Cardano continues to establish itself as the best staking cryptocurrency for its qualities not seen among competitors
Contents
- Cardano Staking Highlights
- But that’s not the only reason why Cardano stands out.
Attention surrounding Cardano (ADA) remains high. With the Solana (SOL) crash, it became Ethereum’s (ETH) main competitor by market capitalization.
Undoubtedly, one of the great advantages of the smart contract platform is its staking.
Although rival ETH networks present this modality to their investors, Cardano has key points that make it one of the best staking options in the crypto market.
Cardano Staking Highlights
Indeed, a big positive for Cardano is that it does not lock your staking cryptocurrencies. Other blockchains that work with proof of stake require a minimum number of cryptocurrencies to be blocked.
Since you cannot spend your cryptocurrencies or trade them for profit, you are rewarded with more altcoin units. This movement helps the price of cryptocurrency to remain more stable because with fewer units in circulation, if demand increases, the price of cryptocurrency tends to rise.
Although this seems like an effective way to help the development of a particular cryptocurrency, the bear market factor must be taken into account. If you invest in a cryptocurrency at a time when it is less volatile, the value of your financial contribution could change over time.
Unpredictable situations can occur. For example, tensions between countries, a pandemic and high central bank interest rates are some examples. In these events, simple staking cannot handle the volatility of a cryptocurrency.
Therefore, if your funds are blocked, they may suffer unexpected drops. However, if you can withdraw these amounts and trade, your losses can be avoided and with a good strategy you can even make a profit.
Cardano investors therefore have no reason to complain about staking. By staking ADA, your cryptos have free liquidity, where tokens can be traded at any time.
But that’s not the only reason why Cardano stands out.
The redemption time of the coins you leave in staking is also excellent. In just five days you already receive the values referring to the amount saved. However, it is worth mentioning that when depositing ADA for staking, you have to wait between 15 and 20 days to start earning your rewards.
Regarding the custody of your cryptos, it always stays with you. A staking pool cannot control the assets you own. Therefore, the choice of what to do with your ADAs, whether to keep them or redeem them, is always up to you.
These qualities give Cardano around 25 billion ADA in staking. Given that the number of tokens in circulation is 35 billion, the number of locked assets is a sign of ADA’s staking strength compared to its competitors.