Wallet Staking Overview - December 2020 - Skip If You're a Pro 🤓

Staking & Delegation Stake Delegation
1

Hey Fam,

So where to start?

Always do your own research. This should be a good launching point to start exploring and connecting dots. Most importantly, always beware of scam and pretty much never trust anyone in private messages.

To start with - these two links are fantastic ways of entry into the world of Cardano staking.

But basic take aways:

  • ADA is never locked - you are free to spend anytime
  • ADA never leaves your wallet unless you decide to do so - it is safe
  • can choose your own pool that fits your ethos
  • further you explore from the centre of the ecosystem - slower updates are
  • soon - you will be also able to vote with your ADA, 3rd party wallets may be slow or unable to follow up

COSTS:

  • staking doesn’t cost you anything - in fact - protocol pays you
  • you won’t lose any balance by staking to a ‘wrong’ pool
  • margin % fees 1 or 5% have minimal impact on your rewards
    • WHY?
      • Any and all costs are split evenly amongst all staked ADA in that pool
      • On the other hand - it enables the operator greatly to pursue their work

MIN/MAX

  • Depending on wallet of your choice - min is 1 or 10 ADA
  • refundable deposit per wallet is 2 ADA
  • registration/re-delegation cost is about 0.17 ADA
  • there is NO maximum threshold for you to stake
  • currently - one wallet/one pool. Soon - multi delegations

SATURATION

  • take total (not max) supply of ADA & divide by ‘k’ number to get saturation level
  • always stake in pools well below saturation level
  • ‘k’ parameter - likely to increase with time - stay tuned
  • top ‘k’ pools - all else equal - will perform more or less the same

REWARDS

  • no matter what you try to do - protocol will even out long-term rewards at the present time at about 4 to 5% annually in k number of pools - not a rocket science.
  • your initial rewards will come 15 - 20 days from your day of registration - that’s normal. Then - every 5 days or depending on block finding pace of that pool.
  • look for value not immediate returns; long term over short term!

VALUE

  • look for pools adding value to the ecosystem
  • their work multiples your gains by token value multifold over any minimum fees/give aways you get in a short term.
    • Invest not only in your tokens but also on those who build, educate, and further elevate Cardano ecosystem value.
  • consider delegation to community or mission driven pools instead of generic big clusters

CUSTODY

  1. Custodial - someone else holds crypto on your behalf - typically exchanges, trading platforms, banks, etc.
  2. Non-custodial - you hold 100% control over your funds BUT also full responsibility for their safe keeping.

Finally - WALLETS where staking:

Rule of thumb - stay with official sources and/or as close to the centre of the ecosystem. Why? Updates are the soonest and you are always guaranteed full ADA rights.

If your favourite wallet lags behind official - make sure to pressure them to add these features or speed up support.

  • Daedalus made by Input Output

    • official & open source
    • non-custodial
    • full node wallet
    • Cardano is a dev priority
    • full ADA rights
    • hardware wallet support shortly (Trezor & Ledger)
    • desktop only (no mobile)
    • more via daedaluswallet.io

  • Yoroi Wallet by Emurgo

    • official & open source
    • non-custodial
    • chrome extension based light wallet
    • Cardano is a dev priority
    • mobile friendly (iOS, Android)
    • full ADA rights
    • hardware wallet support (Ledger & Trezor)
    • more via yoroi-wallet.com

  • Adalite Wallet made by Vacuum Labs

    • 3rd party & open source
    • non-custodial
    • web-based light wallet
    • Cardano is a dev priority
    • ADA rights followed
    • hardware wallet support (Trezor & Ledger)
    • Stake pool centre pre-fills Adalite’s own pool details
      • able to change default to a pool of your own choice
      • not intuitive

  • Atomic Wallet

    • 3rd party
    • non-custodial
    • no hardware wallet support yet
    • multi asset wallet (convenient)
      • Cardano is NOT a dev priority
    • some ADA rights supported
    • Stake pool centre pre-fills Atomic’s own pool details
      • able to change default to a pool of your own choice
      • not intuitive

  • Exodus Wallet

    • 3rd party
    • non-custodial
    • Trezor hardware wallet support
    • multi asset wallet (convenient)
      • Cardano is NOT a dev priority
    • limited ADA rights
    • unable to change default Exodus stake pool for another

  • eToro

    • 3rd party
    • custodial (not your keys, not your crypto)
    • no hardware wallet support
    • multi asset wallet and trading platform
      • Cardano is NOT a dev priority
    • unable to deposit or withdraw cryptocurrencies
      • do not buy on eToro with a vision of moving it elsewhere, it is not possible
      • you will need to liquidate your position and transfer fiat to another on-ramp
    • no ADA rights are supported

  • Binance

    • 3rd party
    • custodial (not your keys not your crypto)
    • multi asset wallet and trading platform
      • Cardano is NOT a dev priority
    • no ADA rights supported at all
    • locking ADA

Thank you for your attention.

Stake your ADA responsibly. Your ADA, your Vote!

Danny

LINKS

Twitter version: https://twitter.com/danny_cryptofay/status/1334816031081181184?s=20

Facebook version: https://www.facebook.com/groups/CardanoCommunity/permalink/1050988838658907/

Reddit version: https://www.reddit.com/r/cardano/comments/k6nu4p/wallet_staking_overview_december_2020_skip_if/

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Thanks Danny for this post.