Staking Guide

What is Staking?

Staking is quite simply using your ADA to help the network achieve consensus. In return for helping the network, users who stake their ADA are rewarded, generally around 5% RoA (return of ADA). This 5% does vary depending on the pool you are delegating to.

Where can I stake?

In order to stake your ADA, you will need to download either Yoroi or Daedalus. It is important that these applications are downloaded directly from the developers website. There are many SCAMS out there replicating these wallets in an attempt to steal your ADA. Refer to the Cardano forums (How to be safe online?) for more information and a list of approved websites within the Cardano community.

Yoroi is a lightweight wallet for Cardano that is used on either a mobile phone or installed as an extension to your internet browser. Follow the download process by visiting: https://yoroi-wallet.com/#/

Daedalus is a desktop ADA wallet. Daedalus is not available on any mobile app store. Only download through: https://daedaluswallet.io/

How to set up a wallet?

Once you have downloaded either Daedalus or Yoroi, it is now time to set up a wallet. Make sure you are in a room by yourself with no cameras and have a pen and paper ready. No information for your wallet should be stored in a "hot device" (a device connected to the internet, i.e. phone, computer), we will write this information on a piece of paper and store in a safe place (generally a locked safe is a good option).

Daedalus:

  1. Click "Add Wallet", then in middle of Daedalus, there is an option to "Create" a new wallet, click that option.

  2. Input your wallet name and a spending password. On that piece of paper, write down your wallet name, exactly as you typed it. Make sure you set a strong spending password that only you can remember, you will use this password often for conducting transactions. Click continue.

  3. Click "Create Shelly Wallet". The next screen is information on the 24 words you are about to see on your screen. Read through this...when you are ready, check the box and click "continue".

  4. Next, you will see the 24 word recovery phrase for your wallet. As said above, do not expose these 24 words to any one or anything. Only write down these words on a piece of paper. After writing down the words, double check that they are written down accurately (case sensitive) and click "Yes, I have written down my wallet recovery phrase".

  5. Now you will need to re-enter those 24 words to confirm you have copied them correctly. Enter in your 24 word recovery phrase, if all is accurate...you will be able to click the confirm button. Read the next boxes and check them to confirm you understand, then click continue again.

  6. Your wallet is now set up. Congratulations.

  7. Daedalus does download/sync the entire blockchain, so it can take 10-15 minutes for your wallet to fully set up.


Yoroi:

  1. Click "Add Wallet (Shelly-Era)". We are currently in the shelly era of Cardano. Do not create a "Byron Era" wallet. I will update guide as new eras come.

  2. Click "Create Wallet".

  3. Input your wallet name and a spending password. On that piece of paper, write down your wallet name, exactly as you typed it. Make sure you set a strong spending password that only you can remember, you will use this password often for conducting transactions. Click continue.

  4. You should now see a box presenting you with information on the 15 random words that are about to be provided to you. Read through this thoroughly then click "I understand".

  5. Next, you will see the 15 word recovery phrase for your wallet. As said above, do not expose these 15 words to any one or anything. Only write down these words on a piece of paper. After writing down the words, double check that they are written down accurately (case sensitive). Click "I have written it down", then read through the box that pops up, confirm and click "I understand".

  6. Re-enter your 15 word recovery phrase then click "confirm".

  7. Your wallet is now set up! Congratulations.


How to Stake?

Now that your wallet is set up, it's time to send ADA to your wallet.

It is best practice to always send a test amount, usually the smallest amount you can send, to your new wallet. This will help verify that you are sending to the correct address.

Daedalus:

  1. Simply click on your wallet on the left side navbar of the application. In the middle navbar, click "Receive". Here you will see the "receiving" address for you wallet, yes there is supposed to be a lot.

  2. Send you ADA to one of those address.

  3. Once ADA is received in Daedalus wallet, go to the left navbar and click on the staking icon. It looks like a bunch of dots connecting.

  4. In the middle navbar, click "Stake pools".

  5. You will now see a list of all the stake pools available to delegate to. For more information on how to choose a stake pool and what the metrics displayed for the stake pool mean, click here (this is not official documentation from the Cardano Foundation or IOHK, however their way of explaining the metrics for choosing is a little more clear, in my opinion).

  6. Once you have decided on the pool you would like to delegate to, select that pool and click "Delegate to this pool".

  7. After reading the next window, click "Continue".

  8. Select your wallet from the drop down.

  9. Make sure the pool you want is selected or search for it again and select it. Click "Continue".

  10. Finally, input your spending password, click "Confirm".

  11. Congratulations, you are now staking your ADA and earning rewards. It generally takes 15-20 days to receive your first rewards.