Note:
This article is not financial advice and is for educational purposes only. Buying cryptocurrencies is a high-risk type of investment.
How to Buy Cardano (ADA)? A beginner’s guide
Updated: July 10, 2023
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Blockchain is a distributed digital transaction system that provides confidentiality, authentication, and security. The system records each transaction in a network in a way that is impossible to change. Blockchain also ensures that your identity is anonymous. Therefore, you can transact without worrying about your security or that of your transaction.
This article introduces you to Cardano, one of the world’s current leading and largest blockchain platforms.
Start trading cryptocurrencies right now with Binance!
Your capital is at risk.
How to Buy Cardano (ADA)?
If you are unsure about buying Cardano, there is no need to worry. Buying Cardano is the simplest thing you will ever do. All you need is your details, some cash, and the following five steps.
1. Open an exchange account
First, search for an online crypto exchange site that supports ADA. Open an account with this site. You will provide personal information like your legal name, some form of identification, social security number, and phone number. Note that these requirements might vary depending on the site that you are using.
2. Gain a trading approval
After opening your exchange account, request Buying the permission to buy crypto on the site. For instance, if you are using Webull, which is a popular crypto exchange.
You can do the following:
-
Click on the site’s icon
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Click on More
-
Click on Crypto Trading. This action will send a request, which, when accepted, will enable you to buy or sell crypto at any time.
If you are new to cryptocurrency or familiar with the stock market, then it is worth noting that crypto regulation has no commission.
3. Buy a wallet (optional)
The second step is to buy a wallet to store your ADA cryptocurrency after purchasing it. This step is optional. However, the wallet will protect your crypto through private key management, which is more secure than just leaving it on the exchange.
4. Add funds to your account
Think of this step as depositing money into your account. You can do an electronic or wire transfer from your bank account. Some exchanges also accept online transfers like Paypal and Skrill. Check with your exchange site to see the deposit methods that they support.
5. Select your purchase method
There are two purchase options for buying Cardano (ADA): market or limit orders.
Market order
A market order allows you to buy ADA at the current market price at your time of purchase. You should, however, note that this price will change if the cost of the crypto changes during your order’s execution.
Limit order
Unlike a market order, which results in the immediate crypto purchase, a limit order allows you to buy Cardano (ADA) when its price is at a specified amount. You set this amount.
6. Monitor your crypto
You can also decide to monitor the price of Cardano before purchasing it. In this case, your purchase decision is from an informed perspective. Think of this activity as the period between checking for items in different online stores and ordering them. You can set alert notifications for price changes and also access key statistics as you monitor your crypto.
7. Purchase ADA
The final step is to purchase ADA. You can do this by converting your local currency to ADA. Remember that these funds are from step 4. Just navigate to the Cardano page of the exchange site you’re using.
8. Market Analysis
You can do the following:
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Cardano’s current market ranking is at position 3
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As of 27th January 2023, the ADA cryptocurrency had a 24-hour value range of $2.19-$2.29. The token also had an estimated market cap of $70.3 billion, a 24-hour trading volume of $2.6 billion, and a circulating supply of 32,066,390,668
-
Cardano ADA has a current Fully Diluted Valuation (FDV) of approximately $98.7 billion FDV = Current Price x Max Supply. Note that Cardano will reach its FDV value after three or more years, depending on the crypto’s emission schedule
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Cardano ADA has 497 exchanges
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Cardano has had a net network growth of 1.47%
9. Funding Account
The Cardano Foundation funds the Cardano ecosystem.
10. Buying Cardano (ADA)
You can buy Cardano (ADA) on any crypto exchange that supports it. We recommend using Binance or Webull.
Where to Buy Cardano (ADA) at the Best Price?
Binance
The current best exchange for buying Cardano (ADA) is Binance.
Binance is also the world's largest crypto exchange. The exchange is simple and easy for new cryptocurrency traders. Additionally, Binance offers a two-factor authentication that reinforces its users' security and privacy.
Binance's strength is that it provides more than 50 crypto exchanges at low trading prices. However, the exchange is unavailable in seven U.S. states, including Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont.
Your Binance account can only hold a minimum of $10. Your Binance account can only have a minimum of $10. Also, expect to pay a fee of 0.1-5% depending on your payment method
Webull
Like Binance, Webull is the best exchange platform for beginners and those who want to trade at low prices. The site has no minimum deposits, is commission-free, and offers free real-time investment quotes. However, you will not access joint brokerage accounts or mutual funds when you trade on Webull.
What is Cardano (ADA)?
Cardano is a distributed public blockchain platform and the result of peer-reviewed academic research. Specifically, the platform is the first Haskell blockchain. Cardano is also among the few blockchains that do not support crypto mining.
