Purchasing Cardano’s Native Token

With extensive experience as an electrical/software/coding engineer along with having a diverse financial background, Thomas Wettermann’s areas of interest include Machine Learning (ML), artificial intelligence (AI), and Financial Technology (FinTech). For the past few years, Thomas Wettermann has focused on the underlying technologies that support and promote all phases of cryptocurrency, Web 3.0, and metaverse ecosystems.

Cardano (ADA) is a third-generation blockchain that builds upon Ethereum - a second-generation blockchain.

Cardano Logo (source: crowdwisdom.live)

As a third-generation blockchain, Cardano enhances those things that the second-generation blockchain Ethereum excelled at: scalability, efficiency, and security.

What Is Cardano’s Ecosystem?

The Cardano blockchain is an open source blockchain which means that its records are made public and are readily available. Cardano is also a decentralized blockchain network that, like Ethereum, supports self-executing computer programs by way of smart contracts.

The code and the agreements contained within the Cardano ecosystem reside in a distributed, decentralized blockchain network. With these smart contracts, the code controls the execution, and transactions are trackable and irreversible.

As such, Cardano was created to enable developers to build and publish smart contracts and distributed applications (dApps).

Smart Contract (Source: theengineeringprojects.com)

All smart contracts residing on the Cardano blockchain have certain similar traits.

For example, because smart contracts are coded into the blockchain, they have a status. This status or “state” is shared amongst every single blockchain node across the entire network. So, each node running this blockchain has a copy of the present status of every single smart contract residing on the blockchain.

Importantly, these smart contracts are also immutable. That is, they cannot be altered. Although there are ways to extend them or replace parts, there is no way to secretively manipulate the content of a smart contract without drawing the attention of the network.

In addition, the logic of a smart contract cannot be distorted. With a smart contract, there is no room for interpretation of the terms of the agreement. That is why these coded agreements are referred to as “contracts.”

They act like an agreement between parties, but one which needs no third party to initiate, interpret, or oversee the results of the contract. Cardano is structured so as to enhance these smart contracts making them easier to scale. With such a network, almost anyone – not just developers – can create their own decentralized applications.

How Do You Buy Cardano Ecosystem Coins?

Among cryptocurrencies, Cardano presently has the sixth-highest market value at $35 billion, trailing behind Bitcoin's $750 billion, and Ethereum's second place market cap of $304 billion. In 2021, Cardano experienced a decent year-to-date market value gain of 200x, having reached an all-time high of $3.10 last September.

Cardano One-Year Pricing Chart (source: coinmarketcap.com)

Here are the steps to buy Cardano ADA.

Select A Crypto Exchange

As the sixth most popular cryptocurrency, Cardano can be purchased on a number of different trading platforms or cryptocurrency exchanges. Crypto exchanges allow you to act as a buyer and/or seller by exchanging your fiat money (US dollars) for cryptocurrencies like Bitcoin or Cardano.

Some popular crypto exchange choices to purchase Cardano ADA include Binance, Coinbase, Kraken, SoFi, and eToro.

In considering a crypto exchange, you should investigate whether you want to use a fiat exchange or a crypto-to-crypto exchange.

A fiat exchange will accept your fiat or ordinary currency as a deposit which can then be used to purchase your ADA. A crypto-to-crypto exchange allows you to deposit your existing crypto coins, which you can then exchange for ADA.

In identifying the desired trading platform, you should also research the transaction fee structures as fees charged against your account can vary from one exchange to another.

Create an Exchange Account

Create a trading account once you have selected an exchange. To create a trading account, you will need to provide certain personal information, like your name, address, social security number, and perhaps one or more forms of identification. The exchange will then proceed to verify your personal information so that you can finalize your trading account.

Deposit a Balance into Your New Account

After verification, you can deposit a balance into your account. If your account is on a fiat exchange, you can link your account directly to an existing bank account, a credit card, or a debit car. Fiat or ordinary currency can then be directly deposited into your account so that you can begin trading.

If your established account is on a crypto-to-crypto exchange, depositing your existing cryptocurrency can be a little more complicated. To deposit your cryptocurrency into these accounts you must send the code for the coins that you want to be deposited. This may take longer than an hour or two to deposit, depending on the type of cryptocurrency and the type of exchange.

Begin Trading

Now that you have a verified account with a balance, you can begin purchasing Cardano ADA. Depending on the amount of your purchase and the current market price (today’s current price of $1.02), you will probably be buying one or more ADA tokens.

Store Your ADA

You can use your exchange account to store your purchased ADA. Alternatively, you can use a digital wallet to store and manage your ADA.

A digital wallet is a location where you can securely store your ADA. You actually do not store your ADA as a physical coin, but rather you store the keys that provide access to your ADA on the blockchain.

There are different types of crypto wallets such as a “hot” wallet (software) or a “cold” wallet (hardware).

There are two types of "hot" wallets. There are software wallets and online wallets. These two types of wallets require an internet connection that allow you to gain access to your ADA stored in your online wallet, hence the name “hot” wallet. Perhaps the most secure type of wallet is called a "cold" wallet.

A “cold” wallet is a digital wallet that stores your privacy keys offline on a physical device, such as a USB drive. Cold wallets are referred to as “cold” as they are, unlike a “hot” wallet, not actively linked to the internet.

Trezor Cold Wallets (source: trezor.io)

Wallets that can be used to store your Cardano ADA include:

1. Trezor

2. Binance

3. Kraken

4. Chain Wallet

5. Ledger

All opinions expressed on this site are owned by Thomas Wettermann and should never be considered as advice in any form. Thomas Wettermann is not an independent financial advisor.

Any opinions, news, research, analyses, prices, or other information on this website is provided as a general market commentary of Thomas Wettermann and does not constitute investment advice. Thomas Wettermann will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Trading digital financial assets such as cryptocurrencies can carry a high level of risk, and may not be suitable for all investors.

Before deciding to invest, purchase, and/or trade cryptocurrency you should carefully consider your investment objectives, level of experience, adversity to risk, and volatilities. You may possibly sustain a loss of some or all of your initial investment; therefore, you should not invest money you cannot afford to lose. You should be aware of all the risks associated with cryptocurrency trading, and seek advice from a qualified and independent financial advisor.

All the views expressed on this site are those of Thomas Wettermann and do not represent the opinions of any entity with which Thomas Wettermann has been, is currently, or will be affiliated.