Earning in Cardano

So do we still gain or lose money based on the price going up or down? Or is this strictly staking and earning rewards?

You stake and you earn ADA as a reward

When you stake, you’ll get around 5% ROA. If the price drops more than 5% in that year, you lose. If the value of ADA rises, the value of those 5% that you got through staking rises too. Value changes in crypto over 1y generally dwarf the +/- 5% mark.

Perhaps there is another way of looking at this. If you happen to think that the value of ADA will not increase, you wouldn’t want to have any. If you already have ADA, it’d be silly not to stake them.

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