How to stake Cardano (ADA) from Australia

By   |   Verified by David Boyd   |   Updated 29th August 2022

  • Cardano is a secure, scalable, and sustainable blockchain platform that is powered by the ADA token.
  • The ADA token can be easily staked by just about any owner of ADA tokens.
  • Cardano uses Proof-of-Stake (PoS), which allows this functionality of the tokens.

Staking Cardano is one of the easiest ways through which you can earn passive income. There are other benefits too since staking reduces price volatility and helps to maintain the integrity of the Cardano blockchain.

There are many ways through which you can stake Cardano in Australia, but for most people, staking your Cardano at an exchange will be the easiest option. This is how you can get started today.

Where to stake Cardano

eToro Crypto

On eToro's website

Crypto assets are unregulated & highly speculative. No consumer protection. Capital at risk.

Highlights

  • Access thousands of assets across multiple categories.
  • Copy trades of popular investors that trade Crypto.
  • Access powerful analysis tools and innovative social features.

Pros

  • The user-friendly website and app make it easy to trade from anywhere.
  • Trade Bitcoin, Ethereum, and 60+ other crypto assets.
  • With its CopyTrader feature, you can replicate the moves of other investors.
  • Start trading with just $10.

Cons

  • There is a 1% fee that is added to the market price.
  • Other exchanges have more selections of crypto coins and tokens.
Swyftx

On Swyftx's website

Highlights

  • Receive $10 worth of BTC when you sign up and verify your account.
  • Trade over 260 assets on Swyftx including Bitcoin, Ethereum, Ripple and Litecoin as well as DeFi coins such as UniCoin.
  • Deposit or withdraw funds from your account using several payment methods (PayID, OSKI, POLi or bank transfers).
  • New to Crypto? Try Swyftx's demo mode, it allows you to mock trade with no financial risk while you learn the ropes of crypto trading.

Pros

  • Trade more than 300 crypto assets through the Swyftx platform.
  • Offers tight spreads and low trading fees.
  • Get support within 5 minutes through their live chat.
  • Practice trading with a demo mode.

Cons

  • Lacks access to advanced trading markets.
CoinSpot

On CoinSpot's website

Highlights

  • Buy Bitcoin, Ethereum, XRP and over 370 other digital currencies.
  • Refer a friend and earn $10 BTC.
  • Get 24/7 helpdesk support.

Pros

  • Trade for only 0.1% and withdraw in AUD for free.
  • Multiple deposit options.
  • Access CoinSpot NFT Marketplace.
  • CoinSpot is regulated by AUSTRAC and is ISO certified

Cons

  • Margin trading is not available.
Crypto.com

On Crypto.com's website

Highlights

  • Buy Bitcoin and 250+ cryptocurrencies with 20+ fiat currencies
  • Earn up to 8.5% p.a. staking your crypto, and up to 14% p.a. for stablecoins.
  • Spend with the Crypto.com Visa Card and get up to 8% back.

Pros

  • Get access to additional features including lending, borrowing, debit cards, and more.
  • Start trading with just $1.
  • Interest-earning deposits are available.
  • There is a USD 2,000 referral bonus.

Cons

  • Lack of educational resources.
Binance

On Binance's website

Highlights

  • World's largest crypto exchanges.
  • Buy, sell, trade, stake 1,000's of crypto coins and trading pairs.
  • Zero-fee deposit via PayID or Osko from Australia.

Pros

  • It has some of the lowest trading fees out there. 0.1% for spot trading and 0.5% for instant buy or sell fees.
  • Credit card or debit card deposits are accepted.
  • Provides charting and trading tools suitable for advanced crypto traders.

Cons

  • The platform UI can be complicated to learn for new investors.
Uphold Crypto

On Uphold's website

Uphold Crypto

Highlights

  • Invest in 200+ digital currencies including the majors, altcoins, and stablecoins with 0% commission.
  • Ability to trade crypto against other assets like foreign currency and commodities.
  • Stake a range of coins with competitive yields.

Pros

  • Open an account in less than a minute.
  • Low deposit requirement and commission-free trading.
  • Option to trade fiat currencies and precious metals.

Cons

  • High spreads on low-liquidity assets.

How to stake Cardano

If you are interested in staking Cardano (ADA) from Australia, here is a step-by-step guide on how you can do so.

Step 1: Select a staking method

The easiest way to stake Cardano is with a crypto exchange, which is the method we concentrate on in this guide.

(Alternatively, you can stake directly with a cryptocurrency wallet which supports staking Cardano, or through a DeFi or CeFi Platform.)

Step 2: Select an exchange

You can stake Cardano at a number of well-known and trusted exchanges. When you are comparing exchanges where you can stake, there are several things to look for.

Make sure that you are satisfied with the security measures in place at the exchange and that there have been no recent security compromises. Since yield and fees vary between exchanges, compare how much you could earn and what fees you would have to pay.

Step 3: Send Cardano to your wallet

If you do not already own any Cardano tokens, you can purchase them on the exchange. If you already have Cardano in a wallet, you can transfer them to the exchange where they can then be staked.

Step 4: Set up the contract

The exchange operates as the staking pool operator. Any rewards earned in return for staking will be acquired and administered by the exchange.

When configuring the contract, you will have to specify how long you want to stake your Cardano for. The longer you stake, the higher the yield typically will be.

Withdrawing your tokens before the end of the contract will affect the yield.

Make sure you clearly understand all the terms and conditions before staking.

Pros and cons

Pros

  • Staking is an easy way to earn interest on your Cardano (ADA) holdings, with yields increasing the longer you stake for.
  • You can stake without any mining equipment, such as you would for Proof-of-Work (PoW) cryptocurrencies like Bitcoin.
  • Staking benefits the community by helping to maintain the integrity and efficiency of the Cardano blockchain.
  • Staking is a lot more environmentally friendly compared to mining cryptocurrencies.

Cons

  • Your Cardano coins will be inaccessible while staked, leaving you exposed to loss from market volatility.
  • There are fees to stake at an exchange, which will offset profits.

FAQs

Is it worth staking Cardano?

Staking Cardano can be beneficial, with the reward increasing the longer you stake for. However, staking a small number of tokens for a short period of time may not yield a meaningful amount.

What happens if Cardano’s value decreases while staked?

Given that you will not have access to your tokens while staked, you risk the value of Cardano falling and being unable to sell out of your position. If this scenario played out, the amount you would lose would depend on how far the value of ADA was to decrease.

How much Cardano do you need to stake?

This will depend on the exchange you select. In some cases, you can even delegate a fraction of an ADA as long as you have paid the transfer fees and wallet deposit, while some exchanges will have a minimum requirement of 5 ADA tokens, for example.

Can you lose money staking Cardano?

Losing money while staking Cardano is possible due to the fact that cryptocurrencies experience volatile price action.

Do you have to stake Cardano on an exchange?

Apart from an exchange, you can stake on Daedalus and Yoroi, which are both official Cardano wallets.