How to Buy Cardano (ADA) on Coinbase? A Step-By-Step Guide

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In the past year, Cardano has grown to become one of the most popular cryptocurrencies on the market. Some of the reasons for this include its energy-efficient proof-of-stake system and its ability to execute transactions extremely fast.

Obviously, this has drawn investors’ attention which means many traders buy and sell Cardano in the hopes of making a profit. With that in mind, we’ll now look at how you can buy Cardano on Coinbase.

Cardano on Coinbase Review

Let’s first look at why you should consider buying and selling Cardano on Coinbase and some of Coinbase’s features in more detail. In this way, you’ll be able to decide if the Coinbase platform is the right exchange for you.

Can You Buy Cardano on Coinbase?

Coinbase added support for Cardano during March 2021. It can be traded, and you're able to send or receive Cardano on Coinbase to other wallets. It can be traded in all regions that Coinbase supports except Japan. As such, Cardano can be traded in the US, Canada, Europe, the UK, and others.

It's important to note that, when trading, Coinbase offers the following crypto to fiat trading pairs:

USD/ADA


GBP/ADA


EUR/ADA


Likewise, Coinbase only offers certain crypto to crypto trading pairs when it comes to Cardano. These include:

ADA/USDC


ADA/BTC


ADA/ETH


What Are Coinbase’s Fees

Coinbase uses a maker-taker fee model to determine its trading fees. In terms of this fee model, transactions that provide liquidity to the network pay a different fee compared to transactions that remove liquidity. To explain this concept better, let's look at an example.

Let's say you place an order for Cardano at its market price. This order then gets filled immediately. In this case, you’ll be considered a taker. Let's say you place another order for Cardano but in this case, the order is not filled immediately and is placed in the order book. Another trader then places an order that matches yours, which means your order will be filled and you'll be considered a maker.

On Coinbase, maker fees range between 0.00% and 0.50% and taker fees range between 0.04% and 0.50%.

Coinbase Benefits

Coinbase was established in 2012 in the United States. Since its founding in 2012, the company has grown significantly and as of March 2021, it was the largest cryptocurrency exchange in the United States by trading volume. In April 2021, Coinbase was also listed on the NASDAQ stock exchange.

Although it operates as a cryptocurrency exchange platform, it also offers a cryptocurrency wallet to its customers. One of the main benefits of the Coinbase platform is that it implements the necessary security measures and best practices to keep funds safe and secure. It also has insurance to protect clients’ funds.

Another benefit is that Coinbase is properly regulated. As such, it's registered as a Money Services Business with FinCEN and licensed to operate in over 40 US states. This makes the platform safer to use.

How to avoid cryptocurrencies scam?

How to Buy Cardano (ADA) on Coinbase?

Now that we've seen that Cardano is available on Coinbase and what the benefits of the Coinbase platform are, let's now look at what you’ll need to do to buy Cardano on Coinbase.

How to Buy Cardano (ADA)

Open a Coinbase Account

The first step in buying Cardono on Coinbase is to open a Coinbase account. To do this, you’ll need to go to the Coinbase website.

On the homepage, you'll click on Get Started. Remember, though, to open a Coinbase account, you’ll need to be over 18 years of age and you’ll need to provide a government-issued photo ID as proof of your age when you register your account. Also, you need to reside in one of Coinbase’s supported countries.

On the next page, you'll need to fill in a form that contains information about your full legal name, email address, password, and, if you reside in the United States, the state where you reside. Once you've completed the information, you can click on Create Account.

You’ll then receive a confirmation email to verify your email address. You can click on the link in this email and you'll then be able to log in to the Coinbase platform using the email address and password you chose when you opened the account.

Once you've logged in for the first time, you’ll be asked to provide a telephone number where you can receive SMSs in order to set up two-step verification which is an important security feature.

Verify Your Account

Once you've opened an account and set up two-step verification as described above, you’ll need to verify your identity. Coinbase does this to prevent fraud and keep your account and money safe. To complete the identity verification, you typically need to send a photo of your government-issued identity document

Fund Your Account

The next step is to fund your account. To do this, you’ll first need to link a payment method. Here, you have quite a few options including everything from bank account transfers, wire transfers, and PayPal and you're able to buy cryptocurrencies with your debit card. Keep in mind, however, that the payment methods the platform offers differ depending on your region.

Buying Cardano

Once you've created your account, verified your identity, and funded your account, you'll be able to buy Cardano. To do this, you’ll need to log into your account, and then click on Buy/Sell. In the pop-up window that opens, under the Buy tab, you’ll click on Buy and then select Cardano (ADA).

You'll then need to enter the amount you’d like to buy Cardono for and then select your payment method. Once you’ve done so, you can click on Preview Buy to confirm that all the details of your transaction are correct. If you're happy that they are, you can click on Buy to complete your purchase.

How to Withdraw Cardano (ADA) From Coinbase?

It is possible to send and receive cryptocurrencies to and from the Coinbase platform. So, you'll be able to send cryptocurrencies from your Coinbase wallet to another software or hardware wallet. This then allows you to withdraw Cardano from Coinbase.

Coinbase Crypto Withdrawal Fees

Generally, when you send cryptocurrency from one wallet to another, you’ll have to pay what's known as a gas fee. This is the transaction fee that's used for the maintenance of the network. When you send Cardano from Coinbase to another wallet, the platform estimates this transaction fee at the time of the transaction.

Coinbase Withdrawal Limits

Also, keep in mind that there might be certain limits that will limit the amount of cryptocurrency you can send. These limits could, however, vary.

