–Skip to the steps below if you’re looking to get down to business right away.–
Note: none of this content is sponsored and the hardware wallet recommendations I’m making I 100% back because I or one of my good friends have used them.
Staking is a fantastic risk-free way to build your balances of the coins you’re holding. There are no lock-up periods or delays with Cardano if you want to withdraw your coins and sell at the right point. ADALite is the fastest and easiest way to stake your coins and start earning. Other interfaces need input of mnemonic phrases for each login. Current staking rewards on ADALite right now are averaging between 4 and 5%. These types of guaranteed returns are unheard of in the world of traditional finance nowadays. Banks and government bonds are currently paying jack s***. But there’s a catch. The price of Cardano (like other cryptos) is way volatile and the coins you earn from staking could be worth much less tomorrow. But let’s be real- we’re all here because we believe in this technology and what it can do for the world. I have a feeling that someday we’ll be looking back at this moment and gawking at how high the risk-free returns on staking were, much like we gawk at how college kids in 2010 were mining dozens of Bitcoin with their laptops. As the asset class grows, the staking pools will become more saturated, and the APY will decrease. In 2021, only 1.5% of the world’s population have adopted cryptocurrency. Imagine what prices would look like if that figure reached 10-20%! Einstein once stated that compound interest is the eighth wonder of the world- so if you’re earning an extra 4-5% on an asset that’s already going to appreciate greatly…….you get the idea. Regardless of the amount of ADA you hold, I nd staking it in one of these pools. The time is going to pass anyway- might as well earn more with what you have.
Without ado, the steps:
1) Get a hardware wallet that works with AdaLite. The two main wallets currently are the Ledger Nano S/X and any of the Trezor models. I have a Ledger Nano X, because I like the Ledger Live interface. I also have a Trezor T, for no other reason that I think having a little color screen interface on my crypto hardware wallet is cool. Hardware wallets contain your coins offline and are specifically designed to never give up your private keys. Note that ‘hardware wallet’ is the same as ‘cold storage’.
2) Plug your hardware wallet into your USB drive and continue to adalite.io. Double and triple check this URL since there are imitation sites out there looking to steal your tokens. Click the center ‘Hardware Wallet’ button.
3) The AdaLite UX will give you the choice between the two supported hardware wallets mentioned earlier, the Ledger Nano S/X or the Terzor T. Select your hardware wallet.
For Ledger users, you’ll have to sign in to your Ledger account on their website and . For more info on this, check out this video posted by Crypto Tips to add applications to your Ledger that can store multitudes of different alt coins other than the biggies (ETH and BTC).
4) Once you’ve selected your wallet, you will get a pop-up on your browser to confirm your PUBLIC keys. Never confirm your PRIVATE keys. Once you’ve done this, you’ll most likely be greeted with a pop-up on AdaLite giving you the most recent notifications on the Cardano blockchain concerning hardforks, staking & saturation levels, test nets, upgrades, etc. Read the news, pay attention to happenings in the Cardano universe! Click ‘close’ to proceed:
5) If you are only currently holding your coins on an exchange like Coinbase or Kraken or Binance, you’ll need to send these coins over to your hardware wallet to begin staking them. Each of these exchanges has the ability to send and receive coins from your hardware wallet. On Coinbase, the UX for sending to your hardware wallet looks like this:
You’ll need to copy and paste your hard wallet address into the ‘to’ section.
In order to find the public addresses to your hardware wallet, click the ‘receive’ tab on the top right hand side of the page. Underneath ‘My Addresses’ you’ll have your hardware wallet Cardano addresses displayed. These addresses are what you will copy and paste into the send function on the exchange you’re sending Cardano from (Coinbase, Kraken, etc.). Once you’ve done this, use the ‘Account’ tab on the top right hand side of the page to see your new balance of ADA on your wallet. I left a screenshot of my public addresses out.
6) Stake your ADA- click on the ‘staking’ tab- on the right hand side of page AdaLite will recommend different staking pools based on saturation rates, APYs, and your ADA balance. I won’t go over in this post on how to choose the best stake pool, or you can watch this video. Once you’ve selected a pool, click the ‘delegate’ button and you will be prompted on how many coins to stake. I see no reason to not stake all of your coins, since unstaking with AdaLite is near instantaneous.
7) Wait. Two ‘epochs’ (five-day periods) must pass for you to earn your first rewards. This means you will see staking rewards after waiting 10 days at the earliest and 15 days at the latest. Each epoch after that, a staking reward will appear in your wallet once every 5 days. On AdaLite the re-staking is automatic- that is, your “dividends” are automatically staked again so compound interest can work its magic. If you’d like to unstake, all you need to do is use the ‘send’ tab and send your ADA- there is no lock-up period, another reason why ADA staking kicks butt!
There you have it. If this is too confusing or you’d like a visual walkthrough, YouTube is saturated with how-to videos on cryptocurrency staking.