Cardano is a promising cryptocurrency that is on the rise. Today at BlockchainBiome, we look at Cardano, especially how to buy Cardano ADA with USD. We will try to answer most asked questions like how to buy it in the USA.
This guide provides step-by-step instructions to help you buy Cardano cryptocurrency.
What is Cardano?
Cardano (ADA) is one of the top cryptocurrencies going around. Cardano was built to handle smart contracts and decentralized applications. It is a result of extensive research and good scientific philosophy.
Cardano is a blockchain project that started in 2015 with a layered development approach. The accounting and computation aspects are present in separate layers. The code developed is highly modular. This means that changes in the smaller aspects of the blockchain network will not hinder the functionality of Cardano.
It was created by Charles Hoskinson (CEO).
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Proof of Stake and Ouroboros
Cardano is a Proof of Stake system, which, uses the Ouroboros algorithm. A Proof of Stake (PoS) algorithm chooses the node for validation based on the stake of the node. Each node is a Proof of Stake system has a certain amount of stake in the blockchain network.
Unlike a Proof of Work system, there is no solving of the cryptographic puzzle to validate the node. Therefore, the Proof of Stake systems is less computationally intensive. A node found to validate fraudulent transactions in the network will lose all its stake in the blockchain network. Therefore, the Proof of Stake model also ensures lesser fraudulent transactions.
Proof of Stake systems is also less susceptible to the 51% attack than Proof of Work systems. In order to carry out a 51% attack in a Proof of Stake system, a user, organization or business will need 51% of the stake in the network to achieve consensus. In a Proof of Work system, owning 51% of the computational power will allow the user to mount a 51% attack. Since it is harder to own a 51% stake in most blockchain networks, Proof of Stake is generally much safer.
Ouroboros is a Proof of Stake protocol that is built to ensure rigorous security. Ouroboros protocol has the initial distribution of stake as its root of the trust in the system. A hypothetical beacon is responsible for emitting seeds and developing the trust system. This beacon is simulated by the nodes of the blockchain system. Therefore, Ouroboros allows for a self-sustaining and highly secure Proof of Stake system.
So let’s directly come to our topic how to buy Cardano coin.
How to buy Cardano (ADA) Cryptocurrency?
Unfortunately, Cardano cannot be bought directly through fiat currency.
To buy Cardano, you would first have to buy either Bitcoin or Ethereum and then use any of the exchanges to obtain Cardano (ADA).
To buy Cardano coin:
1. Set up the Daedalus wallet.
2. Buy Bitcoin or Ethereum with fiat currency.
3. Exchange bought Bitcoin or Ethereum for Cardano (ADA).
To store Cardano, you would need to download the Daedalus wallet. The Daedalus wallet is a highly secure wallet and can be used to store a large number of cryptocurrencies on it. Check out our extensive Daedalus wallet review for more information on Daedalus wallet.
Setting up Daedalus for Cardano (ADA)
- Visit https://daedaluswallet.io
- Choose the ‘Download’ option at the top and choose your Operating System and version for the download.
- Once the download is complete, click on the downloaded file and follow the installation instructions to download Daedalus wallet on your system.
- Launch the Daedalus application.
- In the application, choose ‘Create a Wallet’ and name your wallet. Choose ADA as the currency and choose ‘Create a Personal Wallet’.
- You will then need to create a backup for this wallet, read the terms and continue. You will then see a Recovery Phrase. You can write down this phrase or copy it and save it securely. Anyone with access to your recovery phrase will have access to your funds. Therefore, it is imperative that you save it securely.
- Next, confirm your recovery phrase by entering it in the correct order and press ‘Confirm’.
- To receive ADA, move to the Receive screen on your wallet. Here, you can see the public address to which ADA can be sent. Use this address while sending ADA from a cryptocurrency exchange.
- To send ADA, move to the Send screen on your wallet. You will need to know the public address of the wallet you wish to send ADA to. Input the public address into the ‘Receiver’ field and enter the amount. Then, click on ‘Send’.
