Created in 2017, Cardano (ADA) shocked the cryptocurrency market by climbing up to the 11th place among the top coins by market capitalization. Being the surprise coin of 2017, Cardano managed to increase its value almost 30 times in just a little over a month, generating investors and traders huge amounts of profit.
What is Cardano?
Cardano is a smart contract platform with a layered architecture. The developers have put the main focus on the platform’s security, and they have used a robust programming language (Haskell) that has a high degree of fault tolerance along with their in-house developed programming language, Plutus. The developers and academics who created Cardano describe the platform as “one of its kind” as it has been built from scientific philosophy based on peer-reviewed academic research.
Cardano’s main goal is to find common ground between privacy as well as decentralization and regulation. The team behind the platform seeks to offer access to the unbanked in developing countries – where banking systems have been previously too expensive to implement.
As Cardano is the 11th large coin by market cap, it is widely accepted in the crypto community. That means that many services – including cryptocurrency exchanges and brokers – are offering trading services for the coin.
Since we know that testing numerous cryptocurrency exchanges and brokers can be tiring, we have compiled a list for you with the best of the best service providers where you can buy ADA. Furthermore, we added a step-by-step guide for each, so you do not just know where to buy Cardano, but you also know how. First, we’ll show you what’s the difference between buying and trading ADA; then we’ll guide you through the steps from creating an account to buying the coin at each service.
Differences between buying and trading Cardano
While the two phrases are used sometimes as synonyms for purchasing an asset, there is a major difference between buying and trading Cardano. When you buy and hold a coin, it is a mid to long-term investment. You could do that for different reasons. For example, because you believe that the cryptocurrency is innovative and you are hoping that it will make you big profits. Or you just want to support the ecosystem of the coin. There are also cases when you have to hold a coin for a certain time to get access to different services. In case you are in for the profits, you want to gain a huge profit in the mid and long-term. After you are satisfied with the price of the coin, you may decide to sell it for profits.
On the other hand, trading Cardano is a short-term activity. Unlike the buy and hold method, you are not after one or two big profits in the long-term, but the opposite. When trading a digital currency, you are making numerous short-term trades that will potentially net you small profits (big ones are also possible; however, these positions are not so frequent). One big benefit of trading Cardano is that you are able to short the coin. If you can short a coin at a trading platform, you are able to make profits in a downtrending crypto market. That is really great when there’s a continuous bear market, and everyone is struggling with making profits using the buy and hold method.
On the flip side, you need a certain trading knowledge as well as experience to have success in trading Cardano. To determine the best entry and exit positions for a trade, traders usually conduct both fundamental and technical analysis. While you don’t need much experience for fundamental analysis (you just have to read the news and draw the right conclusions from it), technical analysis can be a bit difficult for an inexperienced trader. You need to know how to use different technical indicators and – similarly as with fundamental analysis – draw the right conclusions from deploying the indicators to the Cardano price chart.
Summarizing all this, if you are in for the mid to long-term, then your safest bet is to buy and hold Cardano. However, if you prefer short-term trades and you have the required knowledge (or you are willing to gain that knowledge and experience), then trading ADA is the best option for you
How to buy Cardano on Coinbase?
The San Francisco-based Coinbase is one of the top cryptocurrency exchanges of the world. In addition to that, Coinbase is one of the most newbie-friendly services in the space, featuring an easy to use platform. The crypto exchange is best suited for not only beginners but for expert traders as the service has a platform - Coinbase Pro - for more experienced users. You can choose between bank transfers and credit card payments on the platform. If you select to pay via credit card, you can cut out the deposit process as your coins will be credited almost instantly onto your account. Furthermore, Coinbase has one of the lowest credit card payment fees (about 1.5%) among cryptocurrency exchanges.
One major downside of Coinbase though is the limited support of cryptocurrencies. And, unfortunately, Cardano is not on the list of coins that can be traded on the crypto exchange’s platform. Therefore, we recommend you to read back, and use one of the services to buy ADA earlier in this article.
How to buy Cardano on Plus500?
Plus500 is an Israel-based broker that features CFD trading for different assets, including stocks, forex, and cryptocurrencies. With over ten years of experience operating the brokerage platform, Plus500 features a regulated service (the UK’s FCA included) that is traded on the main market of the London Stock Exchange. Therefore, Plus500 has to comply with different regulations and laws (including being transparent) as its stocks are being traded on the LSE. Unlike eToro, Plus500 offers digital currency trading via CFDs. So, there’s no need to worry about your funds held in cryptocurrency wallets. On the flip side, you are not the actual owner of the coins that are traded at the broker.
While Plus500 offers support for a number of coins, you are not able to trade ADA on the broker’s platform. If you are looking for a trusted broker where you can buy Cardano, then check out our step-by-step guide for eToro earlier in this article.
How to trade Cardano with a trading robot?
In a section earlier in this article, we’ve specified the main differences between buying and trading Cardano. For the trading part, we have stated that traders conduct multiple short-term trades quite often, and you need certain expertise as well as experience to trade coins for profits successfully. However, that’s not the case for using trading robot platforms.
