Did you know that Cardano was created by the same person that co-founded both Ethereum and BitShares? Well, it was! Anyway, if you’re looking to learn how to buy Cardano and get an ADA wallet to match, you’re in the right place!
The first part of my How to buy the Cardano guide is going to tell you a bit about what Cardano (ADA) is before showing you how and where to buy it.
We’ll then move on to how to get an ADA wallet so that you can store your Cardano after purchasing it.
So, what’re you waiting for? Let’s get started!
Carlos Diaz
PhD Researcher in Business Innovation at RMIT University
How might Web3 technologies contribute to democratization?
Web3 may contribute to democratization by eliminating intermediaries and enabling direct user participation. This adds to the tokenization of valuable assets and the automation of operations via smart contracting. Altogether Web3 enables new affordances to participants to exchange bi-directionally through Peer-to-Peer dynamics, and create their own community solutions.
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Table of Contents
- 1. Roots of Cardano
- 2. Where to Buy Cardano
- 2.1. Binance Exchange
- 2.2. KuCoin Exchange
- 2.3. HitBTC Exchange
- 2.4. Bittrex Exchange
- 2.5. Gate.io Exchange
- 3. How to Buy Cardano
- 3.1. Opening an Account On Binance
- 3.2. Deposit Funds into Binance
- 3.3. How to Buy Cardano on Binance
- 4. Where to Store Cardano (How to Get an ADA Wallet)
- 5. Conclusion
Roots of Cardano
Cardano was first launched in 2015 by a foundation called Input-Output Hong Kong (IOHK), led by Charles Hoskinson.
They wanted to create a blockchain that was capable of outperforming older blockchains like Bitcoin and Ethereum, which the founders call first and second-generation blockchains.
The ultimate objective is to create a platform that can act as a global payment system and dApp network by processing really fast, cheap and scalable transactions. The team is developing a protocol that will have the ability to process cross-chain smart contracts and build a bridge between the crypto-finance and traditional-finance worlds.
People sometimes get confused about the difference between Cardano and ADA, so let me clear it up. The name of the blockchain that processes and stores transactions are Cardano, whilst the name of the cryptocurrency is ADA. It’s as simple as that!
To learn more about the project of Cardano itself, check out our What is Cardano guide.
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Where to Buy Cardano
I’ll show you where to buy Cardano before showing you how to buy it. So, if you’re already set on where you’re going to buy it from, just skip to the How to Buy Cardano section.
As you probably know, there are now hundreds of different cryptocurrency exchanges on the market, each with their own pros and cons.
That is why I thought it would be a good idea to go through all of the advantages and disadvantages of each exchange that I have reviewed, so you can decide for yourself which one best suits your needs! Let’s start with Binance!
Binance Exchange
Although Binance only started in 2017, they are now the largest exchange in the world for the daily trading volume. One of their greatest advantages is that they list well over 100 different cryptocurrencies
and they are also regularly the first exchange to list a new popular coin after it has finished its ICO.
Interestingly, Binance is responsible for well over $1 billion of transactions a day, however, they do not allow users to deposit or withdraw using traditional payment methods such as a debit/credit card or bank account.
This can be quite frustrating if you are using Binance for the first time and don’t have any coins to fund your account with. However, you will not be charged to deposit using a cryptocurrency and withdrawing Cardano will only cost 1 ADA coin, which is very reasonable. When it comes to trading fees, these are also low at just 0.1% for each trade.
The Binance exchange offers users both a basic and advanced version, which makes it perfect for beginners, as well as more experienced traders.
Binance has a very good record in keeping their exchange safe, with no major hacks reported since they were created. To help keep your account secure, it is well worth using their Google Authenticator feature, which will require you to enter a mobile code every time you log in.
Finally, when it comes to customer service, there are three ways to contact the Binance team. There is a live chat facility, email support or you can submit a ticket. Large parts of the help section aren’t very helpful, as much of it has been translated badly from Chinese.