Buy Ethereum or Bitcoin through exchanges
You can buy Ethereum and Bitcoin with fiat currency using cryptocurrency exchanges such as Coinbase, CEX.io, Bitpanda and many more. In this ‘How to Buy Cardano’ guide, we will be dealing with Ethereum. Alternatively, you can check out our guide if you want to buy Ethereum with PayPal.
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Coinbase is a US-based cryptocurrency exchange providing support in over 30 countries. All currency is protected on Coinbase due to the insurance protection that the business provides. This added advantage is lucrative for Coinbase. Cryptocurrency can be bought using wire transfer, credit card or debit card.
To buy Ethereum using Coinbase:
- Visit https://www.coinbase.com/
- Enter your email address and choose ‘Get Started’.
- Register for Coinbase by filling in your details. You would need to provide your name, your email address, and choose a password.
- Verify your email address by clicking on the link. You can then add your mobile number and enter the verification code sent to you.
- You would then need to verify your identity to buy cryptocurrency using a fiat currency. Upload your identity proof through camera or webcam and choose ‘Continue’ once all your identification documents are confirmed.
- Next, you would need to add a payment method. Choose ‘Add a Payment Method’ and then link your credit card, debit card or bank account.
- Once done, you can buy Ethereum easily and instantly. Go to ‘Buy/Sell’ on your Dashboard.
- Choose Ethereum by setting the currency to Ethereum. Once you choose Ethereum, select the amount you want to buy it for and select ‘Buy Ethereum Instantly’.
- Choose the payment option and go through the transaction details. Select ‘Confirm Buy’.
CEX.io is a popular platform used for buying Bitcoin, Ethereum, ZCash, and Dash. Cryptocurrency can be bought using credit and debit cards quite easily with CEX.io. CEX.io was launched in 2013 as a Bitcoin exchange and a cloud mining platform. The interface is very user-friendly and smooth to use.
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To buy Ethereum using CEX.io:
- Visit https://cex.io/
- Choose ‘Register’ on the top right to create an account.
- Enter your email address and choose a strong password. Then verify your account through the verification email sent to your email address. You will have 24 hours to complete the email verification.
- You would then need to verify your phone number by entering your phone number and providing the obtained verification code.
- io uses the Know Your Customer (KYC) process. After registration, you would have to send in documents for verifying your identity.
- For additional security, you can enable 2 Factor Authentication. For this, download a 2 Factor Authentication app, such as Google Authenticator on your device and enter the generated code on CEX.io.
- You can then add your bank account, credit card or debit card. To add a credit or debit card, users are required to enter the details of the card and take a selfie with the credit or debit card and upload it to the site. Bank transfer can also be carried out and each bank transfer is charged an extra fee of $10. For credit card deposits, CEX.io charges 3.5%+$0.25.
- Once done, navigate to the Buy/Sell screen and move to the ‘Buy’ tab. Choose Ethereum or Bitcoin to buy.
- Choose the currency from which you wish to buy Ethereum and choose ‘Buy’. The fees are calculated and frozen for two minutes. The fees then get recalculated every two minutes.
Trade Ethereum or Bitcoin for Cardano
Some of the cryptocurrency exchanges that list Cardano are:
eToro is a cryptocurrency platform that provides a wide array of options to buy cryptocurrency. It has many options including PayPal, bank transfer, Skrill, wire transfer, credit and debit cards and many more. eToro is a largely successful platform and is considered to be very safe.
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To buy Cardano with Ethereum on eToro:
- Visit https://www.etoro.com/
- Click on ‘Join Now’ on the landing page.
- Provide your first name, last name, username, email and phone number to complete the registration.
- You can deposit money into your eToro account through Wire transfer, bank transfer, Visa card, MasterCard, Skrill, UnionPay or PayPal. Without verification, you can deposit up to 2000 EUR.
- Move to the ‘Trade Markets’ page and move to the ‘Ethereum’ section.
