Cardano staking is a vital part of the ADA ecosystem, but how do you stake Cardano?
With Cardano’s proof-of-stake algorithm, ADA holders can stake their cryptocurrency to help validate transactions on the blockchain, while also earning further ADA rewards. Cardano is not the only cryptocurrency to use staking, with Ethereum 2.0 update set to further implement Ethereum staking.
Here’s a look at how to start staking Cardano.
How To Stake Cardano
Daedalus is a full-node desktop wallet created by IOHK, while Yoroi is a browser-based wallet by Emurgo.
After setting up the wallet of your choice by synching it with the blockchain, you will then need to transfer ADA into the wallet to be used for staking. You can either transfer ADA from another wallet you own or use an exchange such as Binance or Coinbase to purchase and send ADA over.
Once the funds are in your wallet, you should then choose which stake pool you want to delegate your ADA for staking.
To view the staking pools in Yoroi, select the Delegation List tab. For Daedalus, select the network tab, choose the ‘Delegate’ button next to your ADA wallet, and select or search for a stake pool of your choice.
It is important to do your own research before committing to a pool. Pools are run by node operators, who charge fees for those delegating ADA, and with a variety of pools to choose from, it's worth doing your due diligence first.
After confirming your pool and entering your password, you will then pay a small ADA fee to the operator, before eagerly awaiting your rewards.
It’s worth noting that you can only delegate to one stake pool per wallet. While you can add further ADA to that staking pool, you will need to set up a new wallet to delegate to a new staking pool.
Can You Stake Cardano on Coinbase Or Binance?
Several cryptocurrency exchanges including Binance support Cardano staking. However, as of August 2021, Coinbase is not one of them.
Aside from Binance, the likes of Kraken, Crypto.com and KuCoin all support Cardano staking.
As with staking pools, it is worth doing your own research into each cryptocurrency exchange’s staking rewards before staking your ADA. Rewards will vary depending on the exchange. Some offer higher annual yields if you lock-in your currency for an agreed period of time, for example.
How Long Does Cardano Staking Take To Earn Rewards?
When first staking Cardano, it could take up to 20 days for you to receive your rewards.
After the 15 day waiting period, you will then earn ADA rewards at the end of every epoch, which lasts up to five days.
Read More: Cardano Smart Contracts Release Date