A few questions from a newcomer to Cardano

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Greetings Dear gentlefolks. :slight_smile:

I few weeks ago, I stumbled upon Cardano while browsing a Hardware forum, where people were discussing different crypto currencies and their future. Among those people, a lot spoke about cardano which sparked my curiosity and made me do some research myself.
After spending some time watching IOHK’s Youtube videos and finally making an account in here, I decided to buy a few ADA and begin my small adventure. :smiley:

As of now, I have a few questions, which I hope some among you can help me answering. Should the topic or the actual question been answered before, I duly apologize and kindly ask that you just send me a link, and I will try to find the answer therein myself.

1a# Concerning putting ADA’s in a staking pool: How can many pools have +100% luck and more? Does that mean, that several pools can mint a block each epoch?
1b Once I stake my ADA coins, can I slowly raise my stakes by buying more coins and re-staking them? And would that process reset my staking reward period (3-4 epochs)?

2# I have been using Binance to purchase ADA and wish to transfer those to a Daedalus Wallet, but AFAIK there is a small fee. How would you recommend me trading in the future, when I wish to buy additionally ADA’s, so that I may save the fees from Binance? (Think it is 1 ADA pr. transfer?)

3 I have been watching the market price for ADA fluctuate a bit on Binance and noticed a trend, which I hope someone can help my explaining. Someone is placing Bid orders for 7,642.04 ADA coins - priced at 1.7764€, which keep appearing and disappearing, so that it almost always stays on top of the highest bidders. But, and this is where I became a bit baffled, the exact same amount, 7,642.04 ADA coins - priced at 1.7778€ also is on the asking price and almost all the time at the exact top. I spent a good amount of time watching this strange phenomena.
What can explain that behavior? It it bots manipulation the market? :thinking:

For now, I think that is all. :smiley: Thank you in advance for reading these questions, and hopefully can provide me some answers. Wish you all the best!

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Hi @Triplecity welcome to Cardano! You made the right choice :smile:

The number of blocks a pool can mint is mostly dependent on the total ada delegated (staked) there. The more stake, the higher the chances of minting blocks in a certain time period. But if a big pool mints a lot more blocks than a small pool, the total rewards will be higher, but the rewards will also have to be spread amongst more delegators. In the end the Return of a pool will be the same (to keep it simple for now). But this also means that small pools might not even get a block each epoch, but when they do, the rewards will be higher to offset the same annual return. So whenever during a certain period, a pool mints more blocks than its odds would dictate, then that pool is seen as “lucky”. when a pool’s luck is 100% we say that is the “ideal” odds. You might want to read this too:

Mnemonic device to help estimate the odds of your stake pool finding blocks

When you delegate to a pool you delegate your whole wallet and all ada it holds. Every 5 days (epoch), the network makes a new snapshot of all staked wallets. If your wallet then has more ada you will automatically stake more ada. great, isnt it :slight_smile:

When will I receive rewards after staking my ADA?
What are the risks of staking your ADA?

There is currently no other way to buy more ada other than from exchanges like binance. These exchanges will charge some trading fees which normally are about 0,2% of what you buy and they will also charge fees when you withdraw. Binance is ok in that matter. Maybe later when we have smart contracts we will also have Decentralized exchanges (DEX) with lower trading/withdraw fees.

These orders are automated and placed and retracted automatically via trading software. This could be a market maker or some other algorithmic trader. This behavior is not uncommon and I would not say it is manipulation.

Great questions, btw and happy trading, staking and investing cardano :slight_smile:

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#ADA4Good, thank you very much for an (For me!) in-depth explanation and easy to read and understandable links. :slight_smile: Much appreciated! :smiley:

Now I just regret not buying more ADA, seeing the steady rise the last few days. :sweat_smile: I do suspect it is related to the statements Elon came with, regarding the power consumption on mining BTC. A far better alternative is ADA and with its promising future along with its green profile and large pool of cross platform developers, seems to draw the price up.

I’m thinking about implementing a DCA on Cardano, and stake what I buy, so that I may reap the higher interest rate compared to my bank, which is currently negative 1%. :roll_eyes:

I thank you once more for taking your time to help a newcomer! :smiley:

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Prices are tricky. Markets go up and down not always reflecting the actual fundamental value of a project. So even though I am really happy of course with the prices, I also know that if it may fall, it doesn’t change the great project cardano remains to be.

You are very welcome and good luck DCA-ing :slight_smile: I made it my mission to help non-technical newcomers. Feel free to ask me or the rest of the community anything!