How to Stake Your Cardano (ADA) to Earn 4% to 5% Crypto Income

Cardano (ADA, Tech/Adoption Grade “B-”) is a third-generation crypto that aims to knock Ethereum off its perch as the world's no. 1 smart-contract platform.

And it's been a great investment — up 274% so far this year.

However, a recent upgrade (dubbed Shelley) opened up a whole new way to make money with ADA: staking. This is a process whereby coin-holders (of Proof-of-Stake cryptos) are allowed to participate in validating new transactions and share the rewards for doing so.

For ADA coin-holders, staking means earning 4% to 5% in passive crypto income — while waiting for your coins to go up another 274%!

Now maybe 4% to 5% doesn't seem like very much.

But it ain't chicken feed!

In fact, in today's near-zero interest rate world, it's actually four to five times what you earn on your U.S. dollar savings account.

Staking can be done in two ways. Directly, if you have the desire and expertise to actually organize and run a node on the ADA network.

Or indirectly, by pooling your coins with other passive investors and delegating them to proxy who takes care of all that, then shares the rewards for doing so.

So, how can you get started in staking? The Daedalus wallet (created by Cardano developers) is probably the easiest way for a casual investor to stake ADA.

Once you’ve downloaded the app and set up your wallet, you’ll need to transfer in your ADA coins from either a personal wallet or crypto exchange platform.

When you go to stake your coins, you will see a list of all staking pools you can delegate your stake to. Next to each pool, you’ll see a number indicating a ranking, with1 being the most attractive. That ranking that reflects factors like availability, staking fees and reputation.

These ranks are constantly shifting, but the list you see will provide a current snapshot in time.

Delegating your stake to a pool requires no special expertise or hardware. The pool operator handles all that. He then sends you your pro-rata share of the staking rewards, after subtracting a small fee for the service he provides.

How would you select a stake pool? Good question.

We recommend any no. 1 ranked stake pool.

To estimate how much you will get, see this staking calculator. Pay-outs currently run 4% to 5% and fluctuate constantly. Even so, this far exceeds what you can earn on bank savings.

Best wishes,

Juan and Bruce