Wondering how to buy Cardano? You can buy ADA on eToro and Coinbase!
One of the biggest problems legacy blockchains face when adapting to new demand is scalability. Both Ethereum and Bitcoin are proof of work cryptocurrencies which only allow for a few transactions per second. Plus, proof of work consensus uses extreme amounts of electricity –– Bitcoin’s network alone consumes more electricity than most countries.
Cardano uses an eco-friendly proof of stake (PoS) consensus model to secure its blockchain, and some speculate the project will be an alternative payment method to Bitcoin. However, the cryptocurrency more closely competes with Ethereum, as it seeks to build a more scalable decentralized finance ecosystem. The Cardano blockchain uses a native cryptocurrency asset called ADA to power its platform, whose price indirectly reflects demand for space on the blockchain.
Find out about more about Cardano’s blockchain and how to buy Cardano (ADA) today.
What is Cardano?
Cardano is a public blockchain for settling payments that recently completed its “Alonzo” hard fork which introduced smart contracts onto the network. Much controversy has surrounded the launch of these smart contracts, as they aren’t yet capable of supporting DeFi applications at scale. Cardano looks to solve this issue with layer 2 solutions later this year, similarly to the Ethereum 2.0 upgrade.
Cardano’s blockchain uses proof of stake to verify its integrity. Proof of stake is not only environmentally friendly, but it allows for faster and cheaper transactions than proof of work cryptocurrencies. Coin holders can stake their ADA for the right to verify transactions and earn the transaction rewards. Cardano uses a tiny sliver of the energy that Bitcoin does at the cost of a slightly less decentralization. When it comes to blockchains, decentralization leads to security.
Understanding Proof of Stake
“Stakers” in a proof of stake (PoS) network are like the miners in proof of work (PoW) network. Staking avoids the energy-intensive algorithms run by PoW miners who race to verify the chain’s integrity. Instead of using intensive computing to incentivize truthfulness, stakers lock up tokens which can be slashed for misbehavior. This results in a similar incentive structure with drastically less energy consumption.
It’s hard to imagine that a DeFi ecosystem similar to Ethereum’s won’t emerge on Cardano soon after the platform scales. ADA holders certainly have a lot to look forward to in the 2nd half of 2021.
Brief History of Cardano
Charles Hoskinson was 1 of 8 co-founders of Ethereum, but left the project in 2014 when Vitalik Buterin opted to make Ethereum a non-profit organization. This disagreement led Hoskinson to start his own smart contract blockchain competitor, known as Cardano. Cardano began development in 2015 and launched in 2017, although smart contracts are still not supported by the network.
Cardano opted to launch its network with multiple layers. The Cardano settlement layer handles ADA transactions, while the Cardano Computation Layer handles smart contracts. The Cardano Settlement Layer launched in 2017 along with the ICO of its native asset, ADA, which conducted its initial coin offering at $0.02 per token. Since then, ADA has appreciated over 5,000% making it the 4th largest cryptocurrency by market cap.
How to Buy Cardano (ADA)
- Open an online exchange account.
Since Cardano is a top cryptocurrency project, it’s offered on most large exchanges. eToro and Coinbase are both solid options, and they offer simple user interfaces that are easy for anyone to get started on. However, eToro has more advanced trading options, and CopyTrader let’s investors copy the trades of other traders, or simply get trade ideas from the platform.
After you have your information ready, choose an exchange that supports the purchase and transfer of ADA. If you aren’t sure where to begin, consider a few of our top choices listed below.
- Buy a wallet (optional).
If you’re purchasing Cardano as an investment, then you’ll want to protect it by keeping it in a wallet where you manage the private key. After you purchase ADA from your exchange, they’ll typically hold it for you on an exchange wallet where you don’t know the private key. This is convenient for trading, however, leaving it on the exchange makes it much more vulnerable to hacks.
Your best bet for the most security it to purchase 1 of the cold storage wallets listed below. Cold storage means your private key will never touch the internet, and cannot be stolen that way. Just make sure to follow the guidelines for backing up your cold storage wallet in case you lose it.
- Make Your Purchase
Now that you’ve set up a funded exchange account and have a safe place to store your valuable coins, it’s time to convert some USD to ADA. Simply navigate the Cardano page on your exchange and make your purchase.
