Simple Guide to Delegating Cardano ADA
What is Cardano ADA Delegating?
People that own ADA, the cryptocurrency of Cardano, can earn more ADA while participating in the process of validating the transactions by delegating ADA to a staking pool/node. Okay, let's break that down.
Cardano is the name of the network, and ADA is the cryptocurrency that is used on that network. Nodes/staking pools keep the network running, secure and they validate all the transactions on the Cardano network. The more ADA there is on a node, the bigger are the chances of it getting picked to confirm the next block, and getting the block reward. Now, a staking pool is a node that is open for everyone to stake/delegate their ADA. In the case of staking pools, the block reward and transaction fees are divided based on the percentages that make up the total stake in the pool. For example; There are 100 ADA coins in RHEA pool. There are 10 delegators and each one has delegated 10 ADA coins, i.e. the reward is divided so that everyone gets 10 percent.
Just after a node goes live on the Cardano network, it becomes open for anyone to delegate ADA. People that are holding or not planning to sell anytime soon, can simply delegate their ADA coins and earn more ADA while participating in creating the network consensus. That is all about delegating ADA in a nutshell. We are going to go over it a bit more in-depth through the article.
Understanding Cardano ADA Epochs
Cardano’s blockchain measures periods that are about 5 days long. They are called epochs. So, if an epoch starts in the middle of a Monday it will end in the middle of a Saturday. The next epoch begins in the middle of a Saturday and so on.
Cardano epochs are important because they determine when you will see the rewards from your stake. You can see the current epoch and the time before the next epoch in your Daedalus wallet.
At the start of a new epoch, the network takes a snapshot. A snapshot is like a print screen, it records ADA stakes on all staking pools that were delegated in the previous epoch.
- Epoch 1. You stake ADA.
- Epoch 2. In the beginning, a snapshot of stakes in Epoch 1 is taken.
- Epoch 3. The network uses the snapshot information from Epoch 2.
- Epoch 4. Your reward is calculated.
- Epoch 5. You receive awards for epoch 3.
So the first time you delegate, the reward is paid out after 15-20 days and every 5 days after the first time.
Wallets for ADA Cardano
Cardano’s cryptocurrency, ADA can be stored in two wallets, Daedalus and Yoroi.
Daedalus is the heavier version of the two, it is a full-node wallet. That means that Daedalus downloads the full copy of Cardano’s blockchain so that the network can be decentralized and it doesn’t depend on centralized servers. Daedalus can only be installed on a laptop or a computer.
Yoroi is the light version, it connects to servers that have copies of the Cardano blockchain. It doesn’t have a copy of the blockchain. Yoroi wallet can be used as a browser extension or installed on a smartphone.
Risks of Delegating ADA
There are none.
You always retain full control of your ADA coins. You can withdraw your ADA whenever you want or delegate to another pool at any time. You can spend ADA while you are delegated. The pool can’t spend your ADA, and even if it gets hacked your ADA will be safe, because the pool doesn’t have your spending key.
Delegating ADA with Daedalus Wallet
1. Installing Daedalus Full-Node Wallet
First, you need to download the Daedalus, and you can find it here. Just choose the operating system and the download will begin. You can find it here.
2. Create a New ADA Wallet or Restore an Old ADA Wallet
After the installation is complete open the Daedalus wallet, it will have to get synced with the blockchain, and that might take some time, an hour or more.
You will be prompted to either create a new or restore an old ADA wallet with your recovery phrase.
3. Move your ADA from an Exchange to Your Daedalus Wallet
After you have created a new wallet, send your coins to your new Daedalus address from your exchange. Keep in mind that if the wallet is not fully synced you might not see the coins in your wallet until it completely syncs with the network. Just click on the share button for any address you want to use. You will see a pop-up that allows for QR code scanning or you can simply copy your receiving address.
Now that your wallet is synced and your ADA coins are in your wallet, you are ready to delegate and start earning ADA.
4. Delegation Center
On the left side of the wallet, there is a navigation bar, the first icon is your wallet and the second icon is the “Delegation center”. Here you can look up different stake pools, see your rewards, etc.
Choosing and delegating to a stake pool is very simple with the Daedalus wallet. Just go to the second card named “Stake pools”. Here you have a search bar where you can find a pool by their ticker or their pool ID. If you don’t know which pool to choose, then it’s even simpler, choose our pool! Our ticker is RHEA.
Once you type in RHEA, a little block will appear and after you click on it, you will see a pop-up with some information about our pool. At the bottom will be the “delegate” button. It’s easy as 1,2,3.
Delegating ADA with Yoroi Wallet
1. Installing the Yoroi Wallet
Yoroi can be installed on Android, iOS, or as a browser extension. Supported browsers are Chrome, Edge, and Firefox. You can find it here.
2. Create a New or Restore an Old Yoroi Wallet
When creating a new wallet, you have to name it and choose a spending password. Make sure you choose a secure one. Then you will see the recovery phrase. Write it down and keep it somewhere safe. That’s it, your wallet is ready.
3. Move ADA to Your Yoroi Wallet
You bought some ADA on an exchange, and now, you can start delegating. But first, you need to move your coins to your wallet. Go to receive, copy your address and send your ADA from your exchange.
4. Delegation Center
Go to the delegation center, and start the search for pools by their ticker, same like with Daedalus. Our pool’s ticker is RHEA. If you type that in, you will see our pool information and the delegate button. Ok, now click delegate.
Unstaking ADA Cardano
Sure, why not!? Just create a new wallet or send your ADA to another address, and done. You can also redelegate to another pool whenever you want, and spend your ADA even while delegated. There are no restrictions, they are your coins after all!
Happy ADA Staking
As you see, staking is very simple and important for the Cardano network. It helps the network to operate more efficiently while people that run staking pools and people that delegate can earn ADA. There are also some rules to encourage people to delegate to smaller nodes instead of just delegating with whales, to achieve complete decentralization. So, if you don't choose our RHEA POOL, choose a small pool that you like and support decentralization! Anyway, RHEA is the ticker!