Staking Cardano differs from staking other PoS cryptocurrencies because this blockchain uses an innovative protocol called Ouroboros. Based on peer-reviewed research, Ouroboros is the first provably secure PoS protocol. ADA holders can earn passive income in two ways: by operating a stake pool or delegating a stake to a stake pool.
In this article, we’ll explain where and how to stake ADA and the main benefits and challenges of Cardano staking. We’ll also share a few Cardano staking tips that will help you maximize your rewards.
Cardano Staking: Summary
Cardano staking allows ADA holders to earn passive income by operating a staking pool or delegating their tokens to an existing one. Unlike other PoS systems, Cardano’s Ouroboros protocol ensures security and flexibility, with no lock-up periods or slashing penalties. Investors can stake through wallets like Daedalus and Yoroi or use centralized exchanges like Binance and Bitget, each offering different APYs. Choosing the right staking pool is crucial, as factors like saturation, fees, and performance impact rewards. While staking provides steady earnings, risks include fluctuating pool performance and high fees in some cases. As Cardano evolves, upcoming governance changes, AI integration could further enhance staking rewards and opportunities.
Key Takeaways
- Cardano staking offers passive income through staking pools or delegation, with rewards every five days.
- Ouroboros ensures security and flexibility, with no lock-up periods or slashing penalties.
- Top staking platforms include Daedalus, Yoroi, Ledger, Binance, and Bitget, each with different APYs.
- Choosing the right pool is key, considering factors like saturation, fees, and performance.
- Compounding rewards boosts earnings, while high fees and poor pools reduce returns.
- Risks include fluctuating pool performance and fees, but staked ADA is generally safe.
- Cardano’s future staking outlook includes governance updates, AI integration, and potential BTC interoperability.
What is Cardano Staking?
Cardano uses an innovative consensus mechanism, Ouroboros. Ouroboros enables ADA holders to earn rewards by operating a stake pool and delegating their stake to a staking pool.
Operating a stake pool is more complicated than delegating. Stake pool operators will have to know how to run and maintain Cardano nodes and how to maintain their servers. They’ll also need to attract ADA holders to their pools, which can be challenging. Stake pools on Cardano do not require a minimum pledge amount. However, a larger number of pledged ADA tokens will equal higher rewards.
How Does Cardano Staking Work?
ADA stakers more often delegate their tokens to staking pools since this method doesn’t require any technical knowledge. The rewards are shared between all investors who delegated their stake to that stake pool. Delegated stakes can also be re-delegated at any time. Rewards are distributed at the end of each epoch, which lasts 5 days.
The pool’s performance and saturation will greatly affect the staking rewards. For example, if the staking pool produces fewer blocks than it was nominated for, its performance rating will drop. On the other hand, if the staking pool creates more blocks than it was nominated for, its performance ratings will go up.
As for the saturation mechanism, it will determine the amount of rewards. For example, if a pool has more delegated stakes than is ideal for the network, its rewards will decrease. This system encourages investors to delegate their stakes to different pools to prevent centralization.
Many investors choose to stake Cardano instead of other PoS coins because of its flexibility. Cardano doesn’t have lock-up periods, meaning investors can withdraw their tokens whenever they want. Cardano holders will also have full custody over their delegated tokens, and they’ll be able to switch to a different stake pool if they are not satisfied with the performance of their current pool. In addition to that, there are no minimum staking requirements and no slashing mechanism.
Now that you understand how Cardano staking works, the next step is selecting the right platform. The choice between a crypto wallet or a centralized exchange depends on whether you prefer full control over your assets or a hands-off approach. Let’s explore the best staking platforms available in 2025.
Where to Stake Cardano: Top 5 Platforms For Staking ADA in 2025
The best way to stake Cardano is via crypto wallets and centralized exchanges (CEX). Crypto wallets enable users to have complete control over their tokens. Wallet users will also be able to select various staking pools to increase their rewards. This makes them ideal for solo staking. CEXs are more suitable for delegation as investors will get to delegate their stakes to a reputable exchange.
