Only 6 coins are available for staking. |
| No technical setup: No need to manage wallets or nodes, making it beginner-friendly. | Low staking rewards: Smaller stakes may result in lower rewards. |
| Automatic rewards: Staking rewards are automatically credited to your account. | Withdrawal restrictions: Funds are locked for a set period, limiting liquidity. |
| Integrated with Revolut app: Easily accessible within the Revolut ecosystem. | Fees and limits: Revolut may charge fees or impose limits on staking rewards. |
Conclusion
In conclusion, Revolut staking provides an easy and secure way for users to earn passive income by staking cryptocurrencies directly within the app.
With a user-friendly interface, low fees, and no minimum investment, it’s accessible for beginners and experienced investors alike.
While rewards and risks vary, Revolut’s staking feature offers a convenient solution for those looking to grow their crypto holdings while maintaining flexibility and security.
