My name is Tom and I am new to all things crypto. I thought I would build a machine to do a little mining and cane upon Cardano.
I am very interested in where this may go.
How much do I need to buy to start staking and when will it start being profitable?
Right now I have completed to exports to my Daedalus wallet and can see transactions getting confirmed. Is this what staking is?
Hi. Keep your ADA in Daedalus or use the new feature of Paperwallets that can be printed inside of the newest wallet version. Software updates will ship in the next couple of months that will give you the possibillity to stake (Ada-mining) your coins for a profit/coin accumliation and further in the future be able to vote and contribute to the platform.
The amount of ADA for staking is 1 or more.
For detailed info about Cardanos future:
There’s a brief overview of staking and delegation here https://cardanowiki.info/wiki/Staking_and_Delegation
There was a page on the official site that went into much more detail but it seems to be down at the moment.
One point that everyone seems to agree on is that it won’t be worth staking as an individual unless you have a substantial amount of ADA. See also many other threads in this forum.
What’s a substantial amount?
I am wondering what a substantial amount is also
Very much ballpark figures: $1k/yr for dedicated server in datacentre with good uptime stats (admin is you, time not costed). Say return is 4%/yr. To break even you’d need $25k’s worth of ADA, to make 4% profit you need $50k. This is off the top of my head and others will have given it more thought so…
Anyone can register a pool, tho, and have other people delegate their stake to you.
You are right. The only time when it makes economic sense to solo-stake is when the following is true:
YourStake(%)-PowerCosts(%) > (1/k) - StakingPoolFees (%)
Here:
k is the approximate number of StakePools Cardano will have. If this number is 100 then you’ll probably have to have >=1% of the total stake to make solo staking worth your while.
Depending on how much ADA will be available for staking (I assume a lot, in the beginning) it is more probable and economically attractive to stick with a pool. As the utility value of ADA grows, we will see more people use it for fueling their smart contracts on Cardano’s network. That will create an upward pressure for prices and provide incentives for people to sell their ADA on exchanges. As they sell their ADA on exchanges, i.e. as it gets used as a transactional unit on Cardano’s network, the total stake will shrink and make rewards more attractive for the rest of those who stake.
It is a beautiful setup and I can’t wait for it to go live. An absolutely amazing project in crypto with some serious applications! It will easily eclipse the now-dying Ethereum as it will have a far superior platform developed by real scientists!
EDIT: cleaned up the logic and typos.
best advise ever :=)