Passively Earn ADA Crypto Coin
Staking ADA (₳) on the Cardano Network
One of the biggest benefits of the Cardano network is staking your ADA (₳) in pools and earning Return on Stake (ROS), Return on Investment (ROI), Return on Ada (ROA). ROS, ROI and ROA are synonymous in this scenario. You're earning interest—additional ADA—on the ADA you stake.
Because Cardano is built on the POS (Proof Of Stake) way of mining, Cardano requires its native coin—ADA—to mine. There is a lot of ADA required to make the main network run, thus a lot of ADA must be staked for the POS (Proof Of Stake) system to function.
Luckily Cardano has been built-in a way to allow staking pools to function as its mining resource. Meaning; miners can use your ADA to stake and earn rewards. And those rewards are shared with you.
How to Stake
- Buy ADA coin on CoinBase or Binance . If neither of those exchanges allow you to directly purchase, you may have to buy another coin; like ETH (Either) or BTC (Bitcoin) and sell it to purchase ADA
- Download the Daedalus program. This is the official program for staking your ADA in a pool.
- In Daedalus you will have to create a wallet to manage your ADA.
- Make sure you write-down your passphrase words. You loose these, you could loose your ADA... your money.
- It is easier to create multiple wallets if you want to want to stake to several pools. A wallet per pool is a good way to manage your pooling investments.
- Transfer your ADA from CoinBase or Binance to your Daedalus wallet. There will be a transfer fee. Should be 1 ADA. There may be a delay with transferring out of an exchange into your wallet. Every exchange operates differently and independently. If you experience any type of delay or warning, contact the exchanges support to rectify the issue.
- Begin researching which pool you would like to delegate your ADA into. One of the best resources is PoolTool.io. You are also able to see pool details in Daedalus, under the Cardano Pool icon in the 'Stake pools' tab.
- Make sure the pool you choose has a site and a way to communicate with others in the pool participants and the operator directly. Most common methods of contact are via Telegram or Discord server.
- Once you've found pool(s) to invest in, open Daedalus, select the Cardano Pool icon, and click "Delegate".
- There will be a delegation fee. Usually around 2 ADA. Your delegation will be a few epoch's in the future. Epoch's are cycles of time between staking (usually 5 days). Think laps cars make around a track. Lap = Epoch
- You should start to see rewards between 15 to 20 days from your stake.
- That's it!