A Step-by-Step Guide to Buying Cardano (ADA) in 2022
There are currently over 7,000 cryptocurrencies that you can buy and sell online. In terms of market cap, Cardano sits comfortably in the top 10 - with a valuation of over $6,6 billion.
Want to learn how to buy Cardano (ADA) from the comfort of your own home?
In this guide, we show you how to buy Cardano online. We’ll walk you through the steps of choosing a broker, understanding the potential risks and rewards, and completing your Cardano investment in the safest way possible.
In addition to this, we discuss how to find a reputable Cardano provider, how to store and sell your ADA coins, how to set up a trading order, and more
How To Buy Cardano (ADA) Today In 5 Easy Steps
Don’t have time to read through our guide in full? If so, follow the quickfire steps outlined below to buy Cardano in less than 5 minutes!
1. Open an account with a licensed online broker offering Cardano
2. Fund your new account
3. Choose ADA from the list of available cryptocurrencies
4. When prompted, enter the amount of Cardano you wish to purchase
5. Confirm your choices and it will add the digital ADA coins to your new portfolio
Ready to buy Cardano right now with a debit/credit card or e-wallet?
How To Buy Cardano (ADA) Today
if you’re looking for a step-by-step walkthrough, check out the below. We show you how to buy Cardano today with the best crypto exchange!
Step 1: Choose An Online Cardano (ADA) Broker Or Exchange
As you can see from above, it’s advisable to buy Cardano via a regulated online broker - no matter what your experience level.
You can still buy Cardano on a direct basis if purchasing the digital currency via eToro. Not only that, but the platform is heavily regulated. We elaborate more on the importance of regulation later.
You may choose to go to a third-party crypto exchange to buy Cardano. However, the problem is that more often than not, these exchanges do not have to operate in accordance with any authority. In other words, they do not hold a regulatory license.
eToro has the approval of many respected organizations and is licensed in multiple jurisdictions. For example, it is registered with independent regulatory authority FINRA in the United States. The broker is also regulated by the FCA of the UK, CySEC of Cyprus, and ASIC of Australia.
Such regulatory authorities were created to ensure a safe financial arena for the general public. Imposing strict rules and requirements on brokers, therefore, gives cryptocurrency investors peace of mind and a fair service
Ergo, at eToro, you can buy Cardano as and when you wish - in a safe and easy to use space.
As you can see, regulation should be on your list of priorities when looking to buy Cardano. Moreover, regulation is the first obvious sign that you are dealing with a legitimate company and that you have some level of protection against crooks.
To recap - third-party crypto exchanges often don’t offer any protection at all. There are frequent stories of hackers wiping the contents of such an exchange in one fell swoop.
Another option for you is to buy Cardano and store the digital coins yourself in a personal crypto wallet. This entails you being wholly responsible for looking after your own long private key, as well as protecting yourself against scammers.
If your private key gets into the hands of hackers and all of your crypto-assets are stolen - there is not much you can do about it.
Beginner-friendly broker eToro will store Cardano so that you don’t have to, with no fee at all. It is much safer to store your digital currencies at a regulated platform such as this, rather than in an unregulated wallet.
When debating how to buy Cardano, payment methods will no doubt enter your mind. The truth is that in this day and age you shouldn’t have any problem buying cryptocurrencies using your favoured payment type.
Had you wanted to buy Cardano in the past you would have probably had to do so using a wire transfer. Even today, this is one of the slowest ways to pay for crypto-assets or any asset for that matter.
Online broker eToro is compatible with a plethora of payment types such as Visa, Visa Electron, Mastercard, and Maestro. The platform also accepts super-convenient e-wallets like Rapid Transfer, Neteller, Klarna, Skrill, and PayPal.
Fees and Commissions
When you are looking at how to buy Cardano online, another factor to have your eyes open to is fees and commissions.
Online brokers, like all businesses, need to make a profit in order to offer a good service - or in this case access to the cryptocurrency markets.
Our How to Buy Cardano Guide found that a large number of brokers charge a commission for every trade and the amount can vary. The fee charged will usually be a variable percentage against your position size.