Recommended Crypto Exchanges for Cardano
Take a look at some of the cryptocurrency brokers and exchanges that offer ADA.
Disclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
eToro
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.
Coinbase
Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Cardano and Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs.
You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality as well as lower fees.
Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.
Best Crypto Wallets for ADA
You shouldn’t store your cryptocurrency assets on an exchange, as they’re large targets for hackers. Exchanges hold custody of your crypto, so if a security breach occurs you could be left coinless. To mitigate this risk, you should store your cryptocurrency in a dedicated wallet. The 2 most popular types of crypto wallets are hardware and software wallets.
Software wallets are free to use, and you can download them on your phone or desktop. While these wallets are generally secure, the safest way to store crypto is on a hardware wallet. Hardware wallets store cryptocurrency offline, making it impossible for online hackers to access your funds. Check out our top cryptocurrency wallet picks to store your crypto safely.
Best for Mobile Use: 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.
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 to lock in gains.
Most cryptocurrency traders then hold onto their stablecoin until the price of Cardano falls again. Some cryptocurrency traders play the markets to accumulate more coins, while others are short-term traders looking to lock in profits in fiat currency.
If you decide to hold onto a chunk of your Cardano for the long haul, you should move your coins to a cold storage wallet. This provides you with private key necessary to access your coins and mitigates the possibility of being hacked. 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.
securely through eToro’s
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Disclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since 2007. A major eToro plus is its social trading operations, including OpenBook, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features
Best For
- U.S. based cryptocurrency traders
- Social and copy traders
- Simple user interface
- Community engagement and following other traders
- 25 cryptocurrencies
- Expansive network of social trading features
- Large client base for new traders to imitate
- U.S. traders can only buy cryptocurrency
Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs.
You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.
Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.
Best For
- New cryptocurrency traders
- Cryptocurrency traders interested in major pairs
- Cryptocurrency traders interested in a simple platform
- Simple platform is easy to operate
- Comprehensive mobile app mirrors desktop functionality
- Coinbase Earn feature rewards you with crypto for learning about available coins
- Higher fees than competitors
Crypto futures traders
Kraken is a cryptocurrency that offers access to more than 50 supported coins and tokens, staking capabilities, futures trading and more. Kraken offers a variable maker-taker fee schedule, which often results in lower fees compared to flat-rate brokerages.
In addition to a wide range of crypto choices, Kraken offers customizable ordering platforms and mobile apps that you can use to fully refine your trading experience. There’s plenty to love about trading on Kraken. It appeals to both seasoned professionals and new investors looking to learn more about the market.
Best For
- Cryptocurrency investors looking for a wide selection of supported assets
- Crypto futures traders
- Beginner investors looking for maximum account security
- Wide selection of supported tradable assets
- Straightforward platform is easy for new users to master
- 24/7 customer service available via live chat
- Maker-taker fee schedule may confuse some users
- No option for phone or email customer service
Current Crypto Prices
After a lull in the markets over the summer, the cryptocurrency industry has seen newfound traction leading into the end of 2021. Most cryptocurrencies are up 100% or more from their local low prices just a few months ago, and bullish sentiment has entered the market once again. With Bitcoin ETFs recently being approved by the securities and exchange commission (SEC), many investors are bullish on the asset class as a whole. Checkout the table below for real-time cryptocurrency prices.
Is Cardano a Good Investment?
Bitcoin and Ethereum currently use the energy intensive proof of work consensus model, however Ethereum plans to upgrade to proof of stake as a part of its major Ethereum 2.0 upgrade which is supposed to be completed in 2022. In the meantime, Cardano has a chance to steal new traffic that would have otherwise been built on Ethereum. This can’t happen until Cardano supports decentralized applications at scale, which is supposed to happen by the end of 2021. Regardless, Cardano’s ADA token has had a lucrative performance so far in 2021, and will more than likely continue to yield high returns throughout the remainder of the bull run.
Benzinga crafted a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offerings, pricing and promotions, customer service, mobile app, user experience and benefits, and security. To see a comprehensive breakdown of our methodology, please visit see our Cryptocurrency Methodology page.
