How to stake Cardano (ADA) from the UK

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 the UK, 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

eToro Crypto

Highlights

  • Trade and stake a range of crypto assets with low fees.
  • Copy successful traders. Practice with a demo account.
  • eToro is regulated by CySec, FCA and ASIC.


Disclaimer: Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply. Please give the risk warning sufficient screen time and prominence.


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.
Kraken

On Kraken's website

Kraken

Highlights

  • Get started with as little as $10.
  • Sign up today and buy 50+ cryptocurrencies in minutes.
  • Make easy deposits and withdrawals, measure your portfolio's performance and keep track of all of your crypto in one convenient place.

Pros

  • Large selection of tokens to trade.
  • Earn rewards by staking eligible assets.
  • Access to a range of educational materials.

Cons

  • Limited options to fund your account.
KuCoin

On KuCoin's website

KuCoin

Highlights

  • Safe and rapid Bitcoin purchase.
  • Multiple order types for all kinds of risk appetite.
  • Sign up and get a welcome gift.

Pros

  • Easy signup and quick verification process.
  • Competitive trading fee.
  • Spend your crypto using a Zipmex card.
  • Mobile apps.

Cons

  • Limited customer support option.
Binance

Binance

Highlights

  • Trade over 50 cryptocurrencies with low trading fees.
  • Uses state-of-the-art storage technology to protect your cryptocurrency and GRB assets.
  • Earn rewards for holding coins and tokens.

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 110+ coins 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 the UK, 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.