What are the risks of staking your ADA?

Updated: May 13

Cardano Explained Without Jargon & Within 199 words

Let's start with the executive summary:

Staking your ADA is absolutely risk free!

No, there is no catch. It is impossible to lose any of your Ada through staking!

Your Ada never leaves your wallet

Of course holding Ada or any crypto currency for that matter is risky. We all know that, right? But that has nothing to do with staking.

To stake your Ada you need to "delegate" your Ada wallet to a stake pool of your choosing. To do that you just tell the network (using your Ada wallet), which pool you want to "link" to your wallet. That's it!

Your Ada will stay in your wallet. The network, through taking snapshots every 5 days (called an epoch), then looks to see how many Ada your wallet has. That amount is then used for staking.

Your Ada is not locked

This also means that your ada is not locked. After the snapshot is taken you can move your Ada. At the next snapshot (5 days later) your balance is again reestablished. This balance can be higher or lower than the previous snapshot.

How to stake your Ada?

Just check out this little blog here, to learn how you can stake your Ada and start earning about 5% annually. Risk free!

Please leave your comments below and let me know what other subjects you would want me to cover without Jargon & within 199 words.

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