This hands-on article exists to provide a deeper knowledge and better understanding of the Cardano (ADA) cryptocurrency. If you are a beginner on the topic of Cardano or are part of those who have just begun getting engaged with the crypto industry, then this is an easy-to-go post for you.
However, make sure to be sure to do more research before deciding on which crypto to invest your hard-earned money in. At the moment, there are thousands of altcoins available in the market — ADA is just one of them.
Despite the existence of several different altcoins available, Cardano (ADA) has been one of the most promising digital assets in 2021. It is one of the most-discussed crypto-asset topics in the crypto market. Cardano has proven to be exceptionally sustainable — an issue that arose recently.
Have you wondered how to buy ADA or where to buy Cardano before? If your answer is yes, then read this article as we have covered everything you need to know regarding Cardano.
What is Cardano (ADA) ?
Cardano is an Ethereum rival. This is due to the reason that ADA focuses on offering the same functionality as ETH with notable enhancements. By the end of 2021, the platform intends to add support for smart contracts and decentralized applications (DApps).
It’s easy to identify Cardano by how it handles new transactions. Cardano uses the Proof-of-Stake consensus mechanism when verifying transactions. With the ADA’s PoS usage, this makes Cardano run faster compared to Bitcoin and Ethereum’s Proof-of-Work (PoW) implementations.
This is because PoS technologies are very fast in operation compared to PoW blockchains. With this, Cardano prides itself on its ability and strength to outperform most other blockchain platforms. In fact, ADA is considered as a third-generation blockchain platform – adjacent to other crypto projects like Polkadot.
The Cardano blockchain platform was formed in 2015 by Charles Hoskinson – one of the core Co-Founders of Ethereum.
Notably, Hoskinson stopped working on Ethereum after an internal conflict over the control of the project. Vitalik Buterin, the other Co-Founder, debated that Ethereum should be structured as a non-profit company while Hoskinson lobbied for a commercial-focused approach.
Ultimately, Buterin won the majority during the debate leading to the creation of the non-profit Ethereum Foundation. Knowing this, it is not surprising that Cardano shows a lot of similarities with Ethereum.
Cardano also has a local token, called ADA, which is used for investment, transfer of value, and payments for functions on the blockchain, such as transaction fees. As of mid-2021, Cardano’s ADA is conveniently one of the largest digital coins on the market.
Cardano’s primary selling point is that its expansion follows data and science-based methods. It means that every single proposal to the platform relies on peer-reviewed analysis. As a result, it makes something unique in the crypto industry. So far, IOHK, the firm that manages Cardano’s development, has issued over 110 research papers.
With this standard in mind, Cardano’s developers came up with an overarching roadmap for the platform back in 2015. Moreover, the roadmap takes Cardano from a simple token-only platform to supporting complex decentralized apps and autonomous governance. It is categorized into five phases or eras.
Phase 1 or Byron was published in September 2017 and served as the first version of Cardano released to the general public. Moreover, it started the ADA cryptocurrency and the official Daedalus desktop wallet. At this stage, only three things were in charge of confirming, which meant that Cardano was centralized.
The second stage converged on making Cardano decentralized by letting anyone join in the transaction verification process. It also made ADA an extremely performant cryptocurrency – achieving to treat thousands of transactions per second. However, all of this was achieved by Cardano’s Proof-of-Stake consensus mechanism, called Ouroboros. Shelley officially started in June 2020.
Cardano’s third era intends to offer smart contracts and decentralized applications. Even though Cardano’s actual utility ceased in the existence of these features, they were conspicuously absent at the time of the platform’s release. A few delays later, Goguen is finally expected to include them in late 2021.
Called the era of scaling, Basho aims to scale Cardano even more by adding sidechains. This means that it will split up the main blockchain into some smaller chains, called shards. To help understanding, consider that sharding is a key feature of Ethereum’s Serenity network upgrade. It will help Ethereum boost transaction limits even further.
Cardano’s ultimate goal is to grow an autonomous system without the oversight of IOHK, Cardano’s parent company. After that, Voltaire will launch a full-blown governance system with users deciding on new features and proposals. However, Cardano will only develop a truly decentralized platform once this phase is complete.
If some of those names look familiar to you, that’s because they are all names of esteemed poets. For example, even the ADA token is named after Ada Lovelace. Famous as the mathematician who grew up to be the first computer programmer, ADA was the daughter of the romantic English poet Lord Byron.
Where to Buy Cardano (ADA)
There are a lot of questions from every individual who wants to invest in Cardano. In this section of the article, we will discuss how and where to buy Cardano in 3 Steps.
Cardano is a new project that’s still very much under development. For this reason, there are very few wallet options ready for storing ADA, the Cardano currency.