Below, I have listed the overall advantages and disadvantages of buying Cardano from Binance.
PROs
✓ More than 100 different coins listed
✓ Low trading fees
✓ Large liquidity
✓ Perfect for both beginners and more experienced traders
✓ Free deposits and cheap fee to withdraw ADA
✓ Excellent security
✓ Live chat facility
CONs
✗ Does not accept deposits using real-world money
✗ Customer support help section is poorly translated
So now that you have a good understanding of what Binance can offer you, the next part of my “How to buy Cardano” guide is going to review KuCoin!
KuCoin Exchange
KuCoin exchange was created in May 2017 by a group of specialists that previously worked on projects such as Ant Financial and iBox PAY.
KuCoin is a very easy-to-use platform that is recommended for those who are looking for the easiest way to purchase Cardano. KuCoin app is available on both Android and iOS, and is definitely suitable for beginners.
Kucoin supports about 100 cryptocurrencies and more than 400 trading pairs. The platform offers low fees and great products, such as Spot Trade, Marin Trade, Contract Futures, Pool-X, Staking and Lending. These features are recommended for more advanced users.
KuCoin comes with strong security measures, however, it's still recommended to keep your assets in a secure hardware wallet.
PROs
✓ More than 100 different coins listed
✓ Low trading fees
✓ Suitable for beginners and advanced traders
✓ Strong security
CONs
✗ Relatively low trading volume
HitBTC Exchange
Based in Estonia and launched in 2013, HitBTC has been around for a lot longer than Binance. The platform allows users to buy and sell more than 200 different cryptocurrencies, including Cardano.
One of the greatest advantages of buying ADA coins from HitBTC is that the exchange allows you to deposit and withdraw using real-world money. In fact, they have one of the widest selection of methods when it comes to funding your account. For example, by using third payment provider PerfectMoney, you can use a debit/credit card or a bank account.
There is a verification process at HitBTC if you decide to deposit using real-world money, which is the same for all exchanges. This will require you to provide some personal details (like your full name/address etc.) and upload some identification (such as your passport).
Depositing and withdrawing with real-world money is quite expensive at HitBTC, with each payment processor charging their own amount. They also make their cryptocurrency withdrawal fee structure quite unclear, however, users have reported that these are also high.
When it comes to trading fees, takers are charged 0.1%, while the maker pays nothing. In case you are unaware, the maker is the person who provides the exchange with liquidity (i.e. submits limit orders) and the taker is the person who “takes” the price on offer.
The platform is more suited for experienced traders as the interface is not very clear sometimes, so if this is your first time buying cryptocurrency then it might be best to try another exchange.
A final point to consider is security. The exchange experienced a major hack in 2015, with the bad guys managing to steal lots of coins. Although nothing has happened since it is concerning that the exchange’s servers were not more secure. This is why it is important to withdraw your coins straight to your ADA wallet!
I have listed a summary of all of the HitBTC pros and cons below.
PROs
✓ One of the largest selections of real-world money deposit methods
✓ More than 200 different cryptocurrencies listed
✓ Very low trading fees
CONs
✗ The very slow verification process for real-world deposits
✗ Reports of expensive and slow withdrawals
✗ Poor customer service
✗ The platform not ideal for beginners
✗ Experienced a hack in 2015
✗ Low liquidity on some of their coins
So, what do you think of the first two ADA coin exchanges I have listed so far? If you are still unsure, the next part of my “How to buy Cardano” guide is going to review Bittrex!
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Bittrex Exchange
Bittrex, created in 2014, is a U.S. based cryptocurrency exchange. They have one of the largest daily trading volumes, meaning that you will never struggle to find liquidity. They list all of the major coins like Bitcoin, Ethereum and of course Cardano, as well as some smaller coins too.
Unfortunately, just like Binance, it is not possible to deposit funds using traditional payment methods such as a bank account or debit/credit card, so you will need to fund your account using another cryptocurrency. However, this is free, as are withdrawals, so you only need to pay the blockchain transaction fee.
