Step-by-Step Guide to Staking Cardano for Beginners

Are you curious about the exciting world of crypto staking and how it can help you grow your Cardano holdings? Staking cryptocurrencies like Cardano has become an increasingly popular way for investors to earn passive income and maximize their crypto assets. In this beginner’s guide, we’ll walk you through the simple steps to start staking your Cardano on Binance, one of the leading cryptocurrency exchanges.

By the end of this article, you’ll have a clear understanding of what Cardano staking is, the benefits of staking on Binance, and how to get started with just a few clicks. We’ll cover everything from setting up your Binance account and depositing your Cardano to selecting the best staking options and managing your staked assets. Get ready to unlock the power of your Cardano and join the exciting world of DeFi staking!

How To Stake Using Binance

Before staking bitcoin on Binance, it is fundamental to connect your crypto wallet to the platform for secure interactions.

1. Navigate to the Binance Staking Website.
2. Select your wallet provider from the list of supported wallets.
3. Click on the “Connect” button to authorize Binance to interact with your wallet.
4. Follow any additional instructions provided by your wallet to complete the connection.

Secure wallet connection is crucial to ensure the integrity of transactions and to safeguard your assets.

Upon successful linkage, your wallet’s interface will synchronize with DappRadar, allowing for seamless staking operations.

Understanding Cardano Staking

Cardano staking is a process that allows Cardano holders to participate in validating transactions and securing the Cardano network, while earning rewards for their contribution. In a Proof of Stake (PoS) consensus mechanism, which Cardano uses, investors who own the cryptocurrency can help validate transactions by locking up or “staking” their coins.

How Cardano Staking Works

The staking process involves the following key components:

1. Validators: Node operators who verify transactions and create new blocks. Validators stake their own Cardano as collateral, which incentivizes them to act honestly to avoid losing their stake.
2. Delegators: Users who lock up their Cardano for a period of time and delegate it to validators to secure and record new transactions on the blockchain. This allows users to participate in staking without meeting the full requirements to become a validator.

Both validators and delegators earn rewards for their successful participation in the staking process. Validators receive a larger portion of the transaction fees, while delegators earn a share of those rewards.

Benefits of Cardano Staking

Staking offers several benefits to the Cardano ecosystem and its participants:

By understanding the fundamentals of Cardano staking, including the roles of validators and delegators, the rewards structure, and the potential benefits and risks, investors can make informed decisions about participating in this process to support the Cardano network and potentially earn passive income.

Why Choose Binance for Cardano Staking

Binance offers a user-friendly and secure platform for staking cryptocurrencies like Cardano, making it an excellent choice for both beginners and experienced investors. With Binance Staking, users can participate in the staking process and earn rewards without the need for complex technical knowledge or hardware setups.

Easy-to-Use Platform

Binance provides a simple, one-click-to-stake functionality for over 100 cryptocurrencies, including Cardano. This means that users can quickly and easily start staking their Cardano without having to navigate through complicated processes or deal with complex technical requirements.

Secure Staking Environment

When staking on Binance, users significantly reduce their risk of wallet attacks, scams, or theft compared to operating through a decentralized platform. Binance handles the process of depositing users’ funds into smart contracts and distributing earnings on their behalf, eliminating the need for users to move funds themselves or manually stake.

Slashing Risk Protection

Binance Staking takes on all slashing risks for users, ensuring that the same amount of tokens staked will be returned to them. However, it’s important to note that the fiat value of the staked tokens may fluctuate, and users may have no recourse for any losses incurred due to market volatility.

No Gas Fees

By staking through Binance, users can save on on-chain gas fees, as Binance deposits users’ funds into smart contracts on their behalf.

Diverse Staking Options

In addition to Cardano staking, Binance offers a wide range of staking opportunities for users.

By providing a variety of staking options, Binance caters to the diverse needs and preferences of crypto investors, allowing them to maximize their earning potential while supporting the growth and security of the Cardano network.

Step 1: Setting Up Your Binance Account

To start staking your Cardano on Binance, the first step is to create an account and complete the identity verification process. Here’s a detailed guide on how to set up your Binance account:

Creating an account

1. Visit the Binance website at Binance.com.
2. Click on the [Register] button in the top right corner of the homepage.
3. Enter your email address and create a strong password for your account.
4. Read and agree to the terms of service, then click [Create Account].
5. Verify your email address by clicking on the verification link sent to your registered email.

Once your account is created, you’ll need to complete the Know Your Customer (KYC) verification process to access all of Binance’s features and services, including crypto staking.

Completing KYC verification

Identity verification, or Know Your Customer (KYC) standards, are designed to protect your account against fraud, corruption, money laundering, and terrorist financing. All new users are required to complete the [Verified] level of verification to access Binance products and services, including cryptocurrency deposits, trades, and withdrawals.

