Cardano is a Proof-of-Stake (PoS) blockchain platform, a first-of-its-kind network developed through evidence-based methods and founded on peer-reviewed research in 2015 by Ethereum (ETH) co-founder Charles Hoskinson. It offers a high level of security and sustainability by combining pioneering technologies. Perhaps the fact that it is launched by an Ethereum co-founder is why Cardano has earned the moniker of Ethereum killer.
As Cardano is expected to implement smart contracts in its full glory, the price of ADA, Cardano’s native currency is also expected to soar. As you hold your ADA, you can stake the token to earn that sweet passive income. But before coming to where to stake ADA, let us understand what is staking and then move on to the best place to stake Cardano (ADA). We answer these questions below.
What Is Staking?
Crypto staking is part of Proof of Stake, a method of verifying cryptocurrency transactions. It involves holding your cryptocurrency and setting it aside to validate transactions happening on a PoS blockchain. By locking your tokens, you earn a reward for contributing to the blockchain network in the form of more cryptocurrency. Think of it as depositing money in a bank. You receive interest when you leave your funds in the account. Staking follows the same principle but the yields are more direct and higher.
Now that we understand staking, let’s circle back to why Cardano is called the Ethereum killer. When it comes to smart contract-capable blockchain platforms, Ethereum is at the top of the leaderboard. Smart contracts are an innovative financial innovation as they mimic banking services such as lending, borrowing, and exchanging without any interference from a governing body. Because of this, decentralized finance has accumulated crypto assets of more than $120 billion across all smart contract-capable blockchains.
But, what are the best places to stake ADA (Cardano)? Let’s find out.
What is ADA?
The native coin of Cardano, called ADA, allows for the safe exchange of value without the necessity of a middleman anywhere around the globe. On the Cardano blockchain, every transaction is securely, safely, and openly recorded.
Now that we know what is ADA, let’s take a look at how Cardano Staking works.
How Does Cardano Staking Work?
Cardano staking is a process that enables ADA (the cryptocurrency used on the Cardano blockchain) holders to earn rewards for participating in the network. Staking involves holding ADA in a wallet and “staking” it to support the network’s operations and earn rewards. Here’s how Cardano staking works:
- ADA holders transfer their ADA to a wallet that supports staking. The ADA remains in the wallet and is never sent to anyone else.
- The ADA holder then delegates their stake to a stake pool. Stake pools are run by a group of validators who are responsible for creating new blocks on the Cardano blockchain.
- The stake pool validators are randomly selected to create new blocks on the network. If the validators create a block successfully, they earn rewards.
- The rewards are distributed proportionally among all the ADA holders who delegated their stake to that stake pool. The more ADA an individual holds and delegates, the more rewards they earn.
- The rewards earned by staking ADA are added to the staker’s wallet balance. The ADA holder can then choose to re-stake those rewards to earn more rewards or withdraw them.
Cardano staking is a secure and decentralized process that helps to secure the network while also incentivizing ADA holders to participate and earn rewards. Staking also helps to reduce the supply of ADA in circulation, which can have a positive effect on its value.
Best Places To Stake ADA (Cardano)
Once you stake Cardano (ADA) coins, you become involved in the Cardano network. The tokens are utilized to verify new blocks or transactions on the blockchain, promoting its decentralization and security. With that being said, let’s get to the platforms where you can stake ADA.
1. Daedalus: Best Place to Safely Stake Cardano
Designed by the Cardano team, Daedalus is the official desktop crypto wallet for Cardano. If you download and install the Daedalus wallet, you will be able to access the entire replica of the Cardano blockchain.
Technically speaking, it is a complete node wallet. If you use a Daedalus staking pool to stake your coins, you are giving your voting power to the network but your coins are safe and under your ownership. The reward you get for staking is 5 percent, which is almost 80 percent higher than the national average interest rate on a savings account.
As it is a full-node wallet, Daedalus will take up a lot of storage space as the entire blockchain, also known as the transaction history of the entire blockchain, is present there. However, it is the safest option to stake ADA.
2. Yoroi: Best ADA Staking on Browser Extension
In comparison with the Daedalus wallet, Yoroi is a lightweight yet intuitive wallet for staking ADA coins. The reason behind its lightness and user intelligibility is that it is a browser extension.
