Are you wondering where and how to buy Cardano? You have come to the right place.
Cardano is an open source smart contract platform that offers multiple functionality through a layered design. It is a blockchain dApp development platform with a multi-asset ledger and verifiable smart contracts – which enables the development of a wide range of decentralized financial applications, new crypto tokens, games, etc.
The network has a native token called ADA which allows users to pay for Cardano transactions, storage value, and networking.
Cardano (ADA) has been available for trading since 2017. In the first quarter of 2021, the Cardano (ADA) price rose nearly 700% to set a new record high of $ 1.43, reaching a market cap of over 45 billion of dollars.
Some explain this increase with the growth of the cryptocurrency market. Others believe that ADA’s rise to new heights could be driven by the exit of the Shelley mainnet in mid-2020, which brought wagering rewards and brought the network closer to decentralization. Additionally, the increase was driven by the anticipation of the 2021 version of the Goguen Mainnet, aimed at providing more functionality, including the ability to build decentralized applications (dApps).
Read on to learn everything you need to know about Cardano’s blockchain and how to buy ADA.
Let’s dive in!
What is Cardano
Launched in 2017 by one of Ethereum’s co-founders, Cardano is a research-driven proof-of-stake blockchain designed to execute smart contracts and build decentralized applications.
Cardano is a third-generation blockchain and cryptocurrency system following Bitcoin and Ethereum, which is heavily informed by peer-reviewed theoretical research prior to implementation in software. All new features are reviewed and approved by academics before they are used. IOHK, the company behind Cardano, has published several academic papers describing the platform and its technology.
Network code is written in the Haskell programming language, used by companies such as Bank of America and AT&T.
Cardano uses proof of stake, which consumes less energy; the network uses an algorithm called Ouroboros to choose who creates the next block and to validate the blocks. Ouroboros is Cardano’s definition algorithm, the first blockchain protocol based on peer-reviewed research and the project’s solution for proof of stake. It is used to secure the network, verify transactions, and earn newly created ADA.
The Cardano blockchain has its native ADA cryptocurrency to power its platform. You can buy, trade, and use ADA as a payment method for blockchain transactions.
On the Cardano platform, users must purchase ADA to complete transactions, participate in governance, and earn a share of fees paid for transactions.
The Cardano protocol ecosystem is decentralized and responsibilities are shared by Cardano partners: the Cardano Foundation, IOHK and EMURGO.
Cardano is built in five phases to achieve its goal. Each of the five phases is named after an influential historical figure:
- Foundation (Byron era)
- Decentralization (Shelley era)
- Smart contracts (Goguen era)
- Scaling (Basho era)
- Governance (Voltaire era)
Cardano’s coin is named ADA after Ada Lovelace, a 19th-century mathematician recognized as the first computer programmer and daughter of poet Lord Byron.
On March 1, 2021, the Cardano blockchain introduced the ability to create native tokens.
Why should you buy Cardano
Let’s explore some of the reasons why you should start investing in ADA.
ADA is a digital asset with many use cases and a long term strategy. The Cardano blockchain is significantly more flexible, sustainable and scalable than its peers. The platform is data driven and peer reviewed.
Cardano has several projects in development, including its digital art marketplace, a peer-to-peer crypto trading platform, an NFT marketplace, and a platform to trade stocks and assets. of the real world using the Cardano blockchain. Its NFT market called CNFT.IO is live.
Cardano hosts several decentralized applications which have great potential. One such platform is MELD, a decentralized financial platform that allows users to lend their cryptocurrency or use it as collateral for cash loans. MELD is funded by an Initial Participation Pool Offering (ISPO), which involves ADA holders trading their tokens in exchange for the native tokens of the new platform.
Another advantage of Cardano is its use of a proof of stake system, which is much less energy intensive than proof of work. The use of this technology makes ADA one of the most environmentally friendly cryptocurrencies.
Cardano has a strong team behind it and has achieved a lot already – the Ethiopia project is an impressive use of blockchain technology in the real world.
