Revolut launches crypto staking in the UK and EEA

It’s worth noting that this is a soft launch, which means that Revolut plans to extend the availability of crypto staking to more users in the future. For now, users in the UK and European Economic Area will be able to earn an income on their crypto assets by lending them for a certain period of time and contributing to the security and operation of the blockchain network. The new staking features are limited to the DOT, XTZ, ADA and ETH crypto assets with yields ranging from 11.65% to 2.99%. 

Revolut added crypto trading features to its app in November 2017, and since then, it has gradually expanded its crypto-related offerings with features such as crypto cash back offered to premium users, as well as the option of making purchases using crypto balances. 

Revolut has also introduced a series of free courses on the bases of blockchain and crypto, and users who complete the courses can receive free tokens as a reward.

How does crypto staking work?

Staking is only supported by cryptocurrencies that use a consensus mechanism named Proof of Stake in order to ensure that all transactions are verified and secured without the need for a bank or payment processor. Users who stake their cryptocurrencies allow them to become part of this verification process.  

Cryptocurrencies such as Solana and Ethereum use staking as part of their consensus mechanisms. However, Bitcoin does not allow staking because it uses a Proof of Work consensus mechanism.  

According to altfi.com, staking also poses a certain degree of risk, which is why users receive financial benefits for it in the form of a percentage-rate reward over time. The level of risk depends on several factors, such as the security of the staking platform or wallet being used, the risk of hacking, and the security of the blockchain network. Moreover, users will need to stake their assets for weeks or even months at a time depending on each individual programme. During this time, they won't be able to cash out or trade their tokens. 

The main benefits of staking crypto include earning a passive income and gaining the ability to support crypto projects. In essence, users who don’t plan on selling their crypto assets can stake them in order to generate some income while also contributing to the security and potential development of their preferred project.