Cardano History
The blockchain also has a cryptocurrency named after the pioneering English mathematician and writer Ada Lovelace. Cardano's original author is also Ethereum's co-founder, Charles Hoskinson. Mr. Hoskinson developed the platform in 2015, but the Cardano Foundation released it to the public in 2017. Cardano's development is still in progress.
What Problems Does Cardano Fix?
New blockchains and cryptocurrencies are popping up at a faster rate than a decade ago. Yet, the million-dollar question that still stands is, what distinguishes a blockchain from other blockchains? Take Cardano, for example. The blockchain’s uniqueness is in its technological and conceptual innovation.
By basing his platform on peer-reviewed and established research, Hoskinson developed a blockchain that solved privacy, regulation, governance, and funding issues.BuyingMoreover, Cardano’s development is still ongoing, and its latest stable release was in January 2023.
In this section, we outline some of the existing blockchain problems that Cardano fixes. We also show how the platform’s technological innovation differentiates it from other blockchains. After all, uniqueness is one of the most distinguishable qualities of a blockchain.
Technological Innovation
The main difference between Cardano and other blockchain platforms is the protocol it uses. Unlike Blockchain and Ethereum, which use proof-of-work protocols, Cardano uses a proof-of-stake protocol. In a proof-of-work protocol, the two transacting parties comprise a prover, which shows the verifiers that they have computed a transaction.
The verifiers then confirm that this proof is also authentic from their side. It is worth noting that proof-of-work protocols require zero cryptographic knowledge, and all you need to do is expend some effort to prove it. Hence, it is easy for individuals to mine cryptocurrencies on such platforms as each miner's success is proportional to their action.
In contrast, proof-of-stake protocols are consensus-based. This technology means that no one can validate a Cardano transaction unless authorized to do so. Therefore, a transaction’s validators must have shareholdings in the cryptocurrency.
Proof-of-stake protocols also add a layer of security to the platform. Hence, anyone who wants to validate a transaction should purchase a significant amount of Cardano tokens and receive authorization. Cardano’s proof-of-stake protocol is the Ouroboros.
Like the emblematic serpent symbol, which represents eternity and endless return, this group of protocols can run both permissionless and permission blockchains.
Additionally, Cardano’s design focused on speed, flexibility, and scalability. The blockchain can adapt to changing demands, upgrade through soft forks, and evolve quickly.
Conceptual Innovation
Privacy and regulation
Cardano’s proof-of-stake protocol provides the right blend of privacy and regulation. Specifically, the platform requires cryptographic knowledge proof and authorized regulators.
Governance
Blockchain technology has a decentralized network that relies on crowd-based governance. However, such management can be problematic at times. Case in point, both Bitcoin and Ethereum experienced challenges when upgrading their networks. Cardano provides an airtight governance model that enables its community to make democracy-based decisions.
Funding
Cardano can adequately fund its running and investment costs.
ADA Token Profile
A token is a blockchain’s cryptocurrency. In Cardano’s case, this token is ADA. ADA allows you to send value to your friends or family, pay for goods or services, or deposit funds on crypto exchanges. The token’s intrinsic value is less as compared to its face value.
So, like any token-based ecosystem, ADA’s value varies depending on demand, scarcity, or utility. Also, ADA has its cryptocurrency wallet named Daedalus.
| Ticket | ADA |
|---|---|
Max supply |
45,000,000,000 |
Total supply |
32,704,886,184 |
1-year price low |
$0.2421 |
1-year price high |
$0.4522 |
Current Price |
$0.38 |
Market cap |
$13 759 615 822 |
Markets |
Binance, Huobi Global, Coinbase |
Cardano VS Ethereum
The race between Cardano and Ethereum is highly competitive, with both cryptocurrencies fighting to win.
We compare four properties of Ethereum and ADA: layer design, protocol, smart contracts, and supply.
Layer Design
ADA uses a dual-layer design that executes computations and settlements separately. In contrast, Ethereum uses a single layer environment that performs all calculations at the same time. The dual-layer makes Cardano’s transactions more efficient.
Protocol
Ethereum uses a proof-of-work protocol that makes it possible to mine more crypto. On the other hand, ADA uses a proof-of-stake protocol that prohibits mining. ADA’s technological innovation is, therefore, an improvement of Ethereum’s technology. For instance, ADA is more secure than Ethereum.
Smart Contracts
Smart contracts are programs that automate the execution of agreements on a blockchain network. Ethereum boasts of an established smart contract system that makes it faster and transparent. On the other hand, Cardano is yet to introduce smart contracts to its design.
Supply
A cryptocurrency’s supply can either have a limit or no limit. Ethereum has an unlimited supply, while ADA has a limited supply.
Generally, Ethereum has an economic advantage over ADA. For instance, Ethereum has an established network and market. However, Cardano's technological innovation promises a faster, secure, and more efficient network.
