Buying Cardano- complete guide
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Cardano coin is a new cryptocurrency that is making waves in the world of cryptocurrencies. Since, its launch in September 2017, many traders either did not know about it or they simply ignored it. But since late November 2017, Cardano’s ADA token has made a tremendous jump by whopping 1,520% with a market cap of over $18 billion. As of January 2018, Cardano ranks at number 5 on the list of the top most valuable digital currencies. In this article, you will be able to find answers to questions like “How to buy Cardano coin?”, “set up a Cardano wallet?” and many more.
What Is Cardano?
Cardano is an open source blockchain project that was started in 2015 by Charles Hoskinson, a co-founder of Ethereum.
The Cardano project was created with the aim of improving if that is the word to use, the way cryptocurrencies are created. The project’s main focus is to provide an ecosystem that is “more balanced and sustainable.”
According to its founder, the Cardano (ADA) coin was designed with “a scientific philosophy and research-driven approach.” What this means is its blockchain practically goes through a thorough review process undertaken by a bunch of programmers and scientists in academia.
The point of this process is to find ways to improve the blockchain. For instance, researchers from the IOHK team together with Professor Bingsheng Zhang from the University of Lancaster are developing what they are referring to as a “reference treasury model,” which is to be incorporated into the Cardono’s blockchain.
The purpose of the model is to determine a sustainable way of funding future growth for the blockchain.
ADA is a third generation cryptocurrency and its goal is to solve infrastructure and scaling issues that have been thorny for cryptocurrencies like Bitcoin and Ethereum. Cardano’s main goal is to find solutions to problems that many cryptocurrency platforms are dealing with, such as interoperability, sustainability, and scalability.
How do I buy Cardano?
Before we jump into how you can buy Cardano cryptocurrency, the first thing you ought to have is a digital wallet where you’ll store your Cardano (ADA) once you buy it. Currently, the best place to store your ADA is on Daedalus, Cardano’s main wallet.
Install Daedalus Wallet
To set up the wallet, you need to download Daedalus to your computer and then run the application. Once your wallet is set up, you can start Cardano buy-sell transactions, as well as receive and send ADA. The wallet also comes with some special features, such as encrypted private keys and passwords for better security.
Installing the Daedalus wallet is not complicated. You just need to follow the instructions. However, if you get stuck, you can contact their customer support for assistance.
Now, here is how you can buy ADA.
Once your wallet is set up and is synced with the Cardano blockchain, you are good to go. Now, one thing you’ll come to find out is that you cannot buy Cardano with fiat currency. You need to buy Ethereum or buy Bitcoin and then exchange it for ADA.
Let’s use Ethereum in this case. To exchange Ethereum for ADA, you need to pick the Ethereum exchange you would like to use – Cex.io is the easiest and fastest.
If you are going to use Cex.io,
- You’ll need to register and verify your e-mail.
- You then have to verify your account before you can start buying, which is easy and quick on Cex.io. But then again, it’s one of the reasons why the exchange has such a good reputation.
- Once your account has been verified, you can choose to buy Ethereum via credit/debit card, or bank transfer. The latter is cheaper but very slow (usually it takes 2-4 days for the transaction to complete). Whereas if you use a credit/debit card, you will get your coins instantly. However, the transaction fees are quite high.
- Once you have verified your payment details, go to the buy/sell page.
- Choose Ethereum and input the number of coins you want to buy, then click on the Buy button.
- Confirm the purchase by clicking on the Confirm button to complete the transaction.
- Once you have some Ethereum in your wallet, get a trading exchange from below, and exchange the Ethereum for ADA.
Buy Cardano at Binance
Assuming, you use Binance to exchange your Ethereum for ADA.
- Register an account by filling in your full names and a password.
- Confirm your email (you will be given instructions on how to do it) and then log in.
- Once you have logged in, you will get a pop-up advising you to set up a 2-factor authentication for your account. You don’t have to set it up if you don’t want to. But, be advised, the 2FA is an added layer of security for your account.
- You will then click “Funds” then navigate to Deposits/Withdrawals, click on it and it will take to a page that shows the number of coins in your account. At this point, of course, you do not have any.
- Go the search box and type-in Ethereum, then click “Deposit.”
- You will receive an Ethereum deposit address.
- Copy the address.
- Go back to Cex.io, navigate to the “Withdraw” page, click on it, and then select your Ethereum which should be listed under BTC.
- Once you have done that click “Send.”
- You will be required to enter the recipient, which in this case is the Ethereum address you copied from Binance.
- Paste it into the recipient box, enter how much Ethereum you want to send (you can send it all if you like by choosing the “Use Max” option), then click on Continue.
- You may need to confirm a few details before the transaction is complete. So follow the instructions until you get a confirmation that your Ethereum coins have been sent.
- It may take roughly about 20 minutes to an hour before you receive the coins on your Binance account.
Exchange Ethereum for Cardano
After you have received Ethereum on your Binance account, you are now ready to exchange it for Cardano (ADA),
- To do that navigate to the trade page on Binance and choose how you want to buy your coins. There are three options on the page: Limit, Market, and Stop Limit.
- The Limit order lets you enter the amount at which you want to buy Cardano (ADA).
- The Market buys automatically fills out the order at the current market price.
- The Stop Limit is an order to buy or sell a coin once the price reaches a specified price.
- The easiest of the three is the Market buy option. Assuming you pick this option, find the “Buy ADA” button, click on the Market option then fill in the amount of ADA you want to buy in the “Amount” box. Alternatively, you may choose the percentages option by picking either 25%, 50%, 75% or 100%, which is much easier.
- Once, you are satisfied with the amount, click on the “Buy Coin” button.
- Go to Funds, click Deposits/Withdrawals, type ADA on the search box and voila, you will see your ADA in your wallet.
- You can let the coins stay in your Binance account or you can move them to your Cardano wallet by withdrawing them from their current wallet. It may be wise to move your coins to your ADA wallet, given that many exchanges are vulnerable to attacks.
Cardano has a lot of ambitious plans for its blockchain and cryptocurrency. So, there is no reason for Cardano (ADA) not to see tremendous growth in the future once these plans are implemented. In any case, the present virtual currency prices are driven by future markets. Traders are literally raking in profits solely based on the prospective future growth of these cryptocurrencies. So chances are that Cardano is going to experience tremendous growth in value in future.
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