Cardano is one of the top cryptocurrencies by total value, and many investors are looking to add it to their portfolio alongside popular coins such as Bitcoin and Ethereum. While these latter choices are available to trade in many places, including a number you might not expect, it’s harder to trade Cardano outside of major crypto exchanges, but you still have options. .
Here are three places to buy Cardano (ADA) and some key things to watch out for as you do so.
What is Cardan?
Cardano is one of the most popular cryptocurrencies in the market today, and it is in the top 10 by total value in April 2022, according to CoinMarketCap.com. The currency was created in 2015 and began to be publicly traded at the end of 2017 from a few cents per coin. From there, it grew exponentially as traders flocked to cryptocurrency, including Bitcoin.
Similar to many other cryptocurrencies, Cardano relies on a decentralized network of computers to verify and manage the crypto system. It uses what is called a “proof-of-stake” system (like its rival Ethereum) to verify transactions on its blockchain database, which means Cardano owners validate the system in exchange for rewards, in a process known as crypto staking.
Cardano also allows owners to use decentralized applications, or dApps, which enable smart contracts and allow users to engage in financial transactions such as lending and trading, among others.
3 ways to buy Cardano
Cardano is not as widely available as some of the biggest cryptocurrencies, including Bitcoin and Ethereum. These latest cryptocurrencies can be purchased at virtually any exchange as well as through Bitcoin ATMs and payment apps such as Cash App and PayPal. Or they can be purchased from a number of top cryptocurrency brokers.
Still, Cardano can be bought and sold in a number of places, including the following.
Trading apps such as Robinhood and Webull provide access to many cryptocurrencies, opening up the coins to traders who don’t want to open an account that specializes in a crypto exchange. In the case of Cardano, however, only Webull offers access to this cryptocurrency.
At Webull, you will be able to trade Cardano cryptocurrency and many more, including Bitcoin, Ethereum, Dogecoin, and Solana. And you can do it 24 hours a day, seven days a week. Webull does not charge a commission on crypto trades, but you will pay a 1% markup on buys and sells. And if you want to trade anything else – stocks, ETFs, options – you can do that at Webull too.
If you focus exclusively on cryptocurrency trading, and not just on the sidelines of stock trading, then opting for a crypto exchange might be a better option. This is because crypto exchanges are really focused on lowering trading costs for high volume traders. In many cases, they are the cheapest alternative to start trading, and then they cut costs even further.
Popular options for Cardano include Binance.US, Kraken, Bitfinex, Crypto.com, Bitstamp, Bittrex, and Coinbase. With a crypto exchange, traders will start paying a price that is among the best available – usually better than with traditional brokers or financial apps – and prices go down from there. If the lowest prices matter above all else, then Binance is a good place to start.
Again, most options among traditional brokers allow you to buy Bitcoin and Ethereum, but Cardano is a little harder to find. One option here is eToro, which is a mainstream broker in much of the world, although it only allows US customers to trade cryptocurrencies, including Cardano.
The eToro broker operates on a commission-free model, which means that you will pay a markup on trades, and this equals 1% on every purchase and sale. It’s more expensive than what you’d find on a crypto exchange, but you might find the broker’s CopyTrader feature particularly appealing. It gives you the ability to automatically copy trades from the site’s most popular traders, and if you’re not quite ready to do that, you can just see what they’re buying.
Buying Cardano: Here’s what to watch out for
When thinking about how to buy Cardano, you’ll want to consider a few other factors, as they can affect where you want to buy the cryptocurrency:
- Cost. Your first consideration for buying and selling cryptocurrency may be cost, and that’s understandable, given that it’s probably the biggest differentiator among trading providers. Commissions can vary widely, even in the most competitive segment of exchanges. If you frequently trade inside and outside the market, the commissions will add up and it makes sense to minimize them where you can.
- Security. It can be easy to overlook the importance of security when it comes to trading because it’s only visible when it’s not there. Security has been a serious issue with some newer crypto exchanges, while more traditional brokers have performed better here. It is worth carefully checking the security measures before choosing.
- Customer service. Customer service is not a strong point for many low cost brokers and exchanges. And usually that’s not a problem, because most of the time everything is fine. But if you do run into a problem, you’ll need access to responsive customer support to help you, which will become all too obvious when you need it most.
- Taxes. It is possible that you acquire Cardano through commercial transactions, and it is important to know that transactions must be reported to the IRS, although you may not owe taxes on them.
So while cost is the most important factor, it shouldn’t be the only one.
At the end of the line
Although Cardano is not as readily available as the biggest cryptocurrencies, you still have plenty of places to trade it, including a number of popular options. And if you are also looking to trade other cryptocurrencies, it may be a good idea to go with a provider that can offer many other coins to trade, rather than a provider that only offers the most popular cryptocurrency names. popular.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. Further, investors are cautioned that past performance of investment products does not guarantee future price appreciation.
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How To Buy Cardano | The Bank Rate – Tech Tribune France
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