According to the announcement, users can tap Kraken’s market-leading staking service to stake ADA. In return, users can expect rewards in the range of 4-6 percent per annum which beats the interest paid out by major banks across the world by a considerable margin.
Cardano is a Proof of Stake (PoS) blockchain that offers developers the ability to run smart contracts and build decentralized applications. Owners of ADA, its native cryptocurrency, are also incentivized to help operate its network and vote on changes to its software rules.
How to Stake ADA?
Kraken users can stake ADA in two simple steps.
First, users would need to navigate to “Funding” option on the platform. Next, they must select “Deposit” followed by “Cardano (ADA).” The next step is to click “Deposit” next to ADA and then following the on-screen instructions.
Interested ADA holders may begin adding Cardano to their Spot Wallet by depositing ADA or buying ADA on the exchange. Finally, users must put ADA into their Kraken Staking Wallet by navigating to “Staking” followed by clicking on “Stake” under Cardano.
Kraken notes several advantages that would benefit users for staking their crypto holdings – or in this case, ADA – via the crypto exchange. Kraken enables users to start accruing and earning rewards on ADA instantly without any waiting or lockup period.
Kraken offers one of the highest returns in the industry, ensuring its users receive payouts every week. At the same time, the exchange also allows users to exit from their staking position almost instantly by transferring their holdings from the Staking Wallet directly to their Spot Wallet.
In similar news, BTCManager reported on April 16 that major crypto exchange Coinbase had started sending out invitations to customers on the waitlist to stake their ether (ETH) holdings for rewards.