In the world of cryptocurrency, investors and traders are always looking for new opportunities and great deals that would take their investment to the next level. And while everyone is talking about Bitcoin, Ethereum, and other popular coins, wise investors are looking into other options.

One of those options is Cardano (ADA), and a lot of people believe investing in this coin is a smart move. The Cardano price history has been very stable over the past few years. If you decide to invest, there are two ways you can go about it: you can buy the coins and you can stake them.

What is Cardano?

Before we get into staking and buying Cardano, we should first give a short explanation of what Cardano is. It’s a smart contract-enabled blockchain that was created with a protocol based on Proof of Stake.

The native token used in the Cardano network is ADA, and there are currently only 75% of its maximum supply of coins is in circulation. The ADA coin is paid out as a reward in the PoS protocol’s incentive mechanism and it’s used to pay for transaction fees.

How to stake Cardano (ADA)

If you want to trade cryptocurrency like a pro, you need to know a lot more than just simple trading. One of the skills that are essential for cryptocurrency investors and traders is staking.

In some blockchain protocols, participants can earn extra cryptocurrency if they contribute to the network, which is what they do with staking. This is a great way to support the blockchain network’s stability while also earning a passive income.

With staking, you’re locking up tokens as a part of the blockchain based on Proof of Stake, and in return, you receive newly minted tokens. And if you’re interested in staking Cardano, you can do it in two different ways.

Through an exchange

If you want to use an exchange to stake Cardano, you need to:

• Find an exchange that supports Cardano and create an account.
• Deposit funds and buy ADA coins.
• Go to the option that says “Staking” or “Stake” and click on Cardano (ADA).
• Choose how long your coins/tokens will be locked, which is known as a staking period.
• Move your coins into a staking pool.
• Confirm your transaction.

By using a Web3 wallet

A web3 wallet is a non-custodial cryptocurrency wallet that allows its users to retain control over their funds while managing their digital assets. A lot of web3 wallets allow for in-app staking, and if you want to take that route, here is how to do it:

• Find a wallet that has in-app staking and set it up.
• Transfer the amount of ADA to your wallet from an exchange.
• Move your coins into a staking pool.
• Confirm your transaction.

How to buy Cardano (ADA)

If you would rather buy than stake your ADA coins, you should follow these steps:

• Find a place where you can buy. You can buy your digital coins on a centralized and decentralized exchange, but it’s better to use a centralized one if you are a beginner. This is because decentralized exchanges require more technical experience, making them unsuitable for beginner traders.
• Choose your preferred method of payment. Most exchanges will accept a fiat currency when selling digital coins, and if you opt to pay like this, you can use a debit or credit card, or even ACH. But on some exchanges, you can buy your ADA coins with a different cryptocurrency.
• Purchase your Cardano and store it. After you complete the purchase, you need to choose where you want to store your new digital coins. Just like with staking, you can use an exchange or your own crypto wallet.

What is better: staking or buying?

It’s important to note that cryptocurrency isn’t 100% risk-free and both of these options have their pros and cons. But when you’re deciding whether you want to stake or buy, you need to consider what you’re looking to achieve with your investment.

If you want to hold cryptocurrency without trading it in the near future, the better choice would be to stake it. If you stake, you will be able to earn a passive income. But if you want to constantly move your crypto coins and be an active trader, buying crypto is probably a better choice.

Conclusion

Since cryptocurrency first became popular, people from all over the world have gotten a good payout for their investment as long as they were smart about it. If you want to get into the world of crypto but you don’t know where to start, buying and staking are both great options. Just decide which one you prefer and you can go far.