How to support the Cordano network?

Hello everyone,

I bought a bunch of Ada a few months ago (March). I’ve seen Ada go up and down and up and down, but more up than down. For some reason I feel awkward buying Ada, it gives me no satisfaction and the cheap thrill of seeing the value increase is not for me.

Now comes the noob cringe, are you ready for it?!
I know little about Crypto, so this is what I do know: Operating a node on the Bitcoin or Etherium platform allows you to “mine” those crypto currencies and supports the network.
I don’t know if Ada has a similar thing, I couldn’t find this on the website. Maybe it’s there, but it’s well hidden if it is.

So, if I want to buy a computer / mining rig, and set it up to support the Cardano network. How do I do this? If you can’t mine Ada, is there a way to contribute (with a value equal roughly to the cost of a computer, normal at home, medium price ranged gaming rig, not NASA’s supercomputer, mkay ;)).

o/

Hi nd welcome aboard,

U can earn ADA :slight_smile:

  • by delegating the funds to a pool

https://cardano.org/stake-pool-delegation/

  • or by running a pool

https://cardano.org/stake-pool-operation/

Remember that Cardano is a PoS not PoW so it can’t be minted

If u will want to create a pool on the future jkust let me know and I will help you (I have a friendly topic HOW to)

Till then u can delegate your ADA for ~5% rewards on long term (1year)

Cheers

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Hi @appLEjuice welcome and great to have you here!

Easiest way to help secure the network is by staking your ada. You will also earn rewards in ada. If you need help i have posted a few articles about it. Or just ask us.

Otherwise check out ideascale:

And read more about project catalyst.

2 Likes

So what is the benefit of staking in a pool here compared to doing so on Binance where the reward rate is 1.5x to 2x as high?

Well if u are keeping the ADA on an exchange u will not have full control of your money, that’s why it’s better to move them on a secure official wallet like daedalus or yoroi (download only from official sites)

how much binance offer to you for staking?

PS: be aware of:

  • giveaway scam yt videos
  • daedalus fake app for mobile (mobile is available only for desktop)
  • if u will create a wallet in daedalus or yoroi bkp the seed words and to test send only few ada from binance (using cardano network not binance network);

Cheers,

2 Likes

The benefit of staking is you partake in securing the network. And you are independent of what happens to binance as alex said.

And staking rewards are 5-6% for everybody including for binance. So if binance is giving you more they probably want more in return. Like requiring to stake for a minimum time period. There is no minimum time period when staking on a cardano stake pool. Or they give you some of their own rewards so you don’t leave.

In the end and as always it is up to you to decide.

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Oh yeah, Binance requires you to lock in for 30, 60 or 90 days.
I staked for 60 days, around 15 remaining, for 7.8% APY (Annual Percentage Yield, or as I call it: aka Average Percent per Year)

Good point about having the currency on Binance, if something happens with that platform, everything might be gone. It’s the largest platform out there, so the chance might not be super big, but it could happen. Luckily I only have peanuts worth in there, so that’s fine.

I saw some comments in the Staking Pool section that mentioned if you don’t have like a million Ada, it’s not really worth setting up a staking pool and you’re better off just staking it somewhere else.

I need to go read up a LOT on how this exactly works: how everything will benefit from me staking anything anywhere, etc. It doesn’t sound as cool, and isn’t as engaging as buying a rig, setting it up, and having it barrel away working for the group though.

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By the way, APY and RoS are different. APY stands for Annual Percentage Yield and is the projected rate of annual return after taking compounding interest into account. Whereas the RoS is the percentage you’ll get in Ada for a certain invested amount, it’s around 5 to 6% in average, as said previously.

As for the differences in paradigm between Proof-of-Stake and Proof-of-Work, minting and mining, you should understand quickly why there are costs and a certain amount of tokens involved for the election process. As engaging as Bitcoin or other PoW-based currencies might seem at first sight, chances are that you will perform the very same computations as many others on the network and won’t get even a chance to be rewarded for “securing the network”. Unless you’re part of a mining pool. Bitcoin was a great PoC but it’s efficiency has its limits.

At that point you could stake your Ada, earn rewards and run a node on Cardano outside of a stake pool. You will not get any Ada out of it but you can emit your own transactions, mint tokens, NFT. And you don’t need an ASIC for that, a simple PC is enough.