A competitor against Ethereum, public chain Cardano has outperformed its rival in the crypto market this year and it’s lucrative to help build the Cardano network through staking its native token ADA.
Growing Ecosystem of Cardano
A Proof-of-Stake blockchain conjectured in 2015, Cardano was founded in 2017 by Charles Hoskinson who used to work as a member of the core development team of the world’s second-largest blockchain, Ethereum.
A promising blockchain dedicated to smart contracts, Cardano was once considered as one of the most powerful competitors against Ethereum. Yet the sluggish development led to the mediocre performance in the first few years.
The increasing popularity of DeFi, NFTs and Metaverse has boosted the growth of Cardano’s ecosystem since last year. According to an interview by Charles Hoskinson in March, more than one hundred dApps would consider migrating from Ethereum to Cardano when Cardano’s smart contract functions are fully ready. The chain has been actively building cooperation with different blockchains to expand global ecosystems and impressive achievements have been made. Decentralised exchanges (DEX), Non-Fungible Tokens (NFT), Launchpads, Oracles, DeFi protocols, and wallets are being built on the chain and the striving ecosystem is attracting more users than ever.
Perhaps what is more impressive is its performance in the secondary crypto market in 2021. ADA, the native token of Cardano, hit an all-time high over $ 4.07 AUD this year. Its growth in price outperformed that of many old cryptocurrencies including Ethereum and it climbed to Top Three in the crypto market cap. Despite a crash in price following its launch of smart contract, ADA still accounts for a fair share of the global market cap.
How to Stake ADA
According to stats from Stakingrewards.com, Cardano now ranks the second largest crypto asset by staked value. More than 70% of ADA are staked and its estimated annual reward through staking is expected to reach over 5%.
You will need the ADA token to make passive income through staking ADA. For novice investors in Australia, you can opt for centralised crypto exchanges such as CoinSpot and exchange AUD into crypto-stable coins before purchasing ADA. The comprehensive CoinSpot review will pique your interest if you want to buy and sell ADA with competitive fees.
There are different platforms to stake ADA, such as Daedalus and Yoroi, both of which are developed by the team behind Cardano. We will learn how to use Yoroi to stake ADA in the following part.
Google Yoroi and download it as a chrome extension. Follow the instructions on the interface and create a Yoroi wallet. Transfer the ADA you just bought from the centralised exchange to your Yoroi wallet. Click Stakepools list on the Yoroi wallet and start to earn by joining a stakepool. Apart from the general instructions when using a Web 3.0 wallet, to keep the seed phrase safe, you should make sure that the Stakepools you choose are not saturated, otherwise it might hurt your revenue.
You just learned how to stake ADA to gain crypto profits while keeping the Cardano network decentralised and safe.
