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Heard staking was coming to Australia? Well, you asked and we listened!
Swyftx is very excited to announce that you can now stake several cryptocurrencies on our mobile and web trading platform.
Currently, this includes:
Whether you’re new to the practice of staking or just have a few questions regarding how it works, here’s a quick rundown of the key points you need to know.
We’ve covered all the basics in our dedicated Staking page. Yet, to give a quick refresher, staking is a mechanism for improving the security of a ‘Proof of Stake’ blockchain network. Those who stake their cryptocurrency are able to receive staking rewards in return. This reward is typically represented as a proportionate percentage of the cryptocurrency being staked.
If you choose to stake cryptocurrencies on Swyftx you may receive rewards at a specified rate on the Swyftx platform. This rate is periodically updated to reflect the rewards actually received from the process of staking your cryptocurrencies.
Rewards are earned continuously (with millisecond precision) and are credited to your Staking Wallet each day at 10am AEST and will appear in your account shortly after 11am AEST. This means your Staking Wallet balance is being compounded on a daily basis with your daily rewards. Your daily rewards are calculated by multiplying your Staking Wallet balance (including all previously compounded rewards) by the RPY displayed on the Swyftx platform for that cryptocurrency at that particular time and dividing by 365.25 (in order to account for leap years).
Here’s a simplified example using hypothetical balances and RPY:
Staked balance: 365.25 DOT
RPY displayed on Swyftx platform: 10%
Daily reward: (365.25 DOT * 10%) / 365.25 = 0.1 DOT
If you do not unstake any of your staked DOT, the following day’s staking reward will be calculated on a staked balance of 365.35 DOT (365.25 DOT + 0.1 DOT). Daily rewards will be prorated for any partial days for which a balance is staked
Staking is subject to all the risks associated with holding cryptocurrency. The biggest risk of crypto staking is the volatility in a particular cryptocurrency’s price. If the price of the cryptocurrency you’re staking decreases, then the amount of rewards you receive through staking may not be enough to cover the loss in the overall value of your staked assets.
No! There are no fees associated with Swyftx’s staking service.
The minimum staking amount for a cryptocurrency is $1 AUD for Australian customers, $1 NZD for New Zealand customers and $1 USD for any other international customers.
In terms of a maximum amount, there is no individual customer limit on the value or quantity of a cryptocurrency you can stake. You are able to stake up to 100% of your cryptocurrency balance until that cryptocurrency’s Swyftx Staking Cap has been reached.
When the Swyftx Staking Cap has been reached for a particular cryptocurrency, you will be unable to stake that cryptocurrency until the Cap is increased, or other users unstake their cryptocurrency.
Due to the nature of staking and how it functions, we are limited in the number of tokens for each cryptocurrency we can make available to customers for staking purposes. We will be regularly reviewing the size of Swyftx Staking Cap in respect of each eligible cryptocurrency, and you will be able to view in the platform when any changes have been made.
Generally, rewards received from staking will have tax implications, as they are currently considered to be income by the ATO and are taxed accordingly. For more information on staking and crypto tax in Australia click here.
Yes, there is no lock up period for staking your assets. This means you can stake and unstake your eligible assets whenever you wish, subject to the Swyftx Staking Cap for that cryptocurrency.
No, there is no unlocking period for unstaking your cryptocurrency. While your cryptocurrency is staked, the rewards you receive from staking will be automatically added to your total amount of staked cryptocurrency in your Staking Wallet (thereby compounding the rewards you receive). Once you unstake some or all of your assets, the additional coins will be credited back to your own Swyftx Trading Wallet.
For more information, visit our help portal resources or touch base with one of our friendly support team members via live chat.