However, you should also consider that Cardano is still a very young technology and investing in Cardano comes with significant risks. All cryptocurrencies are highly volatile and speculative investments. Cryptocurrency investments are subject to market risk and are not overseen by the EU regulatory framework.
How to buy Cardano
Buying ADA is simple and similar to buying cryptocurrencies like Bitcoin, Ethereum, Solana, etc.
Just follow these easy steps to buy Cardano (ADA):
First step: choose your Cardano wallet
You will need a reliable cryptocurrency wallet, software or hardware device that stores the public and private keys needed to perform crypto transactions for several reasons:
- To store and store your Cardano safely. Many people invest in ADA with the strategy of buying and selling Cardano when the price goes up. If you intend to hold your crypto for a very long time, you will need reliable storage for your ADA.
- To exchange ADA with other cryptocurrencies
- To earn Cardano ADA as a reward for coin staking
- To use Cardano ADA as a payment method. You can use ADA as the currency to make online payments and make quick transactions. These transactions will not cost you money as is usually the case when using fiat currencies.
If you are looking for a reliable and convenient solution, make sure that the wallet you choose supports ADA and also has the following features:
- Cardano Hardware Wallets – A hardware wallet is the most secure solution for storing your Cardano ADA. This is an offline method of keeping your private key safe from potential hackers, unlike software wallets, which keep it online. Some of the hardware wallets that support Cardano are Ledger Nano X, TREZOR Model T, etc.
- Cardano Software Wallets – A software wallet is not your safest option for storing ADA; however, it is much easier to use. Examples of software wallets are Daedalus – the official desktop wallet for Cardano, Atomic, Exodus, etc.
Once you have a wallet to store your ADA, it’s time to take the next step.
Step two: choose a Cardano exchange
There are several cryptocurrency exchanges where you can usually trade for ADA with any fiat currency or cryptocurrency of your choice.
Reliable cryptocurrency exchange platforms that support Cardano include CEX.io, Binance, Kraken, CoinEx, etc.
To choose a crypto exchange, consider the following criteria:
- Reliability and security. Make sure that the cryptocurrency exchange you choose is a well-known, reliable, and secure platform. This is a critical point to consider even if you are planning to invest a small amount of money, let alone a large amount.
- Payment methods supported. Most exchange platforms allow users to use a variety of payments such as credit or debit card, wire transfer, PayPal, and other cryptocurrencies.
- Supported countries. Make sure the cryptocurrency trading platform you choose works in your region. Note that some platforms are not supported in certain countries due to regulations. For example, the regulatory framework in the EU is different from that in the United States.
- Costs. Check the platform fees and make sure they are reasonable and suitable for your needs. Also, be sure to check the market price for ADA as a cryptocurrency exchange acts as a middleman that sets the market price at which an equal number of buyers and sellers can be found. In short, a reputable exchange with the lowest fees and a reasonable market price is what you need.
- User experience. Finally, make sure the exchange is user-friendly and offers convenient services. Some platforms even provide investment advice if you need it.
Once you have chosen the Cardno exchange, you are ready to purchase your ADA cryptocurrency. Remember to transfer your funds to your wallet after purchasing ADA.
Step three: transfer Cardano to your wallet
Finally, once you buy ADA, you should keep your coins in your wallet to protect them from hackers. Many exchanges allow you to keep them on the platform. However, it is a risky thing to do, no matter how reliable your cryptocurrency trading platform is.
Once you transfer your coins to your crypto wallet, they will be safe and ready to use.
Final thoughts
Cardano is a cryptocurrency with a very bright future.
Cardano recently completed its “Goguen” phase, which brought smart contracts to its network. He will then focus on the “Basho” phase, improving the scalability of the network thanks to sidechains.
Cardano’s “Voltaire” phase will focus on improving sustainability and adding features that allow users to vote on maintenance and development projects.
Like any cryptocurrency, Cardano has its risks. Now that you know more, you can decide if buying Cardano is right for you. And if you do decide to buy it, remember that you can easily track it on CoinStats along with all of your other holdings.