To complete the KYC verification process on the Binance website, follow these steps:

1. Log in to your Binance account and click on the [Profile] icon, then select [Identification].
2. Click on [Get Verified] to begin the verification process.
3. Select your country of residence, ensuring that it matches the country on your ID documents.
4. Enter your personal information, making sure it is consistent with your ID documents, and click [Continue].
5. Choose to verify your ID documents by either taking a photo with your device’s camera or using the Binance App, then click [Continue].
6. Follow the instructions to take clear photos of your ID document and complete the liveness check by taking a video of yourself.
7. Submit your verification request and wait for Binance to review your application, which usually takes less than 48 hours.

Verification LevelInformation RequiredFeatures UnlockedVerifiedPersonal information, Government-issued ID, Facial recognition$50K daily fiat deposit & withdrawal limits, unlimited crypto deposits, 8M BUSD daily crypto withdrawal limit, access to select Binance productsVerified PlusPersonal information, Government-issued ID, Facial recognition, Proof of address$2M daily fiat deposit & withdrawal limits, unlimited crypto deposits, 8M BUSD daily crypto withdrawal limit, access to most Binance products

By completing the KYC verification process, you’ll unlock higher deposit and withdrawal limits, as well as gain access to a wide range of Binance products and services, including crypto staking.

Once your account is set up and verified, you’re ready to start staking your Cardano on Binance and earning rewards.

Step 2: Depositing Cardano to Your Binance Wallet

To start staking your Cardano on Binance, you first need to deposit ADA into your Binance wallet. There are two main ways to accomplish this: transferring Cardano from another wallet or buying it directly on Binance.

Transferring Cardano from Other Wallets

If you already own Cardano in another wallet or on a different exchange, you can easily transfer it to your Binance wallet by following these steps:

1. Log in to your Binance account and click on [Wallet] — [Spot] (https://www.binance.com/en/support/faq/how-to-deposit-crypto-to-binance-115003764971).
2. Click on [Deposit] and select [Deposit Crypto] from the dropdown menu.
3. Choose Cardano (ADA) as the cryptocurrency you want to deposit.
4. Select the appropriate Cardano network for your deposit. Make sure the network you choose matches the one used by the platform you’re withdrawing from to avoid losing funds.
5. Copy the provided ADA deposit address or scan the QR code. Paste this address into the “Recipient Address” field on the platform you’re withdrawing from.
6. Enter the amount of ADA you wish to transfer and confirm the transaction.

Once the transaction is confirmed on the blockchain, your deposited Cardano will be credited to your Binance account balance.

Buying Cardano on Binance

If you don’t own any Cardano yet, you can purchase it directly on Binance using various payment methods, such as credit/debit card, bank transfer, or third-party payment channels. Here’s a quick guide:

1. Log in to your Binance account and click on [Buy Crypto] at the top of the homepage.
2. Select [Buy] next to Cardano (ADA).
3. Choose your preferred fiat currency and payment method (e.g., credit/debit card, bank transfer, etc.).
4. Enter the amount of ADA you want to buy or the fiat amount you wish to spend.
5. Complete the payment process by providing the necessary details and confirming the transaction.

After successfully purchasing Cardano, it will be available in your Binance spot wallet, ready for staking.

By transferring Cardano from other wallets or buying it directly on Binance, you can easily fund your Binance account with ADA and start staking to earn rewards while supporting the Cardano network.

Step 3: Navigating to the Staking Section on Binance

Once you have deposited Cardano into your Binance wallet, the next step is to navigate to the staking section on the platform. The process is slightly different depending on whether you are using the web version or the mobile app.

Web version

1. Log in to your Binance account and click on [Finance] — [Binance Earn].
2. Scroll down to [Locked Staking] and click [View More].
3. Click [DeFi Staking] to see all the DeFi staking projects currently available in Binance Earn, along with the estimated annual yield, staking duration (flexible or fixed), minimum locked amount, and staking status.

Mobile app version

1. Open the Binance exchange app and sign in.
2. On the home screen, select [More].
3. Scroll down to the Finance icon and tap on [Staking].

You will see two options: Staking and DeFi Staking. For now, let’s focus on Staking.

In most cases, the interest rate will vary between 30 to 90 days depending on the coin you intend to stake. In some instances, the coin subscription can be sold out, so you’ll have to wait for the coin’s staking to become available again. This depends on the number of users staking the coin at Binance per subscription period.

To find what coins are available, hit search on the locked staking page, and you’ll see all cryptocurrencies listed in alphabetical order. To stake a coin, you’ll need to hold it in your spot account on Binance.

By navigating to the staking section on either the web version or mobile app, you can easily access the various staking options available on Binance and start earning rewards on your Cardano holdings.

Step 4: Selecting and Locking Your Cardano for Staking

After choosing the particular coin to stake from your spot wallet, the next screen will show you the interest rate based on the lock-in period (90, 60, or 30 days). Some lock-in periods may be occupied by other stakers, so if you aren’t able to stake for 90 days, you can simply choose 60 or 30 days.

