Cardano is one of the top proof-of-stake (PoS) cryptocurrencies in the world. Its native token, ADA, is used for many things, one of which is staking.
Staking is the process of “lending” your assets for a period of time in order to earn rewards. This can be to help validate transactions and keep the network secure, or to provide liquidity.
ADA staking is different in that you don’t need to lock up your ADA, and it is primarily for the network’s security, decentralization, and block creation process.
There are three main ways you can stake ADA. The rewards range from 3% to 6% per year, in this guide, we show you those three ways so that you too can start staking and start earning.
Through a Centralized Exchange
The first way you can stake ADA is via a centralized crypto exchange. There are several top centralized crypto exchanges that will pay you attractive rewards to stake your ADA. An example is Kraken, which pays 25% APY for staking ADA.
Other platforms like Binance, Coinbase, Poloniex, and KuCoin also pay rewards to stake ADA. it is noteworthy that this is the easiest way to stake ADA, and everyone can participate in it.
It is particularly suitable for beginners who are just entering the crypto industry, because centralized exchanges are much safer to deal with. If you use any of these centralized exchanges, you can use it to start staking ADA.
To start staking ADA, follow these steps.
- Sign up on a centralized crypto exchange of your choice if you don’t already use one. The procedures are similar for all exchanges and may be as simple as providing your email and a password.
- Buy or deposit ADA from your exchange account.
- Proceed to the staking page and select ADA. If there are staking pools to choose from, pick the pool of your choice.
- Enter or choose the amount of ADA you wish to stake and the duration for which you wish to stake.
- Click on Stake and that’s it. Your reward will start accumulating.
Through an ADA Staking Pool
Another option, which is more technical than the use of a centralized exchange is the use of an ADA staking pool.
These pools are referred to as stake pool operators (SPOs). There are several of them on ADAPools, and you can choose one based on interest rate (reward), saturation, fees, and past performance.
One upside of staking with an SPO is that it is non-custodial as you retain control of your assets, unlike when you stake with a centralized exchange.
To stake in an ADA poll, follow these steps.
- Choose a staking pool. This should come after thorough research to ensure that you pick the best available one, especially as it has to do with your interests. What is their interest rate, how old is the pool, how have they performed in the past, how much fees do they charge? These questions must be answered before you choose.
- Get a decentralized Cardano wallet. There are several of them also, but the most popular are Yoroi or Daedalus wallets. The pool will also give a list of their supported wallets.
- Transfer ADA from your personal wallet or exchange account to the decentralized wallet you wish to use for staking.
- Delegate the amount of ADA you want from the supported wallet by following the instruction and start earning immediately.
Through a Wallet
The third option for staking ADA is through a wallet. There are several wallets that allow you to stake ADA directly, and Yoroi wallet is the most popular choice.
All you have to do is pick a stake pool from the dashboard. While Yoroi is a non-custodial that gives you full control of your funds throughout the staking process, you can boost security by linking it with a hardware wallet.
You can delegate once you pick a staking pool and start earning immediately, and there’s no lock up period.
