How To Buy Cardano Online in 2022
Cardano (ADA) is one of the many altcoins that now exist in the cryptocurrency markets and poses intriguing investment opportunities.
When looking to invest in Cardano, you’ve got plenty of options. In this guide, we’ll cover everything you need to know about how to invest in Cardano, including how to buy Cardano, where to buy Cardano, and also how to sell the asset along with other important considerations to keep in mind such as how to secure and store your assets. Keep reading to find out more about buying Cardano.
Best Brokers To Buy Cardano in 2022
Nowadays, you’ll find plenty of places to buy Cardano online, and picking the best one can be a long process. Below you’ll find a list of the top broker platforms that are beginner-friendly to help you get started right away.
Key Takeaways for Buying Cardano
Best platform to buy Cardano: eToro
Top payment method to buy Cardano: credit/debit card, bank transfer
Security measures to buy Cardano: activate 2-factor authentication, never reuse passwords and store ADA in a private wallet
Do not: invest with money you cannot afford to lose
What Is the Difference Between Owning Cardano VS a Derivative Product
There are some common misconceptions when it comes to buying cryptocurrency assets outright and trading them using derivative products. These will be explained in the section below:
When you buy Cardano, or ADA, through a cryptocurrency exchange on the spot markets you own the coins outright. It is up to you whether you want to store them on the exchange or withdraw them to a private wallet. The digital assets are yours.
When you invest in ADA using a derivative product on an exchange or brokerage, you are speculating on the price of the token, without owning the underlying asset. The benefits of this are that you do not have to deal with the technical side of crypto such as storing the coins and securing your private keys. For most newcomers, this is the preferred option.
Different Ways To Buy Cardano
If you would like to know the best ways to buy Cardano, we have listed them below:
Peer-to-peer (P2P) marketplaces
Where To Buy Cardano
If you would like to know where to buy Cardano, we have listed the ideal platforms to buy the coin.
How To Buy Cardano Online?
There are plenty of platforms to choose from when it comes to buying cryptocurrencies such as Cardano online. The steps required are generally the same for most platforms so here’s how it's how to buy Cardano on Plus500 for example:
Go to the official brokerage website and register for an account
Verify your identity by providing ID along with any KYC requirements for regulation purposes
Input your preferred payment method, such as credit/debit card or bank transfer.
Locate the Cardano market using the search bar, e.g. ‘Cardano’ or ADA
Click trade and enter the number of coins you would like to purchase and confirm the transaction.
You now have an open position in Cardano and you can track your profit and loss (PnL) from the portfolio page.
*eToro is suspending Cardano trades for US customers by the end of 2021.
How To Trade Cardano
You can trade on both cryptocurrency exchanges and brokerages. On exchanges, you can trade on spot markets where you own the underlying asset, as well as derivative products such as futures and options. On brokerages, you can trade CFDs which allow you to speculate on the price of ADA without owning the underlying asset. Many newcomers prefer this option. Here’s how to get started:
Go to a brokerage site and create an account
Verify your details by providing ID and any KYC questions they may ask you
Add your preferred payment method such as credit/debit card and deposit some money into the account
Use the search bar to find the Cardano page and open a position
When the price reaches a point you are happy with, you can simply close the position.
You can repeat this as many times as you like throughout the day.
Crypto Investment Strategy
Trading strategies often come in two forms, long or short term holdings
Short-term holdings involve buying a coin with the intention of selling it in a short period of time, ideally for a profit.
Long-term holdings are coins that you buy because you believe in the long-term potential of the project. In online groups, this term is also referred to as HODLing or Holding on for Dear Life, a meme based on the large price swings that are commonplace in crypto.
How To Store Cardano?
If you have bought Cardano from spot markets on an exchange, you can withdraw and store the assets in your own private wallet. These come in two forms and will be outlined below:
Also known as software wallets, these can be downloaded for free on your phone or PC. Popular ones for Cardano include Yoroi Wallet and Atomic Wallet.
These are considered to be safer than hot wallets as they are not connected to the internet. Cold wallets can be as simple as a sheet of paper that includes the seed phrases / private keys to a wallet. Alternatively, it can be a small flash-drive-shaped device that requires users to physically approve transactions. That way, even if hackers gain access to your computer, they won’t be able to steal the funds. Popular hardware wallets include: Ledger and Trezor
What Are the Different Ways To Pay For Cardano?
Nowadays, there are plenty of ways to pay for cryptocurrencies such as Cardano. In this section, we discuss the most popular ones so you can make a more informed decision.
Credit / Debit card
Buy Cardano with Credit / Debit Cards
Buy Cardano with Bank Transfer
Buy Cardano with PayPal
What To Consider When Buying Cardano?
There are several factors to keep in mind before investing in Cardano. Use the factors outlined below to help you in this endeavor.
Volatility: Cryptos are volatile assets and can experience significant price swings in either direction. It’s good to know what to expect before parting with your cash.
Fees: Different platforms will charge different fees for their services. Carry out some of your own research to find the platform that offers the best fees.
Regulation: It’s highly recommended that you stick with regulated platforms when dealing with cryptocurrencies. That way, you are better protected in case something goes wrong. Also, check the laws in your jurisdiction to ensure you stay on the right side of the law when dealing with cryptocurrencies.
Availability: Not all crypto platforms will offer Cardano markets, despite its huge popularity. Check these details before signing up for an account.
Long vs Short Term holding: Before investing any money, you should have an investment strategy in mind. This can help you make better trading decisions.
Is It Safe To Buy Cardano Online?
When it comes to buying Cardano, the first step is to avoid unregulated platforms. The ones we have listed above are a good place to start.
Once you have created an account, we highly recommend activating 2-factor authentication as this can add an extra layer of security to your account and prevent online attackers from stealing your funds. Similarly, you should avoid using the same password for different platforms even though this is the most convenient option. This way, you can avoid a single point of failure.
Finally, if you purchase your coins on an exchange, consider withdrawing and storing the assets in a private wallet that only you have access to.
How To Sell Cardano?
You can sell your Cardano holdings in a similar way to how you first bought them. Here’s how it’s done on Plus500 for example:
Go to the official Plus500 homepage and log in.
Click on ‘Portfolio’
Here, you will see all your open positions including the one for ADA
On the far right, you should see a small red cross, pressing that would allow you to close the position
Once done, the fiat currency you invested with such as USD or GBP will appear back in your account balance along with any profits you may have made.
Is It Worth Buying Cardano Right Now?
Cardano is arguably one of the most popular coins in the market today with a loyal community behind the project.
This is perhaps due to its incredible price appreciation in 2021 and the brains behind the development.
If Cardano’s applications are able to gain more adoption, this may reflect positively on the price of the coin. However, of course, gains are not guaranteed.
Remember that cryptocurrencies are highly volatile and ADA is no different. There are risks involved and you should take every precaution to prevent losing your funds.
The best way to invest in Cardano is by using brokerage platforms such as Plus500. Here, you can open and close positions in just a few clicks and have access to various different payment methods such as credit/debit cards and bank transfers.
Once you have created an account:
Never reuse passwords on different platforms
Activate 2-factor authentication
Consider storing your coins in a private wallet if the platform gives you that option
*Remember: rule number one is to only invest with money you can afford to lose.