Wondering where and how to buy Cardano? You’ve come to the right place. 

Cardano is an open-source smart contract platform that provides multiple features through layered design. It’s a dApp development blockchain platform with a multi-asset ledger and verifiable smart contracts — which allows the development of a wide range of decentralized finance apps, new crypto tokens, games, etc.

The network features a native token called ADA that allows users to pay for transactions, store value, and stake on the Cardano network.

Cardano (ADA) has been available for trading since 2017. In the first quarter of 2021, the Cardano price (ADA) rallied almost 700% to set a new all-time of $1.43 – reaching a market cap of more than $45 billion.

Some explain this increase with the cryptocurrency market growth. Others believe that ADA’s surge to new highs could be motivated by the release of the Shelley mainnet in the middle of 2020, which brought staking rewards and moved the network closer to decentralization. Additionally, the increase was motivated by the anticipation for the 2021 release of the Goguen mainnet, aiming to provide more features, including the ability to build decentralized apps (dApps).

Read on to learn everything you need to know about Cardano’s blockchain and how to purchase ADA.

Let’s dive in!

What Is Cardano

Launched in 2017 by one of Ethereum‘s co-founders, Cardano is a research-driven proof-of-stake blockchain designed for running smart contracts and building decentralized applications.

Cardano is a third-generation blockchain and cryptocurrency system following Bitcoin and Ethereum, which is heavily informed by theoretical, peer-reviewed research before implementation in software. All new features are reviewed and agreed upon by academics before being used. IOHK, the company behind Cardano, has published several academic papers describing the platform and its technology.

The code for the network is written in the Haskell programming language, which is used by companies including Bank of America and AT&T.

Cardano uses proof-of-stake, which consumes less power; the network uses an algorithm called Ouroboros to choose who creates the next block and to validate blocks. Ouroboros is Cardano’s defining algorithm, the first blockchain protocol based on peer-reviewed research, and the project’s solution to proof-of-stake. It’s used to secure the network, verify transactions, and earn newly minted ADA.

The Cardano blockchain features its native cryptocurrency ADA to power its platform. You can buy, trade, and use ADA as a payment method for transactions on the blockchain.

On the Cardano platform, users need to buy ADA to make transactions, participate in governance, and earn a share of fees paid for transactions.

The Cardano protocol ecosystem is decentralized, and responsibilities are shared by Cardano’s partners: The Cardano Foundation, IOHK, and EMURGO. 

Cardano is being built in five phases toward achieving its goal.  Each of the five phases is named after an influential historical figure:

  • Foundation (Byron era)
  • Decentralization (Shelley era)
  • Smart Contracts (Goguen era)
  • Scaling (Basho era)
  • Governance (Voltaire era)

Cardano’s coin is named ADA after Ada Lovelace, a 19th-century mathematician recognized as the first computer programmer and daughter of the poet Lord Byron.

On March 1, 2021, the Cardano blockchain introduced the ability to create native tokens.

Why Should You Buy Cardano

Let’s explore some of the reasons you should start investing in ADA.

ADA is a digital asset with plenty of use-cases and a long-term strategy. Cardano blockchain is significantly more flexible, sustainable, and scalable than its peers. The platform is data-driven and peer-reviewed.

Cardano has several projects under development, including its digital art marketplace, a peer-to-peer crypto trading platform, an NFT marketplace, and a platform to trade stocks and real-world assets using the Cardano blockchain. Its NFT marketplace called CNFT.IO is live.

Cardano hosts several decentralized applications that have great potential. One of these platforms is MELD, a decentralized finance platform that allows users to lend out their cryptocurrency or use it as collateral for cash loans. MELD is funded through an Initial Stake Pool Offering (ISPO), which involves ADA holders staking their tokens in return for the new platform’s native tokens.

Another advantage of Cardano is its use of a proof-of-stake system, which is far less energy-consuming than proof-of-work. The use of this technology makes ADA one of the most environmentally friendly cryptocurrencies. 

Cardano has a strong team behind it and has already achieved a lot – the project in Ethiopia is an impressive real-world use of blockchain technology. 

