How to buy Cardano (ADA) – A Beginner’s Guide
By: Ofir Beigel | Last updated: 4/23/20
Cardano is an open-source, decentralized cryptocurrency that began in 2015 and only became available for trading on October 2017. In this post I’ll explain a bit about what Cardano is, its currency (ADA) and how to buy it online.
How to Buy Cardano Summary
Here’s how to buy Cardano (ADA):
- Get a Cardano wallet (Daedalus)
- Locate your ADA address
- Find an ADA exchange (Coinmama)
- Withdraw the ADA to your wallet
If Coinmama doesn’t work out for you here are a few additional buying options:
That’s how to buy Cardano in a nutshell. If you want a deeper explanation of Cardano and the buying process keep on reading, here’s what I’ll cover:
- What is Cardano
- How to buy ADA in 3 steps
Cardano is a cryptocurrency and smart contract platform that aims to solve the issues confronted by the current smart contract leader – Ethereum.
Cardano has a foundation layer that, similar to Bitcoin, is used for settling payments. On top of that there is a control layer which runs smart contracts. It’s as if you rolled Bitcoin and Ethereum into one network.
Cardano aims to create a cryptocurrency and smart contract platform that is sustainable, scalable and interoperable (i.e. to allow the exchange of assets between different blockchains, similar to atomic swaps).
The platform uses ADA as its currency in order to run smart contracts, similar to how Ether is used to run contracts on Ethereum. The ADA circulation is limited to 45 Billion coins.
Cardano was created by the company IOHK (Inputs, Outputs, Hong Kong) and Charles Hoskinson, its CEO, which has been one of the pioneers of Ethereum as well.
Cardano works on a Proof-of-Stake model, which means that instead of mining, you can stake your Cardano in order to participate in the consensus process of the network. The process of staking your Cardano will allow you to generate income from it, however you’ll need to stake a large amount of Cardano to make it worth while.
Cardano and ADA have made their way to the top of the cryptocurrency charts while trying to win the battle for the best smart contracts platform alongside EOS, IOTA, NEO and more. The first official use case of Cardano was announced in December 2017 with the potential for Greek student diplomas to be stored and verified on the Cardano blockchain.
Cardano is a young project that’s still very much under development. For this reason, there are very few wallet options available for storing ADA, the Cardano currency.
Cardano Hardware Wallets
If you’re looking for a secure solution to store your ADA you can use a hardware wallet. Hardware wallets keep your private keys offline on the hardware device itself. This makes hardware wallets much more resistant to hacking than software wallets that are connected to the Internet.
Cardano Desktop Wallets
Daedalus is the official Cardano desktop wallet, Daedalus can be downloaded via its official website. It’s an open-source cryptocurrency wallet for ADA. The idea behind the wallet is that it will grow with the community, becoming a universal wallet, blockchain application platform, and app store.
Daedalus wallet is available for Windows and Mac.
Atomic Wallet is a software wallet available for desktop and mobile that allows you to store ADA and over 300 additional cryptocurrencies. The wallet also allows you to exchange your assets via non-custodial Atomic Swap with a decentralized order book.
Locate Your Cardano Address
Once you have your Cardano wallet make sure to locate your ADA address. It’s a very long string of letters and characters that starts with a “D”. Here’s an example:
Surprisingly enough, there aren’t many places you can buy ADA. Thankfully, you do have the option of several established cryptocurrency exchanges:
eToro is probably the easiest way to go if you’re into Cardano only for speculative reasons (buying low and selling high for a profit). eToro, one of the leading companies in the cryptocurrency space, gives users the option to buy and sell many different coins at low fees and with a variety of payment options (PayPal, credit card, etc.).
The main thing to keep in mind when dealing with eToro is that you won’t be able to withdraw the coins themselves to your own wallet. With eToro you can only withdraw fiat currency (i.e. USD, EUR). Therefor, if you’re using eToro you can skip Step 1 of getting a wallet.
You can read my complete eToro review here.
Be advised – cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Keep in mind that your capital is at risk.
Coinmama is one of the oldest crypto exchanges around. Coinmama acts as a broker, meaning they instantly send you your coins instead of holding them in a dedicated account like other sites may do.
Coinmama allows you to buy Cardano with a credit card, debit card or SEPA transfer. Verification is relatively quick and the fees are pretty low compared to the competition. You can read my complete Coinmama review here.
Binance is a Shanghai-based cryptocurrency exchange that has become one of the most popular crypto exchanges around. On Binance, you can find dozens of cryptocurrencies, including ADA, that can be bought with BTC or ETH.
Recently Binance added the option to buy coins from its exchange with credit or debit card, however it’s not possible to buy ADA this. What you can do, is buy Bitcoin with a credit card and then exchange it to Cardano. You can read my complete Binance review here.
Here’s how to buy Cardano on Binance:
- Sign up to Binance
- Go to “Funds” -> “Deposits” and locate your Bitcoin address
- Deposit Bitcoin to your Binance Bitcoin address
- Wait for the coins to show up in your account
- Go to “Exchange” -> “Basic”
- Search for the ADA/BTC pair
- Go to “Market” and type in the amount of ADA you want to buy
- Click “Buy ADA”
Bittrex is a US cryptocurrency exchange with a huge number of cryptocurrencies listed. On Bittrex you can buy ADA by trading it for BTC, USDT and also USD. Bittrex accepts wire transfers only. You can read my complete Bittrex review here.
Buy Cardano with cash
There isn’t currently a way in which you can buy Cardano ADA with cash. What you can do is buy Bitcoin with cash then exchange it for Cardano on one of the cryptocurrency exchanges listed above.
How to Buy Cardano with PayPal
It’s not yet possible to buy ADA directly with PayPal. The only possible option is through eToro but then you won’t be able to withdraw the coins. It’s expected that there will be more options in the future, as cryptocurrencies continue to grow in popularity.
Step 3 – Withdraw the ADA to your own wallet
Once you’ve finished buying ADA make sure to move the coins to your own non-custodial wallet (i.e. a coin that gives you access to your private key). Leaving your coins on an exchange exposes you to the risk of fraud or theft (which have happened numerous times in the past).
One the coins hit your wallet, you’ve successfully completed the process of buying Cardano.
Cardano is a cryptocurrency that continues to grow in popularity. While it’s still at an early stage, the project shows some promise and should become easier to buy, sell, and store as cryptocurrency enjoy more widespread adoption.
It’s hard to say if Cardano will continue to stay in the top of the cryptocurrency list in the future, with such fierce competition from Ethereum, IOTA, EOS and others.
Have you used any of the above wallets or exchanges? What do you think of Cardano as a project? Let me know in the comments below!
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