By Nathan Ferguson
Cardano (ADA) is a highly secure and sustainable blockchain network operating on the Proof of Stake protocol. The blockchain network also allows users to earn rewards by staking their local currency. It ensures that it provides users with appropriate staking pools and helps them earn maximum rewards. Users can enter the pool and stake or restake their tokens multiple times in the allotted epoch.
In this guide article, we will learn about staking Cardano (ADA) through various methods and on different platforms.
Methods to Stake Cardano (ADA)
Cardano (ADA) can be staked in multiple ways.
- Staking Through an Exchange
Firstly, users should find an appropriate crypto exchange where Cardano can be easily exchanged. The next step is to deposit ADA tokens into the wallet after creating an account. Then the user should select Cardano from the interface of the exchange platform and select the staking duration. The amount of ADA to be staked is then decided.
Some exchanges charge a minimal fee for providing staking services to the users. The next step now is to look for a staking pool. The total number of blocks created and the performance in the staking procedure decides the rank of the staking pool in the market.
However, users should also look at other factors like liquidity, pool size, uptime, etc. Users must then delegate their ADA tokens into the chosen pool and execute staking successfully.
- Staking Through Staking Pool Operators (SPOs)
Cardano can be staked on the staking pool operators, providing multiple benefits such as independence and decentralization. It requires simple steps that everyone can follow. Firstly, users will require an ADA wallet and transfer their ADA tokens. Moreover, users can use the Cardano website to look for staking pool operators. The next step is to delegate the ADA into the pool and then earn rewards.
Staking Cardano (ADA) on Various Platforms
- Coinbase
Cardano staking on Coinbase allows users to earn about a 3.75% yield. Users need to open an account with Coinbase and choose the staking pool of their desire. Next, they must buy Cardano on the Coinbase platform and add it to the chosen pool. The rewards are added every five to seven days following the initial period.
- Binance
Binance allows users to earn about 6% APY by staking Cardano. For this purpose, users can create an account on the Binance platform and visit the staking homepage. They should make sure that the wallet contains enough funds. Next, the user needs to decide the amount he wishes to stake and choose the crypto option.
- eToro
eToro platform holds the ADA tokens on behalf of the users and allows them to earn rewards. Users need to create an account, and they can start earning rewards. However, the platform charges a minimal fee for the technical services it provides to the users. eToro offers multiple membership plans to the users, such as Platinum, Silver, Bronze, Gold, Diamond, etc.
- Yoroi
Cardano staking on Yoroi allows users to earn about 4.62% APY. Users can carry out transactions, and stake ADA tokens over the platform to earn rewards. For this purpose, they have to open the Yoroi website and download the plugin. After choosing the required wallet, users must add ADA tokens. Next, they have to choose a staking pool accordingly and start staking.
Risks Involved in Staking Cardano (ADA)
Users can earn a good passive income by staking Cardano; however, they should be cautious about certain risks. The earnings through ADA are not fixed. They depend on multiple factors, such as the performance of the token or the fee charged by the platform. In addition, the amount of ADA offered for sticking can directly affect the potential rewards.
Conclusion
Cardano staking offers an excellent opportunity to earn income in the market; however, the market conditions might affect the rewards earned. Therefore, it is advised to always research properly before investing in ADA tokens.