This exclusive guide about the best places to stake Cardano(ADA) covers all details including fees, security, and ROI.
Since the introduction of Bitcoin and the corresponding blockchain technology, this brand new technology has witnessed massive growth and is ready for entering a maturity phase. Therefore many new ideas and concepts are being introduced to the market with the intention to offer investors some good profits. In particular, passive income is a very popular concept as well as in traditional finance as in the cryptocurrency markets. Just the idea of earning additional crypto’s on your bags altogether with high yields makes more investors willing to take the step to this new industry.
One concept is called staking which in short allows cryptocurrency holders to earn additional cryptocurrency with low risk.
In this guide, I’m going to discuss the best places to stake Cardano or ADA tokens. Also, a detailed plan to start staking ADA tokens on the different platforms.
What is Cardano Staking?
First of all, Cardano(ADA) is a cryptocurrency with a limited supply of coins. In particular, because of their underlying Proof-of-Stake architecture called Ouroboros, the Cardano blockchain network allows its users to participate in the network by validating transactions. Moreover, participation is as simple as locking up ADA tokens on several nodes or wallets on the network for a specific time interval. In return for locking up ADA tokens, users are rewarded with additional cryptocurrency.
In other words, no specific technical expertise or confusing tech stuff is needed. You just simply lock up your ADA coins in a wallet and get rewarded while you sleep! 😁
Best Places to Stake Cardano(ADA)
In short, below is a consolidated list of options where to stake Cardano(ADA) and get rewarded with the brand new cryptocurrency.
- Ledger Nano – The most secure cryptocurrency hardware wallet to store your crypto offline
- Daedalus Wallet – A software wallet that will allow you to store Cardano (ADA). It is an open-source, multi-platform, HD (hierarchical deterministic) wallet, allowing you to create an infinite set of keys from a single seed.
- Binance – Worlds most popular cryptocurrency exchange with almost zero fees
- Kucoin – Cryptocurrency exchange with the most crypto holders on the platform
- Atomic Wallet – Software wallet that also stores the private key on your device and stores 300 coins and tokens
- Yoroi Wallet – A lightweight web-wallet that easily can be used to transact ADA without the need to synchronize with the entire blockchain first.
Why Should I Stake Cardano?
As explained earlier staking Cardano allows you to earn a passive income in cryptocurrency while you sleep. Generally speaking, why should you stake Cardano? This is a good question and in my opinion, Cardano is one of the most promising blockchain projects in the world, listed as 8th on Coinmarketcap.
In addition, the team behind Cardano designed this project to overcome the blockchain limitations in terms of scaling and design. The developers took inspiration from the peer-reviewed science world, which influenced the way Cardano works as a whole. That is why the Cardano blockchain is first reviewed by academics before implementation.
All in all, a very promising project that is a serious competitor to its bigger brother Ethereum.
How does Cardano Staking work?
Above I have given you a glimpse of places to stake Cardano, however, how does this staking process work?
If you are an ADA token holder and want to earn some passive income on it then the best option you have is to stake from a wallet like Daedalus. In addition, the way this works is by a delegation which means you have to select an external node for staking ADA.
The process is as easy as selecting the node from a dropdown within your wallet. Also, you don’t need to trust this node or pool, where the rewards are distributed by the protocol and not the pool!
In other words, you can stake ADA from within your wallet or even offline where the coins also stay on your device. Furthermore, staking this way by selecting or delegating another pool comes with a little cost in the form of fees for locking up your coins.
Rewards can be expected coming in after approximately 20 days, but this depends also on the pool you have selected, the status of the network, and the rate your pool is chosen as a slot leader.
Best Platforms to stake Cardano(ADA): Comparison
This comparison guide provides an overview of where to stake Cardano to earn rewards and a passive income. The research is based on assessing the platform’s features, estimated annual yield, fees for buying crypto, and security.
|Platform||Estimated ROI||Minimum holdings||Fees||Rating|
|5.09 – 9.32%||5000 ADA||0.075%|
|1.5 – 8%||1 ADA||0.1%|
|4 – 8%||100 ADA||1.7 – 4.5%|
|4 – 8%||100 ADA||–|
|4 – 8%||1 ADA||–|
Staking Cardano at Cryptocurrency Exchanges
If you already have an account at Binance or Kucoin, then the easiest way would be to start staking Cardano there. Below I’ll explain the possibilities for staking Cardano(ADA) at exchanges in more detail.
