How Does Cardano Staking Work? (2024)
- Highly secure platform
- Popular tokens available
- High yields
- Easily accessible to beginners
- Not registered with the AMF
- Highly secure platform
- High yields
- Easily accessible for beginners
- Popular tokens often unavailable
- Managed portfolio offer
- Recognized by the CSA
- Ability to invest through model portfolios
- Risk smoothing option
- Fund custody via Ledger Vault
- Highly secure platform
- Easy to access for beginners
- Popular tokens often unavailable
- High yields
Did you know that Cardano is one of the cryptocurrencies the most heavily involved in staking? About 70% of all ADA (the Cardano coin) is currently being staked and earning passive income.
Are you interested in earning passive income or your Cardano but are unsure how to start? In this guide, we will explain what staking is, where you can do it and how much money you can expect to make.
How does Cardano staking work?
What is staking? Cardano staking, or proof-of-stake, is a system that is used to verify new transactions on the Blockchain. People who hold coins of a cryptocurrency can "stake" their coins in order to give proof-of-stake. The Cardano staking system replaces the proof-of-work system used by Bitcoin and many other cryptos. Instead of needing to mine coins by solving complex mathematical equations, coins are ratified by existing users staking their crypto.
When you stake your crypto in a Cardano staking pool, you will not be able to access it until the process is complete. If the verification is successful, you will earn additional crypto as a reward. By staking your crypto therefore you can earn passive income on it.
How much money can you make staking Cardano?
Staking is popular because it is passive income. It means that your cryptocurrency is never sitting idle but instead is making you money. It allows you to generate income while retaining the coins that you already have. Additionally, it frees you from having to closely monitor the market waiting for the perfect time to trade. Staking also means that you are taking part in a process that actively strengthens and expands that cryptocurrency, an obvious advantage if you hold that crypto's coins.
Cardano can generate average yearly yields of over 11%. In comparison, a high street bank in Canada will offer a high of around 4% on a savings account. Staking, therefore, is an interesting option for people looking to inflation-proof their savings.
Watch out!
If you stake your crypto and the verification process fails you may lose some or all of your coins. Make sure you are staking legitimate crypto owners.
Let's take a look at some of the leading platforms and the returns they offer on Cardano:
| Crypto exchange | APR |
|---|---|
| Binance | 11.29% |
| Coinbase | 5% |
| Crypto.com | 3% |
| Kraken | 4 - 6% |
| YouHodler | 5.5% |
Good to know
APR, or, Annual Percentage Return. APR is the rate of interest earned by staking crypto coins and includes the interest rates and other charges. APR is calculated with simple interest.
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How to stake your Cardano?
The first step to staking is to buy Cardano from a crypto exchange platform. To find the right vendor with the best fee deals for you, see our choices of the best crypto exchanges.
Then you will need to create an account on a platform that allows crypto staking. To compare the sites that offer this service as well as their service charges and fees, read our Then, you can create your account on a platform that allows crypto staking. All the examples mentioned in the table above provide this service. A full list of platforms that provide this service list and a comparison tool that shows their respective fee structures can be found in our crypto staking guide.
Once you are set up you can search for staking pools to join. Once a validator accepts your stake you will start earning income.
Where to buy Cardano?
Cardano is a popular and well-established cryptocurrency. It can be bought from many cryptocurrency platforms in Canada. Take a look at the list of sellers below:
- Binance
- Bitbuy
- Bitfinex
- Bybit
- Coinbase
- Coinmama
- Crypto.com
- FTX
- Gemini
- Kraken
- KuCoin
- OKX
- WazirX
Want to compare crypto trading platforms and find the best deals? Check out our comparison tool for crypto exchanges.
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Is it a good idea to stake Cardano?
Crypto staking, done wisely, can make more money than the interest earned on a fiat bank account. Crypto coin staking brings in an average yield of around 14%. Cardano's yields are currently lower, however, there is good room for expansion.
Staking Cardano might be interesting for people who already own ADA which they are not yet ready to trade. Instead of doing nothing with the coins while waiting for the right moment to sell, you can stake these coins, which will earn passive income. It is important to remember that staked coins can't be sold until the verification process is complete.
Are you interested in getting your coins earning?
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What are the best alternatives to Cardano for staking?
There are many interesting crypto alternatives to Cardano if you are interested in diversifying your staking portfolio. In the table below you can compare stakeable cryptocurrencies in Canada and what they offer.
| Cryptocurrency | Value Staked to Date | Total stake % | Reward |
|---|---|---|---|
| Solana | 52.78B USD | 74.95% | 5.99% |
| Ethereum 2.0 | 37.58B USD | 8.86% | 4.54% |
| Terra | 37B USD | 41.75% | 6.08% |
| Cardano | 29.82B USD | 71.9% | 5.01% |
| Avalanche | 25.9B USD | 66.56% | 9.06% |
| Polkadot | 14.26B USD | 52.53% | 14.05% |
Ready to bulk up your investments and develop a secure spread over different currencies?
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