Cardano is a blockchain platform that is gaining popularity in the cryptocurrency space due to its unique features and benefits. One of the most significant benefits of Cardano is its self-custody staking system. This system allows users to stake their ADA coins directly, without having to rely on a third party to manage their funds. In this article, we will explore the benefits of Cardano self-custody staking and how it is a much safer way to earn rewards/yield on your investments.
First and foremost, self-custody staking ensures that you have full control over your funds. When you stake your ADA coins on a third-party platform, you are essentially entrusting your funds to that platform. If the platform is hacked or goes bankrupt, you may lose all your funds. On the other hand, self-custody staking means that you are in charge of your private keys, and your funds are stored securely in your wallet. This way, you can be sure that your funds are safe and secure.
Become Your Own Bank, Control Your Own Finances With Cardano.
Another benefit of self-custody staking is that it is a much more decentralized process. When you stake your ADA coins on a third-party platform, you are contributing to the centralization of the network. This is because the platform controls a large percentage of the network’s staked ADA, which can lead to a concentration of power. However, with self-custody staking, you are directly contributing to the decentralization of the network. This is because your staked ADA is counted towards the network’s overall staked ADA, which helps to distribute the power more evenly.
Don’t contribute to the centralization of the network, Self custody is the answer for a truly decentralized network.
Moreover, self-custody staking offers more secure and less chance of loss of your returns than staking on third-party platforms. When you stake your ADA coins on a third-party platform, you may have to pay fees, which can eat into your returns. However, with self-custody staking, you do not have to pay any fees, which means you get to keep more of your earnings. Additionally, self-custody staking allows you to choose your own validator, which can offer higher returns than third-party platforms.
Lastly, it is important to remember that if it’s not your private keys, it’s not your crypto. When you store your ADA coins on a third-party platform, you do not have control over your private keys, which means you do not have control over your funds. This is why self-custody staking is so important. It allows you to retain full control over your private keys, which means you have full control over your funds.
In conclusion, self-custody staking on Cardano offers numerous benefits, including full control over your funds, decentralization, higher returns, and increased security. By staking your ADA coins in your own wallet, you can be sure that your funds are safe and secure, and that you are contributing to the decentralization of the network. Remember, if it’s not your private keys, it’s not your crypto.