To clear the mist:
- Online crypto provider Coinbase imposes a fee of 1.49% for every single trade
- If you enter a Cardano position at $1,000 you will pay $14.90
- As such, if you enter at $2,000, you will pay Coinbase $29.80 - and so on
To further explain, take a look at an example of how this 1.49% fee could affect your gains when electing to buy Cardano:
- You create a buy order worth $1,500 on Cardano
- You pay Coinbase 1.49%, which equates to $22.35
- When you want to offload your digital currencies your ADA coins are valued at $2,000
- Again, you pay Coinbase 1.49%, which is $29.80
- In total, you paid the platform $52.15 in commission, for entering and exiting the market
As is evident from our above example, seemingly small variable fees can soon eat away at potential gains. If you had opted to buy Cardano at eToro, you would have saved $52.15 in fees. This is because the broker is completely commission-free!
Some online brokers also charge clients to deposit and withdraw. These fees vary, but our beginner’s guide found that when electing to buy Cardano using a debit card at Coinbase you are liable for a 3.99% fee. The buy order in our example would have resulted in a fee of $59.85 - just to enter the market.
In contrast, eToro stipulates a deposit fee of 0.5% - and only in circumstances where you are not funding your account in US dollars.
Other Important Factors
We’ve run through many important factors to consider when looking at how to buy Cardano.
As well as commissions, regulation, and payment methods. There are other metrics to think about when looking for a convenient and safe way to access the market.
You will find below a few other important factors to think about before taking the plunge.
- User-Friendliness: When looking for a good broker - an easy to use platform aimed at newbies should be an important factor. The easier it is for you to navigate your account and place orders - the smoother your experience will be when electing to buy Cardano.
- Minimum Investment: It is vital that you are aware of the minimum investment required to buy Cardano at your chosen brokerage. For instance, if you are a beginner and the platform stipulates hundreds for every investment, that’s unlikely to be suitable for a risk-averse strategy. At eToro you can buy Cardano from $25 upwards!
- Storage: We think that to buy Cardano and store it yourself is cumbersome and not very suitable for beginners. When electing to buy digital currencies via broker eToro you are able to store your coins in a user-friendly, not to mention fully regulated, environment.
Step 2: Come Up With An Investment Plan
As is often the case with any new adventure in life, a plan is a good place to start. As such, when thinking about how to buy Cardano - come up with an investment plan!
Cryptocurrencies invite a highly volatile environment where anything can happen. Having a plan is a no brainer, no matter how experienced you are on the metaphorical trading floor.
If you don’t know where to begin in making a plan, see below for a few pointers.
1. Long-Term or Short-Term
The first step is to think about whether you want to buy Cardano as a long or short-term investor.
Let’s clear the mist of both categories.
If you decide to buy Carfano on a short-term basis, you will seek to exploit the short-term price fluctuations of the digital currency.
This is done by purchasing Cardano and selling it on after minutes, days, hours, or even weeks. The idea is to time the market and exit at a point where you are able to sell the coins for more than you initially bought them for. This is turning a profit in a nutshell.
If you choose to instead buy Cardano on a long-term basis you will be adopting a ‘buy and hold’ strategy. Long-term investors instead hold onto their digital coins for weeks, months, or sometimes years at a time.
This particular strategy is good for people who don’t want to worry about the short-term price shifts of this highly speculative crypto-asset.
2. Target Cardano Price
Adding a target Cardano price is a strategy used by many people. Although it is entirely optional, it has to be said it’s a great way to set yourself some goals.
To further explain, if you bought Cardano at $0.20 and wanted to double that investment - the coins would have to rise in value to $0.40. If you wanted to increase your investment six-fold - Cardano would have to increase to $1.20, and so forth.
Granted this sounds a little unrealistic. However, when you consider that in 2017 Cardano saw an all-time low of $0.017, and just 3 months later the digital currency saw highs of $1.33 - anything can happen in this speculative market.
To clarify, that’s an increase of over 7,000%.
3. Consider Regular Investments
Another hugely popular strategy to add to your investment plan is to buy Cardano in ‘dribs and drabs’.
As we said, the market is highly volatile, which is great for gains if timing it correctly. But, on the flip side, the uncertainty of cryptocurrencies can be daunting for beginners.
If you’re thinking about how to buy Cardano in terms of quantity - consider regular investments, instead of throwing everything you have via one purchase.
Many people choose to make regular modest investments, for instance at the end of every month, or every Friday. This is a sensible way to actively build up your cryptocurrency portfolio, without risking too much at once.
As we mentioned, eToro allows you to buy Cardano from $25, making the aforementioned regular investment strategy accomplishable for most people!
Would You Consider Investing In Cardano ADA?
