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Attention surrounding Cardano (ADA) remains high. With the crash of Solana (SOL), it became the main competitor of Ethereum (ETH) by market capitalization.
Undoubtedly, one of the great benefits of the smart contracts 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 on the crypto market.
Indeed, a great positive point for Cardano is that it does not lock your cryptocurrencies in staking. 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 the cryptocurrency to remain more stable because, with fewer units in circulation, if demand increases, the price of the cryptocurrency tends to rise.
While this seems like an effective way to help the development of a particular cryptocurrency, the bear market factor needs to be considered. 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 may occur. For example, tensions between countries, a pandemic and high interest rates from central banks are a few examples. In these events, just staking cannot handle the volatility of a cryptocurrency.
Therefore, if your funds are locked, 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 may even make profits.
Cardano investors, thus, have no reason to complain about staking. By staking ADA, your cryptos have free liquidity, where tokens can be redeemed at any time.
The buyback time for 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 need 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 or redeem them, is always yours.
Those qualities give Cardano around 25 billion ADAs in staking. Given that the number of tokens in circulation is 35 billion, the number in blocked assets is a sign of ADA’s staking strength compared to its competitors.
Sabrina has been creating content for the cryptocurrency market since 2018. Her career includes work for important news portals in Brazil, such as Cryptonizando and Guia do Bitcoin.
In addition, she is a partner of the portal and YouTube channel É Top Saber.
Her passion for blockchain news and education led her to create the news portal Bolhacrypto.com.
In order to help companies and projects in the cryptocurrency market to develop, Sabrina has been leading Varandacrypto.com, a company that offers content for blockchain projects.
Disclaimer: Any financial and market information given on U.Today is written for informational purpose only. Conduct your own research by contacting financial experts before making any investment decisions.
