The best strategy to stake Cardano so you can maximize your rewards and earn a lot more.
Staking Cardano can provide you with an excellent source of passive income. In this article, we’ll look at how you can choose a good Cardano steak pool to make a massive gain.
The good thing about staking with Cardano is that your principal, your base Cardano that you will be staking, or you will be delegating to a stake pool operator, will always be safe.
So that’s really good and a really calming thought. I think you don’t have to worry about that. If you choose a bad stake pool operator, the worst thing that can happen is that you won’t get any rewards or you get weak, or you will get very low rewards.
For instance, let’s say you stake a thousand Cardano this will never be touched. The second operator doesn’t get your private keys doesn’t get direct access to them all they get is your voting power.
So this just means the bigger their pool gets, the more blocks they get assigned to mint.
And that just means they get more rewards themselves that they can then distribute that’s really all they don’t get direct access to your Cardano, and they can’t do anything with your Cardano otherwise.
Choosing a good Cardano staking pool actually isn’t that difficult. However, there are about four things that I would recommend looking out for.
These are the things that I would recommend to look at to look up for the rest that isn’t too relevant.
In order to get all of this information, I recommend going to adapools.org. You’ll also see that once you first load your delegation list in your Yoroi wallet, you’ll see that on the top right, that is this all information is provided by Adapools.
This is the place I recommend doing that. So let’s first quickly look at what you’ll see in your Yoroi wallet.
Then, İ’ll quickly explain what that all means, and then we’re going to add a pool, and I’ll show you what to look out for.
This is what you’ll see when you load the delegation list on the top right. So you get a list of all the stake pools, so you see down here you can go much further so I what we’ve got here is first Roa as I’ve mentioned.
That’s your return, and that’s probably what most of you want to look out for first. You can see they there are some differences. İt’s around five per cent, but some are lower, and then some are higher.
The thing is that can change, and that is for one, it’s based on the fees that the pool provider can change, and they can decide themselves how much fees they want to impose. And the second thing that can change that is the saturation level.
Next, you see the share pool size, and here you can actually see the saturation.
It’s not clearly made, but currently, each pool is only allowed to have 61 million Cardano staked in it.
Now that’s to encourage further decentralization because the more pools exist, the more decentralized it is.
And if a whole lot of Cardano would only be staked in one pool, for instance, I don’t know, like a billion or something like that, that would make it much more centralized.
To combat that, Cardano has decided that the maximum is allowed to be staked in one pool or 61 million.
And so you can’t see the saturation just by looking at it, but you actually have to calculate it.
For instance, you see here that has 52 million ada are currently staking it. So there’s still about nine million left until this would be fully saturated.
Don’t get deceived this number here has nothing to do with the saturation level the percentage here, that only means the pool size or the share.
And that just stands for the amount that this pool has sticked in it compared to the whole Cardano that is out there.
You can see this one this has turned red, and there’s only a very small part of the pie that’s still green, and that’s because it’s very close to the saturation level of 61 million.
Next, we have the costs. So first of all, the second part, 340 Cardano that’s the minimum level of the cost that each Cardano operator stake operator has to impose.
They can’t choose that what they can choose are their own fees. So this first percentage(0,99) are their own fees that they need to cover their own costs. So this is both calculated together and this kind of cost is taken first.
The stake operator always gets a certain percentage of the whole Cardano that are being distributed. After they’ve minted new blocks there, they get Cardano.
And then they the costs are first deducted, and then after that, the rest of it is distributed to the delegated so that we would be you and me for delegating our Cardona to the stake pools for them to be staked and to earn a reward.
You don’t really need to pay too much attention to that what’s only relevant for us actually is the Roa so on the front.
Here the costs are lower, but the Roa is still higher. So İ wouldn’t even look at that. I would really lonely look at Roa and then also the saturation level now.
The next column is the average cost. That’s not super relevant either, so that’s basically just the cost that this stake pool operator has.
The next column is relevant. That’s a pledge, and that’s another thing that I would look out for. And that means how much Cardano the stake pool operator has in this pool himself or herself.
When a stake operator first creates a pool, they always have to take some Cardano themselves as well. And the good thing is the higher this number is, the more serious. They probably are about it.
The last column is the blocks. These are the blocks that have been minted in this current epoch.
An epoch is a period of five days, and after each epoch, when the new blocks are minted and the the stake pool operators do their thing in order to get the rewards and then after each epoch, the rewards are paid out.
This isn’t super relevant either because it can fluctuate. So you can see the numbers are quite different if check.
What this calculator what this looks at is how often the the stake operator is actually online and minting new transactions and meeting new blocks. Read More…