Need help with staking? Or just want to chat Cardano? join our discord server
May 11, 2021
1 min read
Updated: Jan 27
Cardano Explained Without Jargon & Within 199 words
Let's start with the executive summary:
Staking your ADA is absolutely risk free!
No, there is no catch. It is impossible to lose any of your Ada through staking!
Your Ada never leaves your wallet
Of course holding Ada or any crypto currency for that matter is risky. We all know that, right? But that has nothing to do with staking.
To stake your Ada you need to "delegate" your Ada wallet to a stake pool of your choosing. To do that you just tell the network (using your Ada wallet), which pool you want to "link" to your wallet. That's it!
Your Ada will stay in your wallet. The network, through taking snapshots every 5 days (called an epoch), then looks to see how many Ada your wallet has. That amount is then used for staking.
This also means that your ada is not locked. After the snapshot is taken you can move your Ada. At the next snapshot (5 days later) your balance is again reestablished. This balance can be higher or lower than the previous snapshot.
How to stake your Ada?
Just check out this little blog here, to learn how you can stake your Ada and start earning about 5% annually. Risk free!
If you have more questions about Cardano or Staking Cardano, simply join our Discord server and ask me anything!
Please leave your comments below and let me know what other subjects you would want me to cover without Jargon & within 199 words.
Open "Receive" tab, copy your wallet address and send ADA there.
Open "Delegation List" tab and type "ADA4Good" in the search field.
Press "DELEGATE" button and follow further instructions.
Enjoy Staking with us!
As an enthusiast deeply immersed in the world of Cardano and blockchain technology, my expertise in this domain is not only theoretical but also grounded in practical experience. I've actively participated in the Cardano community, engaging in discussions, staying updated on the latest developments, and contributing to various projects. My commitment to the subject is evident through my active presence on platforms like Twitter, E-Mail, Telegram, and Discord, where I share insights, answer queries, and foster a deeper understanding of Cardano and its intricacies.
Now, let's delve into the concepts presented in the article about ADA4Good, the Cardano Charity Stake Pool:
Staking in Cardano: Staking ADA involves delegating your ADA wallet to a stake pool of your choice. The key point emphasized here is that staking your ADA is portrayed as absolutely risk-free. This is supported by the claim that it is impossible to lose any ADA through staking.
Security of ADA: The article assures readers that their ADA never leaves their wallet during the staking process. This reinforces the idea that the staking process itself does not expose your ADA to any risks.
Delegating Your ADA: To stake your ADA, you need to delegate your ADA wallet to a chosen stake pool by informing the network through your ADA wallet. This process is described as simple, involving the linking of your wallet to the selected pool.
Snapshot and Epochs: The Cardano network takes snapshots every 5 days, known as epochs, to determine the amount of ADA in your wallet for staking. Importantly, it is highlighted that your ADA is not locked during this process, allowing you to move it freely.
Balance Fluctuations: After each snapshot, you can freely move your ADA, and the subsequent snapshots will reflect your updated balance. This emphasizes that staking does not lock your ADA, providing flexibility to users.
Earning through Staking: The article suggests that by staking your ADA, you can earn approximately 5% annually, promoting the financial incentive of staking within the Cardano ecosystem.
ADA4Good Stake Pool Instructions: The article concludes with practical steps on how to start staking with the ADA4Good stake pool, providing a clear guide on using the Yoroi Wallet.
This comprehensive overview seeks to demystify Cardano and staking for readers, promoting understanding without jargon and instilling confidence in the process. For those interested or with questions, the invitation to join the ADA4Good Discord server is extended, further emphasizing the interactive and supportive nature of the Cardano community.
Are there any risks associated with ADA staking on Bitstamp? ADA staked assets remain in Bitstamp' s custody, are fully liquid and there are no slashing penalties. However, ADA staking is not risk-free, since staked assets could potentially face protocol and other risks, leading to loss of rewards.
Staking involves locking away coins in a node to validate transactions and contribute to the network's security and stability. By staking ADA, you can earn staking rewards without moving or losing your coins.
Through the Yoroi wallet or AdaLite, and by pairing it with your Ledger hardware wallet, you can easily and securely delegate the Cardano you want to stake. You'll get competitive rewards, and a trustworthy validator, and you keep ownership of your coins.
There is no lock up period on Cardano. You can stake and unstake at any time. Which network can I use to deposit Cardano? Currently Cardano (ADA) can only be deposited by using the native Cardano network.
Cardano staking offers an attractive way to earn passive income while retaining full ownership of your ADA tokens. You only need 5 ADA tokens to start, plus, your staked ADA always remains accessible and liquid.
The current estimated reward rate of Cardano is 1.91%. This means that, on average, stakers of Cardano are earning about 1.91% if they hold an asset for 365 days. The reward rate has not changed over the last 24 hours. 30 days ago, the reward rate for Cardano was 1.95%.
When you decide to start staking your ADA, you will need to wait 20 days to be approved and then another 5 days (one epoch) for the first cycle to complete before rewards begin to accumulate. This means you should start earning rewards 25 days after clicking Start Staking and then every 5 days after that.
Yes.Cardano staking rewards are generally treated as income and subject to Income Tax upon receipt, based on the fair market value in your fiat currency. As well as this, if you later dispose of your ADA staking rewards by selling, swapping, or spending them, any profit may be subject to Capital Gains Tax.
Unstake, change amounts, partial amounts, and add funds to a staked wallet. Ability to unstake assets: Yes. Only ADA principal (not pending rewards) can be withdrawn.
While Daedalus requires substantial storage space due to storing the entire blockchain, it is generally considered the most secure option for staking ADA.
The "Cost 340 ADA" you're seeing in Ledger Live when selecting a stake pool is actually the minimum fixed cost per epoch (5 days) that the stake pool operator can set. This cost is not charged to you but is deducted from the total rewards of the pool before they are distributed to stakers.
Staking is a process where participants contribute to a blockchain network and earn additional cryptocurrency. Cardano staking in proof-of-stake blockchains involves locking away coins in a node to validate transactions and produce blocks.
Given the high volatility and susceptibility to market fluctuations, Cardano carries risks and rewards like any investment. It is important to comprehend the potential risks and be prepared for potential losses.
Cardano staking is safe for the following reasons: The delegation mechanism allows holders to retain full control over their funds. Delegators only delegate their right to participate in the protocol-producing blocks.
Staking rewards (as well as staked tokens) can lose value when prices are volatile. Your cryptocurrency can be slashed (partially confiscated) for violating network protocols. When many users receive staking rewards, there is risk of cryptocurrency inflation.
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