Cardano is one of the coins that offer an additional source of income for its holders. You can stake ADA and receive awards. But not every wallet supports the staking option.
What wallets support ADA staking and how to choose the best wallet to store your ADA coins safely and profitably? Let us check in detail.
How Does a Cardano Wallet Work?
Like any other cryptocurrency wallet, Cardano wallet stores your private keys to the coins owned by you. The private keys are proof that specific coins on the blockchain belong to you. You can just store your ADA in your wallet, or you can buy or sell coins via a reliable cryptocurrency exchange.
Cardano is a specific blockchain though. It is one of the newer blockchains that utilizes a proof-of-stake protocol. ADA coins are not mined. ADA holders can stake their coins in a special wallet to get voting rights. Such users can participate in the Cardano blockchain governance by voting and receive awards for staking their funds.
How to Choose a Perfect Cardano Wallet?
With so many threats around, it is crucial to pay special attention to wallet safety. The wallet shall be manufactured or developed by an experienced company. It is better if it has two-factor verification. In the case a wallet is damaged or lost, you shall be provided with a recovery option to recover your funds stored there.
Types of Cardano Wallets
All wallets are divided into two main types:
Hot wallets
These wallets are connected to the internet.
Hot wallets are less secure but they are very comfortable for trading. You don’t need to connect to the internet and thus, waste your valuable time when an opportunity comes to earn on a rapid price jump.
Usually, hot wallets are offered by exchange services. Mobile and desktop apps can also be classified as hot wallets if the device where they are installed is connected to the internet
Cold wallets
These wallets are not connected to the internet. They are good for storing crypto funds. Hardware wallets, paper wallets, any other solution where you can store your private keys (If you engrave the private keys to your coins on a piece of metal, it becomes a cold wallet, too) are considered to be cold wallets.
Therefore, when you are selecting a wallet to store ADA, consider whether your aim is trading, investing, or staking. The latter two options can be successfully combined if the wallet supports staking.
Best Cardano Wallets in 2024
Ledger Nano X
Ledger Nano X supports Windows, Linux, Mac OSs. It also runs on Android and iOS devices.
The WalletConnect option enables the device to connect with dApps using QR codes.
Ledger Nano X supports all Cardano transactions including staking. To stake ADA, you need to set up your Ledger Nano X to collaborate with Daedalus or Yoroi Cardano wallets. Ledger Nano X comes with a detailed instruction manual that makes it easy to set up even for newbies.
Trezor Model T
Trezor T is a hardware wallet. It can also be configured to enable staking through Daedalus and Yoroi Cardano wallets.
Trezor T is compatible with Windows, Linux, Mac, and Android OSs. It doesn’t work on iOS devices.
The main benefits of the wallet are its easy-to-use interface and a high security level. The code is open source, so everybody can examine it to check for vulnerabilities and suggest improvements.
Daedalus Wallet
Daedalus is a desktop wallet. It runs on Windows, Linux, and Mac devices.
Daedalus is one of the official Cardano wallets, therefore, it is perfect to store, stake Cardano, and trade it.
Excellent backup and recovery features guarantee that your ADA coins cannot be lost. An option to filter pools and find the best ones to delegate your ADA allows boosting your staking income.
Yoroi Wallet
Yoroi is a browser extension. It is a light Cardano wallet comfortable for day trading. You can either install and use it on Android or iOS devices or as a browser extension for Firefox, Chrome, and Edge browsers.
Security audits and thorough testing are performed constantly to ensure the wallet is top secure. Private keys are fully encrypted to ensure the safety of your funds.
You do not have to download the entire Cardano blockchain to use Yoroi. So, the wallet enables you to use all its features right away.
Ledger Nano S
Ledger Nano S is a hardware wallet. It can be set up to work with Daedalus and Yoroi for staking purposes.
In Ledger Nano S, private keys are protected within a chip. And the chip is locked with a PIN code. A recovery phrase enables you to recover your funds if your Ledger Nano S is lost or damaged.
Ellipal Titan
Ellipal Titan is a hardware wallet. It doesn’t connect with other devices via cable or Bluetooth. On the contrary, it is isolated from any other device electronically, physically, and even electromagnetically via an air-gapped state. The wallet uses QR codes for transactions.
Ellipal Titan is very safe. Its self-destruct anti-tamper mechanism deletes all private keys and any information stored in the wallet is a forceful impact is detected. A recovery phase allows you to restore all the data, including your private keys if the wallet is damaged or lost, or if the self-destruct mechanism has eliminated all the information stored on the device.
The Market Tab and Discover Tab can be used to monitor the situation in the market, and the Finance Tab is applied to exchange your coins rapidly and efficiently.
AdaLite
AdaLite is a simple wallet developed by Cardano partners Vacuumlabs. It is a web wallet that can be integrated with Ledger Nano X and Trezor Model T.
Stay tuned for further updates, crypto guides, and market insights from LetsExchange. You can also follow us on Twitter, Facebook, Reddit, Instagram, LinkedIn, Medium, Quora, Telegram, Steemit, and Bitcointalk for first-hand information from our team.