How to Buy Cardano 2021

How to Buy Cardano 2021

Whether or not cryptocurrencies overtake fiat in terms of real-world application remains to be seen. With that said, there is no doubting that the demand for this highly speculative asset-class continues to surge.

Today we talk about how to buy Cardano, without all of the complicated jargon.

This includes popular strategies and a practical rundown of how to get started. In addition to this, to save you hours of scouring the internet, we have also reviewed the top trusted brokers for your deliberation.

 

eToro - Buy and Invest in Assets

Our Rating

  • Buy over 2,400 stocks
  • Trade thousands of CFDs
  • Deposit funds with a debit/credit card, e-wallet, or bank account and PayPal
  • Perfect for newbie traders and heavily regulated
  • Only real cryptos are available for US users
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

 

Table of Content

     

    How to Buy Cardano in 10 Minutes – Quickfire Guide

    The first thing to mention is that in order to buy Cardano in a safe and timely manner you are best to do so via a trusted cryptocurrency broker.

    If you haven’t got enough time to read the entirety of this guide right now, you can follow the 5 steps below.

    • Step 1: Join an online brokerage – if you are yet to decide, eToro serves over 20 million clients and does not charge any commission when buying crypto
    • Step 2: Tell the platform who you are – name, date of birth, address, etc
    • Step 3: When asked, upload some ID – your passport and a bank statement dated within the last 3 months will suffice
    • Step 4: Deposit some funds into your new account – choose a payment type and enter a value in the ‘amount’ box
    • Step 5: Search for and buy Cardano – you can purchase this coin at eToro from a minimum investment of $25 whilst paying zero commission

    And that’s it – you’ve just bought Cardano!

    Select a Trusted Cardano Broker

    A broker is an essential bridge between you and the cryptocurrency markets. As such, you should choose wisely. To help you get started we have reviewed the top 2 platforms that provide access to Cardano.

    Although you might want to straight-up buy Cardano, it’s important to note that there are much more flexible options available – notably CFDs. Such instruments enable you to trade Cardano on a long or short basis – often with leverage. As such we have included both options for your consideration.

    1. eToro – Best All-Round Commission-Free Cardano Platform 2021

    eToro is undoubtedly one of the most well-known online brokers in the crypto trading space. The website itself is super simple to use, and finding Cardano to buy and trade will take a matter of seconds. One of the most attractive things about this platform is the fact you will not be charged any commissions.

    In terms of financial assets - the broker offers heaps of markets covering stocks, indices, forex, commodities, and 16 cryptocurrencies - including Cardano. If you want to have the option of going long or short on this crypto-asset, you can trade it as CFDs. For those unaware, this also enables you to go long and short, as well as add leverage (if offered).

    You can buy ADA tokens from just $25 here, which is great if you happen to be on a tight budget. As you likely know, commission-free brokers must make money somewhere, which is usually charged via the spread. eToro offers very competitive spreads across all assets. On the subject of Cardano, this averages 2.90%.

    There is a small charge of 0.5% for adding funds to your account but you will only be liable for this fee if depositing in a currency other than US dollars. Furthermore, you may want to try out a more hands-off approach to buying or trading Cardano - which is easily achieved by using the Copy Trader tool at eToro.

    This stand-out feature enables you to invest from $500 in a seasoned Copy Trader - so subsequently, whatever they buy will appear in your portfolio. For example, if the Copy Trader you have invested $500 in risks 12% of their account balance on ADA coins, 12% of your investment is also in Cardano ($60). You may also want to check out the Copy Portfolio feature which is run by a team of pro traders at eToro.

    Regulation in this industry is extremely important as there are so many sharks in the space. eToro holds a license from some of the biggest regulatory bodies in the world - FCA, CySEC, ASIC. The platform is also registered with and approved by FINRA for US investors. When it comes to buying Cardano, there shouldn't be any issues.

    You can make a deposit using credit and debit cards, bank transfers, and also convenient e-wallets like PayPal and Skrill. There are more payment types, but what's available will depend on where you live. Still nervous about risking your real trading balance? eToro also offers all clients a free demo facility. This enables you to practice trading Cardano in an account that imitates the real market. Furthermore, you will be given $100k in paper funds.

    Our Rating

    • Newbie-friendly Cardano platform with heaps of deposit methods
    • Buy or trade Cardano without paying commission fees
    • Offers free demo account with $100k paper funds
    • No technical analysis
    75% of retail investors lose money when trading CFDs with this provider

    2. Capital.com – Beginner-Friendly Crypto CFD Trading Platform with $20 Minimum Deposit

    Capital.com provides access to heaps of CFDs - with leverage offered on indices, forex pairs, and cryptocurrencies including Cardano. Tradable pairs on offer include ADA/BTC (Bitcoin) and ADA/USD (US dollars). Much like eToro, this trading platform charges 0% commission, which means you will only have to factor in the spread when trading Cardano. Our guide found the spreads here tend to be fairly tight across most digital coins.

