George Miller
In 2023, Revolut, a major player in the digital banking sector, introduced a staking feature on its platform.
This article will outline how Revolut’s staking works, its advantages, and the potential risks, terms, requirements, and associated fees.
Understanding Revolut Staking
Revolut staking involves temporarily locking funds to help secure a cryptocurrency network, rewarding users for their contributions. This process is conducted entirely on the Revolut platform, making it accessible for users.
Ideal for Proof of Stake blockchains, staking strengthens network security and supports the validation process. While it resembles mining, staking is less demanding in terms of hardware and energy usage, making it a more eco-friendly option.
Revolut’s staking feature was introduced as part of its strategy to broaden its crypto offerings, enabling investors to “earn rewards effortlessly,” according to their official website.
How Revolut Staking Functions
Staking can sometimes be complex, particularly for occasional users or beginners.
Fortunately, Revolut’s staking process is very user-friendly, as is the entire app.
Users simply need to purchase cryptocurrency (if they don’t already own it on Revolut) and lock it for a designated time to receive rewards based on the amount staked.
Supported Cryptocurrencies for Staking on Revolut
Currently, Revolut allows staking for six cryptocurrencies: Ethereum (ETH), Solana (SOL), Polkadot (DOT), Cardano (ADA), Tezos (XTZ), and Polygon (POL, formerly MATIC).
The rewards earned from staking depend on the chosen cryptocurrency and the amount staked. For example, staking 1 ETH yields less than staking 1,000 ETH, but participants will receive a reward after locking their funds for the specified period.
Annual Percentage Yields (APY) and Rewards
Revolut outlines potential staking rewards on individual cryptocurrency pages. The reward rates vary depending on the cryptocurrency selected, offering competitive APYs for some options.
NOTE: APY (Annual Percentage Yield) indicates the expected annual return as a percentage. For instance, staking 1 DOT at an APY of 12.30% would yield an annual reward of 0.123 DOT, worth approximately $0.73 at the current price of $5.93.
Polkadot (DOT) Staking Insights
Staking DOT through Revolut can yield an APY of up to 12.30%. Rewards are distributed weekly after a delay of around 2 days.
Notably, DOT has a lock-up period of 30 days. Therefore, once you decide to unstake, you must wait 30 days to access those funds and cannot sell the locked DOT during this time.
Tezos (XTZ) Staking Details
When staking Tezos, users can expect an APY of 5.76%. The actual rewards may fluctuate based on network conditions, and you might receive more or less than initially estimated.
Tezos rewards are typically distributed after a waiting period of around 24 days, which may vary depending on network conditions.
Cardano (ADA) Staking Overview
Staking Cardano offers an APY of 2.09%, with reward variations based on network conditions.
Like with Tezos, the waiting time for rewards can differ based on the network’s current state, and rewards will automatically be restaked to grow your potential earnings.
Ethereum (ETH) Staking Information
The APY for Ethereum staking is set at 2.95%, with daily rewards distributed after a wait of about 2 days.
Post-unstaking, there’s a mandatory waiting period of 10 days before accessing your Ethereum balance.
Solana (SOL) Staking Features
Staking Solana yields an APY of 5.25%, with rewards paid out every 3 days after an initial 3-day waiting period. After unstaking, you’ll wait an additional 3 days before accessing your funds.
Polygon (POL, formerly MATIC) Staking Details
Currently, staking Polygon (POL) on Revolut provides an APY of up to 3.74%, with daily rewards available after a 1-day warm-up. Once unstaked, there is a 4-day waiting period before accessing your balance.
Step-by-Step Guide to Revolut Staking
- Update and open the Revolut app.
- Navigate to the “Crypto” section and select the cryptocurrency you wish to stake (e.g., Polkadot).
- If you haven’t purchased the desired cryptocurrency yet, you will need to do so first, keeping in mind that a transaction fee applies.
- Once you’ve purchased your cryptocurrency, access your portfolio, select the asset, and tap the 3-dot menu to choose “Stake.” Be sure to read all details before proceeding.
- Press “Continue” to proceed with the staking process.
- Select the amount of cryptocurrency you wish to stake. You’ll see an estimate of your annual rewards before you confirm your choice.
- Post-staking, you can check more details about your staked assets in your portfolio, including when your initial reward will arrive and the projected rewards rate.
Overview of Risks, Conditions, Requirements, and Fees
Staking on Revolut provides a straightforward way to earn rewards by locking away cryptocurrency on the platform, allowing users to capitalize on their crypto assets.
However, there are risks involved with staking, primarily the volatility of the market. Although you receive an estimated annual reward, the actual results could be lower due to fluctuations in the market. In extreme scenarios, there’s a possibility of receiving no rewards.
There are also risks tied to staking such as slashing penalties and downtime that might lead to the loss of your staked assets.
Even with these risks, Revolut’s staking option is appealing for those new to cryptocurrency or for users who prefer a hassle-free engagement without the need for extensive technical expertise.
It’s important to note that Revolut’s staking functionality is currently limited to certain countries in the EEA, and in the UK, the staking service is being retired, making it unavailable for new stakes; only the option to un-stake remains.
Staking fees vary based on region and cryptocurrency, with EEA fees ranging between 15% to 35%, while in the UK, a flat rate of 15% to 30% applies. It is vital to be aware of the fees applicable to your region and chosen token as they can greatly influence your returns.
Final Thoughts
Revolut staking simplifies the process of earning rewards through cryptocurrency, appealing to both novices and established users seeking straightforward engagement.
The service supports major cryptocurrencies like Ethereum, Solana, and Polkadot, each offering different rewards based on the tokens and amounts staked.
While the staking process is user-friendly, it’s crucial for users to acknowledge the associated risks, such as market volatility and possible penalties.
Moreover, with varying fees based on the region and crypto types, considering these expenses is essential before staking.
Nonetheless, Revolut staking represents an effective means for individuals wanting to earn passive rewards through cryptocurrencies.
* This article and the links included are intended for informative purposes only and do not constitute financial or investment advice. We recommend conducting personal research or seeking professional guidance before making any financial choices. We are not liable for any losses resulting from information provided on this website.