In the post "Hey, but what is Cardano". We talked about Cardano, their network, and how it works.
Now we are going to explain how to stake in our pool in a easy and clear way, while getting an easy 5% of compound return of your ADA.
As we saw, Cardano is based on a proof-of-consensus (or stake), that means that for staking your ADA (like the old concept of mining of PoW coins) you need to first hold some funds in order to start the process.
The fastest way to achieve that is to buy them on an Exchange using fiduciary (also called fiat) money, that is, normal money like euros, pounds or dollars. Exchanges are the modern version of the currency exchange offices you’ve probably used when travelling abroad.
There are many of them, like:
- Kraken (Our favorite)
- And many others. You can compare all of them on Coinranking
- We DO NOT recommend BINANCE, because their ridiculosly high fees and their monopolies and anti-decentralization practices.
In this case, we are going to follow the steps about how to stake from scratch, using Kraken as exchange.
How to get Cardano ADAs. Step by Step.
(This is a reference to how to operate on exchanges with cryptocurrencies. Astropool, ASTRO, and/or any of their members will NOT take any responsability for any errors or mistakes you could make during the process. Read carefully everything you are doing, twice, and don't take any actions until you perfectly understand what you are doing. Also cryptocurrencies markets and prices are very volatible, do it at your own risk.)
- Create an account on the exchange. Depending of the country you live in, you may have to upload some documents such as ID or proof of residence. This is to avoid money laundering and those kind of stuff.
Enter your real data. Be careful on don't make mistakes. Introducing erroneous information could result in your account being blocked or not being able to operate. It is also advisable to activate all security measures available, such as two step authentication.
- Once logged in on the exchange, you can now see the prices and cryptocurrencies they list.
- Now you have two options:
You can buy your ADA, directly from there, using your credit card. This method is the fastest, as it is literally immediate, but it incurs some fees, depending on your bank, credit card, and the exchange you are using. Check those fees, as they can be higher than 3%, so it is not recommended to use this method unless you’re in a real hurry.
Or, you can make a money transfer directly from your bank account (our preferred way) to one of the Exchange’s bank accounts.
You have to go to “Funding”, search for the fiat currency you want to deposit funds and then click on "Deposit"
A menu for "Deposit method" will appear, letting you select different bank accounts where you can make a money transfer.
Read carefully and choose the account you want and meets with your needs. For example if your bank account is European, choose a European SEPA bank account from the list.
The advantage of this method is that no fees are charged for sending the money, but the drawback is that normally the transfer takes 1-3 days. It's up to you to decide if you can wait or not.
- Once you have funds, you can now go to operate and buy ADA with those funds:
- Ok, now you have new and shimmering ADA on your exchange account. But now you want to delegate it on ASTROPOOL to reap the rewards.
So, the next step is to create a personal ADA wallet to keep your private keys safe. And again, there are two alternatives available, Yoroi and Daedalus. The first thing you need to do is to download and install one of them.
Daedalus is a powerful and complete desktop app for managing ADA assets. You can download it and install it from https://daedaluswallet.io/. Bear in mind that Daedalus requires a lot of hard disk space (around 7GB) as it downloads the whole Cardano blockchain.
Yoroi is a browser extension and is really light and fast to set up. You have to:
- Go to their official website: https://yoroi-wallet.com/#/
- Click on Download and select your prefered browser, and then add the extension.
- In both cases, and once installed. You have to create a wallet.
Be very careful during this process. During the wallet creation you will be prompted for a 25 word mnemonic passphrase. This passphrase consists of a list of 25 common words that can be used to recovering your wallet in case you have to reset your computer or import the wallet to another device. So anyone with those words can take full control of your funds, SO TAKE CARE of where you store them. A good idea is writing them down with a pen on a piece of paper instead of storing them in a text file that could be easily found by others if your device gets compromised.
Also during this process, you will be prompted for a “spending” password. This is a normal, short password, just for that wallet and device, and it's used to access your wallet and create transactions. So you will need it every time you want to send ADA, or make any action from this wallet. Store it securely too.
- Now, and with the Daedalus/Yoroi wallet created, copy the receiving address of the wallet (this is a public key and you can share it just like your bank account) we will set it on the exchange for withdrawal.
- On kraken , go again to funds, and select "Withdraw".
You can now add a new address to send ADAs, and we will add the address we set up above.
Now you will be able to send ADAs from the exchange to your wallet. Select on the Address dorpdown menu, input the amount you want to send and click on Send. On a few seconds, or a couple of minutes, you will be able to see them on your ADA Wallet.
The Staking process
Now you are going to stake your ADA, on Astropool, The High Availability Staking Pool, managed by a profesional and highly skilled IT team.
- On your wallet, go to the "Delegation tab", and then "Stake pools", for Daedalus.
- Search for ASTRO on the search box. Make sure it's ASTROPOOL, as shown in the image.
- Click on "Delegate on this pool". You will be asked for some more steps.
- Select the wallet you want to delegate your funds.
- Search again for ASTROPOOL and make sure it is the one selected.
- To be sure, you can check the ID of ASTROPOOL is: pool13p67qys4zaa52phfv39dd7da5zh2vvr26gt7fwmx20slj6e6pmd, enter the spending password you set up during the wallet creation, and click on confirm.
In Yoroi the process is similar, but you have to open the browser extension, and go to "Delegation list", search for ASTROPOOL, and click on delegate.And that's it, you have now succesfully delegate your ADA on ASTROPOOL, and your delegation will be active in the next working epoch.