Based on daily(24h) trading volumes, Binance is the biggest cryptocurrency exchange in the world. Also, it has millions of cryptocurrency traders using its platform on a daily basis. Besides trading, Binance offers several other feature-rich products, including custodian wallets, crypto margin trading, lending service, and earning rewards with staking.
|If you want to know more about the difference between staking and crypto lending. Read the article we wrote about crypto lending vs staking. It explains very clear two very popular passive income strategies in the crypto industry.|
Trading a Binance can be done with almost zero fees(0.075%) and you can use this link when signing up. It will give you an extra 10% discount on fees for life 🙂
In particular, Binance offers 25 staking products such as Cardano for its users to enjoy free staking rewards by simply depositing and holding coins on Binance. Moreover, there are no fees to stake ADA tokens on Binance. Additionally, staking ADA starts from 1 ADA to a maximum of 200,000,000 ADA per account. All profits earned are shared with Binance users to maximize staking rewards.
The benefit of staking Cardano on Binance is that cryptocurrency traders can opt to stake ADA while waiting for a trade. Traders can benefit from the staking rewards in addition to potential trade profit.
Steps to start staking Cardano on Binance
To start with staking Cardano(ADA) at Binance, follow these steps:
- Create a free account at Binance
- Navigate at ‘Finance’ at the top menu and choose ‘Binance Earn‘
- Find ADA in the locked staking list(you have to scroll down a bit)
- If you don’t have ADA funds in your wallet ‘market buy’ some or deposit
- Click ‘Transfer’ button and store ADA tokens here
Compared with Binance described above, Kucoin is probably a modern platform for trading any cryptocurrency. In addition, this platform was founded by a group of cryptocurrency enthusiasts from Asia aiming to offer comfort and security to your mighty assets.
As of writing the platform ranks at position 12 on the list of exchanges which is based on trading volume for the past 24 hours. In addition, the platform specializes in offering trading cryptocurrencies, margin trading, trading futures, and also staking cryptos.
Spot trading cryptos can be done at a fee of 0.1% and it is also important to note that withdrawals from the platform can be done at zero fees.
Staking cryptocurrencies is also possible under the ‘soft staking’ feature. Moreover, Kucoin allows its users to stake in 32 different cryptocurrencies.
Steps to start Staking Cardano on Kucoin
- Create a free account at Kucoin
- If you don’t own ADA coins, you can market buy them at the exchange
- Otherwise, just deposit your ADA tokens under ‘Main Account(deposit and withdraw)‘
- Navigate to ‘Earn’ in the upper menu and then ‘Soft staking‘
- Find ADA in the sliding list gallery and choose ‘Deposit‘
- Or if you already have ADA in the Main account choose ‘Transfer‘
- Staking ADA should be starting instantly
Staking Cardano(ADA) from Wallets
Next, a list of wallets that allow you to stake Cardano without leaving the coins at a third-party platform like a centralized cryptocurrency exchange. Also, these places to stake Cardano give you full control over your cryptos.
Ledger Nano hardware wallet
If you favor being in full control of your own cryptos then the Ledger Nano hardware wallet should be it. Particularly, the Ledger Nano wallet is a USB storage wallet with Bluetooth connectivity available.
Also, this way it’s possible to store your cryptocurrencies offline which is the most secure option. Furthermore, the wallet enables users to perform a wide variety of functions, including sending and receiving bitcoin from blockchains or running third-party apps on the device.
Besides staking from the wallet, users can also purchase new crypto because of Ledger wallet uses a built-in exchange feature. This feature uses a third party(Coinify) so buying comes at a cost: 4.5% credit card fees or 1.7% for bank transfers.
How to start staking Cardano on Ledger Nano
Below are the steps needed to start staking Cardano by delegating to a pool:
- First, install the firmware of the Ledger Nano device
- Update the Cardano app to the latest version(mostly this will run automatically)
- Go to the AdaLite website here
- Choose option ‘Hardware wallet‘
- Choose option ‘Unlock with Ledger‘
- Start the Cardano App on the Ledger and confirm ‘Export public key‘
- If you don’t have ADA coins, then deposit first to ‘Non-staking balance‘
- Otherwise, click ‘Convert to stakable‘
- Choose stakepool by giving the id of the pool
- Staking should start immediately
|⚠️ Warning: Always make sure to buy your Ledger Nano devices from the official online store. In fact, third-party sellers have been known to tamper with Ledgers.|
Atomic Wallet is a decentralized online cryptocurrency wallet available on desktop and mobile devices that supports more than 500 coins and tokens. The wallet is suited to crypto investors of all experiences and provides a simple, safe, and convenient means to store digital assets.
Besides staking from the wallet, users can also purchase new crypto because Atomic wallet uses a built-in exchange feature. This feature uses a third party(Changelly) so buying comes at a cost: 2% additional fees at a minimum of $10 each.
