What Are the Risks of Staking ADA?

While staking ADA is generally safe, there are some risks to consider. Delegating ADA to a staking pool does not involve locking funds, but choosing an unreliable or malicious pool could result in lower rewards. Additionally, ADA’s market volatility can impact staking returns, as the value of rewards fluctuates with the ADA price. To mitigate risks, investors should research staking pools, diversify holdings, and stay informed about Cardano’s network updates.