Unless you are planning on trading really large amounts (the equivalent of 1 BTC/day) then you don’t need to submit an ID. If you set up two-factor authentication then this increases to the equivalent of 3 BTC/day.
Being a U.S. based exchange, Bittrex takes account security very seriously and keep most of their funds in cold storage.
A further disadvantage to using the Bittrex platform is that their customer service options are really limited. There is no live chat or phone support, so you will need to submit a ticket. Some users have reported faster response times through their social media channels, so you could also try that if you need immediate assistance.
Below I have summarized all of Bittrex’s pros and cons.
PROs
✓ Large range of cryptocurrencies available
✓ Low deposit and withdrawal fees when using cryptocurrency
✓ Perfect for both beginners and more experienced traders
✓ Excellent security
CONs
✗ Does not accept real-world money
✗ Trading fees are slightly higher than other exchanges
✗ No live chat or phone support
I’ve now reviewed three different exchanges where you can buy Cardano. Which one do you think suits your needs the most? The next part of my How to buy the Cardano guide is going to discuss Gate.io.
Gate.io Exchange
Created in 2017, Gate.io is one of the newest cryptocurrency exchanges to enter the market. The platform lists more than 250 cryptocurrency pairings, many of which are less popular altcoins
that are sometimes difficult to find elsewhere.
One of the best features of using Gate.io is that it is one of the most user-friendly exchanges available, with clear and crisp colors making it easy to navigate. Although their trading volumes are much less than the likes of Binance, there is still a good amount of liquidity available on Gate.io.
It is not possible to fund your account using fiat currency, which means you will need to deposit using a cryptocurrency, which is free. Trading fees amount to 0.2% for each trade you make, however, this is reduced when you trade larger amounts.
According to the Gate.io fee structure, you will only pay 0.1 ADA coins to withdraw your Cardano, which is really cheap!
Security looks very good at the exchange, with users offered the opportunity to set up two-factor authentication. Gate.io also uses cold storage to store the majority of customer funds, which adds an extra layer of security. However, there appears to be very little information on the website as to where the exchange is actually located or who owns it, which is quite concerning.
A further disadvantage to using Gate.io is that when it comes to customer service there is no live chat or phone support, so you will need to submit a ticket through your online account, or send a message on Telegram.
I have summarized all of the Gate.io pros and cons below.
PROs
✓ Very good selection of coins
✓ Ideal for beginners – user-friendly
✓ Low trading fees – the more you trade, the less you pay
✓ Cheap withdrawal fees
CONs
✗ Customer service options limited
✗ Little company information available on the website
✗ Does not accept fiat currency deposits
✗ Still a very new exchange, others have larger trading volumes
So, there you have it, four of the best exchanges to buy Cardano! Which one do you prefer the most? They all have their own advantages and disadvantages, so it just depends on what you like to prioritize the most.
The next part of my “How to buy Cardano” guide is going to show you how to buy ADA coins, with step-by-step instructions!
How to Buy Cardano
In my step-by-step guide, I am going to show you how to buy Cardano using the Binance exchange. The platform has the largest trading volume, their fees are low, and it’s really simple to use the site, in general! You can also buy ADA with credit or debit card on Kraken - since buying Cardano coins with fiat money is usually preferable, this is a good alternative!
Please note that the process is very similar throughout each of the exchanges I mentioned in the Where to Buy Cardano section.
Before you can get started with Binance, you will need to get hold of some cryptocurrency, so that you can fund your account. The easiest way to do this is to buy Ethereum (ETH) from Coinbase, as you can easily use your debit/credit card or bank account.
There are other exchange brokers that allow you to do this too, so if you want to read my guide on Coinbase alternatives, click the link here!
Opening an Account On Binance
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- First, you will need to visit the official Binance website, which you can do by clicking this link.
- In the top right-hand corner of the screen, click on Register.
- Now you will need to enter your email address, choose a strong password and tick the terms and conditions box. Then click Register.
