Want to jump straight to how to buy Cardano? You can buy ADA on Coinbase.
Legacy blockchains face significant challenges with scalability. Both Ethereum and Bitcoin are proof of work cryptocurrencies. They have intentionally small blocks, allowing for only a limited number of transactions per second for security reasons. Proof of work is energy-intensive, which deters malicious behavior.
Cardano employs an eco-friendly proof of stake (PoS) consensus model to secure its blockchain. Some view it as a potential alternative payment method to Bitcoin. However, Cardano primarily competes with Ethereum as it aims to develop a more scalable decentralized finance (DeFi) ecosystem. The Cardano blockchain operates using a native cryptocurrency asset called ADA. The price of ADA indirectly reflects demand for space on the Cardano blockchain.
Find out about more about Cardano's blockchain and how to buy Cardano (ADA) today.
How to Buy Cardano (ADA)
Readyto invest in Cardano? Follow this step-by-step guide to purchase ADA successfully.
1. Open an Online Exchange Account
Since Cardano is a top cryptocurrency project, it's offered on most large crypto exchanges. Coinbase is a solid option, and they offer simple user interfaces that are easy for anyone to get started on.
To create an account on your chosen cryptocurrency exchange, start by navigating to the platform’s registration or sign up page. You will typically be prompted to enter your email address and create a secure password. Once you've filled in these basic details, the next step usually involves verifying your identity, which is a crucial requirement for compliance with Know Your Customer (KYC) regulations. This process may require you to submit a government-issued identification document, such as a passport or driver's license, along with a proof of address, such as a utility bill or bank statement. After you submit the necessary documents, the cryptocurrency exchange will review and approve your account, allowing you to start trading once verification is complete.
2. Fund Your Account
To deposit funds into your exchange account, you typically have a choice between depositing fiat currency, such as USD or EUR, or transferring cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH) directly. The most commonly used methods for funding your crypto exchange account are wire transfers and Automated Clearing House (ACH) transfers. Wire transfers allow you to send money directly from your bank account to the exchange, usually resulting in faster processing times. On the other hand, ACH transfers utilize a third-party system to facilitate the transfer, which can be slower but is often more cost-effective. This makes it an attractive option for those looking to minimize fees. Regardless of the payment method you choose, ensuring accuracy in the transfer details is crucial to avoid delays or errors.
3. Purchase Cardano (ADA)
Now that you've set up a funded exchange account, it's time to convert some USD to ADA. Simply navigate to the trade section and type in Cardano or ADA. Tap it to open the Cardano page, enter your desired amount, and execute the trade order. Make sure to review the details before confirming the transaction.
What Is Cardano?
Cardano is a public blockchain for settling payments that recently completed its "Alonzo" hard fork which introduced smart contracts onto the network. Much controversy has surrounded the launch of these smart contracts, as they didn't immediately lead to booming decentralized finance (DeFi) and NFT ecosystem. However, some Cardano applications are finally rolling out, with many more planned for the future. This may lead to a boom in demand for Cardano block space.
Cardano's blockchain uses proof of stake to verify transactions that come across the network. Coin holders can stake their ADA for the right to verify transactions and earn the transaction rewards. Cardano uses a tiny sliver of the energy that Bitcoin does at the cost of centralization. When it comes to blockchains, decentralization is equivalent to security.
Brief History of Cardano
Charles Hoskinson was one of the eight co-founders of Ethereum, but, left the project in 2014 when Vitalik Buterin opted to make Ethereum a non-profit organization. This disagreement led Hoskinson to start his own smart contract blockchain competitor, known as Cardano. Cardano began development in 2015 and launched in 2017, although smart contracts are still not supported by the network.
Cardano opted to launch its network with multiple layers. The Cardano settlement layer handles ADA transactions, while the Cardano Computation Layer handles smart contracts. The Cardano Settlement Layer launched in 2017 along with the ICO of its native asset, ADA, which conducted its initial coin offering (ICO) at $0.02 per token. Since then, ADA has appreciated over 2500% making it one of the largest cryptocurrencies by market capitalization.
Where to Buy Cardano (ADA)
Take a look at some of the cryptocurrency brokers and exchanges that offer ADA.
- Best For:A Fast Trading ExperienceVIEW PROS & CONS:securely through Uphold Crypto's website
How to Store ADA Safely
If you're purchasing Cardano as an investment, then you'll want to protect it by keeping it in a cryptocurrency wallet where you manage the private key. After you purchase ADA from your exchange, they'll typically hold custody of your funds. This is convenient for crypto trading, however, leaving it on the exchange makes it much more vulnerable to hacks. The two most popular types of crypto wallets are software and hardware wallets.
Software wallets are free and can be downloaded on devices, but hardware wallets offer the highest security by storing cryptocurrency offline, protecting against online hacking. Consider our top recommendations for safe crypto storage.
- Best hardware wallet: Ledger
- Best For:ERC-20 tokensVIEW PROS & CONS:securely through Ledger Hardware Wallet's website
Ledger is a comprehensive crypto cold storage device that supports over 1,200 cryptocurrencies and allows the installation of up to 100 decentralized apps (dApps). It features Bluetooth compatibility for easy coin transfers, making it a potentially worthwhile investment for secure storage and connectivity.
- Best software wallet: Coinbase Wallet
Coinbase is a major cryptocurrency marketplace that has launched the Coinbase Wallet, allowing easy management of investments. The wallet supports Bitcoin and ERC-20 projects, enabling users to send crypto to others by simply entering a name instead of a long wallet address.
Trade or Sell Your ADA
After your order closes, you’ll need to decide whether you want to become an active cryptocurrency trader or if you want to hold onto your coins and sell them at a later date. If you want to trade your cryptocurrency, keep track of how the Cardano market is moving and convert it to a stablecoin (like Tether) when the price rises to lock in gains.
Most cryptocurrency traders then hold onto their stablecoin until the price of Cardano falls again. Some cryptocurrency traders play the markets to accumulate more coins, while others are short-term traders looking to lock in profits in fiat currency.
If you decide to hold onto a chunk of your Cardano for the long haul, you should move your coins to a cold storage wallet. This provides you with private key necessary to access your coins and mitigates the possibility of being hacked. When you decide to sell your coins, transfer your coins from your cold storage back to your trading account and convert them back to fiat currency.
Current Crypto Prices
Most cryptocurrencies are up from their local low prices just a few months ago, and bullish sentiment has entered the market once again. With Bitcoin ETFs and Ether ETFs recently being approved by the Securities and Exchange Commission (SEC), many investors are bullish on the asset class as a whole. Checkout the table below for real-time cryptocurrency prices.
Is Cardano a Good Investment?
Bitcoin and Ethereum currently use the energy intensive proof of work consensus model, however Ethereum released an upgrade to proof of stake as a part of its major Ethereum 2.0 project. In the meantime, Cardano has a chance to steal new traffic that would have otherwise been built on Ethereum. This can't happen until Cardano supports decentralized applications at scale. With Cardano not delivering on its roadmap, there may be better Ethereum alternatives out there, such as Solana and Avalanche. Regardless, Cardano's ADA token has performed well in the past year, and will more than likely continue to yield high returns throughout the remainder of the bull run.
Frequently Asked Questions
When did Cardano reach its all time high (ATH)?
Cardano reached its all time high of $3.10 in September 2021.
How much does it cost to buy Cardano?
As of today, Cardano is around $0.3597.