If you are looking for a safe solution to store your ADA, you can use a hardware wallet. Generally, hardware wallets store your private keys offline on the hardware device itself. Naturally, this makes hardware wallets much more immune to hacking than software wallets connected to the Internet.
For keeping ADA, you can use the Ledger hardware wallet in association with AdaLite. To clarify, both Ledger models carry this, but the Nano X also has mobile support. Alternatively, the TREZOR Model T can also be used in association with AdaLite.
The simplest way to keep ADA, as well as other cryptocurrencies, is to use an open software wallet such as Exodus, which is pretty intuitive and supports desktop and mobile versions.
Another excellent choice is Atomic Wallet, a software wallet ready for desktop and mobile to store ADA. At the same time, the Atomic wallet also supports over 300 additional cryptocurrencies. Meanwhile, the wallet lets you exchange your assets via a non-custodial Atomic Swap with a decentralized order book.
Finally, Daedalus is the main Cardano desktop wallet and can be downloaded on its official website. Notably, it’s an open-source crypto wallet for ADA. The wallet plans to grow with the community, becoming a universal wallet, blockchain application platform, and app store.
Step 2 – Buy Cardano (ADA) Through Exchange
As Cardano grows, more exchanges let you buy and trade ADA, including different authorized market leaders:
CEX.io is a crypto exchange with an “instant buy” option for beginners and an advanced trading platform for seasoned traders. Also, the exchange allows you to buy Cardano with a credit card, debit card, SEPA transfer, ACH, and wire transfer. However, if you desire to save on fees, it’s better to use the trading platform and not the instant buy option.
Coinbase allows you to buy Cardano with your bank account and Paypal directly. Moreover, the exchange is open for users across over 100 countries globally. On the other hand, Coinbase claims relatively low fees, especially when using ACH transfers within the US.
However, Coinbase has been around since 2012 and has a solid standing, except for the quality of its support. Unfortunately, it seems like the firm has a lot of room for change there, with no live support available and an offline response time that’s somewhere between ‘slow’ and ‘no response at all.’
Coinmama is one of the oldest crypto exchanges out there. However, Coinmama works as a broker, implying they instantly send you your coins instead of holding them. It will work in a dedicated account like other sites may do.
Coinmama lets you buy Cardano with a credit card, debit card, or SEPA transfer. Besides, verification is relatively quick, and the fees are pretty low.
Binance is a Shanghai-based crypto exchange that has become one of the most famous crypto exchanges around. On Binance, you can find dozens of cryptocurrencies, including ADA, which you can buy with BTC or ETH.
Recently, Binance added the choice to buy coins from its exchange with a credit or debit card. However, it’s not possible to buy ADA. Notably, you can buy Bitcoin with a credit card and then exchange it for Cardano. Likewise, you can see and read my complete Binance review here.
eToro is probably the simplest way to go into Cardano only for uncertain goals (buying low and selling high). As a result, eToro is one of the leading firms in the crypto space. In addition, it gives users the option to buy and sell many different coins at low fees and various payment options (PayPal, credit card, etc.).
However, the main idea to keep in mind with eToro is that it’s a bit difficult to withdraw the coins themselves to your wallet. Moreover, with eToro, you can easily withdraw fiat currency (i.e., USD, EUR). Therefore, if you are using eToro, you can skip Step 1 of getting a wallet.
There is currently no way in which you can get Cardano ADA with cash. However, you can buy Bitcoin with cash then trade it for Cardano on the listed crypto exchanges.
You can buy Cardano using PayPal on both Coinbase and eToro. Though with eToro, it would be more difficult to withdraw your coins. Besides, it’s assumed that there will be more choices in the future as cryptos continue to gain in popularity.
Alternatively, you can go to LocalBitcoins, which lets you buy Bitcoin via PayPal. Then, all you require is to transfer your Bitcoin to an exchange such as Binance and exchange it for ADA.
Step 3 – Withdraw the Cardano (ADA) to Your Wallet
Once you’ve completed buying ADA, make sure to move the coins to your non-custodial wallet. Besides, leaving your coins on an exchange presents you with the risk of fraud or theft. After that, once the coins hit your wallet, you’ve completed the process of buying Cardano.
It is super easy to buy Cardano. However, it is suggested to sign up with regulated brokers rather than an unregulated crypto exchange.
The most reliable way to buy Cardano is through a broker holding a legitimate license.
You can buy $100 of Cardano. But, novices are fit to choose a regular purchase plan at smaller amounts.
Yes, you can lose capital on Cardano, but you can also make money. However, if you perfectly time the market, you can make gains. But, if you time the market badly, you will make a loss.
The most Cardano has been worth is $2.47, which it hit last May 16.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.