Staking on Cardano is a form of validation of transactions on the blockchain network.
When a person participates in staking, they contribute their computer resources to confirm transactions and ensure that the network is reliable. In exchange for participating in staking, participants receive rewards in the form of ADA, the currency unit of Cardano. It is vital for decentralization that as many people as possible participate in validating the Cardano network.
Staking on Cardano is an integral part of the network's security and reliability.
Having many participants contributing computer resources makes it easier for an individual or group to attack or manipulate the network.
To participate in Cardano staking, you need a computer with a staking node running the Cardano network. You can also delegate your ADA to others in a so-called staking pool. This way, you can get a share of the staking rewards, even if you don't have enough computer resources to stake on your own.
Staking on Cardano can be a profitable way to earn passive income, but it is essential to remember that it also carries a certain level of risk.
For example, the price of ADA can fluctuate, which can affect the size of staking rewards. It is, therefore important to do thorough research and consider whether staking on Cardano is a solution that is right for you.
NBX offers to stake Cardano and runs its own staking pool and you can find more information about it here. By staking Cardano through NBX, you can quickly and conveniently participate in staking without having to run a staking node yourself. NBX handles all the technical work, and you can track your staking income through our platform.
This text is intended to inform and is not financial advice.