- As a security measure (to make sure you are human and not a robot) you will need to drag the slider across and match the jigsaw.
- Binance will then send you an email. Go to your inbox and click the confirmation link.
- Congratulations, you now have a Binance account!
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Deposit Funds into Binance
Once you have set up your Binance account, you now need to fund it. You need to get your Binance deposit address so that you can transfer funds across. I’ll show you how to do that below.
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- Once you are logged in, move your mouse over Funds (at the top of the page) and then click on Balances.
- You will now see a long list of cryptocurrencies that Binance support. In the search box, enter Ethereum. Then click on the Deposit button that is in the same row.
- Your unique Binance wallet address for Ethereum deposits is now displayed. Make sure you click on the Copy Address button.
- Go to your Coinbase account (or whichever exchange you decided to use) and paste the address in. Once you send the coins, they should arrive in your Binance account within 10 minutes.
- Once you are logged in, move your mouse over Funds (at the top of the page) and then click on Balances.
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- A very well-known crypto exchange platform
- More than 500 different cryptos available
- Two-factor authentication
- Over 500 different cryptocurrencies available
- Strong security
- Small withdrawal fees
- Very low trading fees
- Exceptional functionality
- Mobile trading app
- Very competitive trading fees
- An intuitive mobile app
- Up to 100x leverage available
- Secure and reliable
- Low fees
- A good amount of fiat currencies accepted
- Reputable exchange
- Multiple fiat currencies are accepted
- Relatively low trading fees
How to Buy Cardano on Binance
If you have followed my step-by-step buying guide so far, you should now have a fully funded Binance account.
The final part of this guide is going to show you how to buy Cardano.
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- At the top of the page, move your mouse of Exchange and then click on Basic.
- On the right of the screen, click on ETH and then search for You should see the below screenshot.
- Then click on the ADA/ETH.
- You are now on the main trading screen for the Cardano and Ethereum pairing.
- Scroll down below the chart and look for the Buy ADA trading box. Make sure that you click on the Market.
- You now need to enter the number of coins you want to buy. If you want to use all of your Ethereum balance, click on 100%. If you don’t, you can enter your desired amount into the box. Finally, click on Buy ADA to complete your trade.
- At the top of the page, move your mouse of Exchange and then click on Basic.
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That’s it, you’ve just bought your very own Cardano!
Now then, where do you store it?
Where to Store Cardano (How to Get an ADA Wallet)
Unlike other popular cryptocurrencies like Bitcoin and Ethereum, there is actually only one wallet that you can store your ADA coins in! This is called Daedalus and it is the official wallet created by the Cardano team.
The wallet has some really strong security features; however, it is not yet available on all device types.
You will need to download it on to your computer, which you can do so by visiting the official Daedalus web page. The site also gives you step-by-step instructions, should you need any assistance. To make things easier for you, you can access the website by clicking this link!
Once you have installed it, you will be able to send, hold or receive ADA coins. This is the safest way to store them, so try not to leave your coins in an exchange for too long.
The Cardano developers are currently working on other features within the wallet, such as an Android and iOS app, as well as support for other cryptocurrencies. The team has also announced that they soon hope to make ADA compatible with popular hardware wallets, however, you will need to wait until they make further developments.
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Conclusion
I hope you’ve enjoyed my “How to buy Cardano” guide! If you read it from start to finish, you should now have a good understanding of what the project does and what it is aiming to do.
You not only know how to buy Cardano but you also now know four of the best exchanges to buy it from, along with all of their advantages and disadvantages. The reason I selected those particular exchanges is that they each offer different things for different users.
For example, if you really want to use a debit card to fund your account, but don’t mind waiting a few days to have your account verified, then HitBTC would be ideal. However, if you prefer to get started straight away and want an exchange with lots of liquidity, then Binance is probably more suited! Either way, it’s all about personal preference.
Which exchange did you end up using? Did you find it straightforward to get your coins, or did you have an issue? Leave your comments below, I’d love to know!
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