In the following section, we’ll list the best wallets and exchanges for Cardano staking.
- Daedalus: Daedalus is the best place to stake Cardano as this is the official crypto wallet for ADA created by Cardano’s developers. This is a full-node desktop wallet that allows its users to earn rewards through different staking pools. Staking on Daedalus comes with a competitive APY, which usually stands at 5%.
Daedalus Delegation Centre | Source: ADAOZ - Yoroi: Yoroi is an open-source crypto wallet that enables its users to stake their ADA coins on different pools for an APY of ~3.5%.
- Ledger: Ledger is one of the best hardware wallets for Cardano staking for two reasons. First, it can be paired with Yoroi and AdaLite. Secondly, investors can either stake or delegate their ADA tokens to a validator for rewards. The current APY on Cardano amounts to around 3%.
- Binance: Binance is a centralized exchange that allows its users to stake ADA through its Earn option. The Cardano staking APY on Binance varies between ~0.47% and ~2.1%.
- Bitget: Bitget is a centralized exchange that currently offers the highest staking reward rate for Cardano, which varies between 5.50% to 7.00%. This exchange also enables its users to redeem their tokens before the end of the staking period.
Other Staking Platforms for Cardano
- Best Wallet is a non-custodial wallet that was the first to use Fireblocks MPC-CMP technology, which made it one of the most secure crypto wallets. This wallet is known for its user-friendly interface and upcoming tokens page, which often features new cryptocurrencies with high growth potential. Best Wallet recently launched its native token, BEST, which enables its holders to earn higher APYs. At the time of writing, Best Wallet doesn’t support Cardano staking. However, investors can use it to stake other popular cryptocurrencies, like ETH, SOL, and DOT.
- Typhon: Typhon is a web Cardano wallet that’s fully compatible with existing ADA wallets. It also supports multiple accounts, which means that its users can gain access to numerous staking pools.
- VESPR: VSEPR is one of the top mobile wallets that are compatible with iOS and Android devices. It enables its users to stake, swap, and trade their ADA tokens. The ADA staking APY on VESPR stands at ~3%.
- Eternl: Eternl is a Cardano light wallet that comes as a browser extension and a mobile app (iOS and Android). Its users will gain access to more than 3000 stake pools where they can stake their tokens or delegate their stakes.
- Lace: Lace is an open-source light wallet that comes as a browser extension. This wallet was created by Input Output Global, one of the founding entities of Cardano. Lace users can delegate their stakes to up to ten pools simultaneously.
- Trezor: Trezor is a hardware wallet that designed a special app for Cardano called the Trezor Suite, available on desktop, web, and mobile devices. ADA holders can use the Trezor Suite app to stake or delegate their tokens to a staking pool of their choice.
- Kraken: Kraken is a CEX that is suitable for beginners who want to dip their toes into Cardano staking. Stakers can stake their tokens for an APY that varies between 2% and 5%.
- Coinbase: Coinbase is a CEX known for its easy-to-use staking service, Coinbase Earn, which enables investors to earn high APYs by staking their tokens. At the time of writing, ADA holders can earn up to 1.78% APY.
- KuCoin: KuCoin is a CEX that, like Coinbase, provides the Earn program, which includes savings and staking options. ADA holders will be able to earn up to 3% APY by staking their tokens.
How to Stake ADA and Maximize Rewards?
In this segment, you’ll learn how to stake ADA step-by-step, how to choose the right pool, and how to maximize your staking rewards.
Step-by-Step Guide to Staking ADA
Step 1: Choose a wallet that supports ADA – We recommend using Daedalus or Yoroi since both wallets were created by Cardano’s developers.
Step 2: Purchase ADA – You can buy ADA via reputable CEXs, such as Binance, Coinbase, and Kraken. Once you buy the coins, transfer them to your wallet.
Step 3: Choose a staking pool – Use your wallet’s dashboard to choose a pool that suits you best. Base your criteria on the pool’s performance, saturation, and fees.
