How to Buy Cardano? ADA Currency Overview
Ranked in the top 10 cryptocurrencies, Cardano is one of the fastest-growing blockchain platforms that have Decentralized Finance (DeFi) investors singing its name. But can Cardano live up to the hype, or will the competition crush it through adoption? Only time will tell.
We’ll explain the Cardano ADA token and its benefits, risks, and uses. We’ll also cover the easiest way to buy Cardano tokens from a cryptocurrency exchange.
What is Cardano?
A co-founder of Ethereum, Charles Hoskinson, developed the Cardano blockchain network. One of the first blockchain network platforms to use the Proof-of-Stake (PoS) consensus mechanism, Cardano is more efficient than the Proof-of-Work (PoW) algorithm networks used by early cryptocurrencies like Bitcoin.
Cardano’s native token ADA fuels its platform, smart contracts, and decentralized applications (Dapps). With a current market cap (as of March 7, 2022) of $26.8 Billion and a $1B trading volume, Cardano has cemented itself as a solid crypto asset.
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Benefits of Investing in Cardano
The key benefits of investing in the Cardano ADA token include:
- Stakings Your Cardano Tokens: Staking is part of how the proof-of-stake blockchain works. Investors can stake their ADA tokens back into the network and receive high yields returns for allowing the network to use the tokens. You can stake your tokens for only a few days or years for an even higher yield.
- Sound Development and Leadership: Cardano’s team has some of the best and brightest developers in the blockchain technology industry.
- Not a Risky Token: With a huge market cap and a best-in-class proof-of-stake algorithm, Cardano is considered a safe cryptocurrency investment. However, cryptocurrency prices are very volatile, and one should do their research before buying.
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Risks of Investing in Cardano
While considered a safe investment, Cardano isn’t without its risks:
- Big Promises and Slow Development: Cardano’s team has outlined an ambitious and groundbreaking technology, but the team is slow to roll out iterations of the network’s promised potential.
- Competition: Many other blockchain platforms are also chasing a better protocol algorithm, including Ethereum, which could drown out Cardano’s chance to take Ethereum’s place. Other stiff blockchain technologies, including Polkadot, Solana, Avalanche, and Polygon, are all gaining ground and fighting for market share.
- Adoption: Blockchain technology and the PoS mechanism can potentially disrupt many centralized services by eliminating costs and other impediments. But people don’t understand how and may be slow to adopt, allowing centralized services to dominate transactions that require trust and reliability.
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How to Buy Cardano
1. Buy the Token Through an Exchange
To buy Cardano’s ADA cryptocurrency, you need to purchase the token from a centralized or decentralized exchange. The good news is because it is one of the largest cryptos, you can trade or swap for it on almost every exchange. So then it comes down to your exchange preference:
Buying Cardano from a Centralized Cryptocurrency Exchange
Probably the easiest way is to use a centralized exchange. This, of course, assumes that you have an account with one of the following centralized exchanges:
Centralized exchanges allow cash purchases, or you can trade another crypto token for ADA. If you choose a fiat currency (cash), you can purchase ADA using your preferred cash payment method that the exchange allows, such as:
- Direct from your bank
- Debit/Visa Card
Buying Cardano Tokens from a Decentralized Exchange
While decentralized exchanges don’t allow fiat currency, they will enable you to trade other cryptocurrency tokens for the ADA token. The main benefit of using a decentralized exchange is lower trading fees.
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2. Storing Your ADA Tokens in Your Crypto Wallet
Once you’ve purchased or traded for your ADA tokens, you’ll need to store them in a cryptocurrency wallet. There are several types of crypto wallets you can use:
Store on an Exchange Wallet
If you have an account with the exchange, you can store your ADA tokens securely in the exchange wallet. This is nice because you can easily access your tokens when you want to trade, stake, farm, or cash out of your tokens.
Store in a Personal Crypto Wallet
Many investors like to use a personal cryptocurrency wallet for added security. There are two types of personal crypto wallets:
- Hot Wallet: Hot wallets are digital wallets that you can access from the Internet. The beauty of this wallet is that you will never lose it. Although if you forget your password or private key phrase, you could be in trouble. These types of wallets also run the risk of being hacked. Never give your security private keys to anyone.
- Cold Wallet: This is a digital wallet stored on a physical hardware device that can be removed from connectivity. This makes it more secure from being hacked. But you can risk misplacing your device, and then you’re in trouble.
Whether you decide on a hot or cold wallet is a personal choice, both have their pros and cons.
Cardano is a Solid Cryptocurrency Investment Choice
Cardano is a solid token to add to your cryptocurrency investment portfolio. Considered a safer investment, Cardano is great for investors that are interested in staking their tokens for a long-term investment.
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