How do you buy Cardano, the crypto-currency that has risen +1081% since the beginning of 2021, reaching fourth place in the ranking of the most capitalized cryptos?
A price of $2.07 per token, a market capitalization of almost $69 billion and a steadily increasing trading volume: these are the dizzying figures for Cardano, on the lips of everyone in the industry.
ADA, the token’s name, is undoubtedly one of the best-performing tokens in 2021, thanks in particular to the general rise in the market, its inclusion in several new exchanges and features that make Cardano in many ways more attractive than Bitcoin and Ethereum. So it’s hardly surprising that more and more enthusiasts are asking how to buy Cardano, what the real reasons are for this rise and, above all, what the outlook is for the future.
Why Cardano is booming
Participation in the crypto-currency market has never been so high, particularly in the case of altcoins (bitcoin alternatives for short), which have seen sharp rises in recent months. Among the reasons for this rise is, first and foremost, the update implemented on the network in mid-September to include smart contracts, an innovation that puts ADA even more in competition with the Ethereum network.
Cardano is also one of the most environmentally-friendly crypto-currencies (since it uses proof-of-stake, as we’ll see later), a very attractive factor for young market participants and one that differentiates ADA from bitcoin.
Finally, the frenzy: as the value of a crypto-currency rises, so does the interest and, consequently, the number of purchases, a factor that drives up the price.
How to buy Cardano ?
If you want to buy Cardano, there are a few simple steps to follow
- find an exchange that sells Cardano. It’s not a difficult mission, as it’s one of the most popular and in-demand cryptos. But which exchange to choose? The editors of Money.co.uk recommend Young Platform, a 100% Italian company that guarantees a high degree of security, while offering an efficient and simple interface. Other international players include Bitfinex, KuCoin, Huobi and Gate.io.
- create an account. The registration process depends on the exchange you choose, but in general you’ll need to provide personal information, including your full name, email address and phone number;
- verify your identity. Crypto-currency exchanges require verification from their customers to confirm their identity and prevent illegal activities, such as money laundering. You’ll likely need to provide your date of birth, residential address and a scan of a valid ID ;
- Decide on your strategy, especially for those who are – wisely – aiming for the long term. It helps to determine if and when to increase the number of chips purchased, how much of your investment portfolio to devote to Cardano, and when the conditions are right to sell;
- Buy Cardano. Simply follow the instructions provided by Young Platform or the exchange of your choice. The next step is to load money into your account and proceed with the purchase.
Why buy Cardano?
Cardano has an important competitive advantage: it uses a “proof-of-stake” consensus mechanism, an implementation that the Ethereum network has not yet deployed, although it is in the pipeline.
Consensus is a key element, as it ensures that the network is synchronized and that transactions are legitimate, thus eliminating the need for intermediaries. In contrast, proof-of-work systems, such as those used by Bitcoin and Ethereum, receive consent through mining, which requires solving complex computer puzzles to verify transactions in exchange for newly minted tokens. The process is energy-intensive, more costly and pollutes the environment to a large extent.
For its part, Cardano uses a proof-of-stake system called Oroboros which, instead of solving puzzles, asks miners to validate transactions based on the number of coins they already possess.
Unlike bitcoin, which is not programmable, Cardano allows developers to create much more sophisticated smart contracts on its blockchain.
Cardano is home to a number of highly promising decentralized applications under development that could attract new investors.
Like all crypto-currencies, Cardano is uncertain and subject to heavy speculation. However, investors who focus on fundamentals can mitigate uncertainty by targeting assets that add value (or more) over their market counterparts.
The current price is certainly not as cheap as it was at the beginning of the year, but its proof-of-stake consensus mechanism and “programmable” blockchain could sustain the cryptocurrency’s bullish performance over the long term.