Step 4: Delegate your tokens – Open your wallet, go to the Delegation Center, select the pool, and confirm your choice.
Step 5: Claim your rewards – Staking rewards will be automatically added to your wallet at the end of each epoch (every 5 days).
How to Choose a Cardano Staking Pool?
To find the right staking pool, pay attention to the following factors:
- Low saturation vs. high saturation: Saturation is an indicator that shows if a particular pool has more stake delegated to it than is ideal for the network. Pools with higher delegated stakes than the network’s saturation limit will offer lower rewards. This is why you should choose pools with less than 60% saturation. Only pools with less than 64 million ADA staked are currently eligible for rewards, meaning you should choose a pool with about 30 million ADA staked.
- Fixed fees vs. variable fees: Stake pools collect fees that can be fixed or variable. The minimum fixed fee for Cardano staking amounts to 340 ADA, while the variable percentage fee usually ranges between 0% and 5%. Avoid pools that impose variable fees above 100% since they are usually private pools. If you stake your tokens on these pools, you won’t get any returns since your rewards will go to pool owners.
- Historical performance of pools: Opt for staking pools that have produced multiple blocks since their registration date. You can check the pool’s performance history under the Blocks column. A consistently high performance is a good indicator that the pool is reliable and effective. The pool should also have a high uptime.
The amount you earn from staking will depend on the staking pool’s performance, fees, and delegation size. Let’s take a closer look at potential earnings and strategies to maximize your rewards.
How Much Can You Earn by Staking ADA?
You can maximize the returns on your staking rewards in the following way:
Reinvesting Rewards vs. Cashing Out
Once you receive your staking rewards, you’ll have two options: cash them out or reinvest them. The best Cardano staking strategy to maximize your profits would be to reinvest your staking rewards. This will enable you to gain a higher ROI. For example, you can re-stake your earned coins and spread them across multiple pools to boost your profits and reduce risks. On the other hand, if you choose to cash out your staking rewards, you’ll have to pay a transaction fee of 0.17 ADA.
Estimated Earnings Over 1, 3, and 5 Years
Cardano staking rewards are distributed at the end of each epoch, which lasts 5 days. There are 73 epochs in 1 year, 219 epochs in 3 years, and 365 epochs in 5 years. To calculate your estimated annual earnings, you must multiply your staked amount with the pool’s APY. For example, if you staked 2000 ADA tokens in a staking pool that offers an APY of 5%, you’ll earn 100 ADA in one year (2000 * 0.05), 110 ADA in three years, and 121 ADA in five years. In addition to the amount of staked tokens, the size of the rewards will also be affected by the delegates. A higher number of delegated tokens in the given pool equals lower rewards.
Benefits and Risks of Staking Cardano
The main benefits of Cardano staking include:
- Earning a passive income by becoming a stake pool operator or delegator: Investors can earn rewards in the form of ADA tokens by operating their own pools or delegating their stake to staking pools. Both options incentivize good behavior, which is why Cardano does not use slashing mechanisms.
- Gaining voting rights: ADA stakers can vote on future proposals on the network by lending their voting power to a Delegate Representative (DRep). Greater ADA balance equals greater voting power.
- Accessibility and price potential: Cardano’s staking system has no lock-up periods and no minimum staking requirements. This makes it suitable for all types of investors, from beginners to professionals. Crypto analysts also believe that by the end of 2025, ADA will hit the $3 mark thanks to the ratification of the Cardano Constitution, which is designed to make Cardano fully decentralized in its governance.
Although Cardano staking can be highly profitable, it also comes with a few challenges you should be aware of, such as:
- Pool performance variability: Stake pools are prone to fluctuations, which can affect the size of the rewards. If a certain pool fails to produce enough blocks or becomes over-saturated, it will offer lower rewards.
- High pool fees: Staking pools with high variable fees (over 100%) will not provide returns.
