Cardano is a cryptocurrency network and open source platform that uses Outboros proof-of-stake technology to provide a more secure blockchain that is less vulnerable to tampering. Cardano's underlying technology also allows developers to perform end-to-end testing for their programs without deploying the code. The goal of the Cardano network is to create and run a public blockchain platform for smart contract-related applications.
Cardano's system runs on its underlying coin-Ada, which trades on major exchanges and holds value. If you are passionate about the Cardano Network project and its technology, investing in the Cardano coin can be a great way to support the project and potentially make money as the price of the coin increases in value as interest grows.
Expand your token holdings beyond Bitcoin and Ethereum with Cardano. Our guide will show you how to buy Cardano and help you determine where and how to store the coins you buy for maximum security.
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Step 1: Open An Online Account.
The first step to buying Cardano is to open an account with a crypto broker that supports the Cardano token. After you create and fund your account, you instruct your broker to use your fiat funds to purchase the tokens you want to use an order for.
Opening an account with a crypto broker is very simple. First, collect some of your personal information. When you open your account for the first time, you usually need to provide the following:
- Your full 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 bank transfers)
- A copy of a photo ID (most brokers accept driver's licenses and passports).
After you have your information ready, choose a broker that supports Cardano buying and selling. If you're not sure where to start, consider some of our top picks below.
If you're completely new to cryptocurrency, you'll likely appreciate Coinbase's straightforward, beginner-friendly platform. Coinbase makes it especially easy to sign up for your account - most users can get started in just 2 minutes. Once your account is set up, you can place orders and track your portfolio through Coinbase's desktop platform or mobile app.
Coinbase's Earn feature lets you earn a little cryptocurrency by learning more about their offerings. Watch a few videos about the coins and tokens currently supported by the broker, and then take a quiz about the technology that supports each project. You'll earn some crypto every time you get a correct answer!
Step 2: Buy A Wallet
After you open your broker account, you need to choose 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 greatly reduces the possibility of losing money to a hack.
There are 2 main types of cryptocurrency wallets:
- Hot Storage. Hot storage wallets are wallets that need to connect to the internet 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 vulnerable to hackers. We recommend using a cold storage wallet for the highest level of security possible. Here are some of our favorite cold storage wallets to consider for your Cardano coins.
We Recommend: Ledger - Hardware Wallet
If you're looking for a 1-stop store for all your crypto cold storage needs, the Ledger Nano X may be the right choice for you. The Nano X supports over 1,200 individual cryptocurrencies and you can install up to 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 uses, highly secure cold storage, and easy connectivity features, the Nano X's $118 price tag may be worth the cost.
Best for Touch Screen Displays: Trezor Model T
The Trezor Model T is another popular cold storage option with state-of-the-art technology and secure cold storage for your coins. The Trezor Model T has a quick and easy setup that allows you to manage your coins in just 3 steps and a few minutes.
The most notable feature of the Model T is the large touchscreen display that allows you to manage your coins more easily 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 buy Cardano. You buy Cardano by placing an order through your broker using their unique trading platform.
Most brokers allow you to choose between several order types, and the order type you select when placing your order determines how much you pay for each coin you buy.
Here are 2 of the most common types of orders your broker may have access to:
* Market order. A market order tells your broker that you want to buy a set number of Cardano coins at the current market rate. When you place a market order, all you have to do is specify which coin you want to buy and how many coins you want to buy. Your broker will then fill the order as quickly as possible.
Market orders are filled sooner than other types of orders such as limit orders because they do not specify a price at which your order must be filled. However, you may pay more for each coin than you see on your brokerage platform, as market conditions can change at any time.
- Limit order. A limit order tells your broker that you want to buy a set number of Cardano coins, but only at or below a certain price. When you place a limit order, you must specify which coin you want to buy, how many coins you want to buy, and the maximum price you want 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 buy 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 may not have the opportunity to purchase the tokens you ordered.
After you place your order, your broker will execute the order if possible. When your order is executed, you will see your coins in your brokerage account.
Trade or Sell Your Cryptocurrency
After your order is closed, you need to decide if you want to become an active cryptocurrency trader or if you want to keep your coins and sell them at a later date. If you want to trade your cryptocurrency, track how the Cardano market moves and convert it to a stable coin (like Tether) when the price goes up.
Most cryptocurrency traders then hold on to their stable coin until Cardano's price drops again. The goal of trading is to accumulate more Cardano coins or pay out the differences in their stablecoins.
If you decide to hold on to your Cardano, you should move your coins to a Cold Storage Wallet. This provides you with private keys needed to access your coins and prevents the possibility of a hack. If 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.