how to stake cardano

How to Stake Cardano (ADA)

This guide explains how to stake Cardano (ADA) using the AdaLite Cardano wallet with a Ledger Nano S hardware wallet and finally redeeming your staking rewards.

With Cardano’s Shelley mainnet going live on 29th July 2020, staking Cardano (ADA) now becomes possible. Users can place their ADA in staking balance and delegate that fund to a pool to earn staking rewards. If you own some ADA, the following guide will show how this is done using the AdaLite Cardano wallet (AdaLite).

Always double-check that the website of your AdaLite wallet is adalite.io and not anything else in the URL bar of your browser. Do not fall prey to phishing scams.

AdaLite now provides compatibility with the new Shelley address format and transactions, with a new staking interface for the mainnet.

For this guide, the following assumptions are made:

  • you already know what Cardano (ADA) is, as we will not be discussing about this cryptocurrency in this article.
  • you already own ADA, or know how to buy it from an exchange like Binance.
  • you know how to withdraw or transfer cryptocurrencies from one address to another.
  • you know the basic operations of your hardware wallet.

You will also need to ensure that your Ledger hardware wallet is updated to the latest firmware. This is done via Ledger Live desktop app.

Note that a Ledger hardware wallet is not compulsory in the procedure below. If you are using AdaLite without a hardware wallet, the hardware wallet steps below may be omitted. However, we would highly recommend using a Ledger hardware wallet for better security and a more convenient way to access your AdaLite wallet.
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A. How to Stake Cardano (ADA)

adalite cardano staking
A1. Go to http://adalite.io and choose your preferred way of login. For the purpose of this guide, we will be using the Hardware Wallet method. Follow the on-screen instructions.
how to stake cardano
A2. Launch the Cardano app on your hardware wallet and perform the required key presses to unlock your AdaLite wallet. The Export public key prompt will be displayed twice and to be confirmed and accepted on both occasions.
staking cardano with ledger nano
A3. Go to the Staking tab shown at the top. If you have some ADA in your AdaLite before the Shelley upgrade, it may be shown under the Non-staking balance (as seen above).
how to stake cardano
A4. To begin staking ADA, you will first need to transfer the amount from Non-staking balance to Staking balance. Click Convert to stakable.
how to stake cardano
A5. On the next popup window, check that the amount is correct. The final amount transferred will be your current balance minus the stated fee. A nominal fee is charged as it is an on-chain transaction from one address to another. Click on Confirm Transaction and follow up with the onboard instructions on your hardware wallet.
how to stake cardano
A6a. Press the right button to proceed with the transaction.
how to stake cardano
A6b. Press both buttons to confirm and scroll through the details such as Send To Stakable Address (beginning with addr1)…
how to stake cardano
A6c. …amount of ADA to be transferred…
how to stake cardano
A6d. …the transaction fee…
how to stake cardano
A6e. …the Transaction TTL (Time-To-Live) details…
how to stake cardano
A6f. …until you get to the last screen. Press the right button to confirm the transaction.
stake cardano with ledger nano s
A7. On AdaLite, the ADA now appears under Stakable balance, minus the transaction fee.
how to stake cardano
A8. To begin staking, on the right panel under Delegate Stake, go through the details and click Delegate.
how to stake cardano
A9. Look through the details on the Delegation Review popup window. Note that there is a deposit and a transaction fee for delegating ADA to the staking pool. Click Confirm Transaction.
stake ada
A10. Check your hardware wallet for the follow-up procedure.
stake ada with ledger nano s
A11a. Press the right button to start new transaction.
stake ada with ledger nano s
A11b. Note the transaction fee and press both buttons to confirm and scroll through other details such as…
stake ada with ledger nano s
A11c. …Transaction TTL (Time-To-Live) details…
stake ada with ledger nano s
A11d. ….the staking pool ID…
stake cardano with ledger nano s
A11e. …the staking key derivation path…
stake cardano with ledger nano s
A11f. …until you reach the last screen. Press the right button to confirm delegation…
how to stake cardano
A12g. …and press the right button to confirm the transaction.
how to stake cardano
A12. Allow the process to run its due course for a few seconds. This may take up to 20 seconds.
how to stake cardano
A13. You will then find the delegation and pool details in the Current Delegation panel at the bottom.

You have just delegated your ADA to a staking pool. Your rewards will eventually show up under Rewards account balance in the panel above, which you will be able to redeem over time.

Note that at the moment there is no option to unstake your ADA. However, the staked ADA is not frozen and you are still able to send ADA out by going to the Sending tab above as usual.

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Staking Pools and Rewards

You will likely only see your first staking rewards after 3 epochs or 15 days from the date of delegation. If your ADA is unstaked or removed from delegation before the 15-day period is up, no ADA reward will be deposited for redemption.

For a complete list of ADA staking pools, see adapools.org. Note that different pools have different fees, and you should only select pools that have not reached their maximum limit of 1.0%, shown under the Share/Stake column. To get the Pool ID, click on the name of the pool to visit their website, and copy and paste the Pool ID into the Delegate Stake panel in Step 8 above.

B. Redeem ADA Staking Rewards (Update)

As announced, for those who delegated their stake on or before 8th August 2020, the first staking rewards will be distributed in the epoch that starts on 23rd August 2020. Rewards will be released towards the end of the epoch, i.e. about 5 days after the start of the epoch. The following was recorded on 27th August 2020.

Prerequisites: If your Adalite wallet is secured with a Ledger hardware wallet, you will first need to ensure that your Ledger Nano S is updated to the firmware 1.6.1 or newer, and that the Cardano Wallet on your Ledger Live is updated to version 2.0.4 or later. Otherwise, the redemption procedure below will not work.

Redeeming your ADA staking rewards is quite straightforward:

redeem ADA staking reward
B1. In AdaLite, your staking reward is shown under Rewards account balance. You may notice that this amount is already added to the Staking balance above, but it is not in your Available balance. Click Redeem.
ADA stake rewards
B2. In the Rewards redemption review window, the rewards, fee, and net total you will be receiving are shown. Click on Confirm Transaction.
ada staking
B3a. Allow AdaLite to prepare the transaction…
staking ada
B3b. …and continue the procedure on your Ledger hardware wallet.
staking cryptocurrency
B4a. Press the right button to start a new transaction.
how to stake ADA
B4b. Press both buttons to confirm as you cycle through the details, from transaction fee…
stake ada
B4c. …to Transaction TTL (Time-To-Live)…
how to stake crypto
B4d. …to Withdrawing rewards amount…
staking cryptocurrencies
B4e. …and finally press the right button to confirm the transaction.
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B4f. Return to AdaLite to continue with the process.
how to redeem ada
B5a. AdaLite shows that the transaction has been submitted at this point. Allow the wallet to sync…
how to stake ada
B5b. …and the wallet info to be reloaded.
how to stake ada
B6. The staking reward is now added into the Available balance, minus transaction fee.

Congratulations! You have just completed redeeming your ADA staking rewards.

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Update:

staking rewards ADA
UPDATE 28 AUG 2020: Withdrawals of staking rewards are now shown in the panel under Staking History.

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Ledger Nano X - The secure hardware wallet
Ledger Nano X - The secure hardware wallet