How to Stake? Newbie here

found it …

25% to stake ada on binance for 90 days

how much does it pay to stake ada with daedalus ?


what you see on Binance is a made up product using individuals greed to keep as many ADA keys as possible locked to their network. Smart right?

The answer to your question:
The rewards stemming from the stake pool operator never ecxeed 5-6% ROA (return of ADA annually).
The main difference between different stake pools is how frequently rewards are payed based on the stake:

  • The pools which have a stake bigger than 1 million, these produce at least ~1 block every 5 days and start to give consistent rewards.
  • Pools like mine with much less stake (waiting for a bigger stake) do produce blocks but much much more rarely. But the idea behind is that the total amount of rewards is the same after a year for the one who delegates.

No financial advise but important to understand:
Here is how you support the network and your stake in a long term simultaneously. The more decentralized your stake is the more value it may get besides the staking rewards.
Having your own keys gives more power: you may vote for the future of the Cardano network from your Daedalus and Yooroi wallet. On Binance your keys are not yours. Binance does the voting, if at all, for their interests.

Cardano is a kid of Bitcoin and Ethereum.
Sparse supply smooth decline in rewards mining, leading to ~4 year rewards halving and the staking feature. Much more coming in the next four years always developing.

In 3 or 4 epochs (15-20 days) the validation of new blocks is completely done by the stake pool operators only.
It is exciting that Cardano is more than just a shill coin!

Happy staking what ever your decision may be :smiley:


My suggestion is to:

  • move your ADA from an exchange to a wallet (exchanges get hacked, no matter how much they say they’re safe, your money is safer in a wallet and you don’t have to own 5k/10k/1k ADA to stake)
  • stake to a pool you like
  • profit!

Avoid big operators like Binance if you can. I’ve made a practical guide about staking on my pool site, it may be help you decide.

binance has a wallet.
is that the same thing ?
if it is … there are 5 to 10 coins i’d like to stake … and binance has em all in one place … at a better rate than doing them all individually like ada, with there own platform …

This does not belong to Cardano community best practices.
Remember: not your keys not your coins. Good luck.

what are keys ?

if daedalus has a wallet and binance has a wallet, how do you know which is more secure ?

What are ADA keys ?

the more decentralized the more value than just staking reward … what do you mean by more value ?

sparse supply smooth decline in rewards mining … can ADA be mined ? what miner ?
… what’s a shill coin ?

I can stake ada in binance wallet.

Do you understand what is meant by keys ?

Hi Richy,

What are keys
I will not give a full introduction of keys, but the concept is that no one else is able to transfer your keys but for example the one who knows your spending password.

Now if you transfer ADA to the exchange you will pay a fee of ~0.17 ADA. Once you finish this transaction you do not own the coins anymore because you do not know the spending password of the exchange. The wallet on the exchange is fake. The exchange is the one who owns your coins.

Why? I try to explain with the help of an example. If you sell or buy ADA on the exchange this operation is instant and there are no transaction fees right? If you like you can verify it for yourself. This means that the exchange is simply using some sort of database for example an excel table to track who has how much ADA and who sold ADA and who bought ADA. In the end what you call a wallet on the exchange is just some data printed on your screen, how much ADA belong to your account. Once you transfer back ADA to your wallet Daedalus, hard wallet or Yoroi the exchange will use their spending password to send it to you.

So in the whole example you have entrusted your coins to the exchange. So you are betting on that they will not simply disappear or they are not getting hacked.

the more decentralized the more value than just staking reward … what do you mean by more value ?
I simply try to tell you that for the cryptocurrency as ADA the true value is the decentralization itself, everything is built on it. If we focus on strengthening it more people will acknowledge it long term.

can ADA be mined ?
Yes by an stake pool operator like me. There is a fixed amount of ADA waiting in the reserve to be distributed. But this is not done instantly, but gradually over time. The stake pool operator verifies transactions and the protocol will pay the stake pool operator by distributing these blocks worth of 1000 ADA each.

sparse supply smooth decline in rewards mining
It is similar to Bitcoin. The supply of ADA is fixed and it is a non inflationary asset. The rewards mined by a stake pool operator reduce gradually over time leading to an effective 4-5 year halving, similar to Bitcoin.


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