September 5, 2022
Staking is a popular feature in the DeFi industry that enables token holders to “stake” - or lock - their tokens in a network as a way to actively participate in data verification on the blockchain. As a reward for this, token holders receive interest on their staked crypto, much like one receives interest on a traditional bank savings account balance.
Cardano staking is one of the more user-friendly options out there due to its unique delegation process. We did a deep dive on how to stake Cardano so you know a few different ways to earn a passive income.
In Cardano, ADA holders entrust people called “stake pool operators” to manage the staking process. A stake pool is essentially when many people place their tokens in the pool together, allowing the stake pool to operate to generate more interest and delegate rewards to the token holders.
To become a stake pool operator, you must have the appropriate hardware and advanced Cardano knowledge. As for the token holders, they have absolute freedom when it comes to choosing a stake pool operator. Staking pool rewards vary and token holders can look at pool reviews, performance, and size before selecting one.
Suggested reading: Staking Crypto - What it Means and How it Works
Once you find a pool that fits your staking needs, you can lock your ADA in the pool and begin a process called “delegation.” During this process, you can stake and un-stake your ADA as many times as you want and even switch pools whenever you want between epochs.
An epoch is how Cardano tells time. Each epoch has 432,000 one-second intervals. On average, each epoch typically lasts for around five days. Cardano then takes a snapshot at the end of each epoch.
The snapshot then records the distribution of ADA to staking pool participants. Hence, when you receive a reward, that is the reward from staking during previous epochs. So it will take some time before you see your first rewards. All staking rewards are paid in ADA and not fiat.
Before we dive into Cardano staking on different platforms, surely you want to know first “is Cardano work staking?” As with any financial service, that all depends on your personal goals. Hence, we put together a pros and cons list of Cardano staking here for you so you can analyze, plan and take action if needed.
If you’re interested in learning how to stake Cardano, then you first must weigh the pros and cons of the process to see if it’s a good match for you. If so, then please continue reading.
Suggested reading: Cardano Price Prediction: ADA Price Prediction in 2025
There are plenty of platforms offering yield for Cardano (ADA) deposits - YouHodler being one of them. More on that later. However, “staking” Cardano in the traditional sense comes in just two forms:
Daedalus is typically reserved for intermediate to advanced level users as it requires you to download the entire Cardano blockchain on your computer and operate a private node. Yoroi on the other hand is a user-friendly app that you can download straight to your web browser, much like MetaMask for Ethereum.
Both options allow you to stake ADA by joining a staking pool. Whether you go with Daedalus or Yoroi, the process is pretty straightforward. You just need to research the collection of staking pools, ensuring you find one that meets your needs and has a good reputation. Then, follow the on-screen instructions to delegate your ADA to the pool and begin the staking process.
Well, as we suggested above, Daedalus and Yoroi are two popular options for staking ADA but for those that want to discover a more user-friendly approach to yield generation strategies, there are plenty of options to choose from. Take YouHodler for example.
As seen in the Cardano staking calculator above, you can earn 5.50% APR plus compounding interest on ADA. Just one deposit of 1000 ADA will give you a total of 1056.41 ADA after 12 months and that’s with minimal effort.
To stake Cardano on YouHodler, just follow the following steps:
As soon as your ADA enters your YouHodler ADA wallet, yield starts generating. The longer you hold, the more you earn. Furthemore, YouHodler has additional great features to help you multiply your ADA beyond basic yield generation strategies. For example,
The last one, Dual Assets, is YouHodler’s newest feature that combines the high-yield generation strategies of DeFi with the easy-to-use interfaces of FinTech. On Dual Asset, you can “stake” ADA for a period of 12 hours to 2 days and generate a yield as high as 230%.
Dual Asset is similar to Multi HODL in that you can choose the direction of a coin and your payment amount depends on the outcome of your guess. However, with Dual, your yield generation is guaranteed. The only difference is the amount of profit you take in.
Want to learn more about the Dual Asset feature? Just click here for the full introduction.
YouHodler is more than a crypto wallet for storage. Deposit ADA today to start generating yield and discovering more creative ways to activate your cryptocurrency.
Editor-in-Chief of the YouHodler blog. Connect with him about writing techniques, cryptocurrency, and music.
.svg){kind=small}
YouHodler is regulated in the EU (Italy) and Switzerland, and does not have a regulated UK entity. YouHodler is NOT regulated by the FCA, and protections offered under UK law do not apply.
YouHodler promotions are not targeted at UK investors, and bonuses or loyalty programs like the rewards programme or sign-up offers will not be available to residents of the UK. You can learn more about the services offered to UK customers here.
Do not invest with YouHodler unless you’re prepared to lose all your money or tokens invested. Crypto Currency is considered as a speculative and high‑risk investment and you are unlikely to be protected if something goes wrong. Take 2min to learn more about risks.
YouHodler is regulated in the EU (Italy) and Switzerland, and does not have a regulated UK entity. YouHodler is NOT regulated by the FCA, and protections offered under UK law do not apply.
YouHodler promotions are not targeted at UK investors, and bonuses or loyalty programs like the rewards programme or sign-up offers will not be available to residents of the UK. You can learn more about the services offered to UK customers here.
Do not invest with YouHodler unless you’re prepared to lose all your money or tokens invested. Crypto Currency is considered as a speculative and high‑risk investment and you are unlikely to be protected if something goes wrong. Take 2min to learn more about risks.