So you just bought some ADA and you have heard about staking. I am going to explain everything you need to know about Cardano and its Delegation Mechanism.
What is staking ?
Staking is the action of securing the Cardano blockchain using your ADA. You do so by delegating your ADA to a stake pool which is a sort of group of people who get together to form a coalition of delegators.
Is it risky ?
Absolutely not! There is literally zero risks to staking your ada on the Cardano blockchain. When you delegate your ADA to a pool they never actually leave your wallet. You are only providing your staking rights to a stake pool. Think of it like you are giving a proxy to a stake pool to vote in your name.
Are my ADA blocked while I stake ?
Nope never! Remember I said above that you are only giving a proxy right to the stake pool? That is exactly that. You can do transactions with your ada to send or receive just as you could have done before. When you do so, your delegation to the stake pool will automatically go up or down without any intervention.
How can I stake ?
The first thing to do is to transfer your ADA in your own custody. If you bought some ADA on a centralised exchange such as Kraken, Binance or Coinbase, you are currently not the owner of the ADA.
You need to create yourself a wallet that you and only you have control over.
Don’t worry I am gonna explain how to create a wallet and delegate your ada below.
How much will I earn ?
We have already covered this question on this article
Let’s create a Cardano wallet
There are two main wallets that you can choose from. Look at the table below to know the pros and cons of each.
|Platform||Windows, Mac, Linux||Chrome, iOS, Android|
|Ease of use||Medium||Easy|
|Time to setup||5m + 1h of wait time||5 minutes|
|Hardware Wallets compatible||yes||yes|
Follow the instructions of your chosen wallet to create a Cardano wallet, then come back here for the delegation steps.
Ready to delegate