Author: Contributor Date: January 19, 2022
Cardano (ADA) is the 6thlargest crypto by market cap. If you want to store your ADA in a dedicated wallet, the most popular wallets are Daedalus, Yoroi, and AdaLite. These wallets are considered the most secure and provide flexibility for ADA storage and staking.
Daedalus vs. Yoroi vs. AdaLite
The main difference between Daedalus, Yoroi, and AdaLite is in ADA staking functionality. In terms of storage, they are nearly identical and they are all compatible with popular crypto hardware wallets such as Ledgers and Trezors.
One could transfer funds from Daedalus to AdaLite to Yoroi using merely the ADA recovery phrase that they got when they first set up their wallet. The funds can be automatically transferred to a hardware wallet and locked.
There are big differences in the staking rewards and pool accessibility depending on the wallet you are using. For Daedalus, you have to run your own node and sync the entire Cardano blockchain. This can be complicated for non-tech-savvy users who want a simple wallet.
Yoroi is convenient to use and is available on mobile, making it easy to deposit and withdraw ADA. The Yoroi wallet is highly secure and provides a great alternative to Daedalus. AdaLite has nearly identical functionality but also has the benefit of allowing users to spread their ADA out among different stake pools to maximize their staking rewards.
Key Takeaways:
- Daedalus is the official Cardano wallet developed by IOHK, the foundation behind Cardano. It is the most secure but also the hardest to install and requires 10GB data on your hard drive to download the entire Cardano blockchain and sync it. Staking rewards are automatically paid on the Daedalus wallet.
- Yoroi is a mobile and hardware-enabled wallet that makes it easy to store ADA, developed by the commercial arm of Cardano. Users can set up an ADA wallet in seconds, and it is compatible with hardware wallets like Ledger and Trezor. Yoroi staking rewards are automatically paid out with no fees.
- AdaLite is a browser ADA wallet developed by VacuumLabs, a Slovakian tech company. It is one of the most used because it allows the fragmentation of ADA to multiple stake pools to maximize staking rewards. Users have to manually claim their rewards and pay a fee for the transaction.
- Daedalus, Yoroi, and AdaLite can work together because the recovery phrase is designed for the Cardano blockchain and is compatible with all wallets. For example, if you create a wallet on Yoroi, your recovery phrase will work on AdaLite and Daedalus.
The features you value most should help you determine which wallet is best for you. For large holders who hold millions of ADA, Daedalus is the best wallet because it was developed by IOHK (the foundation in charge of Cardano) and it will always be updated.
However, this wallet requires 10GB of storage on your hard drive and is not recommended for most holders who do not have hours to set up and download the blockchain. Yoroi and AdaLite are better for users who want easy access to their ADA without complex procedures.
Note that you can choose multiple wallets. A user could always regain ADA access from one of these wallets to another. ADA can be transferred from Daedalus to AdaLite in a second by using the recovery phrase you got when you first created your ADA wallet.
The recovery phrase can be inputted in any of the top wallets, and it will automatically transfer the balance on your new wallet. The recovery phrase is connected to the Cardano blockchain, and these three wallets do not use proprietary cryptography for ADA, which means you can transfer them easily. If you used other wallets for ADA, you would not be able to transfer your coins with the recovery phrase alone.
ADA Staking on Daedalus vs. Yoroi vs. AdaLite
According to data aggregator StakingRewards, ADA is among the top five most decentralized cryptos. Over 71% of the 33 billion ADA circulating supply is currently staked on the blockchain.
ADA staking allows you to earn rewards on your ADA by locking them for a certain period of time. The wallets we are reviewing today all have staking options —this is one aspect where they are all identical.
If you store your ADA on Phemex, you automatically have a wallet that keeps it secure. If you want to buy Cardano (ADA) and then withdraw and store it on a dedicated hardware wallet or one of these wallets, you can do that with a few clicks.
The main difference between the wallets is that some provide access from PC and others are mobile and browser-compatible. Depending on whether you want to store your ADA on your phone or run a node on your computer, the choice should be easy.
Daedalus Wallet Overview
- Website: https://daedaluswallet.io/
- Pros: Developed by IOHK, most secure, automatic staking rewards.
- Cons: Users have to download the full Cardano blockchain.