Step 3: Open A Cardano (ADA) Broker Account
If you have traded any financial asset before, you will quickly realize that opening a Cardano broker account is essentially the same routine.
Go to the website of the cryptocurrency provider and hit ‘sign up’ or ‘join now’. You are going to be prompted for some basic details about who you are - such as your name, address, email, and telephone number.
All regulated platforms are legally required to obtain proof of who you are, so you will be asked for evidence of your name and such by uploading a clear copy of your government-issued ID. This can be your driver’s license or passport.
As per KYC rules, you will need to upload proof of the address you provided. This can be a utility bill, bank statement, or tax letter.
Step 4: Deposit Some Funds
Before you can buy Cardano, you need to think about funding your new account. The likelihood is that you have already made sure that your preferred way to deposit is accepted - so you can proceed and deposit some funds.
Arguably, the most convenient and time-efficient way to deposit funds into your account is a credit/debit card or e-wallet.
Regulated broker eToro allows you to deposit using various payment types from Visa and Mastercard, to e-wallets like PayPal, Klarna, Neteller, and Skrill.
The broker does accept wire transfer too, but as we said, this can take days on end - thus you would be unable to buy Cardano straight away.
The vast majority of online brokers stipulate a minimum deposit value to access the markets - which can vary quite considerably.
At eToro, the minimum deposit is $200, but you are then able to buy Cardano from as little as $25 upwards.
Step 5: Set Up A Trading Order
As soon as you have deposited some funds into your account, you are free to place your first order to buy Cardano.
Without an order, the online broker won’t know what your position is on the digital currency or how much you wish to stake on that position.
As such, we have compiled a list of the most commonly used trading orders to buy Cardano.
A ‘buy’ order is generally how you will enter the market to buy Cardano.
Put simply, if you think that the price of Cardano is going to increase - place a buy order at the crypto platform.
Some online brokers offer the ability to ‘short sell’.
This means that you have the opportunity to make gains from the decrease of a crypto-asset’s value. This is achieved by placing a sell order instead of a buy order if you believe the price will fall.
Limit or Market Order
As we touched on, the supply and demand of the markets cause the price of Cardano to rise and fall constantly, in every second. It’s these very price shifts that attract short-term investors.
So, what is a market order?
In a nutshell, a ‘market order’ tells the broker that you want to buy Cardano at the current or nearest price. When placing a market order, the trade is actioned by the platform immediately.
Due to the aforementioned price shifts, you will notice a slight difference in the price you saw and the price you get. This is unavoidable and usually a minuscule amount. For instance, you might place a ‘market order’ at $0.2074 - but get $0.2075.
For those unaware, a ‘limit order’ allows you to enter the cryptocurrency market at a particular price point.
Please see below an example for clarity:
- Cardano is currently priced at $0.207 USD. However, you want to enter the position at $0.210
- As such, you place a limit order at $0.210
- If Cardano hits $0.210, the broker will execute your order for you
- This order will remain active until either the crypto-asset reaches that price or you cancel the limit order
As you can see, a market order is a super-easy option for newbies. Whereas a limit order enables you to enter the market at a price you like. Just bear in mind if Cardano doesn’t hit that price you have to either wait it out or cancel it.
Now that you have a firm grip on the working of orders, you can consider how much to stake on your Cardano position.
Every time you place an order, the platform will prompt you for a stake - which is another way of asking you how much Cardano you would like to buy.
As we said, many people opt for a sensible regular investment strategy, which is a good way to alleviate some risk.
Don’t forget, at crypto platform eToro, you can buy Cardano from $25 - allowing you to take a slow and steady approach whilst learning the ropes.
Check over all of the information you have entered, and confirm your choices.
Once confirmed, the broker will put the wheels in motion and action your buy/sell and limit/market orders - at the stake you previously stipulated.
You will notice shortly afterwards that your digital currency purchase is now safely in your eToro portfolio.
Don't Miss: Best Methods On How To Earn Cardano (ADA) Fast
Step 6: Storing Your Cardano (ADA)
We have mentioned storage on a few occasions, but it is a very important factor when considering how to buy Cardano.
To reiterate, third-party crypto exchanges often lack licensing, so don’t have to answer to any authority. This makes them a potentially unsafe place to buy Cardano for various reasons.
Due to safety, this means that you will have likely withdraw your ADA coins to a private wallet.
