When it comes to staking, Cardano (ADA) is one of the tokens gathering the most attention. Cardano is a rising token and one that comes with many passive income opportunities. If you hold any ADA tokens, you are already just a few steps away from almost effortless passive income.
This article will cover:
- What staking is and how it works
- What a staking pool is
- The benefits of staking Cardano
- Where you can buy, sell, and stake
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What is Staking?
Staking is one of the primary ways by which crypto investors produce passive income. You can make income by staking quite easily. You don’t need to invest in anything expensive as you would for mining. All you need is a crypto wallet, the right assets, and a platform that enables staking.
You need a cryptocurrency that uses a “proof-of-stake” consensus model for staking to work. Cardano is one of those cryptocurrencies.
In proof-of-stake, network security is tied to the honesty of most of the coin’s holders. It’s an incentivization process. The investors stake their holdings to help validate transactions. In return, they are rewarded with staking income.
Income from staking is passive. Investors simply provide their stake and then receive interest based on the staking rewards offered on the platform in question.
Can you Stake Cardano (ADA)?
Yes, you can definitely stake Cardano coins.
Cardano is, in fact, one of the more popular tokens when it comes to staking opportunities. This is partly because staking Cardano provides very competitive returns compared to other cryptos on the market.
Those with enough ADA can stake on the Cardano network. The returns that can be produced are dependent on the amount of ADA held. The more you’re holding, the greater the staking rewards will be. However, there’s another important factor that determines your returns: the way you choose to stake Cardano.
Staking Pool
Finding a stake pool is not difficult with Cardano. First, you will need to find a reputable crypto exchange/platform that supports Cardano staking.
Once you find the right staking pool, you need to deposit your ADA from your wallet into the pool. Sometimes, people buy ADA then stake it on the same platform. If you already have ADA, you can take it from your own wallet and put it in the stake pool.
Different staking pools will come with some meaningful differences. Some of them allow you to choose a staking period, while some are more limiting in their controls. Regardless, your ADA tokens are locked away for the staking period while they produce staking rewards. You can choose to withdraw your stake in the pool early, but if you do, then you forfeit your staking rewards.
Invest in over 30 cryptocurrencies from your checking account with no trading fees with the Current mobile app crypto feature.
Titan is an investment platform with a team of experts actively managing your portfolio based on your chosen strategy, including cryptocurrencies.
Alto IRA allows you to invest in stocks, bonds, mutual funds, ETFs, real estate, cryptocurrencies, and even gold for your retirement.
The Benefits of Staking Cardano
Staking any crypto comes with the clear benefit of producing generous passive income with minimal effort.
With Cardano, interest rates for staking start at just over 1.8% and can exceed 7% in some cases. According to Stakingrewards.com, the rewards stand at an annual yield of 5.39% at the time of writing. Staking returns are calculated in terms of annual percentage yield (APY). You can use a Cardano staking rewards calculator to get up-to-date, specific information on your potential rewards.
If you already have some ADA sitting around in a wallet, the benefits of staking are clear. You may not be able to use your ADA for some time, but you are making a profit by doing almost nothing. Then, the yields from staking Cardano are significantly higher than they are for many traditional investments. In the end, it’s not a bad return for making a few clicks. If you aren’t using your ADA and don’t plan to for some time, the incentive is even stronger.
Unlike mining, there isn’t even an investment you must make for hardware. All you need to do is stake your ADA, so the network is more secure, with minimal energy usage. In this way, you’re making a profit to engage in an activity in which all sides decidedly benefit. The lack of effort required on your part is simply the icing on the cake.
How to Stake Cardano
To stake Cardano, you must:
- Acquire ADA
- Find a pool to stake in
- Agree to the terms necessary to stake in the pool of your choice
- Go about your day-to-day life until the staking period is over
- Receive your staking rewards
Many exchanges offer ADA and many staking pools that need your ADA. The hardest part of this process is simply finding the right place to stake your Cardano. The decision you make will determine your rewards, so it’s important to make a good choice here. After that part, however, you just need to complete a few very simple steps and then wait.
Where Can you Buy, Sell, and Stake Your Cardano?
You can perform all of these key activities at one of several exchanges. Some more traditional crypto exchanges can sell you Cardano. Then, there are plenty of pools to stake in.
The simplest way to get through this multi-step process is to simplify it by finding a platform that offers all these services. Unfortunately, most exchanges don’t provide a one-stop-shop solution for buying, staking, and selling Cardano. However, there are a select few places you can kill all three birds with one stone. The best part is that you don’t need to pay a premium for such a solution; the opposite is closer to the truth.
