Cardano (ADA) Staking: a Complete Guide

Staking cryptocurrency might be an appealing form of passive income. In this guide, we’ll talk about staking ADA on the Cardano blockchain. We’ll cover what staking is, how to stake ADA, and what benefits you can expect from participating in the staking process. By the end of this guide, you should have a good grasp of how to stake ADA and what advantages it offers. Let’s get started!

What Is Cardano Staking?

Members of some blockchain protocols might earn more money by contributing to the network. Staking is a simple technique to boost the stability of the blockchain network and generate passive income.

Staking is a method used on the blockchain network to verify transactions. Many investors find staking to be appealing since it generates passive income. You are also accelerating and stabilizing the blockchain, in addition.

Unlike Ethereum, which is switching to the proof-of-stake algorithm right now, Cardano was developed on the PoS algorithm from the start. This is regarded by many as one of Cardano’s key benefits over its more well-known competitor.

Is Cardano (ADA) Profitable to Stake?

Simply put, yes, it is. But there are a few things to consider.

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The amount of ADA you stake determines your stake weight, and the more ADA you stake, the greater your chances of being selected to validate a block and earn a reward. At current prices, the annual return on investment (ROI) for Cardano staking is around 5%. That means that if you stake 1,000 ADA, you can expect to earn around 50 ADA per year. While the ROI for Cardano staking is not as high as for some other proof-of-stake cryptocurrencies, it is still a good option for those looking to earn rewards from their cryptocurrency holdings.

How Much Can You Earn from Staking ADA?

With Cardano, passive revenue generation is a simple process. Basically, you stake your coins. The benefits from doing so might be pretty alluring: you reap the staking rewards.

Staking Cardano coins is supported on several cryptocurrency exchanges. The highest annual yield we found is on Binance. The predicted annual percentage yield (APY) on this well-known cryptocurrency exchange is 11.23%. You must stake your coins for 90 days in order to receive this APY.

What if you decide against keeping your Cardano coins locked up for that long? No problem! Binance offers shorter stake times too. For instance, the exchange has an APY of 8.24% for 60 days of Cardano stake. The yield for 30-day staking is 7.75%, which is not significantly less.

Other cryptocurrency exchanges provide lower earning rates. For instance, Nexo claims that staking Cardano can generate annual profits of up to 8% for investors. Kraken’s yields range from 4% to 6% annually.

How to Stake Cardano Coins?

To participate in the Cardano network, you can either run a full node or delegate your ADA to a stake pool run by someone else. By delegating your ADA, you can earn rewards for helping to secure the network. In order to delegate your ADA, you will need to have some ADA in your wallet that supports delegation.

In order to create your own stake pool, you will need to have some technical expertise and be able to run a server with high uptime. Once you have set up your stake pool, you can choose to delegate your own ADA to it or wait for others to delegate their ADA to your pool. Running your own stake pool can be rewarding, both financially and in terms of contributing to the Cardano network.

Delegated ADA Staking

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Cardano makes staking easy through delegation. A person may assign transaction processing capabilities to another network user — someone who manages their own pool for staking — in accordance with their currency volume. With Cardano, individuals can hand over the responsibility of staking to entities called “stake pool operators” — network participants with the required skills, knowledge, and equipment to ensure the node’s consistent work.

The simplest approach to start staking cryptocurrency is through delegation, but this solution is also less profitable. The user must split profits with the staking pool’s owner, who will handle transactions on their behalf.

According to the Cardano website, two wallets enable delegation:

  • Daedalus Desktop Software
  • Internet-based Yoroi extension

Does it sound too complicated? We’ve got you covered! You can easily buy ADA and more than 400 other cryptocurrencies on Changelly!

ADA Staking Equipment

Those who are looking to get the most out of their investment in the Cardano ADA cryptocurrency can do so by setting up their own stake pools. This process requires specialized equipment, which can be purchased from a variety of online vendors.