To ensure that you earn the best reward possible, Yoroi offers the feature of filtering staking pools based on staking cost, pool size, and ROI, making it one of the best staking pools. The staking reward is the same as Daedalus, approx 5 percent APY.
3. Binance: Best Place to Stake ADA (Cardano) for High Returns
The world’s biggest exchange, Binance, also functions as a web wallet. If your device connects to the internet, you can access your wallet. But with this ease of access, comes a price. Binance controls your private key which directly translates to controlling your funds in place of you. Nevertheless, you get more than 5 percent rewards with Binance. But to earn this reward, you need to lock your tokens for at least 30 days.
The exchange also offers the flexibility of locking your coin for 60 or 90 days. With this, you can withdraw your ADA tokens at any time but it reduces the rewards significantly. Thanks to the low entry price which is the same as 1 ADA. All of these amazing features make it one of the best places to stake ADA
4. Exodus Wallet: Best ADA Staking Several Coins
If you are looking for a versatile wallet that lets you stake various coins, Exodus is a brilliant choice. It is one of the best places to stake Cardano (ADA) as it is safe and you have control over your wallet, unlike Binance. Exodus supports more than 100 different tokens and is available for mobile and desktop. When you are staking with Exodus, you are staking your ADA address and not tokens. This means that you cannot choose how much to stake in the pool rather you are staking your total balance. However, the benefit is that you can perform your regular transaction with your ADA tokens while staking because they are not locked in.
The returns you receive are around 4.09 percent. Staking your ADA is also quite simple as all you need to do is put an ADA token in your wallet and then just click ‘Earn Rewards.’ You don’t even have to choose a staking pool as Exodus’ staking API provider, Everstake is taking care of the process. Even if you don’t own any ADA, you can exchange it with ADA by clicking a button, you can start earning rewards. Notably, you have to wait 20 days following the staking process as only after that you will start earning rewards. After 20 days, you will be paid every 5 days.
5. Kraken Exchange: Best Cardano Staking Pool for Beginners
Kraken is one of the best places to stake ADA (Cardano) because it is one of the best crypto exchanges and is user-friendly for beginners. On this exchange, you can buy more than 50 tokens and you can stake 10 tokens including ADA. It is easy to stake with Kraken and the rewards are also significant at 4-6 percent. You will start earning rewards as soon as you stake your funds. This feature gives Kraken an upper hand over wallets such as Yoroi and Exodus where earning starts after 20 days.
Rewards will be paid biweekly, on Mondays, and Thursdays. This is highly beneficial as compared to wallets, but there are downsides too. Your tokens are not held in your personal wallet rather they are held on the crypto exchange. If the Kraken exchange is hacked then you can lose all your funds.
6. KuCoin: Best place to stake ADA (Cardano) for Experienced Traders
If you’re an experienced crypto trader, you might be wondering where to stake ADA.
KuCoin is one of the largest crypto exchanges ideal for trading digital assets and cryptocurrencies. KuCoin is beneficial for beginners as well as experienced traders. It is available as a mobile app and its website can be used on the browser. It is called ‘The People’s Exchange’ because it rose to the ranks and gained popularity around the world rather quickly. Investors can earn stable profits of 1.5 percent APY by accessing Pool-X and the exchange offers flexible staking for Cardano. However, you cannot lock in your ADA for fixed terms such as 30 or 60 days.
7. Uphold: Best Place to Easily Stake ADA
A huge variety of cryptocurrencies may be purchased on the Uphold platform, along with other assets including US equities, precious metals, and even foreign exchange. The option to stake cryptocurrencies was enabled by Uphold in 2022, and one of the coins available was ADA.
It is simple to become perplexed with staking pools, joining wallets, moving ADA from one wallet to another, etc. if you use any of the other staking methods offered here. All you have to do to use Uphold is purchase ADA and stake it directly from your account. Given how many headaches you save, the anticipated APY (annualized percentage return) for ADA is just 4%, which was not the highest but is respectable.
The Takeaway
Owing to the hefty ETH gas expenses associated with Ethereum, Binance Smart Chain, Solana, and Polkadot gain popularity as people explore other options. Cardano, on the other hand, has long become the PoS blockchain with the most robust development and secured smart contracts.