On the next screen, select the amount of the coin you want to stake. Each coin has its specific minimum and maximum for staking which will be listed.

Choosing the Staking Duration

Binance offers various staking durations for users to choose from, typically ranging from 30 to 90 days. The interest rate may vary depending on the selected duration. Consider the following factors when deciding on the staking duration:

1. Liquidity needs: If you anticipate needing access to your staked funds in the near future, opt for shorter lock-in periods.
2. Reward rates: Longer staking durations often offer higher interest rates, so if you’re comfortable locking your funds for an extended period, you may earn more rewards.
3. Market conditions: In a bullish market, shorter staking durations allow you to take advantage of potential price increases, while in a bearish market, longer durations can help you ride out the volatility.

Reviewing Staking Parameters

Additionally, note the rollover period, which begins the day after staking. For example, if you stake on a Tuesday, the rollover period starts on Wednesday. To receive the full interest, ensure your coins are locked for the entire staking period.

Once you have selected the amount to stake and reviewed the staking parameters, confirm your staking request to lock your Cardano and begin earning rewards on Binance.

Step 5: Managing Your Staked Cardano

Once you have staked your Cardano on Binance, it’s essential to keep track of your staking activity and manage your rewards effectively. Binance provides user-friendly tools to help you monitor your staked assets and optimize your earnings.

Monitoring Rewards

You can easily track your staking rewards and activity on Binance:

1. Log in to your Binance account and navigate to the “Earn” section.
2. Select “Staking” and then choose “Earned History” to view your rewards.
3. Here, you can see details such as your current rewards rate, rewards earned, pending rewards, and staking history.

By regularly monitoring your staking rewards, you can assess the performance of your staked Cardano and make informed decisions about managing your holdings.

Auto-Staking Feature

To ensure that you don’t miss out on earning opportunities, Binance has introduced the Auto-Staking feature, which automates the re-subscription process for staking products. This feature helps you:

1. Avoid the hassle of manually re-subscribing to staking products when they expire.
2. Eliminate the risk of missing out on potential earnings due to forgetting to re-stake.
3. Automatically re-stake your assets to continue earning rewards without interruption.

To enable Auto-Staking:

1. Navigate to the “Locked Staking” section on the Binance app or website.
2. Select the asset you want to enable Auto-Staking for and toggle the switch to activate the feature.
3. Confirm your selection to start automating your staking process.

With Auto-Staking, you can set and forget, ensuring that your Cardano continues to generate rewards even when you’re not actively managing your holdings. This feature simplifies the staking process and helps you maximize your earning potential on Binance.

By monitoring your rewards and leveraging the Auto-Staking feature, you can effectively manage your staked Cardano and optimize your passive income stream on Binance.

Step 6: Unstaking Your Cardano

After staking your Cardano on Binance and earning rewards, you may decide to unstake your crypto assets. Unstaking, also known as redeeming, allows you to withdraw your staked Cardano and any earned rewards back to your spot wallet.

Understanding the Redemption Period

When you choose to unstake your Cardano, it’s essential to understand the redemption period. The redemption period, also called the unbonding period, varies based on the network and can range from a few days to several weeks. During this time, you will be unable to access your staking assets or earn rewards.

For example, if you redeem your staked Cardano on September 9th at 21:00 UTC with a 24-hour unlock period, the unlock process will begin at 8:00 AM UTC on September 10th and end at 8:00 AM UTC on September 11th. You can expect to receive your principal in your spot wallet on the morning of September 11th.

How to Unstake

To unstake your Cardano on Binance, follow these steps:

1. Log in to your Binance account and navigate to the “Staking” section.
2. Select the staked asset you want to manage by clicking on the arrow to the right of your staked balance.
3. On the staking page for your selected cryptocurrency, click the “Unstake” button.
4. Enter the amount of Cardano you wish to unstake or choose the percentage of your staked balance to redeem.
5. Carefully review your unstaking request and confirm the transaction.

By understanding the redemption period and following the steps to unstake your Cardano on Binance, you can efficiently manage your staked assets and withdraw your funds when needed. Keep in mind that unstaking during a lock-up period may impact your earned rewards, so carefully consider the timing of your redemption requests.

Conclusion

In this beginner’s guide, we’ve explored the exciting world of Cardano staking on Binance, highlighting the benefits and walking you through the simple steps to get started. By staking your Cardano on Binance, you can earn passive income support the network’s security, and take advantage of the platform’s user-friendly features and diverse staking options. As you embark on your staking journey, remember to carefully consider your liquidity needs, monitor your rewards, and leverage tools like Auto-Staking to optimize your earnings.

With a clear understanding of the staking process and the potential rewards, you’re now equipped to make informed decisions about participating in Cardano staking on Binance. As you continue to explore the world of cryptocurrency and DeFi, keep an eye out for new staking opportunities and always stay informed about the latest developments in the ever-evolving blockchain ecosystem.

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