Staking your ADA
Ada held on the Cardano network represents a stake in the network, with the size of the stake proportional to the amount of ada held. The ability to delegate or pledge a stake is fundamental to how Cardano works.
There are two ways an ada holder can earn rewards: by delegating their stake to a stake pool run by someone else, or running their own stake pool. The amount of stake delegated to a given stake pool is the primary way the Ouroboros protocol chooses who should add the next block to the blockchain, and receive a monetary reward for doing so.
The more stake is delegated to a stake pool (up to a certain point), the more likely it is to make the next block – and the rewards are shared between everyone who delegated their stake to that stake pool.
This quote is from the Cardano site at https://cardano.org/stake-pool-delegation/
Once you have purchased ada using an Exchange like Coinspot it will sit in their account and won’t be earning you any rewards. You need to transfer your ada from the Exchange into a wallet to delegate it to our stake pool to receive rewards for being part of the Cardano network.
Note that delegation does not transfer your ada to the pool, it still belongs to you in your wallet but is delegated to the pool where it will earn rewards.
If you wish to sell some or all of your ada, you just need to transfer it back to the exchange where you can then sell it. Of course, when you transfer it out of your wallet it is no longer staked and will not receive rewards.
One of the best wallets to use for Cardano is “Yoroi”, it is a mobile app and also a Chrome extension which is easy to install. Use our guide here