How to Withdraw Cardano From Coinbase?

To withdraw Cardano from Coinbase, you’ll first need to log into your account. You’ll then select Pay from the Dashboard. You can then select Send. Here, you’ll need to enter the amount of Cardano you want to send and enter the wallet address, email address, and phone number of the person you want to send it to.

Once done, you can click on Pay with to select Cardano, and then click on Continue to review the details. If the details are correct, you can click on Send now to complete the transaction.

How to Sell Cardano (Cash Out) on Coinbase?

When you sell Cardano on Coinbase, you’ll follow largely the same procedure as you did when you bought it, except in reverse. So, you’ll need to log into your account and then click on Buy/Sell. This time, under the Sell tab, you’ll click on sell and select the Cardano you want to sell. Here, you’ll also enter the amount.

Once again, to confirm the details you've entered, you’ll click on Preview Sell. If you're happy that the details are right, you can click on Sell now to complete the transaction. Your money will now be available in your Coinbase local currency wallet.

To withdraw this money, you’ll need to log into your Coinbase account and select your cash balance under Assets. You can then enter the amount you want to withdraw under the Cash out tab and click Continue. Now, select where you want to withdraw your money to and then click Continue. Once you're happy all the details are correct, you can click on Cash out now to complete your withdrawal.

Generally, when you want to withdraw fiat currency from Coinbase you can use bank transfers, instant cashouts, debit cards, wire transfers, and services like PayPal. Keep in mind, however that the withdrawal method is available to you will differ based on your location.

Where to Hold Cardano? Best Wallets

Now that you've bought Cardano, you’ll have a choice of several different options to safely store your Cardano. Each of these options has its own pros and cons and typical use cases that you’ll need to take into account to decide which is the right option for you.

Here, your options are:

Cryptocurrency exchange. You can choose to leave your Cardano on the exchange, typically in the wallet the exchange offers. The problem is that this is not a very secure storage option and you’ll typically only want to store Cardano that you’ll use for trading.


Hardware wallet. Hardware wallets are your best option and the most secure way to store your Cardano. These devices store your private keys and are not connected to the internet so they can't be hacked or compromised. Some examples of Cardano wallets include Ledger Nano S, Trezor,


Online wallet. When storing your Cardano, you also have the option to use an online wallet. Like cryptocurrency exchanges, this isn't the most secure option and you should only keep enough Cardano in your online wallet that you use in your day-to-day activities. Some examples include Infinito Wallet and Yoroi Wallet.


What is Cardano (ADA)?

Cardano is a relative newcomer to the cryptocurrency scene and was launched in September 2017 by Ethereum co-founder Charles Hoskinson. Despite it being relatively new, Cardano is one of the biggest cryptocurrencies by market cap.

The feature that sets it apart from other cryptocurrencies is that it uses a unique proof-of-stake consensus mechanism. In contrast, Bitcoin and Ethereum use a proof-of-work system. This consensus mechanism, called Ouroboros, is more energy-efficient than the proof-of-work system.

Also, the Cardano blockchain is divided into two separate layers, the Cardano Settlement Layer (CSL) and the Cordano Computing Layer (CCL). By separating these two layers, Cardano is able to process millions of transactions a second.

Cardano Review

Ultimately, because of its features and technologies, Cardano can run a wide variety of apps and with its smart contract capabilities, it can be used in a variety of use cases. It makes it a worthy cryptocurrency to consider.

Should You Buy Cardano (ADA) Now?

Since last year, Cordano has shown impressive growth and since Christmas day 2020, its price increased from $0.16 to over $2.80 in August 2021. Because of this, it could be a good decision to buy Cordano. However, it’s important to remember that it's an extremely speculative coin and investing in it carries significant risks.

So, if you want to invest in Cardano, it's better to invest only money that you're willing to use and not use leverage because this will amplify any losses you make.

Summary

Currently, Cardano is one of the most popular cryptocurrencies and is attracting a lot of attention from around the world. As a result, many investors want to invest in it and hope to make significant profits. Hopefully, this post showed you the steps you’ll need to follow if you want to buy or sell Cardano on Coinbase.

For more insights like these or do you read about exchange reviews, trading and investment strategies, trading cashback and more, why not join Traders Union today.

FAQs

Apart from the information provided above, we've also compiled a list of frequently asked questions that traders often have when it comes to Coinbase.

Is Coinbase safe?

Yes, Coinbase is safe. It's a reputable cryptocurrency exchange that’s properly regulated and licensed and it implements the necessary safety measures and has insurance that protects you against theft or loss.

Why must I verify my identity?

Verification is an important safety measure to prevent fraud and protect your money.

What is the minimum amount of cryptocurrency I can buy on Coinbase?

You can buy or sell as little as 2.00 of the cryptocurrency denominated in your local currency.

Is it better to keep my cryptocurrencies in Coinbase compared to a hardware wallet?

Ideally, you should only keep cryptocurrencies you want to trade or use on a daily basis on the exchange’s wallet.

Team that worked on the article

Alex Smith
Cryptocurrency and stock expert

Alex Smith is a professional day trader for a proprietary trading firm within the foreign exchange (forex) and crypto markets. His area of expertise is day trading and swing trading within the 15min-4hr time frames for both the London and NY open. At Traders Union, Alex is a firsthand experience expert, providing explanatory videos and tutorials on brokerage companies, how to open a trading account, how to withdraw profit, etc.

Olga Shendetskaya
Author and editor at Traders Union

Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.

Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.

Olga’s motto: Do well and you’ll be well!

Mirjan Hipolito
Cryptocurrency and stock expert

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.