Cardano is a decentralized public blockchain and cryptocurrency project that is fully open-source. Its native token, ADA, honors Ada Lovelace—a pioneer in computer science. Founded by Ethereum co-founder Charles Hoskinson alongside Input Output Global and Emurgo, Cardano aims to surpass existing protocols with advanced features like smart contracts and scalability. A standout feature is its proof-of-stake (PoS) mechanism, enabling users to stake ADA tokens for passive income.
Why Stake Cardano (ADA)?
- Earn Rewards: Average APR of 3–5% on staked ADA.
- Low Barriers: Minimum delegation is just 1 ADA (though 10 ADA is required to initiate staking).
- Decentralized Security: Participate in network validation without centralized risks.
Best Exchanges for Staking Cardano
| Exchange | Funding Methods | Cryptocurrencies Supported | Countries Available |
|-----------------|-------------------------------------|----------------------------|---------------------|
| eToro | e-Transfer, Wire Transfer | 15+ | 70+ |
| Coinbase | Debit/Credit, PayPal, ACH | 100+ | Global |
| Kraken | Wire Transfer, ACH | 185+ | 150+ |
👉 Compare staking rewards across platforms
How to Stake Cardano in a Self-Custodial Wallet
Step 1: Choose a Wallet
Use wallets like Eternl, Yoroi, or Daedalus. For this guide, we’ll focus on Eternl (a browser extension compatible with hardware wallets).
Step 2: Select a Stake Pool
- Open your wallet and navigate to the Staking section.
Browse pools based on:
- Commission rates (typically 1–5%).
- Saturation levels (lower saturation = higher rewards).
- Additional perks (e.g., bonus tokens).
Step 3: Delegate Your ADA
- Click Delegate, enter your password, and confirm the transaction.
- Transaction fees are minimal (usually < 1 ADA).
Step 4: Track Rewards
- Rewards accrue every 5 days (one epoch).
- First payout takes 10 days for new delegations.
Delegator vs. Validator: Key Differences
| Role | Responsibility | Rewards |
|--------------|----------------------------------------|----------------------------|
| Delegator| Delegates ADA to pools | Earns staking rewards |
| Validator| Runs nodes, validates transactions | Takes a commission fee |
Note: Validators can run multiple pools to avoid oversaturation.
FAQs
1. What’s the minimum ADA to stake?
- 10 ADA to start staking, but no minimum to earn rewards.
2. Are there risks?
- Centralized exchanges: Risk of losing funds if the platform fails.
- Oversaturated pools: Lower rewards; diversify across pools.
3. How often are rewards paid?
- Every epoch (~5 days). Compounding is manual.
👉 Explore Cardano staking strategies
Final Tips
- Diversify: Spread ADA across unsaturated pools.
- Stay Updated: Monitor pool performance via Cardano Explorer.
- Security: Use hardware wallets for large holdings.
Staking ADA is a seamless way to grow your holdings while supporting Cardano’s decentralized ecosystem. Start today!
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