These services utilize cryptocurrency robots that are algorithm-based - the bots are using the same indicators as in “manual” trading like the moving average and the Fibonacci retracement - and will do all the trading for you fully automatically. The main benefit lies in the time-efficiency of using crypto trading robots. Instead of sitting in front of your computer all day to deploy both fundamental and technical analysis to find the best entry and exit points for your trades, you only need to register an account at a service, set up your robots, and they will do all the trading for you. After you set them up, you only need to monitor their performance.
As mentioned before, most automated trading platforms do not require any trading knowledge or experience from you. Since most of these solutions use their own strategies and indicators, there’s no requirement to deploy your own strategies before you can set up a robot for trading. Due to the bots entering and exiting trades based on algorithms, automated cryptocurrency trading eliminates any chance for human error.
If you are interested in trading Cardano via crypto robots, then feel free to check out our page dedicated to such services.
How to buy Cardano with Credit Card
As ADA is accepted on many platforms, it is possible to buy ADA via credit card. This means great Cardano news! Buying coins with credit or debit cards are one of the quickest and most convenient options. You don’t need to wait days for your funds to arrive (some of the service providers, such as Changelly, don’t even need you to deposit via credit card to start trading), credit card transactions are usually processed within a few minutes.
On the flip side, purchasing crypto via credit card can be expensive as transaction fees can go up to 10 percent (or even more). If you are moving large amounts of funds through cryptocurrency exchanges, we don’t recommend this option for you. However, for normal trading, credit cards can be convenient.
If you don’t want to hold crypto on a wallet, we recommend using brokers, such as eToro and IQ Option, to buy ADA with credit cards. Funding your account is free at both eToro and IQ Option. Therefore, using a cryptocurrency broker to buy Cardano via credit card is the cheapest option.
In case you want actually to own the cryptocurrency you trade, we recommend using Changelly as the platform offers almost-instant transactions without the need to deposit funds. Just fill in the details with your credit card info and choose the amount of ADA you want to buy to execute trades on Changelly.
How to buy Cardano with Paypal
You can’t directly buy Cardano with PayPal as the service provider is not a big fan of crypto transactions. As PayPal is one of the largest internet-based payment services, the company has to focus on the security of the funds of its users. Therefore, PayPal screens user accounts on a regular basis and implements strict rules, which includes not allowing direct cryptocurrency trading and transfers.
However, there is a method you can use to convert Cardano to PayPal funds. Some brokers, such as eToro, support PayPal deposits. So, firstly check if the broker you want to buy ADA at accepts both PayPal deposits and Cardano trading (eToro accepts both). If it allows both, deposit funds into your account using your PayPal account, then buy ADA using your account balance.
How to buy Cardano with Bitcoin?
You don’t always need fiat currencies to buy a coin. If you have some BTC in your crypto wallet and you seek to exchange it to ADA, then your best bet would be to buy Cardano with your Bitcoin balance. There would be no point for converting your BTC balance to fiat, withdrawing your funds into your bank account, then using either bank transfers or a credit card to purchase ADA. It would not only cost you time, but the fees would also be higher than simply buying Cardano with Bitcoin.
Now, let’s see our cryptocurrency exchange of choice for buying Cardano with Bitcoin as well as a brief tutorial for the process. We’ve chosen Binance to show you this as the service features a wide variety of coins (including BTC and ADA), high account limits, and reasonable trading fees.
If you have not done yet, create an account at the cryptocurrency exchange. The next step is to set up 2FA, a security measure that is absolutely necessary for all crypto exchanges where your funds are stored in digital currency wallets. When you are ready with that, head to the deposit section inside your account, and select BTC. The page will show you a wallet address, which you have to use to fund your account by sending Bitcoin into your Binance wallet. After you have initiated the transaction, it shouldn’t take more than 1-2 hours for your funds to arrive. When they are credited on your account, go to the trading page, choose Bitcoin from the four base currencies, and then the ADA/BTC trading pair. Select the amount of coins you seek to exchange as well as your preferred order type, then execute the trade.
Do you need a Cardano Wallet?
Before buying Cardano, there’s an important question to discuss: whether to have a Cardano wallet. While cryptocurrency exchanges, such as Binance and Changelly, require you to hold your coins on a wallet, brokers, such as eToro and IQ Option, allow you to trade ADA without the need to store the digital currencies on a crypto wallet.
Both options have their upsides and downsides. Buying and holding Cardano in a wallet allows you to be the actual owner of the coin. Therefore, you can keep it whenever and wherever you want; you can even transfer Cardano between different services. Furthermore, you contribute to the network of the cryptocurrency by being a user. On the flip side, your coins can be stolen by hackers who often target crypto users.
Cryptocurrency brokers do not require you to have a wallet. Service providers, such as eToro and IQ Option, offer digital currency trading via CFDs and binary options, so you don’t need to hold your ADA on crypto wallets. So, your Cardano is safe from hackers, but you are not the owner of your coins.
