How to stake your ADA
Being an Ada owner does not only mean to own a lump sum of crypto coins, but it actually enables the owner to participate in what is called the consensus protocol and earn rewards.
In order to stake your Ada, you need a wallet containing some tokens and the id or ticker (the short friendly name) of the wallet you want to delegate to.
There are thousands of Cardano Staking pools, in the example above we have a pool with ticker EASY1. For a comprehensive guide on how to find the best staking pool for you, please visit our article How to find the best cardano staking pool .
If you’re just interested in the process of staking your Ada, feel free to scroll down to the next paragraph. I would recommend, though, to continue reading and learn what does staking mean, why is so important and what benefit a delegator has by staking its tokens.
Most cryptocurrencies implement one of the two most common consensus protocols: Proof of Work (Bitcoin and Ethereum), or Proof of Stake (Cardano, Tezos and Dot). Proof of Work (PoW) requires a node of the blockchain to execute an arbitrary complex piece of software (the so called work) in order to be able to generate a block and earn the associated rewards. In the past few years we’ve seen a large adoption of ASIC miners that are specialised hardware designed to optimise the execution of the bitcoin algorithm and beat the competition. Unfortunately ASIC miners consume a lot of energy and are not very eco-friendly. Blockchains implementing Proof of Stake (PoS) use a very different approach when it comes to generate new blocks (also known as minting). First of all, pools running PoS blockchain run on inexpensive hardware and are extremely energy efficient. Second, they leverage the concept of stake or delegation, whereby pools who have a larger amount of delegated tokens, have a higher chance of minting a new block. Once that a node mint a new block, the associated rewards get proportionally split to all the pool delegators. For an Ada owner, staking is the process of delegating the tokens in your wallet to a (staking) pool in order to participate to the consensus mechanism and earn rewards.
It is important to know that delegating or staking Ada on a pool is completely safe. In fact this question gets asked very very frequently. When an Ada owner delegates his tokens (it really delegates its wallet), the tokens never leave the wallet. They are also unlocked, it means that they can be spent or transferred to other wallets. Delegating has no side effects, but two, very important positive results: improve network security and reliability, and produce rewards for the owner.
Now that we have an idea of what staking is, let’s take a look on how to delegate your token to a staking pool.
How to delegate your ADA
The first step in delegating your Ada is to download your wallet of choice.
Currently there are two main Ada wallets: the official Daedalus wallet (https://daedaluswallet.io), developed and released by the Cardano Foundation, or the official Yoroi wallet (https://yoroi-wallet.com), a lightweight wallet developed by Emurgo. Easy Staking takes no responsibility over the software you download and install, so beware of the authenticity of the website you visit and software you install.
Delegate with Yoroi Wallet
Yoroi is a lightweight wallet, it integrates nicely with the most popular web browsers and is also available in both AppStore and PlayStore. The download page will look something like:
Select the version you prefer and follow the on screen instruction to complete installation. Yoroi offers the option to setup a beginner UX during the installation. I find this extremely useful specially for new crypto enthusiast that don’t want to be overloaded by too much information. The screen will look something like the one below and you will have just to hit Simple:
Now that you’ve got your wallet manager up and running create your new wallet, ensure you’ve carefully saved your 24-words phrase and transferred your tokens off the exchange into your wallet. You’re now ready to stake them.
Select the Delegation List tab and enter the ticker of your favourite pool like in the example below and then press Delegate.
That’s it! You’ve just delegated your rewards to your favourite pool. For more information about how to select the best pool for your wallet please refer to the article How to find the best cardano staking pool
Delegate with Daedalus Wallet
Daedalus Wallet is a full node wallet, once installed it will take quite some time to sync up with the network. It is also available for all the most common Operating Systems like MacOs, Linux and Windows. Please note that, at the time of writing, there is no iOS or Android version of Daedalus. The Daedalus download page will look something like:
Once you’ve downloaded the software, it will take, depending on your internet speed, a few hours to download the full blockchain. Once completed you can now create your wallet and transfer some funds into it.
You’re now ready to stake you ADA, click on the Stake Pools tab like in the picture below:
and enter the ticker of your favourite pool into the search bar as shown:
and then press Delegate to this pool. That’s it! You’re all setup, sit back, relax and enjoy your rewards. For more information about how to select the best pool for your wallet please refer to the article How to find the best cardano staking pool