Cardano (ADA) is an incredible blockchain project. Investors are going crazy over Cardano as the network is preparing to launch their smart contracts later this year. If you would like to learn how to buy Cardano and want to learn what Cardano is all about, we got you covered.
3 Questions to ask yourself before buying ADA
Cardano can either be purchased as an ADA token or, on some platforms, as a CFD (contract). Therefore, you. should ask yourself following 3 questions before purchasing Cardano (ADA):
- Do you want to buy the Cardano (ADA) token oder the ADA CFD?
- Which exchange should I use to buy Cardano?
- Is it a good time to buy ADA coins?
We will help you answer these questions.
Which exchange should I use to buy Cardano (ADA)?
Cardano (ADA) has existed for a long time. As one of the top 10 cryptocurrencies by marketcap it is available on almost every cryptocurrency exchange. Therefore, you can buy ADA almost everywhere.
Here are a few exchanges that allow you to buy Cardano:
- Bitcoin Suisse
All these platforms allow you to “physically” buy ADA. In order to create an account on these crypto exchanges you first have to follow a few steps to prove your identity. Of course many of these exchanges differ from eachother in many ways. Therefore, you should read up on several of them to find out which platform fits best to your needs.
If you are new to crypto we would like to suggest the eToro platform. The eToro exchange is beginner friendly, offers low commissions and allows you to trade CFD’s as well as the native ADA token. Furthermore, your ADA coins will be staked automatically when you buy them on the eToro platform. If you would like to buy your ADA on eToro you can follow this link to sign up.
In case you want to learn about other crypto trading platforms you can follow this link here.
Note: After buying Cardano (ADA) token you can either keep them on the exchange or you can send them to a hardware wallet or software wallet where you can store them safely. As several exchanges have been hacked in the past we would recommend you to do this.
How to buy Cardano as CFD
Exchanges such as eToro allow you to purchase Cardano (ADA) as CFD. A CFD is a contract and is traded similarly to stocks. The ADA CFD reflects the ADA token price 1:1. and it is as if you held a Cardano Stock and never have to touch the cryptocurrency itself. If you do not want to hold the cryptocurrency itself and just want to benefit from the price movements and volatility of crypto, we recommend you to hold CFDs. It gives you the advantages of crypto but allows you to hold a traditional investment vehicle. Also, you will avoid having to hold your ADA in a wallet.
In case you want to buy ADA as a CFD you can buy it here on eToro.
Is it a good time to buy Cardano?
It is difficult to make a price prediction for Cardano in 2021 as the cryptomarket is extremely volatile. However, many Cardano investors are enthusiastic about the second half of 2021 for following reason: The Cardano main network is set to launch the Cardano Smart Contracts later this year. This is a highly anticipated event in. the blockchain community and has so far been a bullish sign for Cardano investors. In case the launch succeeds, there will be many blockchain startups that will launch their products on the Cardano network. This again would be a bullish signal for the Cardano price.
On the other hand, however, it is known in the crypto community that the currency prices usually rise until the event, followed by a strong price drop upon the release. They call this “sell the news”. Therefore, we recommend you to be cautious and do your own research before you purchase your ADA token.
Important: This article is not financial advice. Please do your own research before purchasing Cardano (ADA) or any other token.
Live Cardano price
You can see the current market price of ADA in Euro, GPB, USD etc. here:
Cardano (ADA) Staking – How it works
If you bought the physical Cardano (ADA) token and not the CFD you are able to stake them on most exchanges. When you stake your Cardano you will receive a percentage of the fees that are made during all of the Cardano transactions. How much you make from staking depends on how many investors are staking their ADAs and this number is quite high. The percentage income can be several 100% for certain cryptocurrencies. For ADA the APY currently is around 7%.
Notice: If you buy ADA on eToro, you will automatically receive your staking rewards. Other platforms such as Coinbase allow you enter staking pools manually.
What you need to know about Cardano
Cardano is one of the earliest blockchain companies and was founded by the former Ethereum co-founder, Charles Hoskinson. Early on, Cardano jumped into the top 10 of the most valuable cryptocurrencies by market cap.
The Cardano foundation is located in Zurich, Switzerland and is lead by CEO Frederik Greegard. The Cardano network is a competitor to the Ethereum network. And just like on the Ethereum network, other blockchain companies will be able to build their projects on the Cardano network. This works similar to the iOS or Android system on which new apps can be launched. In blockchain these applications are called dApps (decentralized Apps).
Other competitors to Cardano are Polkadot, Solana and Binance Smart Chain (BSC). As Ethereum was struggling with scalability issues and high gas fees, many people in the industry expected Cardano to take a large market share from Ethereum. However, since the announcement of Ethereum 2.0 and the launch of the Polkadot network the competitive environment around smart contracts is heating up.
The Cardano Reddit community is one of the biggest and most active communities in the crypto scene with over 530,000 users.
In general Cardano is one of the most hyped blockchain projects out there.
Tokenomics of ADA and Lovelace
What else do you need to know about ADA? Well, the ADA token was named after the first known programmer: Ada Lovelace. Therefore, the Cardano token is called ADA and the subcategory called Lovelace. But how many Lovelace equal an ADA? Well 1 ADA consists of 1 Million Lovelace.
In total there will be 45 billion ADA token created. Currently, there are close to 32 billion on the market. At a price of around $1.30 this makes up a market cap of around 40 billion dollars.
Why Cardano is more climate friendly than Ethereum
Finally, we will discuss the climate friendliness of the Cardano blockchain. In this section Cardano has alot to offer as it uses only a fraction the energy that Bitcoin and Ethereum use. Climate friendliness in cryptocurrencies has become a big topic, especially since Elon Musk announced on Twitter that Tesla will no longer accept Bitcoin because of energy concerns.
Bitcoin currently uses as much Energy as the entire country of Holland does. Ethereum uses about 50 percent of that, but still as much as Portugal. In comparison, Cardano only uses as much Energy as a few hundred households. This is because climate friendly solutions were a focus for Cardano from the beginning. Furthermore, Cardano is working on reducing its energy consumption and announced that they will release an upgrade that will make the network even more climate friendly.
Note: This article is solely for imformative purposes and is not financial advice. Do your own research before purchasing cryptocurrencies. Note: The writer of this article is a holder of Cardano (ADA) coins. We want to disclose this information for transparancy reasons.
Pascal is a passionate entrepreneur and one of the founders at Blockzeit. As a crypto and blockchain enthusiast his goal is to bring more transparency into the blockchain industry.