- Pool operator risks: If the pool operator acts unethically, for example, if they try to manipulate the system, it will jeopardize the security of the pool. They may even try to steal their delegators’ funds, although this rarely happens.
Cardano Staking Benefits
- Passive Income
- Voting Rights
- Flexibility
- Growth Potential
Cardano Staking Risks
- Pool Performance Fluctuations
- High Fees
- Operator Risks
Cardano Staking vs. Other Earning Methods
Here’s how Cardano staking compares to Ethereum staking, DeFi lending, and yield farming in terms of risks and rewards:
ADA staking vs. Ethereum staking: Cardano is more flexible than Ethereum. ADA holders can delegate their stakes to a stake pool while keeping control over their coins. They can also unstake their ADA whenever they want to without facing any penalties. Ethereum staking is more strict. To become a validator, investors must stake a minimum of 32 ETH.
Cardano distributes its staking rewards at the end of each epoch, i.e., every 5 days, while Ethereum’s rewards distribution model is more complex. Although the amount of rewards distributed per block will be fixed, the share that validators earn will depend on their total number and activity.
Cardano’s saturation mechanism encourages users to delegate their stakes to multiple pools to keep the network decentralized. Staked tokens are not controlled by the pool operators but by their holders, which prevents the possibility of a rug pull. In contrast, a large number of staked ETH tokens are under the control of large entities, which compromises their decentralized nature.
ADA staking vs. DeFi lending: Cardano’s lending protocols are part of its DeFi landscape. They enable investors to use ADA tokens as collateral. Each lending protocol on Cardano will impose its own terms, conditions and rates, which will depend on the amount of the loan.
DeFi lending on Cardano comes with higher returns than its native staking. However, lending is more risky than staking. First, loans are backed by crypto collateral, which means they are prone to price fluctuations. If the value of your collateral drops, you’ll have to add more coins to maintain your position.
Secondly, in DeFi, smart contracts facilitate the lending and borrowing process. If smart contracts are poorly written, they’ll be vulnerable to hacks. This is why Cardano’s smart contracts use multi-step contract workflows and multiple programming languages, such as Plutus and Marlowe.
ADA staking vs. Yield farming: Yield farming is a method that includes locking tokens in liquidity pools on DeFi protocols in return for rewards that come in the form of interest. Yield farming offers higher potential returns than staking because farmers will be able to move their tokens across multiple DeFi platforms. Some Yield farming platforms offer up to 70% APY, while APYs for staking usually range between 3% and 7%.
However, yield farming is more complex than staking because it requires active participation and technical knowledge. It also includes higher risks, such as protocol issues and impermanent loss. On the other hand, staking is less complicated and less risky. Although it offers lower rewards, they are more stable and more predictable. In short, yield farming is a better option for short-term investing, while staking is more suitable for long-term investing.
Mistakes to Avoid When Staking ADA
While staking ADA is generally straightforward, beginners often make mistakes that reduce their rewards or expose them to unnecessary risks. Here are common mistakes to avoid:
- Choosing high-fee staking pools: Some pools charge excessive variable fees (above 5%), which can significantly reduce staking rewards.
- Delegating to an oversaturated pool: Pools that exceed the ideal saturation point distribute lower rewards.
- Ignoring pool performance history: Choosing pools with poor uptime or low block production leads to inconsistent rewards.
- Not reinvesting rewards: Compounding staking rewards over time increases earnings.
- Falling for scams: Be cautious of fake staking pools promising unrealistic returns.
How to Unstake Cardano: A Detailed Guide
Unstaking Cardano is as simple as staking it. Since Cardano has no lock-up periods, users can unstake their ADA at any time. Here’s how:
- Open Your Wallet: Use Daedalus, Yoroi, or the exchange where you staked ADA.
- Go to the Staking Dashboard: Find the delegation section in your wallet.
- Select “Undelegate” or “Withdraw”: The option depends on your wallet or CEX.
- Confirm the Transaction: ADA will be available immediately after the unstaking process. However, it might involve a network transaction fees.
