How to stake Cardano | KoinX

January 29, 2023
, 9:00 am

A step-by-step guide to stake Cardano

Cardano (ADA) Staking Overview

Investors who want to earn passive income and are looking for a long-term investment should choose Cardano (ADA) staking. Cardano, a very popular cryptocurrency according to its market value, has quite a name among investors. Cardano investors can stake their ADA to safeguard transactions and uphold the network’s decentralized character.

How to Stake Cardano (ADA)?

Follow these five steps to stake Cardano easily in a few clicks.

Step 1 – Create an account on a crypto exchange

Step 2 – Deposit ADA token into the wallet

Step 3 – Choose Staking option

Step 4- Choosing Staking duration

Step 5 – Click on “Stake now.”

Step 1 - Create an account on a crypto exchange

You must first register for an account with the exchange you prefer. Exchanges that accept Cardano staking include Binance, Exodus, and Yoroi.

Step 2 - Deposit ADA token into the wallet

The ADA tokens need to be deposited into the exchange wallet. You can deposit the token you are currently holding into your wallet or purchase ADA tokens directly on the exchange.

Step 3 - Choose Staking option

Choose “Cardano” from the “Staking” tab on your preferred exchange.

Step 4- Choosing Staking duration

You may now choose your staking length on the majority of exchange systems. This time frame is the length of time that your ADA tokens will be sequestered, much like a fixed deposit at a bank. If you took the ADA token before your staking duration, you might lose staking rewards.

Step 5 - Click on "Stake now."

Now that you have chosen the staking duration and know the timeline, how long will you keep your amount invested in ADA tokens? Now it’s time to decide and enter the amount, then click “Stake now”.

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Best Places to Stake Cardano (ADA)

1. Binance

Pros

Binance offers the highest staking awards to its investors. Investors get up to 6% APY if they freeze their ADA coins for at least 30 days.
There are many withdrawals and payment methods available for investors.
Most cryptos are found in Binance, which makes Binance an all-in-one crypto exchange platform.

Cons

Your Private key to the custodial wallet lies in the hands of Binance which is basically in charge of managing your money instead of you. Even though you’re staking Cardano at Binance, you don’t have a 100% ownership of your assets.

2. Exodus

Pros

Exodus is integrated with Trezor hardware to be used as a wallet API for recognized cryptocurrency and investment management.
You can earn rewards and a relatively moderate APY on staking Cardano (up to 5%).
Unlike other crypto exchange platforms, it doesn’t take the authority for your funds. You are the owner of your Cardano staking rewards here.

Cons

The staking options for Cardano aren’t exactly beginner-friendly.
You can’t withdraw your funds into fiat currency.

3. Yoroi

Pros

Yoroi makes entering and withdrawing ADA simple since it is user-friendly and mobile-compatible.,
Users in a short time may establish an ADA wallet, which works with crypto wallets like Ledger and Trezor.

Cons

It only works fine with Cardano staking. Not built for other cryptos.

Benefits of Staking Cardano (ADA)

Passive Income: You will get a 3-5 percent annual percentage yield (APY) on ADA that you have staked. So staking ADA leads to your passive income.
End number of deposits and withdrawals: The ability to make withdrawals of ADA at any time unless you are utilizing a product with a set stake like Coinbase or Binance.

More Cryptos Similar to ADA

Most frequently asked questions on ADA Staking

Is Cardano staking profitable?

Yes, Cardano staking is profitable. Many investors stake Cardano because it gives a higher amount. Staking Cardano is the passive income for many investors.

Where can I stake my Cardano?

You can stake your Cardano on exchanges like Binance, Exodus, and Yoroi.

Can you lose Cardano while staking?

No, you don’t lose Cardano while staking. Staking is risk-free because you will not suffer any loss of ADA tokens. In fact, you can even earn 3-5% APY annually from staking Cardano.