⚖️Exchange vs SPO staking
Here we will briefly discuss why it is important to delegate your stake to SPOs instead of exchanges.
Always do your own research on any crypto-related project and investment!
Centralised Exchanges (CEXs) go to great lengths to keep your crypto on their systems. This has some obvious drawbacks for investors. Let's highlight some important ones:
Not-your-keys-not-your-crypto
CEXs, like all big financial institutions are Centralised and eventually can run into issues
Most CEXs have no vested interest in the health of the Ecosystems they trade in
Most CEXs have limitations when it comes to staking your ADA with them.
By getting your ADA off CEXs and staking it with independent SPOs, you are helping the Cardano Ecosystem stay Decentralised, and you gain more benefits:
Full independence (self-custody allows direct control of your funds)
Ability to invest in projects you believe in
In most cases your RoA (return of ADA) will be larger, as you can stake the full amount you own
If you are uncertain about getting your ADA off exchanges, or how to safely set up self-custodial wallets, please do more research.
As a starting point you can read some of the information herein contained:
Self-custody may sound scary. If you want to learn more about it, so as you can start staking with SPOs with greater confidence, here are a couple of useful resources:
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