Cardano Staking on Coinbase and Binance Exchanges [2023]
You can stake Cardano ADA on the Binance and Coinbase cryptocurrency exchanges.
Staking ADA on the exchanges might seem like an easy way for the newbies to earn the ADA rewards — passive income.
We will however show you the big disadvantages of doing it.
Cardano Staking on Coinbase
Coinbase currently offers around 2.60% APY (annual percentage yield) on the ADA staking. Which is very low.
Cardano Staking on Binance
Binance currently offers a couple of “flexible” ADA staking options.
While the 11% APR for 21 days might be tempting — “APR is subject to change on a daily basis”.
The difference between APY and APR is that APY incorporates “compounding” — simply put your earned ADA is automatically added and increases your stake. In the APR case, it isn’t.
Cardano staking rewards for 30, and 60 days are around 3,50 APR which is low.
Why you should use Cardano wallet to stake ADA
- There is an old saying “Not your keys, not your wallet”. The exchanges control both of your wallet’s keys (the private key and the public key). You are just using the exchange services, so you don’t really own the cryptocurrency on it. They can shut down or restrict your account whenever they want. Exchanges can also get hacked, hit by regulations, or go bankrupt (like the recent FTX case).
- The beauty of the Cardano blockchain infrastructure is when you stake ADA from the wallet it is never locked. You can send it and spend it freely. You earn the rewards after each epoch (5 days), and the ADA is compounded and added to your stake. You are able to delegate and redelegate your ADA to any stake pool you choose. The current approx APY on the stake pools is around 4,6%.
Best way to stake Cardano ADA?
The best and safest way would be to use the hardware wallet and connect it to the Cardano native wallet. That way your ADA is 100% safe. We already wrote about it in this article. You can get even more information and choose between 19 wallets, that support ADA staking on our website and choose the best Cardano wallet!
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