This is a detailed guide to buy Cardano which goes by the symbol ADA. Apart from learning how to buy ADA, you will also learn where to buy ADA. The guide will also explain where to store ADA and how to setup Cardano wallet.
Cardano is written in the Haskell language. Cardano is known as Ethereum of Japan. Like Bitcoin and Ethereum, Cardano has its own Blockchain protocol as well. Cardano aims to fill the gap left by Ethereum. It supports smart contracts as well. Ethereum is not very efficient when it comes to the computational power required by some heavy smart contracts.
The number of transactions per second on the Ethereum architecture is not very handsome either. Cardano doesn’t use proof of work. It uses proof of stake instead. Cardano users only need to hold the ADA tokens to secure the Cardano network. Cardano doesn’t only use a single blockchain. Cardano’s scalability allows the users to launch multiple blockchains. This is how Cardano is capable of handling a lot of transactions at a time. To some extent, Cardano has solved the scaling issue of the Ethereum. EOS and IOTA are also two potential competitors of Cardano.
How to buy Cardano (ADA)
Step#1: Buy Bitcoin
First of all, you need to buy Bitcoin. You need to decide whether you want to buy Bitcoin from Coinbase or from Localbitcoins. Coinbase operates in 32 countries only while Localbitcoins operates in more than 200 countries. Your choice totally depends on your country.
Buy Bitcoin from Coinbase
- Open Coinbase website and sign-up. Go through the email confirmation, verification (provide your phone number and your ID) in order to complete the sign-up procedure on Coinbase.
- Log in to your newly created Coinbase account now and click on the Buy/Sell tab.
- Click on Bitcoin now.
- Select your payment method i.e. Bank Deposit, VISA or Wire Transfer.
- Fill up the on-screen details now to get the Bitcoin now. Your Bitcoin will appear in the Accounts tab.
Buy Bitcoin from Localbitcoins
- Open Localbitcoins.com and sign up. Use this link to sign up if you want to earn a little bit of reward. Go through the email confirmation and ID verification to be eligible to buy Bitcoin from LBC.
- Once done, Log in to your LocalBitcoins account.
- On the LocalBitcoins.com homepage, you will find options to buy Bitcoin Online, Bitcoin using Cash and some other options.
- The preferred option is to buy online. Choose the cheapest seller. Always check the limit of the seller and buy Bitcoin from the one that suits your limit.
- After selecting the seller, read the terms of trade and prepare your identity for verification.
- Begin the trade now. Transfer money to the seller and he will release your Bitcoin.
- The Bitcoin you just bought will appear in your LocalBitcoins wallet.
Step#2: Transfer Bitcoin to Binance
- It’s time to transfer the Bitcoin from Coinbase or Localbitcoins to Binance now.
- First of all, open Binance website and sign up. Use this link to sign up on Binance to earn a little bit of reward. Verify your identity as per the requirements of Binance.
- Now on Binance, click on Funds > Deposits > Select BTC and copy the Deposit address.
- Coinbase: Now open Coinbase and click on Accounts. Under accounts, you will find options to Send and Recieve Bitcoin. Click on Send and paste the Binance Bitcoin deposit address here. Enter the amount of Bitcoin you want to send and then send it. It will take a few minutes for you to receive Bitcoin in your Binance wallet.
- LocalBitcoins: Log in to your LocalBitcoins.com account and click on Wallet. Paste the Binance Bitcoin deposit address, enter the amount of BTC you want to send and then send it. You will get BTC in your Binance wallet in a few minutes.
Step#3: Trade Bitcoin for ADA (BTC → ADA)
- Now that we have got the Bitcoin in Binance wallet, it’s time to trade it for ADA.
- Open Binance and log in.
- Now click on Exchange > Basic.
- From the right side, select ADA/BTC.
- Now from the right side, select the rate that suits you the most. It’s always recommended to place a low buy order. The red ones show the people who are selling. The sell orders from bottom to top are low to high and the green ones are buy orders, they are from top to bottom high to low.
- Enter the amount of ADA you want to purchase and also enter the rate at which you want to buy.
- Place the buy order. As soon as someone sells at your desired rate, you will get ADA in your Cardano wallet at Binance.
Step#4: Store ADA in Cardano Wallet (Daedalus Wallet)
Cardano has its own wallet called the Daedalus Wallet. This wallet is available for the Windows, Linux and Mac operating system. It is a very easy-to-use desktop client that can lock down your Cardano tokens for safety. If you are looking to hold your ADA tokens for a long-term, you should transfer them to the Daedalus Wallet as exchanges are not as secure as the wallets are. Here is how to store ADA in Daedalus Wallet.
- Download and install Daedalus Wallet.
- Now pen Daedalus Wallet on your computer.
- Choose your language and agree to the license agreement.
- Daedalus will take a while to sync all the blocks and take you the wallet.
- Now click on Create a New Wallet.
- Enter your Wallet Name and proceed to get the Pass Phrase. Save the Pass Phrase somewhere really safe.
- Now you will get access to your wallet. Click on the Receive tab to get your wallet address.
- Now open Binance > Funds > Withdrawals > Select ADA > Paste your Wallet address and send the tokens to your Daedalus Wallet.
- Don’t forget to backup your Daedalus wallet from its settings.
Here is an official video of Daedalus wallet explaining the entire process.
More information on Cardano:
- Cardano Price Tracker – CryptoPit Coin Price Tracker
- Cardano Official Website – cardanohub.org
- Reddit Community – r/cardano/
- Cardano Wallet – daedaluswallet.io
- White Paper – White Paper Link
- Github – Github Repository
- Exchanges – Binance | Upbit | Bittrex | Gate.io
Important Note: This guide is for educational purposes only. This should not be taken as a piece of advice. Our mission is only to help you buy a certain currency. Always follow the golden rule of cryptocurrency investment that says: Invest what you are willing to lose. Cryptocurrency is a highly risky investment. DYOR before investing.