The full launch of the Cardano project took place in 2017 under the leadership of Charles Hoskinson — one of the founders of the popular cryptocurrency Ethereum. The currency was named after the 16th-century mathematician, physician, engineer, and philosopher Gerolamo Cardano. Its development was aimed at addressing known problems of Ethereum, including low throughput. Thanks to the elimination of most shortcomings, Cardano and its native coins ADA have become one of the main competitors of their popular predecessor.
To avoid past mistakes, the creators of Cardano initially built the platform based on the PoS algorithm. This not only became the main advantage of the currency but also made mining it in the traditional sense impossible. To earn tokens, the owner can use staking and receive profit from the cryptocurrency that is simply stored in their account.
Staking Cardano (ADA)
This method of earning is based on the very principle of the Proof-of-Stake algorithm. In such systems, all cryptocurrency transactions require processing and recording in the blockchain. This requires computing power, for example — computers. Those who are willing to provide their equipment for transaction registration receive a certain reward from the system, which is the essence of earning. The choice is made in favor of those who hold a large amount of assets in their accounts, which ensures a high probability of transaction confirmation in the blockchain.
This type of passive income is available to everyone, but the profit volumes will depend not only on the number of tokens in the wallet but also on the chosen staking method. There are two of them: in the first case, a person independently uses equipment to process blockchain data, while in the second — the token holder provides their assets to the node owner and shares the income with them. Let's consider both options in more detail.
Independent pool launch
Option for experienced cryptocurrency users familiar with programming. This method requires creating your own network node, which necessitates not only computing power but also specific technical knowledge. The owner of such a unit is called a validator.
Launching your own node is clearly and step-by-step described in the instructions from the cryptocurrency developers. Technically, it is not very complicated, requiring only basic knowledge of the Linux OS. In the article and accompanying materials, the authors describe the entire process considering possible problems and nuances. However, it is important to remember that this method of earning does not work on the "set and forget" principle; the creators of Cardano themselves note that a launched node requires regular monitoring and updates for stable operation.
To estimate the profitability of such an endeavor, the official project website features a special calculator. It helps to roughly (without accounting for significant price fluctuations) estimate how much income the specified amount will generate over a year of staking.
Delegation
This is the simplest and most accessible way for beginners to earn Cardano (ADA) coins. In this case, the asset holder grants the node owner the rights to process transactions. The profitability of this option is lower, as the reward must be shared with the owner of the chosen pool (a union of several nodes for joint mining). But the requirements here are significantly lower; it is enough to have a wallet installed that supports Cardano (ADA) delegation. The developers' website lists the following options:
· official fully featured Daedalus cryptocurrency wallet;
· lightweight version for Yoroi browsers from the same developers.
Growing popularity of the currency has initiated its active promotion on trading platforms (for example, eToro), from where delegation operations can also be carried out.
Taking into account the steady growth in the value of the cryptocurrency Cardano (ADA), it is often mentioned among the most popular coins for staking. To start earning, you only need to complete two steps:
1. Purchase ADA tokens. The process is no different from buying any other cryptocurrency and can be done through an exchange that supports coins of this blockchain.
2. Select a work method. You need to decide which of the two staking options suits your capabilities better — beginners can delegate assets, while crypto community experts will choose the more profitable option of creating their own network node.
Also, any cryptocurrency holder needs a reliable way to store their assets. You can choose one from a large list of wallets that support Cardano, such as Cropty.