Daedalus is the most well-known Cardano wallet. It was developed by Cardano founder Charles Hoskinson, who wanted to decentralize the currency by allowing everyone to run a node on their computer. Once a user downloads the Daedalus wallet, they have to download the entire blockchain up to the current date.
Installing Daedalus is not complicated but it will require a minimum of 10GB free space on your computer, plus multiple hours to synchronize the blockchain once the wallet is opened for the first time. The wallet is not available for mobile and it can only be installed on PCs. It is available for Windows, Linux, and Mac machines.
Daedlaus Wallet Staking
Daedalus automatically gives out staking rewards when an ADA deposit is made to the user’s wallet. Each installation is considered a node and the rewards are paid out automatically. The wallet also has automatic redemption for users which eliminates all transaction fees once the money is sent.
Hardware wallets like Ledger Nano and Trezor are compatible with Daedalus. The user sets up a new wallet with a recovery phrase, and this can be inputted in other wallets in order to gain access to the ADA (including mobile wallets).
Is Daedlaus Wallet Safe?
Daedalus is the most secure ADA wallet and often used by ADA whales. It is directly secured and updated by IOHKand will continue receiving updates and additional security features.
The Daedlaus wallet is the optimal choice if you want the highest security and the spare memory resources to run a full ADA node on your computer.
Yoroi Wallet Overview
- Website: https://yoroi-wallet.com/
- Pros: Supported by IOHK, mobile version, lightweight memory consumption.
- Cons: Users can’t run their own nodes and connect to other nodes.
Dubbed the “Light wallet for Cardano,” Yoroi is the second most used ADA wallet. Yoroi was built by Emurgo, the commercial arm of Cardano. The wallet was designed for easy use and can be installed on a mobile app on the App Storeand Google Play. This wallet also has a browser extension that can store ADA.
Yoroi Wallet Staking
The advantage of Yoroi compared to Daedalus is that users can stake their ADA, but they do not have to download the entire Cardano blockchain which takes hours to synchronize. The wallet is automatically available for deposits.
Users can stake their ADA on Yoroi using stake delegation, but they will not be running their own nodes like they would on Daedalus.
Is Yoroi Wallet Safe?
Yes, Yoroi wallet is supported by IOHK and popular hardware crypto wallets. The mobile version supports Ledger Nano and the browser extension supports all hardware wallets.
Yoroi is connected to the Cardano development team through Emurgo, a company which recently launched a $100 million Cardano investment vehiclefor DeFi, and it is one of the most secure ADA wallets. It is the easiest to use and provides flexibility in terms of storage.
AdaLite Wallet Overview
- Website: https://adalite.io/
- Pros: Multiple ADA pools, higher staking rewards.
- Cons: Rewards are not automatically deposited.
AdaLite is a popular ADA wallet developed by VacuumLabs, a Slovakian startup. VacuumLabs is not connected to Cardano but they developed an accessible browser application that provides easy ADA storage with multi-pool delegation for staking.
AdaLite wallets can be set up online, but they also connect to hardware wallets like Ledger and Trezor. This makes it convenient to transfer funds to your hardware wallet and stake. Hidden wallets are supported on AdaLite.
AdaLite Wallet Staking
The main advantage is that the funds can be split in different addresses from the main address, in order to delegate different ADA pools for more staking rewards.
AdaLite also uses a regular Cardano recovery seed which can be integrated with other wallets like Yoroi and Daedalus.
The only disadvantage to staking on AdaLite compared to Daedalus and Yoroi is that they are not connected to IOHK and staking rewards are not automatically paid. This means users have to manually claim their staking rewards, and they are also paying a fee for the claim.
Is the AdaLite Wallet Safe?
Yes, AdaLite has never had a security breach. However, it is not directly developed or supported by IOHK, the organization behind Cardano. If users want the highest safety for storing large amounts, they should opt for Daedlaus instead.
Conclusion
The bottom line is that it is up to the user’s personal preferences which ADA wallet they prefer. All Phemex users have a free ADA wallet that is secure, but if they want to run their own node and stake their ADA they can download one of these hot wallets.
To secure your ADA, we highly recommend purchasing a hardware wallet and writing down your recovery phrase. This will keep your ADA secure from potential software bugs. All wallets are free to use, and you can send them back to your Phemex account if you need to sell.
For any inquiries contact us at support@phemex.zendesk.com
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