- You can see the prices at which Ethereum can be bought and sold. Click the Buy button on the Ethereum card and enter the amount of Ethereum you want to buy. You can see the percentage of equity that the trade would require. Go through the details and select ‘Open Trade’.
- Alternatively, you can also transfer the Ethereum bought on any other platforms to your eToro account.
- In the markets section, look for Cardano or ‘ADA’ and select Trade. Enter the Daedalus wallet address for the recipient address and confirm the trade.
Binance is one of the leaders in the cryptocurrency exchange world. Binance provides two views: A Basic view for novice users and an Advanced view for experienced users. It is a Chinese based cryptocurrency platform and is very secure.
To buy Cardano using Ethereum on Binance:
- Visit https://binance.com/
- Select ‘Register’ on the top right corner to start the registration process for your account on Binance.
- Enter your email and password carefully and then click on ‘Register’. You will then have to solve a captcha puzzle. This puzzle is significantly different from most captcha puzzles that you would have encountered. Solve it carefully to finish the registration process.
- Look for an email sent to you by Binance and verify your account from the sent email.
- Once you log in for the first time on Binance, you will see a Security Risk Notice, carefully read through the notice, and select ‘I understand, Continue’.
- This step is not mandatory but is recommended. Enable 2 Factor Authentication by selecting either ‘Google Authentication’ or ‘SMS Authentication’. If you choose ‘Google Authentication’, you will have to download the Google Authenticator application onto a device and enter the code that is generated onto Binance.
- Once finished, go to the ‘Deposits’ section under ‘Funds’ to continue.
- Select ETH to check your ETH address. Binance offers only ETH/ADA option to carry out the exchange for ADA with ETH.
- You can deposit ETH into your ETH wallet by entering in the ETH deposit address. This deposit can be done using any cryptocurrency platform.
- To proceed, click on Exchange and choose the ‘Basic’ option in the dropdown menu for the trading page. You can choose ‘Advanced’ for more tools if you have a considerable amount of experience in using exchange platforms.
- You will see the options to choose your cryptocurrency pair on the right-hand side of your screen. Select the ADA/ETH pair to trade ETH for ADA.
- Choose limit order or market order and buy ADA by mentioning the amount. Then select ‘Buy ADA’ to complete the process of buying ADA.
- You can then withdraw your ADA from the Withdrawals section by specifying your ADA wallet address. (The Daedalus wallet address).
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Bittrex is also a large name in the cryptocurrency exchange industry and has support for over 190 cryptocurrencies.
To buy Cardano using Ethereum on Bittrex:
- Visit https://international.bittrex.com/
- Choose ‘Sign Up’ and start the registration process by entering your email address and password.
- Verify your email address by locating the email sent to you by Bittrex for verification.
- This step is not absolutely necessary but recommended. Enable 2 Factor Authentication by downloading an Authenticator application such as Google Authenticator. In your account settings, choose ‘Two-Factor Authentication’ and enter the generated key in the ‘Secret Key’ section.
- Complete the ‘Basic Verification’ section in your accounts section by providing details such as your name, birthday, country, address, etc.
- Deposit amount into your Ethereum wallet. Go to the ‘Wallets’ section on the top and look for ETH. Obtain the wallet address and add money to that address through any of the Ethereum wallets or cryptocurrencies that you have Ethereum in.
- On the ‘Markets’ page, look for Cardano in either the ‘Bitcoin Markets’ section or the ‘Ethereum Markets’ section. In this guide, since we are using Ethereum, search for ADA in the ‘Ethereum Markets’ section.
- Click on the result obtained to take you to the trading page. Enter the amount of ADA you wish to buy and the type of the order.
- Select ‘+ Buy ADA’ to complete the transaction.
Wrapping up ‘how to buy Cardano ADA?’
Cardano is a cryptocurrency that is here to stay. It is gaining popularity at a rapid rate and is certainly one of the top cryptocurrencies worth investing in. It is backed by a great scientific philosophy. Hopefully, this guide has provided you with all the information that you need to buy Cardano.