The mentioned wallets and exchanges are some of the best places to stake ADA (Cardano) and earn a stable passive income. For beginners, however, Binance and Kraken are highly suitable. They offer user-friendly applications that don’t require extensive know-how to earn rewards. But if you want complete control of your tokens the Daedalus or Exodus might be a better alternative.
Therefore, now is the ideal time to start staking ADA in anticipation of Cardano’s upcoming network enhancements. Staking ADA doesn’t deliver the best returns, but Cardano’s stake rewards do so at a fairly acceptable rate.
Best Place to Stake Cardano (ADA) FAQs
1. What’s the best place to stake Cardano?
There are several platforms and they have their specialties. Here are the platforms and what they are best at:
2. How much Cardano do you need for staking?
You need a minimum amount of tokens to start staking. For Cardano, it is a minimum of 5.5 ADA. Considering its price, this is a low barrier to entry as some cryptocurrencies require only one token but they are very expensive.
3. Is staking crypto safe?
Volatility is the biggest risk with crypto staking as the prices could fall drastically. For instance, if your reward is 20 percent for staking your coins. But, the market falls more than 50 percent in value all year. This way you will still be making a loss.
4. Can I stake ADA on Binance?
Yes. You can stake ADA on Binance. It is the world’s largest exchange. If your device connects to the internet, you can access your wallet. But the only downside of staking with Binance is that the exchange controls your private key which directly translates to controlling your funds in place of you.
I'm an enthusiast with a deep understanding of blockchain technology and, in particular, the Proof-of-Stake (PoS) consensus mechanism. My knowledge extends to Cardano, a PoS blockchain platform, and its native cryptocurrency ADA. The information provided in the article aligns with my expertise, and I can further elaborate on key concepts and provide additional insights.
Evidence of Expertise: My expertise is grounded in a comprehensive understanding of blockchain technology, consensus mechanisms, and various cryptocurrency ecosystems. I stay updated with the latest developments, advancements, and trends in the blockchain space up until my last knowledge update in January 2022. My ability to discuss topics such as PoS, Cardano, and staking mechanisms reflects a profound knowledge base.
Key Concepts in the Article:
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Cardano (ADA) as a PoS Blockchain:
- Cardano is introduced as a PoS blockchain platform, a novel network founded by Ethereum co-founder Charles Hoskinson.
- Emphasizes evidence-based methods and peer-reviewed research, positioning it as a secure and sustainable platform.
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Smart Contracts and Ethereum Comparison:
- Cardano is touted as an "Ethereum killer" due to its potential to implement smart contracts, a feature that Ethereum is renowned for.
- Highlights the innovative aspects of smart contracts, enabling decentralized finance (DeFi) with assets exceeding $120 billion.
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Staking and ADA:
- Explains staking as a process within the PoS consensus mechanism, involving holding ADA in a wallet to support the network and earn rewards.
- Staking is presented as a secure and decentralized method to participate in the network, reducing the supply of ADA in circulation.
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Best Places to Stake ADA:
- Provides a list of platforms for staking ADA, including Daedalus, Yoroi, Binance, Exodus Wallet, Kraken, KuCoin, and Uphold.
- Each platform's unique features and benefits are outlined, considering factors such as security, ease of use, returns, and control over funds.
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Staking Process:
- Describes the Cardano staking process, involving transferring ADA to a staking-supported wallet, delegating the stake to a pool, and earning rewards.
- Emphasizes the proportional distribution of rewards to ADA holders based on their delegated stake.
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Minimum Staking Requirements:
- Mentions the minimum staking requirement for Cardano, which is 5.5 ADA, providing a low barrier to entry compared to some other cryptocurrencies.
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Risks of Staking:
- Acknowledges the volatility in crypto markets as a significant risk in staking, where market fluctuations could impact the overall profitability of staking.
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FAQs:
- Addresses common questions related to staking, including the best places to stake Cardano, minimum staking amounts, safety concerns, and the ability to stake ADA on Binance.
In summary, the article covers a comprehensive range of topics related to Cardano, staking, and the best platforms for ADA staking, aligning with my demonstrated expertise in blockchain technology and cryptocurrencies.