So which token is better? The question's answer depends on your reason for investing in cryptocurrencies. If you are patient or looking for a long-term investment, ADA is your crypto.
If you want an established token whose market value is high, think about Ethereum. The other alternative is for both tokens to co-exist. Think of this option as a win-win investment.
Should You Buy Cardano?
There are numerous factors to consider before purchasing Cardano. First, the ADA token is eco-friendly. The cryptocurrency’s proof-of-stake protocol ensures that more miniature devices verify transactions at any given time.
Therefore, Cardano expends less energy than proof-of-work cryptos like Bitcoin and Ethereum.
The other reason for investing in Cardano is that its token’s value has rapidly grown within a short time. Cardano has been operating for three years. During this time, its value increased from zero to approximately three dollars. Generally, Cardano is a promising investment.
Cardano also has various use cases in different sectors. For example, in healthcare, the blockchain can authenticate the purchase of pharmaceutical products. In finance, Cardano is being used to demonstrate people’s creditworthiness and to record their identities. Likewise, in agriculture, Cardano provides a reliable supply chain.
However, you should remember that the cryptocurrency market is still emerging, and most token prices are unstable. Buying Cardano does not guarantee that your token value will be either high or low. We advise you to monitor the crypto exchange market before purchasing Cardano. Look for the best prices or better offers.
Cardano (ADA) Performance
Cardano (ADA) is performing well for a new cryptocurrency. For example, in January 2023, the crypto's value surged by approximately 100%. ADA's open-source nature also makes it possible for anyone to develop it further. The figures below show Cardano's (ADA) performance from 2020 to 2023.
| ADA | |
|---|---|
1m return |
22.36% |
1y return |
18.56% |
Top 10 Best Cryptocurrencies to Invest in
We have compiled the top 10 best cryptocurrencies that an individual can consider while investing in crypto. We selected these cryptos based on their performance, technology, and popularity among investors. However, you should remember that buying cryptocurrencies is a high-risk investment that you should plan for it. Thus, consider our list as a pointer that points out other cryptocurrencies and not financial advice.
| Cryptocurrency | Industry | Current price | 1y return | 1m Return | Total score | |
|---|---|---|---|---|---|---|
|
Binance Coin (BNB) |
Cryptocurrency exchange |
228.50$ |
-24.87% |
0.26% |
9.5 |
Invest |
|
Cardano (ADA) |
Blockchain platform |
0.38$ |
18.56% |
22.36% |
9.2 |
Invest |
|
Ripple (XRP) |
Payments |
0.61$ |
42.91% |
0.66% |
9 |
Invest |
|
Dogecoin (Doge) |
Payments |
0.08$ |
-19.63% |
19.52% |
8 |
Invest |
|
Polkadot (DOT) |
Blockchain platform |
5.47$ |
-2.69% |
14.59% |
8 |
Invest |
|
LItecoin (LTC) |
Payments |
71.57$ |
-8.52% |
2.26% |
7.6 |
Invest |
|
Stellar (XLM) |
Payments |
0.00$ |
NaN% |
NaN% |
7.5 |
Invest |
|
Uniswap (UNI) |
Decentralized exchange |
0.00$ |
NaN% |
NaN% |
7.4 |
Invest |
|
Tron (TRX) |
Blockchain platform/Media |
0.00$ |
NaN% |
NaN% |
7 |
Invest |
|
IOTA (MIOTA) |
Internet of Things |
0.00$ |
NaN% |
NaN% |
6.9 |
Invest |
Summary
Note that the information provided in this article is an education piece and not financial advice on Cardano and its cryptocurrency, ADA. Overall, it is worth considering Cardano (ADA) for cryptocurrency investment.
Cardano provides a secure, efficient, and fast blockchain platform. ADA’s token value is also increasing rapidly. However, the decision to invest in ADA is yours and should depend on thorough market research.
FAQs
What is Cardano (ADA)?
Cardano (ADA) is a cryptocurrency hosted on the Cardano blockchain platform.
Is Cardano (ADA) secure?
Yes, Cardano (ADA) is secure. The crypto’s transactions require ten network confirmations. Also, Cardano built ADA on the Ouroboros protocol, which is has a proof-of-stake consensus that provides unparalleled security and stability.
Can I mine Cardano?
You cannot mine Cardano. Unlike other cryptocurrencies, which use the proof-of-work protocol, Cardano’s proof-of-stake consensus prevents anyone from adding new cryptographic blocks to the network.
Is investing in Cardano worth it?
Yes. Cardano’s future is promising. The cryptocurrency is currently performing well and is the largest blockchain network in the world. Cardano’s growth has also been positive. For instance, crypto has gone from pennies to more than a dollar within a short period. Thus, Cardano is a worthy investment.
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Team that worked on the article
Andrey Mastykin
Author, Financial Expert at Traders Union
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
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.
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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.