Cardano Staking Hardware

To operate a stake pool, the following hardware specifications are required:

  • 4 GB of RAM
  • 24-gigabyte hard drive space
  • a strong internet connection and approximately 1 GB of bandwidth per hour
  • a public IP4 address

Keep in mind that processor speed does not greatly impact a stake pool’s operation.

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Top Cardano Staking Software & ADA Staking Pools

Stake pools are managed by a trustworthy operator: a person or an organization with the skills and resources necessary to consistently operate the node. If ADA holders want to participate in the protocol and earn ADA rewards but do not want to run a Cardano network node themselves, they can delegate their coins to public stake pools.

Daedalus Wallet

Daedalus, the official desktop cryptocurrency wallet for Cardano, was created by the Cardano team. You may access the whole Cardano blockchain replica by downloading and installing the Daedalus wallet.

It is a complete node wallet, technically. By using the Daedalus staking pool to stake your coins, you are giving the network your vote, but your coins are still secure and yours to keep. You receive a 5% return for staking, which is about 80% more than the average interest rate on savings accounts in the US.

Yoroi Browser Extension

Yoroi is an easy-to-use, lightweight alternative to the Daedalus wallet for staking ADA coins. It’s lightweight and user-friendly due to the fact that it is a browser extension.

Yoroi has the capability of filtering stake pools depending on staking cost, pool size, and ROI to ensure you get the best payout possible. The staking return is identical to Daedalus and is approximately 5% APY.

There are also other options: Exodus Wallet, Kraken Exchange, KuCoin, and Uphold. You can learn more about ADA staking wallets in this article.

The aforementioned wallets and exchanges are some of the greatest venues to stake Cardano and get a reliable passive income. However, Binance and Kraken are ideal for newcomers. They provide simple programs that may be used by anyone to earn incentives. However, Daedalus or Exodus would be a better option if you want total control over your tokens.

Cardano Staking Risks

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Almost everything carries a certain amount of danger. Cardano staking is no different.

The main drawback of staking your Cardano coins is that the majority of cryptocurrency exchanges demand that you lock up your money for a predetermined amount of time. You won’t be able to sell your coins during that time.

Furthermore, the period of time during which you are prohibited from selling may be longer than you might anticipate. Your coins may take several days to “unstake” on some exchanges, which extends the lockup period.

This restriction has a clear potential drawback. If Cardano’s price falls, you might quickly lose more money than you earn. As an illustration, consider how much more the cryptocurrency has dropped in recent months than you might have earned by staking your Cardano throughout the full year.

However, you are not required to lock up your coins. With no lockup period, Binance and certain other exchanges provide flexible staking for cryptocurrencies. With this strategy, you will have to make a significant trade-off because the yield will be substantially smaller. For instance, Binance’s no-lockup option has a projected APY of under 1%.

Final Thoughts

ADA staking is a great way to passively earn income. By staking Cardano, you can earn rewards for helping to secure the network and growing the Cardano community. You don’t have to do anything special — just hold your coins in the ADA wallet, and you’ll start earning rewards. Are you already staking ADA? If not, now is the perfect time to get started.


Where should I stake my Cardano?

You can either set up your own staking pool or join the existing ones. The most popular options are Daedalus, Yoroi, Exodus Wallet, Kraken Exchange, KuCoin, and Uphold.

How much Cardano do I need to stake?

The minimum is 5.5 ADA.

Should I stake Cardano?

Staking your crypto assets seems like a good way to earn passive income. It also requires a minimum amount of time and just basic hardware characteristics compared to crypto mining. That’s why you probably should try it!

How much can I get for staking ADA?

The revenue depends on your staking time period, the amount you are staking, and the pool you are participating in. It ranges from 4% to 12% annual percentage yield.

Is staking crypto worth it?

Yes, it is. It might be a great way to generate passive income for those long-term supporters of the cryptocurrency who don’t care about price fluctuations.

What is the best crypto to stake?

We have a list of the best cryptocurrencies to stake.

Can I lose ADA by staking?

No, it’s impossible. 

Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.