The following is a list of Frequently Asked Questions by people who are new to Cardano. We answered each question as simply as we could so new users can easily understand them. If you need more information, please feel free to reach out to us through Telegram, Discord or Twitter.
What is Cardano?
Cardano is a third generation cryptocurrency that improves upon the design of the 1st generation (e.g. Bitcoin) and the second generation (e.g. Ethereum)
What are cryptocurrencies?
Cryptocurrencies are digital money that are created using complex cryptography. They can be traded and exchanged with traditional cash (fiat)
How can you earn money with Cardano?
As a currency, Cardano is subject to market forces which can bring its price up or down. Short term swing traders may use this movement to profit through buying and selling. Long term holders however benefit more because they can stake Cardano and earn earn on average 4-5% interest annually. These gains will be on top of any increase/decrease in Cardano’s price.
Should I invest in Cardano?
Each person’s financial situation is different so only you can answer that. Cryptocurrency is volatile so we recommend you only put in money you are prepared to lose. Common recommendation is to put no more than 10% of your assets into cryptocurrencies.
What is ADA?
ADA is the name of the currency of Cardano. So as USD is to the US Dollar, ADA is to Cardano. The name ADA was taken from Ada Lovelace, an 18th century mathematician who is known as the first computer programmer.
Where can I buy Cardano?
You can buy Cardano from exchanges like Binance or KuCoin. A list of exchanges that sell ADA can be found here: https://coinmarketcap.com/currencies/cardano/markets/
How can I earn passive income?
You can delegate your Cardano ADA coins to a stake pool (this is also called staking). By doing this, you are participating in the protocol and you will get interest rewards for your coins
What is staking?
Staking (also known as delegating) is the process of allocating your voting power to a pool. The more ADA is delegated (staked) to a pool, the better it’s chances to mint a block and earn rewards. The protocol will distribute these rewards automatically to the pool and all of its delegators.
What does minting a block do?
Minting blocks is actually processing transactions in the network. These are performed by validators called stake pools.
Is staking safe?
Yes! When you stake, your coins never leaves your wallet. You are just assigning your coin’s voting power to a stake pool. You are free to move/sell your coins anytime.
How do I stake?
If you bought ADA from an exchange, you must first transfer them to your own wallet, then select a stake pool to delegate to using a wallet application.
Which wallet application should I use?
We personally recommend ccvault.io due to its speed, ease of use and capabilities compared to other wallets. You may also consider using Yoroi by Emurgo or Daedalus by IOG
Where can I find a list of stake pools?
All wallet applications will have a delegation page which can list down the available stake pools you can delegate to. We would appreciate if you will select WISH Pool as the stake pool to delegate your ADA to.
Which stake pool should I select?
To maximise your earnings, you may select a stake pool with a high Return On ADA (ROA) value. However, please also consider delegating to stake pools that may not have a high ROA but also those that help the community such as WISH Pool
Who should I contact if I suspect a scam?
Be aware that there will be scammers trying to get your ADA or personal information. Report scam attempts by sending email to: email@example.com
How should I contact you if I have more questions?
Reach out to us via Telegram, Discord or Twitter. See this link for our full contact details: https://blockchainlens.wordpress.com/contact/