Firstly, I’ll provide an overview of Cardano, then explain how to safely buy Cardano ADA tokens and store them securely in a supported wallet. Plus, I’ll also explain how to stake Cardano ADA tokens to earn rewards.
What is Cardano?
Cardano is a proof of stake blockchain with smart contract support. Similar to the likes of Ethereum, its often described as an Ethereum killer, as it can be deemed to be a competitor or a threat.
In fact, Cardano was actually created in 2017 by one of the co-founders of Ethereum named Charles Hoskinson. Charles is very active with the Cardano community and regularly releases videos and live streams via YouTube.
Cardano aims to be low-cost and scalable. In contrast to Ethereum and they enable owners of ADA to help operate its network and vote on changes to its software rules. Whilst developers use the Cardano blockchain for smart contracts and building decentralized applications.
They state that they are the first blockchain platform to be built through peer-reviewed research, to be secure enough to protect the data of billions, scalable enough to accommodate global systems, and robust enough to support foundational change.
The blockchain has been released in stages with the aim to release better, cleaner and more secure code. In fact, the network recently upgraded to “Mary,” (the hard fork) allowing users to create tokens that run on Cardano natively, just like their own token ADA does. So similar to ERC-20 tokens that can be created and transacted on the Ethereum network, native tokens will open up similar functionality for Cardano.
Enabling new tokens is a big step forwards in capability for the Cardano network and another move closer to full smart-contract functionality.
Cardano ADA Tokens
The Cardano ADA tokens are the native cryptocurrency of the Cardano blockchain. At the time of this Cardano review ADA is the 3rd largest cryptocurrency by market capitalization.
ADA was designed to ensure that holders can participate in the operation of the network. Due to this, those who hold the cryptocurrency have the right to vote on any proposed changes to the software.
The token can used as a digital currency and stored in a wallet and delegated to a stake pool to earn rewards.
How to Buy Cardano ADA Tokens?
ADA can be purchased on popular cryptocurrency exchanges such as the likes of Binance, Crypto.com, Kraken, and eToro. Where you can trade with a variety of tokens including; BTC, CRO, ETH, EUR, GBP, USD, and USDT.
Binance is considered one of the biggest cryptocurrency exchanges in the world, in terms of the trading volume. Predominately crypto to crypto exchange the platform supports more than 100+ coins with 240+ trading pairs.
Binance is supported by its own Binance Coin (BNB) token. Allowing users to receive discounts on the services of the Binance platform.
With Binance you can trade for ADA using cryptocurrencies such as the likes of BNB, BTC and ETH. Or in FIAT markets with AUD, GBP, EUR or stablecoins such as BUSD or USDT.
The Crypto.com Exchange is part of a range of products and services offered by Crypto.com. Launched in 2019, the exchange enables users to trade crypto to crypto, with low fees and deep liquidity. The exchange is powered by CRO, Crypto.com’s native token. Where CRO holders can enjoy privileges by staking the token or by using them to pay for the likes of trading fees.
Crypto.com first added the ADA token to its platform in June 2019 and users can trade for ADA with the likes of BTC, CRO and USDT.
eToro, which is trusted by millions of users, is a user-friendly platform and enabling anyone, anywhere, to buy cryptocurrencies within just a few clicks. With eToro you can purchase cryptocurrencies as actual toke or you can trade CFDs based on the underlying cryptocurrency price.
Cardano ADA is available to trade on eToro with your USD deposits which can be made via bank transfers, credit/debit card or via Paypal.
How to Store Cardano ADA
Once you have bought your ADA tokens, you’ll need to find a wallet that supports them. It’s not recommended that you keep your crypto on an exchange that is a far more likely target for hackers. Also, you won’t have control over your crypto unless you have access to your private keys.
Daedalus is the official wallet created by Cardano developers. It’s a secure desktop wallet for the ADA currency that downloads a full copy of the Cardano blockchain and independently validates every transaction in its history. Ensuring that you get maximum security and completely trustless operation without centrally hosted 3rd party servers.
Your private keys are encryptoed, you can create paper wallets for cold storage and it runs on the likes of Windows, MacOS and Linux.
The Yoroi wallet is a light wallet, meaning that you need need to download a copy of the Cardano blockchain’s history. The wallet allows immediate sending and receiving of transactions.
Hardware Wallets – Ledger & Trezor
The most secure way to store your ADA, or any crypto for that matter is a hardware wallet. This is a device that will keep your private keys sotred offline and away from any potential harm.
You can use your Ledger with the Yoroi wallet on your desktop and simply add the Cardano app to your Ledger Live. Pr in the same way you can also use the Trezor Model T. However, just be aware that their (cheaper) Model One does not support Cardano.
Exodus is a desktop wallet that supports over 100 different cryptocurrencies. Included in this list is their own free and secure ADA wallet. The Exodus wallet is built for the beginner in mind, making sending, receiving, and exchanging very simple and fast.
Plus, you can also easily stake your ADA tokens within the Exodus wallet.
How to Stake Cardano?
Staking your ADA is a great way to earn interest on your cryptocurrency asset. When staking Cardano, your tokens are not locked up and you can spend them whenever you like. By staking your ADA, you are supporting the Cardano network (by allocating resources to it and contributing to the stability of the network). In return, you can earn ADA tokens as rewards.
ADA can be staked in hardware, software and even paper wallets. Each method of staking will be slightly different, depending on your wallet type;
- Daedalus wallet: Stake in the “Delegation Center”
- Exodus wallet: Stake under the “Rewards” tab
- Yoroi browser extension: Stake under the “Delegation List” tab
When staking ADA, you’re actually staking your Cardano address. Therefore you will be staking your entire address balance into the pool as opposed to a specific amount of your choosing.
Then when its time to receive your rewards, a snapshot will be taken. Which will then be used to calculate your reward.
Louise created the Every Bit Helps YouTube channel back in 2017, after finding the process of buying Bitcoin difficult. Therefore, in an aim to help others, she hopes that her tutorials will make the process of buying, selling and storing crypto a lot easier for newbies in the future.
After spending 20 years working in London in cyber security, she left the corporate life after having her second child in 2018. Louise now travels the world with her two small children trying to make the most out of life.