All in all, Atomic wallet supports staking for 15 different coins and Cardano(ADA) is one of this list. The annual ROI for staking Cardano on Atomic is 5.1% which is the highest in the entire market.
How to Start Staking Cardano(ADA) on Atomic Wallet
- Visit Atomic Wallet website, start downloading and install
- Start purchasing ADA or deposit ADA here
- Click on ‘Staking’, scroll down to find Cardano, and click ‘Stake now’
- Transfer a minimum of 10,000 ADA here
Similar to Atomic Wallet, Deadalus is another software wallet where you can store your ADA coins. However, contrary to Atomic this is an open-source wallet created by the team of Cardano.
Eventually, Daedalus will be a multi-currency wallet but at this time it only supports the Cardano network.
In detail, Daedalus is a full node software wallet, meaning it will fully sync with the Cardano blockchain and download a full copy of it on the local drive. Therefore, this wallet will only operate on desktop computers like Windows, Linux, or Mac.
How to start staking Cardano with Daedalus
- First, download and install Daedalus which is compatible with your OS
- After you have run the setup, run the wallet for the first time and select your language
- Click continue and agree with the terms and continue once again
- Let the wallet sync with the blockchain till 100% is reached
- On the dashboard screen, create a new wallet by giving a new password
- Back-up your recovery phrase and confirm
- Deposit ADA tokens and choose a validator pool
- Staking should start immediately
Just like Daedalus, Yoroi is an open-source software wallet where you can store your ADA coins. However, contrary to Daedulus you don’t need to download and sync with the entire Cardano blockchain first.
Furthermore, Yoroi is built by the Cardano community and therefore only supports ADA tokens.
To start using this wallet it’s preferable to install it as an extension of your browser where currently Chrome, Edge, Firefox, Android, and IOS are supported.
Surprisingly, Yoroi supports both Trezor and Ledger hardware wallets. Additionally, storing your keys offline and using a light wallet when needed for smaller transactions can provide both extra safety and ease of use.
Steps for staking Cardano on Yoroi wallet
To start staking ADA on the Yoroi lightweight web wallet you need to download it first. Also, to make sure that you are on the official website use this link provided only.
- Run Yoroi for the first time and choose ‘Create wallet‘
- Now create a new password and save the phrase
- Restart wallet, login for the first time
- Send ADA tokens to the wallet public address
- To start staking, choose ‘Delegation‘ tab first
- You have to enter a pool-ID here(You can find staking-pools on this website)
- Enter pool-ID and choose ‘Next‘
- Give amount of ADA for staking and also type your password
- Now choose ‘Delegate‘
- Staking and earning rewards will start immediately
Is staking Cardano worth it?
Staking Cardano is currently a very popular method among crypto enthusiasts to generate passive ADA income with zero risks. In this guide in which I covered where to stake Cardano in greater detail, I also compared the different platforms in terms of rewards and lock-up periods.
Additionally, the idea of staking Cardano(ADA) is simple where every single ADA token will generate new ones. Moreover, Cardano or the ADA token is a rising asset in terms of value where even holding a small amount can make a difference in the long run.
All in all, staking ADA is a perfect solution for you to earn additional cryptocurrency while you sleep.
Delegating your stake to a stake pool is 100% secure. However, you should never transfer ADA to a stake pool. If a stake pool asks you to send them funds it’s probably a scam. In general, the delegation mechanism used at staking pools allows you to have full control over your funds.
Your funds aren’t at risk when staking or holding ADA from a crypto wallet. In other words, the ADA coins are locked for a certain time and will not leave the wallet. However, if you lose your private key or seed phrase you have lost access to your wallet. Technically it means that your funds will be lost forever.
Currently staking Cardano has an interest rate of 4.6% APY. Meaning for every Cardano coin(ADA) you stake you will receive new ADA coins at a rate of 4.5% annually. Besides gaining new coins there is also the rise in price a single coin has on a yearly basis. For instance, over 2021 the price of ADA in $ has risen more than 500%(!)
First of all, it depends on what platform of wallet you initially choose for staking. Platforms like Binance and Kucoin use a minimum of 1 ADA for staking. However, staking from custom wallets or delegating to staking pools requires more ADA: 10 – 100 coins at minimum.
The following articles might also be a good read for you:
- Should I invest in Cardano(Guide 2021)
- Exclusive: Best places to stake Polkadot(DOT)
- What are the Best Coins to Stake in Cryptocurrency(in 2021)
- Confidential: Best places to keep my Crypto Safe
- What are the Benefits of Binance Trading Platform?
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