5 Steps to Safely Buying Cardano (ADA)
Cardano (ADA) is a popular choice among crypto investors looking for projects with strong long-term potential. At the time of this writing, it’s the fifth-largest cryptocurrency by market cap. Unlike market leaders Bitcoin and Ethereum, Cardano doesn’t require much energy, making it an environmentally friendly crypto.
If you’re interested in buying Cardano, here’s everything you need to do.
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1. Find a crypto exchange that sells Cardano
Start by selecting a crypto exchange where you can buy Cardano. Because Cardano is one of the biggest coins, many of the best cryptocurrency exchanges list it. Here are some of the most popular crypto exchanges and investing platforms that have Cardano:
The two most important things to look for in a crypto exchange are security and reasonable fees, which all of these platforms offer.
For beginners, Coinbase is a great choice because of how user-friendly it is. It doesn’t take long to learn how to trade crypto using Coinbase, and it also has plenty of educational content available.
2. Sign up for an account
You need an account at the exchange you chose to buy crypto. The registration process depends on the exchange, but most have a button that says “Get started,” “Register,” or “Sign up.”
Exchanges usually ask for the following information to open an account:
- Full name
- Email address
- Phone number
The exchange may require that you set up two-factor authentication. With this feature, you need to go through two layers of security when logging in to your account. For example, instead of just entering your password, you would also need to enter a code the exchange sent to your email address or phone number.
Even if two-factor authentication isn’t required, it’s worth setting up on your account for greater protection.
3. Verify your identity
After you’ve created your account, it’s time to verify your identity. Cryptocurrency exchanges need to do this with their clients to confirm their identities and prevent illegal activities, such as money laundering.
Once again, the exact process depends on the exchange, but be ready to provide the following:
- Date of birth
- Social Security number
- Physical address
- A scan of a valid ID, such as a driver’s license or passport
4. Plan your investment strategy
The best approach with cryptocurrency is to treat it as a long-term investment. And if you’re going to treat it as an investment, it helps to have a strategy. You can plan your crypto investment by answering a few questions.
- How often will you buy Cardano? Some people make one big purchase and wait to see what happens. Others buy on a regular basis, such as every two weeks or every month.
- How much will you invest? This depends on your risk tolerance and how often you plan to buy more. If you’re going to purchase Cardano frequently, then you likely won’t want to buy a large amount on our first go.
- When do you plan to sell your Cardano? You could go with a timeframe such as holding your Cardano for at least five years, a price target, or a combination of the two.
Here’s an example of an investment strategy — I plan to buy $250 worth of Cardano every month. I’ll hold on to it for at least five years, but if the price triples before then, I’ll take out my original investment to ensure I don’t lose any money.
That’s just one option, and your strategy can be as simple or complex as you want. By having a plan in place, you don’t need to wonder what to do every time Cardano’s price rises and falls.
5. Make your Cardano purchase
Check which payment methods the crypto exchange accepts and the fees for each one. These are the most common payment methods:
Most top exchanges let you deposit cash from a bank account free of charge. You still pay transaction fees when buying crypto, but it ends up being cheaper than other payment methods. With debit cards, credit cards, and PayPal, you pay more in fees on your crypto purchase. Just keep in mind that the transfer process from a bank account can take a few business days.
Once you have the funds in your exchange account, choose the amount of money you want to spend on Cardano. The exchange will show you a preview of the transaction with the fees and the amount of Cardano you’ll receive. If it looks correct, confirm the purchase.
After you do that, the Cardano you bought should be available in your account within seconds. The last thing to consider is moving your Cardano to a crypto wallet. Since crypto wallets provide more security, they’re a popular way for investors to protect their coins.