However, you should also consider that Cardano is still a very young technology and investing in Cardano comes with significant risks. All cryptocurrencies are highly volatile and speculative investments. Cryptocurrency investments are subject to market risk and are not supervised by the EU regulatory framework.

How to Buy Cardano

Buying ADA is easy and similar to buying cryptocurrencies such as Bitcoin, Ethereum, Solana, etc.

Simply follow these easy steps to buy Cardano (ADA):

Step One: Choose Your Cardano Wallet

You will need a reliable cryptocurrency wallet, a software or hardware device that stores the public and private keys required to make crypto transactions for multiple reasons:

  • To store and keep your Cardano safely and securely. Many people invest in ADA with the strategy to buy and sell Cardano when the price increases. If you intend to keep your crypto for a considerably long time, you will need reliable storage for your ADA
  • To trade ADA with other cryptocurrencies
  • To earn Cardano ADA as a reward for staking coins
  • To use Cardano ADA as a payment method. You can use ADA as a currency to make online payments and complete quick transactions. These transactions will not cost you any money as they usually do when you use fiat currencies.

If you are looking for a reliable and convenient solution, make sure that the wallet you choose supports ADA and also has the following features:

  • Cardano hardware wallets — A hardware wallet is the most secure solution for storing your Cardano ADA. This is an offline method for keeping your private key away from potential hacks in contrast to software wallets, which keep it online. Some of the hardware wallets that support Cardano are Ledger Nano X, TREZOR Model T, etc.
  • Cardano software wallets — A software wallet is not your most secure option for storing ADA; however, it’s much easier to use. Examples of software wallets are Daedalus — the official desktop wallet for Cardano, Atomic, Exodus, etc.

Once you have a wallet to store your ADA, it’s time to move on to the next step.

Step Two: Choose a Cardano Exchange

There are multiple cryptocurrency exchanges where you can typically trade for ADA with fiat currency or a cryptocurrency of your choice.

Reliable cryptocurrency exchange platforms that support Cardano include CEX.io, Binance, Kraken, CoinEx, etc.

To choose a crypto exchange platform, consider the following criteria:

  • Reliability and security. Make sure that the cryptocurrency exchange you choose is a well-known, trusted, and secure platform. This is a critical point to consider even if you are planning to invest a small amount of money, let alone a large sum. 
  • Supported payment methods. Most of the exchange platforms allow users to use a variety of payments such as a credit or debit card, bank transfer, PayPal, and other cryptocurrencies. 
  • Supported countries. Make sure that the cryptocurrency trading platform you choose works in your location. Note that some of the platforms are not supported in certain countries due to regulations. For example, the EU regulatory framework is different from the US.
  • Fees. Check the platform’s fees and make sure they are reasonable and suit your needs. Also, make sure to check the market price for ADA as a cryptocurrency exchange serves as a middleman who sets the market price at which an equal number of buyers and sellers can be found. In short, a reputable exchange with the lowest fees and a reasonable market price is what you need. 
  • User experience. Finally, make sure that the exchange is user-friendly and offers convenient services. Some platforms even provide investment advice if you need one.

Once you choose the Cardno exchange, you are all set to buy your ADA cryptocurrency. Remember to transfer your funds to your wallet after buying ADA.

Step Three: Transfer Cardano to Your Wallet

Finally, once you buy ADA, you need to keep your coins in your wallet to protect them from hackers. Many exchanges allow you to keep them on the platform. However, this is a risky thing to do regardless of how reliable your cryptocurrency trading platform is. 

Once you transfer your coins to your crypto wallet, they’ll be safe and ready to use. 

Final Thoughts

Cardano is a cryptocurrency with a very bright future.

Cardano recently completed its “Goguen” phase, which brought the smart contracts to its network. It will then focus on the “Basho “phase, improving the network’s scalability through sidechains.

Cardano’s “Voltaire” phase will focus on improving sustainability and adding features to enable users to vote on maintenance and development projects.

Like every cryptocurrency, Cardano has its risks. Now that you know more about it, you can decide if buying Cardano is right for you. And if you do decide to purchase it, remember that you can easily track it on CoinStats along with all your other holdings.

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