Staking Cardano (ADA) allows users to earn passive income from their ADA holdings. This guide covers everything you need to know about earning ADA rewards, setting up a wallet, and staking directly on exchanges. Here’s how to stake Cardano in 2025.
KEY TAKEAWAYS
➤ Cardano’s staking system uses the proof-of-stake (PoS) mechanism to validate transactions and earn ADA reward
➤ ADA holders can stake through wallets like Yoroi and Daedalus or on supported exchanges like Binance.
➤ Staking pools split rewards between stake pool operators (SPOs) and delegators based on contributed amounts.
➤ Choosing a pool with high performance and low fees maximizes staking rewards and network decentralization.
How to stake Cardano?
You can stake Cardano directly from a wallet or a cryptocurrency exchange that supports staking. We’ll cover three ways you can start staking Cardano immediately, providing all the necessary steps for each ADA staking method.
But before we get into the details, let’s quickly walk you through the overview of the basic steps:
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- Choose a staking method.
- Download or set up a wallet or exchange account.
- Select a staking pool.
- Delegate ADA to the pool.
- Start earning staking rewards.
You cannot copy the recovery phrase. Write it down using a pen and paper. Next, choose the words in the correct order to create your wallet.
There’s a waiting time of 20 days for approval after you first start delegating. This is to prevent spamming. After approval, you earn ADA every five days.
After the Daedalus wallet synchronizes with the Cardano blockchain, you will see the available stake pools and can start staking Cardano. Keep in mind that the synchronization process may take some time.
Unlike staking using a crypto wallet, users who choose to stake Cardano using a crypto exchange cannot stake ADA on multiple staking pools.
ADA, the native asset, helps fulfil the PoS consensus mechanism of the network through a process called staking. This process validates and secures the Cardano blockchain.
The PoW mechanism consumes a large amount of computational power and electricity to maintain the network. Validators solve complex mathematical problems to confirm each block.
Unlike PoW, PoS requires certain validators to stake cardano to help validate transactions. By doing so, validators who staked their crypto also earn an incentive, and that’s how the network functions.
With the release of the smart contracts functionality on Cardano, the network is an adequate environment for DeFi projects. The network aims to keep its decentralization through user governance. It also offers multi-chain support and cost predictability.
Cardano investors can stake ADA to validate transactions and keep the network decentralized, for which they are rewarded in ADA. Staking cardano can be used as a method to earn passive income.
The Ouroboros protocol chooses the validator to add the next block on the blockchain based on the amount of stake delegated to a given pool. Whoever is chosen to validate the block receives an incentive in the form of ADA.
SPOs act as the nodes of the network and help validate transactions. A certain SPO is chosen to validate the next block based on the amount of ADA staked in their pool.
Did you know: Cardano users can delegate their stake using Daedalus, a full-node wallet, or Yoroi, a browser-based wallet.
The more ADA you stake, the more coins you receive as a reward. Depending on the staking pool you choose and how you stake cardano, you can expect to earn anywhere between 1.9% to over 7% APY (annual rewards yield).
Note that If you’re using the Daedalus or Yoroi crypto wallets to stake cardano, your funds will stay in your wallet, as you only delegate the power of your wallet’s balance to the staking pool.
Delegating to a pool close to the saturation point sounds optimal, but there is a chance that it can become oversaturated, which will decrease the rewards. This is a criterion when choosing a staking pool.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Proceed with caution when buying and staking crypto, including ADA.
