In this article, we will learn about the coinbase platform and how it has started a new staking service with Cardano(ADA) . Now let us learn in detail about how to stake ada on coinbase.
What is Cardano (Ada)?
Cardano (ADA) can be defined as a blockchain asset or digital coin that can store value or send or receive funds. It is one of the fastest-growing blockchain assets based on proof of stake networks. ADA is among the top 10 cryptocurrencies by market capitalization. Cardano has a unique multilayer architecture, making it the next generation of cryptocurrency solutions. Cardano uses mathematical principles in its consensus mechanism and distinguishes itself from other competing blockchains. Cardano blockchains can be used to create decentralized applications and protocols, and also they are used to build smart contracts.
As given below, Cardano is looking to solve many of the blockchain industry’s problems and how to stake ada on coinbase is the trending question of the hour.
- The use of mathematics in blockchain ensures that it is secure.
- Accounting and computational layers separation.
- A secure voting mechanism for token holders is created.
- An infinitely scalable consensus mechanism
How to stake ADA on coinbase?
Coinbase is an online staking platform that has introduced a new staking service for Cardano, allowing users to earn dividends on their token holdings. This new service offers the customers who have deposited Cardano( ADA) to opt-out of the exchange process to use the stored assets for staking. This process requires the users to delegate their token holdings to those running the blockchain software in exchange for sharing some profit.
With Coinbase staking:
- You can earn rewards on your crypto: The current estimated annual return for Cardano staking on Coinbase is ~3.75% APY. Once the initial holding period is completed, you can earn your rewards every 5-7 days.
- You can always maintain control: Your Cardano asset will always earn rewards while keeping it safe on coinbase, even though you can opt-out of it anytime.
Coinbase is the only platform that is expanding its staking as a service platform, proving a considerable advantage for Cardano. Users can stake Cardano on their own, but it may seem confusing. Coinbase offers Cardano simple and easy way to stake and earn rewards. Users can now stake ADA tokens and receive a return after 5-7 days once their initial holding period is over and after their company’s fees reduction. The annual return from staking of Cardano can give Coinbase an annual return of around 3.75%.In coinbase, users can see the latest applicable results directly within their accounts
Staking allows the users to earn dividends or interest on their digital assets to validate transactions and vote on changes in the blockchain. Cardano (ADA) is often termed as the next big thing after Ethereum, as it is a blockchain platform based on a proof of stake consensus protocol that can validate transactions without high gas fees.
The process of staking is simple and how to stake ADA on Coinbase involves a few steps.
- Sign up for a coinbase account. You will find a list of exchanges that will support Cardano staking.
- Navigate the “Staking” page on your exchange platform and select “Cardano.”Enter the amount of ADA tokens you must stake and click on “Stake Now.”
- Buy or deposit Cardano assets to your Coinbase account from an external wallet and will start earning the rewards immediately.
All rewards will be credited to your asset wallet, and it will appear as a transaction.
Cardano(ADA) has multiple ways to optimize participation and let the users earn rewards. It yields dividends higher than the traditional staking, and it enables secure crypto networks with minimal energy consumption. Cardano staking is becoming a very safe process that is appealing to investors recently as it is becoming a source of passive income for them and making the blockchain more stable and faster.