Cardano is a v3 cryptocurrency that supports staking. As every major cryptocurrency, you can store ADA on a paper walled, digital wallet or on an exchange.
Let’s go through the digital wallets and their pros and cons:
Daedalus Wallet (Desktop wallet)
Daedalus is a full node, this means it downloads and synchronizes with the blockchain. Daedalus also supports staking and is currently the preferred wallet for users that want to stake their ADA and earn rewards. It’s developed by IOHK, the blockchain research and development company behind Cardano.
This software is available for Windows, Mac and Linux and it fully validates every block and transaction, so you don’t need to trust anyone. You can also create secure paper wallets, but it also supports as many digital wallets as you like.
Over the past few years the Deadalus wallet went through many versions and iterations that introduce different features before migrating to the main wallet. Here are some of the Daedalus wallet versions that were released over the years:
Daedalus needs time to synchronize when opening, cumbersome on bad internet connections and also needs about 5GB of disk space. Currently there is no support for hardware wallets like Trezor or Ledger Nano, but the team is working on this.
Yoroi Wallet (Browser extension)
Yoroi is a lightweight node as it doesn’t need to download and synchronize with the blockchain. It’s developed by Emurgo. Currently the extension is supported by Chrome, Firefox, Android and iOS.
Unlike Daedalus, Yoroi doesn’t need much space. It is about 20 MB and you can use it instantly after download. Yoroi is sand-boxed by design and it supports the popular Trezor and Ledger hardware wallets. Yoroi is able to import Daedalus paper wallets, but can also create own paper wallets.
There is no multi-wallet support on the desktop extension. Another disadvantage is that you need to trust a 3rd party, because a lightweight node has to connect to a full node.
Yoroi for Android and iOS you can create several wallets in the app.
AdaLite.io (Web wallet)
AdaLite was developed by Vacuumlabs. AdaLite.io shows its advantages, because it leaves no traces behind. It is good in terms of plausible deniability because after using it with Ledger you can no longer look into the account to see the balance, unless you re-plug your hardware wallet. For safety, use web wallets only in combination with a hardware wallet, like the TREZOR-T or the Ledger Nano S.
Looking to earn rewards from your Cardano
As Cardano utilizes a proof-of-stake algorithm, ADA holders can earn rewards by staking their coins. Learn more about staking here.