Cardano staking is the easiest way for users to earn passive income and part of the ADA ecosystem. It’s done in a non-custodial way, thus safer than keeping it in your wallet. However, it brings us to the question, how do you stake Cardano?
Cardano uses unique algorithms that help ADA holders validate transactions in Blockchain. Remember that Cardano is not the only cryptocurrency to use staking – Ethereum 2.0 set to implement the same.
How to stake Cardano?
First, you should select a crypto wallet to delegate your ADA. The most common ones for Cardano staking are Yoroi and Daedalus.
Yoroi is browser-based, while Daedalus features a full-node desktop wallet. After you set up a wallet of your choice, you can transfer ADA into a wallet of your choice. You can also use Binance or Coinbase to send ADA over. After the funds reflect in your wallet, you can select the stake pool to delegate ADA.
The stake consists of a pool of stakeholders who grant permission to count their tokens as single votes. Thus, the more stakes a collection contains, the higher the chances of participating in blocks.
At a basic level, the locked assets are used to secure the validity of new transactions. However, staking is an active part of the more expansive crypto space.
Viewing the staking pools
To view the Daedalus staking pool, you should click the network tab next to ADA wallet. For Yoroi, you ought to select the delegation list tab. You must do some due diligence before you commit yourself to the pool. Sometimes, such collections are run by node operators who charge exorbitant fees. And the last thing you want is to all prey to such people.
There are a couple of things to keep in mind before you start staking. First, your decision can be influenced by functionality, historical returns, lock-in period, among other technical requirements.
Now that you’ve confirmed the pool, the next step is entering the password. If you add more ADA to the staking pool, you must set up a new wallet. It is the easiest option for new investors.
Can you stake Cardano on Binance or Coinbase?
While Binance can support Cardano Staking, Coinbase cryptocurrency exchange is ahead of the game. Others that support Cardano Staking are KuCoin, Crpto.com, and Kraken. Just like pools, you should research the best cryptocurrency exchanges before you fully commit yourself. The rewards also matter – some will offer better annual yields than others. In addition, most of them charge a flat fee on the tips generated from staking.
Focus on those that allow you to lock in your currency for a specific period. For example, Coinbase lets holders earn rewards deposited on the user’s account. Even better, there’s no minimum to stake ADA.
How long will it take for Cardano staking to earn rewards?
On average, it can take up to 20 days. But after 15 days, you can earn ADA rewards (five days per epoch). Based on Cardano protocol specifications, ADA tokens are not subject to lockup. Therefore, if you decide to stop staking, the tokens will be available to you. It usually takes one business day.