What you need to know before staking ADA

Staking Cardano (ADA)

Staking Cardano (ADA) is possible and will give a return of 2-8 % minus fees.

ADA is the abbreviation of the crypto currency Cardano. It is a crypto currency that functions as a platform. Cardano uses the consensus protocol called Proof of Stake, which allows for staking.

You can stake ADA directly on the blockchain or via an exchange. You can read more about the differences here.

Staking Cardano on an exchange is also an option. Binance, crypto.com and Kraken all support ADA staking via their earn programs

Software Wallets for Cardarno

Two of the most popular software wallets for Cardano are Daedalus and Yorio. Daedalus is the official Cardano wallet and works through an application you download on your computer. They currently don´t have a mobile App. Yorio is a light wallet and works through a browser extension for Chrome. It is considered light because you don´t need to download the whole blockchain. Both are free, open-source and safe ways to store and stake your ADA.

Staking Cardano on an exchange is also an option. Binance, Crypto.com and Kraken all support ADA staking via their earn programs. Coinbase does not support Cardano (ADA) staking so far.

The lockup period for staking Cardano is ZERO. You can freely withdraw and move around your ADA at any time. If you chose to withdraw your coins, the only thing that can be affected is your future staking rewards. Cardano´s blockchain works in epochs. An epoch is approximately 5 days. First day of each epoch it is registered how much you have staked. The reward for that stake is paid out after 3 epochs which is 15 days. You can withdraw your coins whenever you want, you don´t even need to unstake/unregister them.

What you need to know before staking ADA

What you need to know before withdrawing staked Cardano (ADA)

There are two important things to remember, when withdrawing Cardano from staking. First one is that you will have to pay a small transaction fee. The second one is that all of this only applies if you actually stake on the blockchain. If you are using an exchange then everything is dependent on their terms and conditions. Binance currently has a lock-up period. Crypto.com has different EARN tiers, where you earn more from locking your ADA in lock up periods. Kraken offers immediate withdrawal.

The staking and earn rewards vary from 2-8 %. When considering where to stake it´s important to not just pick the highest rate. You need to also consider fees, how flexible the withdrawal situation is and if the rate is fixed or flexible.

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