Cardano is a cryptocurrency network and open source platform that uses the Outboros proof-of-stake technology to provide a more secure blockchain that is less prone to tampering. Cardano’s underlying technology also allows developers to execute end-to-end tests on their programs without deploying the code. The goal of the Cardano network is to create and run a public blockchain platform for smart contract-derived applications.
Cardano’s system runs on its underlying coin — Ada, which is traded on major exchanges and holds value. If you’re passionate about the Cardano network project and its technology, investing in the Cardano coin can be an excellent way to both support the project and potentially earn money if the price of the coin rises in value as interest increases.
Expand your token holdings beyond Bitcoin and Ethereum with Cardano. Our guide can show you how to buy Cardano and help you determine where and how you should store the coins you purchase for maximum security.
Step 1: Open an online account.
The 1st step to purchasing Cardano is to open an account with a crypto broker that supports the Cardano token. After creating and funding your account, you’ll instruct your broker to use your fiat funds to purchase the tokens you’re interested in using an order.
Opening an account with a crypto broker is very simple. To get started, gather a bit of your personal information. When you 1st open your account, you’ll usually need to provide:
- Your full legal name
- Your current address
- An email address and phone number
- Some form of payment method to fund your account (most brokers support both credit cards and direct banks transfers)
- A copy of some form of photo ID (most brokers accept driver’s licenses and passports)
After you have your information ready, choose a broker that supports the purchase and sale of Cardano. If you aren’t sure where to begin, consider a few of our top choices below.
eToro is a cryptocurrency trading platform best known for its revolutionary “CopyTrader” technology. CopyTrader allows you to “copy” the moves of professional traders — simply select a trader from eToro’s professional trader community and click the “copy” button to instantly copy this trader’s moves going forward. This can be an excellent feature for investors who are new to crypto trading and not yet confident enough in their skills to rely on their own analyses.
In addition to CopyTrader functionality, eToro also offers a clean and intuitive interface that’s ideal for beginners, as well as access to 15 of the most popular coins.
Kraken is a cryptocurrency platform where you can buy or sell the cryptocurrencies using various fiat currencies like U.S. dollars, Canadian dollars, euros and the Japanese yen.
It offers a variety of features and account types for both individual and firm investors. You’ll find stop-loss and profit-taking order types, as well as leverage and margin-based trading and automated strategy trading in addition to its pool of cryptocurrencies.
Step 2: Buy a wallet (optional).
After you open your broker account, you’ll need to select a wallet to store your cryptocurrency on. While you can store your crypto on your broker’s trading platform, keeping your coins in a private wallet will greatly decrease the possibility of losing money to a hack.
There are 2 major types of cryptocurrency wallets:
- Hot storage. Hot storage wallets are wallets that must connect to the internet in order to show you your coin balance.
- Cold storage. Cold storage wallets are cryptocurrency wallets that are not connected to the internet.
Hot wallets are easier to access and hold more tokens but are more susceptible to hackers. We recommend using a cold storage wallet for the highest possible level of security. Here are a few of our favorite cold storage wallets to consider for your Cardano coins.
Best for Crypto Choice: Ledger Nano X
If you’re looking for a one-stop-shop for all of your crypto cold storage, the Ledger Nano X might be the right choice for you. The Nano X supports over 1,200 individual cryptocurrencies, and you can install upwards of 100 decentralized apps on your device.
The Nano X even offers Bluetooth compatibility, which makes it easier to transfer your coins after you make a new purchase. With a wide range of application choices, highly secure cold storage and easy connectivity features, the Nano X’s $118 price tag can be worth the expense.
Best for Touch Screen Displays: Trezor Model T
The Trezor Model T is another popular cold storage option, with cutting edge technology and secure cold storage for your coins. The Trezor Model T features a quick and easy setup, which can have you managing your coins in as little as 3 steps and a few minutes.
The Model T’s most notable feature is its large touchscreen display, which makes it easier to manage your coins without connecting to a computer.
Step 3: Make Your Purchase
Once your account is open and your wallet is set up, it’s finally time to purchase Cardano. You’ll purchase Cardano by placing an order through your broker using its unique trading platform.
Most brokers allow you to choose between multiple order types, and the order type you choose when you place your order will determine how much you’ll pay for each coin that you purchase.
Here are 2 of the most common types of orders your broker might offer access to:
- Market order. A market order tells your broker that you want to purchase a set number of Cardano coins at the current market rate. When you place a market order, you’ll only need to specify which coin you’re buying and how many coins you want to purchase. Your broker will then fill the order as soon as possible.
Market orders are more likely to be filled than other types of orders like limit orders because they don’t specify a price your order must be executed at. However, you might pay more for each coin than you see on your brokerage platform because market conditions can change at any moment.
- Limit order. A limit order tells your broker that you want to purchase a set number of Cardano coins but only at or below a specific price. When you place a limit order, you’ll need to specify which coin you’re buying, how many coins you want to purchase, and the maximum price that you’re willing to pay for each coin.
For example, if you place a limit order for 300 Cardano coins at $.10, your broker will fill your order if they can purchase each coin for $.10 or less. If the market price moves above $.10, the broker will not fill your order.
Limit prices allow you to implement strict controls over how much you pay per coin. However, if the market price moves above your limit price, you might not have the opportunity to purchase the tokens you’ve ordered.
After you place your order, your broker will execute the order if possible. When your order is executed, you’ll see your coins in your brokerage account.
Trade or Sell Your Cryptocurrency
After your order closes, you’ll need to decide whether you want to become an active cryptocurrency trader or if you want to hold onto your coins and sell them at a later date. If you want to trade your cryptocurrency, keep track of how the Cardano market is moving and convert it to a stablecoin (like Tether) when the price rises.
Most cryptocurrency traders then hold onto their stablecoin until the price of Cardano falls again. The goal of trading is to accumulate more Cardano coins or to cash out the differences in their stablecoins.
If you decide to hold onto your Cardano, you should move your coins to a cold storage wallet. This provides you with private keys necessary to access your coins and prevents the possibility of a hack. When you decide to sell your coins, transfer your coins from your cold storage back to your trading account and convert them back to fiat currency.
Current Crypto Prices
Keeping track of how cryptocurrency prices are changing can help you determine the most advantageous time to buy in. Browse a few of the top cryptocurrencies and current market rates below.
Invest with ADA
There are thousands of cryptocurrencies on the market, and no single broker can carry all options. If you know that you want to add multiple cryptos to your portfolio, be sure that your broker supports the coins you’re interested in. You might need to purchase multiple wallets to support all of your coins depending on the options you choose.
Expand your investment in the cryptocurrency market today with Cardano.
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