One cryptocurrency that has been attracting the attention of crypto enthusiasts is Cardano. In this article, we will answer the question why you should care about the cryptocurrency and even more – read along and learn how to buy, store or cell Cardano.
What is Cardano?
The Cardano project is named after the 16th century mathematician and polymath Gerolamo Cardano. The idea was conceptualized by Charles Hoskin in 2015, who also happens to be the one of the co-founders of Ethereum.
At the center of it, Cardano can be described as an open-sourced, multi-layered, blockchain-based system that can be used for financial transactions as well as distributed computing.
Cardano currently powers a native cryptocurrency token known as ADA. ADA was named after the 19th century mathematician Ada Lovelace and launched in 2017.
What’s the goal of Cardano?
Similar to Ethereum, Cardano is a smart contracts platform – the major difference being that Cardano uses layered architecture to offer more scalability and security. Cardano is also able to create and host decentralized, blockchain-based software.
The project was launched in-order to create a balanced and sustainable ecosystem which separates the transaction of the ADA coin with the usage of smart contracts into distinct layers. As a result, the system improves on the shortcomings of Ethereum and Bitcoin.
What’s special about Cardano?
While similar in concept with Ethereum, Cardano is different in the sense that it constitutes various layers which it uses to separate various functions. Peer-to-peer transactions are handled in one layer while smart contracts are handled in another layer.
According to Cardano’s developers, ADA is the only virtual currency that uses a “scientific philosophy and research-driven approach”. Cardano was formed from a series of academic papers and not just one white paper as is the case with other blockchain projects.
Although this may seem like nothing out of the ordinary, true to their word, Cardano employs a thorough, peer-review process that involves both scientists and programmers to help improve its open-source network. Furthermore, Cardano Foundation has gotten into partnerships with academic institutions.
The ultimate goal of these considerable peer-review efforts and widespread academic partnerships is to ensure that Cardano is built using qualitative, “high-assurance code”.
Advantages of Cardano
- First peer-reviewed blockchain – Cardano is the first blockchain based on theories that have been tested scientifically. It aims to combine the superior transactional qualities of Bitcoin with the smart contacts system invented by Ethereum.
- Multi-layered system – by separating the Cardano network in different layers, developers can address problems in each layer separately.
- Open-source foundation – Cardano is completely open-source and any programmer or scholar can contribute to the project. Besides, IOHK employs Professor Aggelos Kiayias, a cryptographer, along with a team of scientists and researchers who contribute to the protocol on a daily.
Disadvantages of Cardano
- Concerns on centralization – although the Proof of Stake protocol makes it easy to validate the system, it also raises concerns with regards to centralization since it is possible for only a few validators to decide which block passes validation.
- Untested and unproven programming language – Cardano has invented Plutus, its very own programming language. This new language remains unproven and untested in a field which is also rather new.
How to Buy Cardano
There are still very few cryptocurrency marketplaces that allow you to buy Cardano for US dollars, euros or pounds. Luckily, we've got you covered. Just follow these four simple steps:
- Find a cryptocurrency exchange
- Sign up for a cryptocurrency exchange
- Buy Cardano using US dollars, euros or pounds
- Store Cardano securely
1. Find a Cardano exchange
Before choosing a cryptocurrency exchange, it's good to figure out what you are looking for in an exchange. Should it be easy-to-use, have the best prices or great payment options? The below list outlines key factors which should influence your decision for a marketplace that suits your needs:
- User experience: if you're new to cryptocurrencies, it's a good idea to choose an exchange with a great user interface which helps you make better informed investment decisions and reduces the risk of unnecessary mistakes.
- Fee structure and rates: great user experience, however, often comes at an expense - trading fees as well as payment fees are usually higher at marketplaces that are easy to use. Fees can generally range from as little as 0.1% per transaction to 10% per transaction and more. Hence, always look for a good trade-off between pricing and user-experience.
- Payment methods: make sure that your preferred cryptocurrency exchange offers payment methods that suit your wants and needs.
- Security & trust: a cryptocurrency trading platform should follow security best practices. Read reviews by real users to learn more about the trustworthiness and support provided by the different marketplaces.
How to use Cryptoradar to find a cryptocurrency exchange
Cryptoradar helps you find a suitable cryptocurrency marketplace, providing you a comprehensive yet compact overview Cardano marketplaces.
Make sure to use the filters on the left side of the website to narrow down your list based on your wants and needs.
2. Sign up for an exchange
Signing up to an exchange is actually one of the easiest parts of the process. Simply enter your personal details to get started.
After registration, however, you need to verify your identity. To do so, you will either be asked to upload identification documents to the marketplace (e.g. a copy of your passport and a recent utility bill as proof of residence), or you will be asked to jump on a short video chat with a support agent who will verify your details remotely.
3. Buy Cardano using fiat currencies
Finally, you're on the brink of making your first Cardano purchase! Yet, before you can actually buy cryptocurrency, you need to deposit money on the marketplace. This can either be done through bank transfer or instant payment methods like credit cards or Skrill.
Once your payment is received by the cryptocurrency exchange, you can go ahead and buy Cardano. This is actually the easiest part of the whole process. On most marketplaces it’s as easy as selecting the purchase amount (in US dollars, euros or pounds) and clicking the buy button.
4. Store Cardano securely
Optionally, you can withdraw Cardano after your purchase to a secure wallet that you manage. Keep in mind that you should not leave large amounts of cryptocurrencies on marketplaces as they are popular targets of hackers.