How to Stake Cardano (ADA)
How To Delegate to Cardanodo (NODO)
6 step process to delegate to Cardanodo (NODO)
STEP 1 - Buy ADA on Exchange
Buy Cardano (ADA) from a trusted exchange such as Binance, Crypto.com or NDAX
STEP 2 - Download Official Wallet(s)
Download official ADA wallets Daedalus Desktop or Yoroi from official websites
STEP 3 - Create a Wallet
Once you have downloaded Daedalus or Yoroi, create a new Shelley wallet. Backup your recovery phrase and keep your spending password safe.
STEP 4 - Send ADA to Wallet
Send the ADA you bought from the exchange to your new Shelley wallet created on Yoroi or Daedalus. Carefully copy and paste the receiving address and verify the details before sending.
STEP 5 - Go to Staking/Delegating in Wallet
After receiving ADA in your Shelley wallet, go to the Staking/Delegation option in your Daedalus or Yoroi wallet
STEP 6 - Find NODO and stake
Search for NODO pool and choose Stake/Delegate. Confirm by entering your spending password. Congratulations, you are now staking with NODO. Welcome to the Cardanodo family!
What is staking?
Staking ADA refers to delegating your ADA to a stake pool. When the stakepool is chosen to produce a block, the rewards are distributed to the delegators. Pool fees are used to fund the stake pool operations. The Return on Investment (ROI) for the delegator is also called Return on Stake (ROS) or Return on ADA (ROA). The rewards are distributed every 5 days (1 epoch) and can vary from epoch to epoch, depending on how many blocks a stake pool produces. The amount of blocks produced is based on an algorithm, which causes all pools, both large and small, to have an ROI of around 5-6% annually. While large pools tend to produce more blocks, the rewards are diluted heavily amongst more delegators. On the contrary, smaller pools produce less blocks, but the rewards are distributed in higher proportions to delegators.
How does the delegation cycle work?
To help you understand the delegation cycle, we have created a visual below.
When you delegate to a stake pool, we will call the immediate epoch, Epoch N. You can delegate at anytime during Day 1 to Day 5 of Epoch N. At the end of Epoch N, a snapshot takes place, in which the protocol captures the balance of your stake key and registers your delegation. At the end of Epoch N+1, another snapshot takes place that confirms the registration and allows slot leaders to be elected for Epoch N+2. During Epoch N+2, the delegated stake is now active and will help with producing blocks. At the end of Epoch N+2, a new snapshot registers the rewards collected. At the end of Epoch N+3, the protocol distributes the rewards to all stake keys, which show up in your wallet in Epoch N+4. Overall, it will take about 4 epochs, 20 days on average, to receive your rewards.
How to choose a stake pool operator?
There are various factors to consider when choosing stake pool, here are the most important ones:
- Experienced operator: The stake pool operator should have experience in IT and be committed to supporting and maintaining the stake pool, so that there is no down time. When the stake pool servers are down, this could result in missing a block and reduce the amount of rewards for it’s delegators.
- Fees: Stake pool fees typically range from 1% to 5% and are used to help pay for the stake pool operations. The lower the fees, the higher the margin that goes towards the delegators. However, if the fees are too low, then the stake pool operators may not have any incentive to do a good job and you may have a pool that produces lower rewards. That being said, NODO’s fees are currently zero (0%), since we are new pool and we want to attract more delegators. This also allows ADA holders to enjoy staking coins with a higher return.
- Pledge: The pledge amount refers to how much ADA the stake pool owners have dedicated to the pool. The larger the amount the more committed the stake pool operator will be to producing good results. Any pool with 50,000 ADA and above is a reasonable amount based on ADA’s current price.
- ROA: Return on ADA (ROA), is the annualized return of ADA from the stake pool. Typically, this ranges from 5-6% for all healthy pools, regardless of the size. This is based on an algorithm that promotes decentralization.
- Community Pools: To promote decentralization of the Cardano Network, it is best practice to delegate to community pools and NOT exchanges, as exchanges centralize the network. Moreover, you do not have full control of your private keys and exchanges are vulnerable to hacks. Supporting smaller community pools generally provides higher returns and it is better than giving control and influence to the big whales, which reduces decentralization.
- Pool height: When browsing pools on pooltool.io, you’ll notice that there’s a column named height. It shows the node’s current block and let’s the delegators know that the node is running and up to date. If it is running properly, you will see the pool’s height in green and it will be updated on pooltool.io as you refresh.
- pool.vet: If you go on pool.vet and type in the ticker, it should show a green PASS on all critera, to show that the stake pool is healthy and running properly. Important aspects shown here include stake pool registration, metadata and relay node networking.
Why choose Cardanodo (NODO)?
Although Cardanodo (NODO) is a small community pool, we have experienced operators and are committed to it’s success. we provide ultra low fees (1%), so that more rewards will go towards our delegators. Cardanodo will be here for the long run, so you will not have to worry about your pool disappearing down the road. Cardanodo meets and exceeds all the recommended requirements in operating a stake pool, whether it be hardware or security. We are also very passionate about Cardano and would love to help strengthen and build the Cardano Community.
Recommended Cardano Wallets
How to stake with Yoroi
Open the Yoroi Wallet in a browser e.g. Chrome
Click on Delegation List
Search the stake pool by ID e.g. NODO
Click on DELEGATE
Confirm Transaction > Delegate
Follow the prompts to finish
How to stake with Daedalus
Open the Daedalus desktop application.
Click on the 2nd tab on the left vertical bar.
Click on Stake Pools
Choose your stake pool by typing in the ticker (e.g. NODO)
Click on the pool
Click on “Delegate to this pool”
Follow the commands for 1 ) Wallet Selection, 2) Stake pool selection, 3) Delegation confirmation
Both Yoroi and Daedalus are great wallets to use.
YOROI: If you prefer the convenience of having an online wallet, giving you access anywhere you go, Yoroi is the go to wallet for that. Another advantage of the Yoroi wallet is you can see a bar graph of rewards for each epoch. On the contrary, Daedalus only shows the total amount of rewards accumualted. One limitation of Yoroi, is that your private keys are saved online; however, pair the Yoroi wallet with a hardware wallet and you have both convenience and full security at your finger tips.
DAEDALUS: If you do not have a hardware wallet, Daedalus provides more security, since you have full control of your private keys on your desktop. However, the limitations are that you must install Daedalus on to a desktop computer, which may be disadvantage if you value convenience. Daedalus also provides the ability to use your ADA to vote in Catalyst Funding Rounds, whereas Yoroi does not have this feature yet.
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