Hello there,
I’m relatively new to the world of staking and would appreciate some guidance on forming a solid staking strategy. I’ve been researching different approaches, but I’m curious to hear from experienced community members about their own strategies and any tips they have for maximizing returns while minimizing risks.
Also do you prefer to spread your stake across multiple pools or concentrate it in a few? What’s your reasoning behind this?
Any suggestion will be greatly appreciated.
Thankyou in advance.
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Theres only one strategy to get rewards risk free, and thats delegating to a stakepool. As soon as you use DeFi to maximise your rewards, you are taking risks.
You can delegate to multiple stakepools but to be fair, imo thats not worth the struggle. Better delegate to one pool and keep monitoring this pool.
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Thanks for the reply first of all,
Also I have gone through this and found this article very useful Best Crypto Staking Strategy for 2023 | by Chinma Udeji | Medium aws
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Hi
There are no risks when staking your ada directly on the Cardano chain. The worst that can happen if a stake pool fails for whatever reason is that you may miss out on some rewards. Just make sure your wallet is secure by using a strong spending password or a hardware wallet, which is something you need to do whether you are staking or not.
I always recommend using a hardware wallet:
Choose one of the native Cardano wallets from this list. I would recommend staying near the top of the list:
https://cardano-community.github.io/support-faq/Wallets/list/
When staking your on-chain as opposed to using an exchange, you will get better staking rewards, your funds don’t leave your wallet so you stay in full control of them (unlike other chains) and there is no lockup period.
You can switch pools whenever you like without loosing out on rewards:
Staking rewards will fluctuate epoch to epoch, this is normal. The most you can expect on average from staking your ada right now is around 2.8% to 3%. If a stake pool has a a higher advertised return than this it is due to having a streak of luck in the slot lottery. The chances are that if you keep trying to chase the higher returns it won’t really work out for you, unless you are lucky, but it will be just that… luck!
You could also look at aligning with a stake pool that you think is contributing to the ecosystem; has a lot of ‘skin in the game’ in the form of a high pledge; or is giving extra incentives such as other tokens that you are interested in.
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