If you are worried about the security of your Cardano, consider buying a hardware wallet (try the Ledger and Trezor brands, they are trusted). If a hacker manages to hack the software side of your wallet, he has to steal your hardware device too (as well as your PIN) to steal your funds. While this is not completely impossible, the attacker has to be a mastermind to conduct this action.
How to create a Cardano wallet?
Now that you the pros and cons of creating a Cardano wallet, you may decide to go for getting one. Creating a Cardano wallet is essential when you are using a cryptocurrency exchange. As the aforementioned service is storing your coins inside the exchange wallet (after you buy some ADA), you’d need a better solutions where you don’t need to worry about the safety of your coins (exchange wallets are usually not that secure) - while the service is also being convenient and easy to use.
We’ve chosen a secure and convenient solution for you, which is the Infinito Wallet that supports over 1,000 digital currencies, including Cardano. Infinito is mobile-based, so you don’t have to carry your laptop everywhere you go to access your coins. To create a Cardano wallet via Infinito, you have to download and install the application for your preferred mobile operating system (Infinito supports both Android and iOS). Head to either the App Store or Google Play, and install the app to your smartphone. You can also use the links on Infinito’s official website to download the wallet application.
How to buy Cardano in the UK?
As Europe is one of the two top crypto-friendly continents, UK citizens are becoming increasingly interested in cryptocurrencies like Cardano. As there are many services where you can purchase the digital currency, it can become hard to choose the best solution for the citizens of the European country. However, here we are to help you with that! We’ve tested and analyzed numerous cryptocurrency exchanges and brokers in the space, and selected the best solution for people who are living in the UK.
And this service is eToro. The main reason for choosing the broker as the best solution to buy Cardano in the UK is the fact that the service is regulated in the country via the FCA. Therefore, it provides added security and trust for the users of the broker in the United Kingdom. Furthermore, eToro features an easy to use platform that is also newbie and user-friendly. You can select to fund your account using different payment methods (including credit cards and PayPal), and you can utilize the social trading features of the platform, such as copy trading.
How to buy Cardano in the USA and Canada?
Canadians and US citizens are among the top crypto investors and traders in the world, and Cardano is highly favored in the aforementioned countries. Although - due to the strict regulations in both the United States and Canada -, some services are denying access from the citizens of the two countries. Therefore, you need to spend valuable time to search for the best cryptocurrency exchange or broker in the North American region. But - fortunately for you -, this is not the case now as we’ve selected the best service to buy Cardano in the USA and Canada.
And this service is the near-instant cryptocurrency exchange Changelly. Fortunately for US and Canadian citizens, Changelly has no geographical restrictions. Therefore, the operators of the exchange accept users from all over the world, including the United States and Canada. To buy Cardano using Changelly, you need to first create an account using your email address (or social media login). Then you need to verify your email and set up 2FA for security reasons. To buy Cardano on Changelly, head to the homepage of the service, and select ADA and the currency you want to use to purchase the coin.
How to buy Cardano in Australia?
While most of the cryptocurrency exchanges and brokers are focusing on mainly North America and Europe, a part of the aforementioned services tends to forget about Australia. Despite the interest of many Aussies in cryptocurrencies - including Cardano -, sometimes the citizens of the Oceanic country have to struggle with finding a great service where they can buy ADA. But fear no more - we are here to find the solution for that problem.
And that solution is Binance, a crypto exchange that allows Australian users (along with citizens of other countries) to buy and sell a wide variety of coins, including ADA. Binance features reasonable trading fees, four base currencies (ETH, BTC, BNB, and stablecoins) as well as different order options and trading views to choose from. For a detailed guide on how to buy Cardano in Australia via Binance, read back to check out our tutorial for the cryptocurrency exchange.
How to sell Cardano?
When you have been holding ADA for a while with the coin’s price increasing over your hold period, you may want to sell it for a profit. In other - less fortunate - cases, you may decide to sell Cardano to minimize your losses. However, how you can you sell the cryptocurrency and what is the best service to do that? Let us show you both in the next paragraph.
We’ve chosen Binance for selling Cardano. As mentioned before, the service features low trading fees and a trader as well as a user-friendly platform. Since Binance supports a wide variety of coins (including ADA), you can choose from the four base currencies (BTC, ETH, BNB, and stablecoins) to exchange your Cardano to.
If you don’t have a Binance account, then head to the homepage of the service and create one using the signup form. Set up 2FA, then proceed with depositing your ADA into your account using the wallet address provided by the exchange in the deposits section. When your coins have arrived, then head to the trading page and select one of the four base currencies, then the relevant trading pair with ADA in it. Select the amount of coins you want to sell, the order type, then execute the trade when you find it appropriate.
Now you know how to buy Cardano on the best services with different payment methods, and you also have some knowledge on whether you should be using a wallet to buy ADA. Now, it’s your time to set your goals, choose your service provider and payment method, and trade!
As we’ve tested the different service providers, eToro has come out as the winner as the platform offers a fast account opening process, a great and trusted service, as well as a wide range of payment methods (including PayPal).
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