Bitcoin, Ethereum, and successors are notorious for their hefty energy consumption. If cryptocurrencies should come to the mainstream, they need to be eco-friendly. This is exactly the vision that drives Cardano (ADA). And that explains why it’s dubbed as a potential Ethereum killer. 

ADA is the native cryptocurrency of the Cardano blockchain. Thanks to the new wave of projects building on the Cardano blockchain, ADA is in demand. The ongoing developments on the Cardano blockchain could trigger a price hike for ADA.  If you plan to buy ADA well in advance, here is a comprehensive guide to help you out. 

1

What to Consider when Buying Cardano?

If you want to buy Cardano, here are a few things you have to consider.

The cost of buying ADA

It’s no secret that the crypto market is highly volatile. Before you jump into the purchase, make sure to check out the price charts. The price can drastically change in hours. It is sensitive to both external and internal factors.

You can expect the price to surge when a project hits a major milestone. For example, in September 2021, Cardano implemented the Alonzo hard fork. That was a big deal since it allowed smart contract functionalities on the blockchain.

The market caught a whiff of the news and sent ADA on an upward spiral. As a result, ADA hit an all-time high of $3.10 in September.

You don’t want to buy a coin when it’s overpriced. Keep close watch of the market and the project to forecast bull runs. Claim the coins early on for the best returns.

Finding a reputable exchange

There is a myriad of crypto exchanges in the market. It can be hard to choose one, given the different features, service charges, and offers. While analyzing the exchanges, always focus on safety and reputation.

Of course, no exchange is foolproof. Even large crypto exchanges like Binance and Kucoin were hacked. But the exchange’s credibility can go a long way in mitigating the losses.

To give you a better perspective, hackers stole $40 million worth of bitcoin from Binance in 2019. As unfortunate as that was, Binance reimbursed the whole amount to users, leaving them unaffected. In addition, the exchange continues to maintain a SAFU (Secure Asset Fund for Users) account to cover losses in the event of hacks.

Make sure that the crypto exchange you go for has completed auditing from reputed security companies. DEX or CEX, the longer they have been in business, the better. The team’s reputation is also a good parameter to judge an exchange.

Bonuses at crypto platforms

Crypto exchanges feature various discounts and offers from time to time. It could be a welcome bonus, referral bonus, P2P vouchers, or cashback vouchers, to name a few. Compare the offers on different platforms and claim the best discounts on your purchase.

Is the platform user-friendly?

If you are a crypto newbie, the market is scary as it is. Navigating a fiddly exchange will only add to the trouble. User-friendly interfaces can save you time and patience.

2

Where to Get Cardano?

The options you can consider if you want to get ADA are listed below.

Centralized exchanges (CEXs)

Crypto exchanges are digital marketplaces that host crypto trading. They can be centralized or decentralized, depending on who governs the platform. CEXs follow business models similar to traditional financial institutions.

ADA is listed on all popular CEXs, including Binance, Kraken, Coinbase, and Gemini. They offer services in most countries. You can purchase ADA using popular fiat or cryptocurrencies from these platforms.

One of the key features of CEXs is their user-friendly interface and bonuses. They also offer an array of staking options to earn passive income on your idle ADA. Seasoned crypto users can also flaunt their trading skills to reap lucrative returns.

Most CEXs need you to transfer the custody of your assets before trading. If you are not comfortable keeping your ADA in an exchange, you can transfer it to a non-custodial wallet.

Decentralized exchanges (DEXs) 

Decentralized Exchanges are peer-to-peer marketplaces that facilitate direct transactions between crypto traders. Here, you add two different assets to liquidity pools. This way, you can exchange them without the mediation of a central authority. Instead, smart contracts oversee the transactions.

As mentioned above, Cardano recently acquired smart contract functionality. However, DeFi services on the blockchain are yet to attain maturity. ADA is not widely available on DEXs for this reason. Cardano’s first DEX, Sundaeswap, offers the exchange of ADA for various cryptocurrencies, including SUNDAE, LQ, WMT, and CARDS.

Cardano ATMs

ADA ATMs are rare, if not unheard of. Due to the huge service fees and technical limitations, they have yet to come to the mainstream.

Staking Rewards

One of the best ways to get ADA is by staking Cardano. So-called staking rewards are a form of passive income you earn when holding Cardano. They work like interest you earn in your savings account when holding traditional money.

To start earning staking rewards you don’t have to lock up your ADA tokens for a set amount of time, which is the case with certain cryptocurrencies. You can spend Cardano as you like and still earn staking rewards for holding it.

3

The Steps of Acquiring Cardano

These are the steps you need to follow if you want to acquire ADA.

  1. Choose an exchange

Review all popular CEXs and DEXs that list ADA. Then, note down your priorities and choose a platform that best suits your requirements.

  1. Pick a currency

Do you plan to buy ADA in crypto or fiat? Choose a currency of your choice after analyzing the exchange rates.

  1. Place your order. 

Simply follow the instructions to place an order.

  1. Store ADA.

Once the ADA has been deposited into your account, safely store them in a hot or cold wallet.

FAQ

How to buy ADA?

You can buy Cardano from a centralized exchange like Binance, Kraken, Coinbase, and Gemini. Or, from Cardano DEXs like Sundaeswap. The currencies supported on these platforms vary. 

Can I buy Cardano using fiat currency?

Yes. All popular exchanges support the purchase of ADA in fiat currencies like USD, Euro, and Yen. 

Which is better to buy ADA: DEX or CEX?

Given the DeFi limitations of the Cardano blockchain, CEXs are the best places to purchase ADA. 

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