Pro-tip: If staking through a centralized exchange (CEX), account for varying withdrawal processing times.
Future of Cardano Staking: Long-Term Trends to Watch
In January 2025, Cardano reached a milestone by releasing its latest update, the Plomin hard fork. This update will make Cardano a community-based protocol, as it will enable the creation of a fully decentralized governance system.
Will new governance mechanics make ADA staking more profitable? They might. The new governance model enables ADA holders to withdraw their staking rewards in three ways: by voting “no confidence,” abstaining, or delegating their stakes to a dRep.
This governance approach will encourage ADA holders to delegate more stakes to Cardano’s pools to gain more voting power. This will boost the pool’s performance and increase their rewards.
According to its 2025 roadmap, Cardano plans to integrate with Bitcoin as a smart contract layer, which will increase its liquidity. This update will also enable BTC holders to interact with DeFi protocols on Cardano, which could open the door to new staking opportunities.
Cardano’s founder, Charles Hoskinson, also hinted that Cardano could integrate AI into its ecosystem in the future. If this happens, Cardano could support AI-powered apps and smart contracts, as well as AI-powered delegation systems. Many staking platforms, such as CryptoBox, StakeWise, and Lido Finance, are using AI technology to boost their staking rewards, and Cardano could follow suit.
Keep in mind that Cardano staking rewards will diminish over time since they are composed of transaction fees and reserves. During each epoch, 0.22% of Cardano’s reserve goes towards the rewards. As its reserve decreases, so will the staking rewards.
Conclusion: Cardano Staking
Cardano enables its users to earn passive income by becoming stake pool operators or by delegating their stakes. Cardano doesn’t use lock-up periods and slashing mechanisms, which makes it more convenient for staking than other PoS cryptos. Investors can stake their coins via wallets and centralized exchanges. The former is more suitable for solo staking, while the latter is more convenient for delegating.
To maximize your returns, select the pool that best suits your goals. However, make sure that the pool you have chosen has a strong performance history and that its saturation is less than 60%. You should also avoid delegating your tokens into pools with high transaction fees since they don’t generate rewards.
Staking Cardano offers investors not only the opportunity to benefit from their ADA holdings but also to shape Cardano’s future by participating in its governance.
See Also:
- How to Stake Pyth Tokens in 2025: A Beginner’s Guide
- Polkadot Staking: Where and How to Stake DOT in 2025
- How to Stake POL: Beginner’s Guide to Polygon Staking
- How to Earn Rewards with AVAX Staking in 2025
Frequently Asked Questions
How much can I make staking Cardano?
How much does it cost to stake ADA?
Can I lose ADA by staking?
Will Cardano staking rewards decrease?
Is Cardano staking taxable?
Is it safe to stake Cardano in Ledger?
How much ADA do I need to stake?
Can I sell staked Cardano?
How do I withdraw a staked Cardano?
How long is Cardano staked for?
Do You Pay Taxes on Cardano Staking Rewards?
How to calculate and reduce taxes on Cardano staking rewards?
References
- Cardano Foundation. Cardano: The Future of Blockchain. Cardano, 2025, https://cardano.org/.
- CoinMarketCap. Cardano (ADA) Price, Market Cap, and Staking Data. CoinMarketCap, 2025, https://coinmarketcap.com/currencies/cardano/.
- Coinbase. How to Earn Staking Rewards with Cardano (ADA). Coinbase, 2025, https://www.coinbase.com/earn/staking/cardano.
- Trust Wallet. How to Stake Cardano (ADA) and Earn Rewards Using Trust Wallet. Trust Wallet, 2025, https://trustwallet.com/blog/staking/how-to-stake-cardano-ada-and-earn-rewards-using-trust-wallet.
- Cardano Foundation. Stake Pool Operation Guide. Cardano, 2025, https://cardano.org/stake-pool-operation/.
- Atomic Wallet. Should I Stake Cardano? Atomic Wallet Academy, 2025, https://atomicwallet.io/academy/articles/should-i-stake-cardano.
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