Cardano (ADA) is a proof-of-stake blockchain platform that was built using scientific, peer-reviewed methodologies.
It combines cutting-edge technologies to create world-class secure and long-term solutions for the creation of decentralized applications. Charles Hoskinson, the co-founder of Ethereum, launched Cardano in 2015.
Cardano’s proof-of-stake consensus mechanism and internal architecture enable short processing speeds and great throughput. The crypto aims to become a positive change in the crypto ecosystem by bringing responsibility to the existing systems. Today, it’s considered to be among the top coins to buy and store. One can avail Cardano instant purchase on Changelly.
What Does It Mean to Stake Cardano?
Investors that own ADA tokens on the Cardano network have an ownership in the entire network equivalent to the number of tokens they own. When token owners delegate their tokens to a staking pool, they are contributing to the Cardano proof-of-stake (PoS) blockchain network’s security and governance by validating new blocks and processing transactions.
The owners get a staking incentive or return on their investment in exchange for contributing to the network. Staking is a simple way for Cardano investors to receive passive income while also contributing to the network’s stability.
A Guide to Stake Cardano
Few reputed online platforms allow you to stake ADA directly from the exchange, making it the most convenient alternative for new investors. There are several ways to stake Cardano:
With a Wallet
Cardano recommends using two specialized software (online) wallets for the process of staking ADA tokens:
- Daedalus, a desktop wallet developed by Cardano’s development arm IOHK for Windows, macOS, and Linux. It’s a full node wallet designed for people who want to run a node and operate a staking pool on the network.
- Yoroi is a more straightforward browser plugin wallet that works with Google Chrome, Microsoft Edge, and Firefox. It is a software wallet designed specifically for staking Cardano and is ideal for newbies who want to delegate their coins. It is fast, simpler to use, and has a secure and lightweight architecture. The software wallet can be used to transfer and receive ADA tokens, as well as to delegate funds to a staking pool after it has been installed.
Via a Crypto Exchange
As cryptocurrency exchanges have risen in prominence, they have started to offer other functions than purchasing and selling cryptocurrencies. Enabling users to stake cryptocurrencies directly through the exchange is one of these benefits.
When it comes to Cardano, these exchange platforms serve as the staking pool operator, handling all technical elements of ADA staking across the network. The exchange then accumulates ADA rewards. While most major exchanges allow you to purchase and sell Cardano, not all of them allow you to stake it, therefore do thorough research before deciding.
Conclusion
Cardano is one of the most well-known cryptocurrency projects in the market, with a sizable community. When utilizing a trusted wallet, staking can be a fantastic way to generate interest on your cryptocurrency holdings and is usually considered to be 100 percent safe, with no chance of losing ADA tokens.
To obtain staking rewards, ADA tokens assigned to the staking address must remain in the wallet and thus remain under the owner’s complete control. This setting prevents other investors in the same staking pools from accessing the funds.
