How To Buy Cardano

Last updated Apr. 5, 2025 by Charles Zemub

Cardano (ADA) is one of the most popular cryptocurrencies in the world, known for its scientific approach to blockchain technology and its commitment to sustainability. If you’re interested in investing in Cardano, this comprehensive guide will show you how to buy it, along with some essential information about the cryptocurrency and FAQs to clarify common queries.

Understanding Cardano

Before diving into how to buy Cardano, it’s important to understand what it is. Launched in 2017 by Charles Hoskinson, one of the co-founders of Ethereum, Cardano aims to overcome existing challenges in the cryptocurrency space. Its blockchain operates on a proof-of-stake consensus mechanism called "Ouroboros," which is more energy-efficient and sustainable compared to the energy-intensive proof-of-work models used by Bitcoin and Ethereum.

Cardano is developed in layers to enhance system flexibility and scalability. For example, smart contracts and dApps run on the second layer named "Goguen," enabling quicker updates and the integration of new features.

Steps to Buy Cardano

1. Choose a Cryptocurrency Exchange

The first step to buying Cardano is selecting a cryptocurrency exchange platform that lists ADA. There are several, each with its pros and cons, including:

• Coinbase: Known for its easy-to-use interface and strong security features, ideal for beginners.
• Binance: Offers a wide array of cryptocurrencies and advanced trading features for more experienced investors.
• Kraken: Provides comprehensive educational resources and low transaction fees, good for both beginners and seasoned traders.

2. Create an Account

Once you’ve selected an exchange, sign up by providing relevant information like your email address, country of residence, and a strong password. Some platforms may require a two-step authentication for added security.

3. Verify Your Identity

Most reputable crypto exchanges require identity verification. This generally involves uploading identification documents such as a driver’s license or passport, and sometimes requires a selfie or video verification. This step ensures compliance with global anti-money laundering regulations.

4. Deposit Funds

After your account is verified, you need to deposit funds. You can fund your account using various methods like bank transfers, credit or debit cards, or other cryptocurrencies depending on the exchange’s offerings.

5. Buy Cardano (ADA)

Once your account is funded, navigate to the trading section of the exchange and search for Cardano (ADA). You can choose to buy ADA directly at the market price or set a limit order to purchase it at your desired price point.

6. Store Your Cardano Safely

After purchasing Cardano, you’ll need to store it in a cryptocurrency wallet. While exchanges offer wallets, it’s safer to transfer your ADA to a private wallet where you have control over the private keys. There are different types of wallets, such as hardware wallets (e.g., Ledger, Trezor), desktop or mobile wallets, and even paper wallets.

7. Monitor Your Investment

After buying Cardano, it’s prudent to regularly monitor your investment. Use tools and apps to track ADA’s price movements, understand market trends, and evaluate when to buy more or sell.

Understanding the Risks

Like all investments, buying Cardano involves risks. The cryptocurrency market is volatile, and prices can fluctuate significantly. It’s important to only invest what you can afford to lose and do thorough research before making financial decisions.

FAQs

What is Cardano?

Cardano is a decentralized blockchain platform designed to be a more efficient alternative to proof-of-work networks. It addresses current crypto architecture issues, including scalability, interoperability, and sustainability.

Why Should I Buy Cardano?

Investors are attracted to Cardano for its scientific approach to blockchain development, scalability, and efforts to address environmental concerns through its proof-of-stake consensus mechanism.

Is Buying Cardano Safe?

While buying cryptocurrencies involves risks, using reputable exchanges and securely storing your ADA in a private wallet can minimize risk. Always ensure you’re using secure platforms and practicing safe online behaviors.

Can I Buy Partial Cardano?

Yes, similar to other cryptocurrencies, you can buy a fraction of a single ADA token to fit your investment budget.

How Long Does It Take to Buy Cardano?

The time to buy can vary based on factors like the identity verification process and deposit method. Once your account is verified and funded, transactions can occur almost instantly.

Are There Fees Involved in Buying Cardano?

Yes, exchanges typically charge transaction fees when buying Cardano. These fees can vary from one platform to another, so check the fee structure of your chosen exchange before purchasing.

What is a Wallet Key?

In the context of cryptocurrency, a wallet key refers to the cryptographic information you need to access and manage your crypto. It’s divided into a public key (your wallet address) and a private key, which should always remain confidential.

Can I Use Cardano for Purchases?

While Cardano is primarily known for its investment potential, its acceptance as a method of payment is gradually increasing. Some platforms and services accept ADA, but widespread usage is still developing.

How is Cardano’s Infrastructure Unique?

Cardano uses a unique, layered blockchain to separate the ledger of account values from the control layer, allowing for more sophisticated functionalities like smart contracts.

Buying Cardano involves a few straightforward steps, albeit requiring initial due diligence to choose the right platform and secure your assets. With Cardano’s growing popularity and potential for future applications, it can be a valuable addition to a diversified investment portfolio. Remember to continually update your knowledge and remain vigilant of the market dynamics to optimize your investment strategy.