You’ll be expected to ensure the safety of your long private key and protect your crypto-wallet against hackers - leaving your currencies vulnerable.
Going back to eToro, you can buy Cardano directly through the online broker. You are also able to store any ADA coins in a user-friendly and secure environment - at no extra fee.
Step 7: Selling Your Cardano (ADA)
The main objective of buying Cardano is undoubtedly to sell the digital coins further down the line - for much more than you paid. Anything above what you initially paid (minus fees) is profit.
When you feel the time is right to sell your Cardano to make some decent gains - it’s recommended to do so in a regulated space.
Not only that, but unregulated exchanges will compel you to transfer your Cardano coins from your own personal wallet to the unregulated wallet of the crypto exchange.
Next, you would be required to request a withdrawal from the exchange. All of this is cumbersome.
Now, should you buy Cardano at eToro and decide to sell your coins - the process is very uncomplicated. Simply sign in to your broker account, and elect to sell your ADA coins.
The cash from your sale will be sent to the original payment method you used when making the Cardano purchase.
Ready To Buy Cardano ADA?
Other Ways To Buy Cardano (ADA) In 2022
Throughout steps 1 to 7 we have detailed various aspects of how to buy Cardano. There are in fact other ways to buy this speculative asset, which you’ll find below.
1. Buy Cardano Debit Card
Debit cards are a highly popular way to pay for online purchases, so to buy Cardano this way will be just as familiar to you.
Simply choose ’debit card’ from the list of payment methods at eToro, and enter your card details. You will also need to enter the amount of Cardano you want to purchase.
As we said, if electing to buy Cardano via debit card, when it comes to cashing out the money will be sent to the same card.
It’s important to check the terms and conditions and be aware of the minimum investment and deposit amount required of you.
2. Buy Cardano Credit Card
To buy Cardano with a credit card is a similar process as above. You will need to enter your card details and a monetary value.
Moreover, credit cards often (but not always) come with a ‘cash advance fee’. The same goes for ATM withdrawals and any transaction linked to gambling. As such, always check this with your provider.
3. Buy Cardano Paypal
PayPal has become synonymous with secure online purchases, so the same applies when looking to buy Cardano in this manner.
Our beginner’s guide found that not many online crypto brokers accept PayPal deposits.
Nevertheless, at eToro clients can pay via PayPal and also other convenient e-wallets such as Skrill and Neteller.
4. Cardano ATM
It may surprise you to learn that as well as the ATMs most of us use on a regular basis to withdraw tangible cash - cryptocurrency ATMs exist.
The major difference is that digital currency ATMs do not dispense cash. Instead, the investor inserts fiat money into the machine. The ATM then shows on screen how much Cardano will be received, and prints a receipt.
As yet there are no ATMs allowing you to buy Cardano. However, when you consider that the fees are often double digits, it’s likely better to stick with a commission-free broker like eToro anyway.
How To Buy Cardano (ADA) - The Verdict
We have covered many important metrics to be aware of when learning how to buy Cardano. Having an understanding of the ins and outs of the market - such as fees, trading orders, and investment plan strategies is priceless.
However, it’s still crucial that you find a respected and trustworthy broker to buy Cardano from. This cuts out the need to worry about the terrifying reality of crypto-wallet hackers.
Popular broker eToro is regulated by the FCA, ASIC, and CySEC and registered in the US with FINRA. The platform enables you to buy Cardano and store the coins in a safe place. If that’s not reassuring enough, you can complete your ADA purchase at eToro on a commission-free basis.
eToro – Best Broker To Buy Cardano ADA
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
How easy is it to buy Cardano?
It is super easy to buy Cardano. However, it is suggested to sign up with a regulated broker like eToro, rather than an unregulated crypto exchange.
What is the safest way to buy Cardano?
The safest way to buy Cardano is via a broker holding a reputable license. eToro serves over 13 million people and is regulated by CySEC, ASIC, and the FCA - as well as being registered with FINRA.
Can I buy $100 of Cardano?
You can buy $100 of Cardano. But, for beginners is advisable to adopt a regular investment plan at smaller amounts. eToro will allow you to buy Cardano from $25.
Can you lose money on Cardano?
Yes, you can lose money on Cardano, but you can also make money. If you correctly time the market you can make gains. If you time the market incorrectly you will make a loss.
What is Cardano highest price ever?
Cardano's all-time high was $3.10, which it hit in September 2021.