    You will likely be offered leverage on Cardano CFDs, to increase your stake. If you are unaware of what CFDs are, not to worry, we go into more detail with some examples later. Capital.com is authorized and regulated by the FCA and CySEC - making it a rule-abiding and safety-conscious trading platform you can trust. Furthermore, you can access Cardano CFDs by depositing the minimum amount of just $20.

    Still learning the ropes? The Capital.com platform provides access to stacks of useful features and guides to help you get the most from your Cardano trading experience. This includes heaps of lessons, webinars, charts, calendars, and news updates. To make a deposit and trade Cardano you can choose between various different payment types. This includes credit and debit cards, bank wire transfers, and many e-wallets. Please note that whether or not you can use the likes of ApplePay, Webmoney, and Trustly to fund your account will be contingent on your location.

    If you are not quite ready to take the plunge and trade with real money straight away - you can practice with a virtual balance of $10,000,offered with the platform's free demo facility. As with most accounts like this - you will be trading in conditions that mirror that of the real world - only with practice funds instead.

    Our Rating

    • No commission charged on Cardano or any other asset
    • Beginner-friendly minimum deposit of $20
    • Regulated by FCA and CySEC
    • Lack of fundamental analysis
    82.61% of retail investors lose money when trading CFDs with this provider

    Consider Your Cardano Strategy

    The majority of experienced crypto traders understand that not all positions will result in financial gain, rather than expecting to come out on top every time. The most effective way to counter your long-term risk is to think about what your strategy might be when looking to buy Cardano.

    See the most commonly adopted Cardano strategies below.

    Buy and Hold Cardano

    You can probably hazard a guess at what the ‘buy and hold’ strategy entails. However, to clarify, you will be purchasing Cardano and holding on to it for as long as you see fit. This could mean keeping your ADA tokens for years.

    So, you might be wondering when to let go of your Cardano investment? People who buy and hold look to ignore the short-term price spikes in the market and instead focus on maintaining a moderately secure portfolio. You will sell when you believe you will make the most gains.

    Let’s clear any confusion by offering a simple example of a buy and hold strategy in play:

    • It’s February and after heading over to your chosen online brokerage, you feel that at just $0.78 per coin, Cardano is undervalued
    • As such, you place a $400 buy order immediately
    • September comes around and Cardano is now priced at $0.98 – this shows a 26% increase in 7 months
    • As you can see, on this occasion you correctly predicted that ADA tokens would see a price increase
    • Subsequently, you exit your position with a sell order – feeling happy with your profit of 26%
    • From your initial $400 investment you made $104 in gains

    When investing in Cardano, you also need to think about storage. Of course, unlike fiat currencies, digital coins aren’t kept in actual wallets.

    You have two options when it comes to the storage of Cardano. The first is to take full responsibility for it yourself and store your coins in a private crypto-wallet. This will require you to protect your wallet from viruses, password hackers, and thieves – which is no easy feat.

    The second option is to store your Cardano at a trusted brokerage – this way you don’t need to worry about lengthy passwords or crooks. At acclaimed crypto trading platform eToro, you can buy and store ADA out of harm’s way – without paying commission!

    Trade Cardano

    As we touched on, CFDs (Contracts for Difference) are great if you want to be able to long or short your chosen asset. For instance, if you think that Cardano is about to lose value at a rate of knots – you can profit from that by entering the market with a sell order.

    An important feature of CFDs is that they always mirror the present market value of the underlying asset – meaning you can speculate, without taking ownership.

    When it comes to trading Cardano via CFDs, this will usually be as part of a pair. This could be what’s known as crypto-fiat pair, inclusive of a legal tender. A crypto-fiat pair including Cardano will be shown as ADA, followed by the second currency. For instance, ADA/AUD (Australian dollars), ADA/USD (US dollars) ADA/GBP (British pounds). Undoubtedly, the most traded pair here is ADA/USD. As such, this asset can be found on most trading platforms.

    Alternatively, you might want to trade a crypto-crypto pair. As you likely guessed, crypto-crypto pairs will see you trading Cardano against a digital token like Litecoin or Bitcoin. This would be shown as ADA/LTC, and ADA/BTC respectively. -The latter is the most commonly traded in this case.

    See a practical example of a Cardano CFD trade to clear the fog:

    • You are interested in trading ADA/USD, which is valued at $1.50
    • Accordingly, the ADA/USD CFD instrument at your chosen broker is also priced at $1.50
    • Believing this price is way above what it should be, you envisage a price drop
    • As such you go short on the pair by creating a $600 sell order at the trading platform
    • After 48 hours, the value of ADA/USD has fallen by 22%, to $1.17
    • You hypothesized correctly – and pleased with your gains you place a buy order to exit your position and cash out
    • From your initial $600 stake you made $132 extra in gains ($600 x 22%)

    If in this example, if you thought ADA/USD was going to see a rise in value – you would need to go long with a buy order.

    Furthermore, we touched on leverage in our broker reviews, but let’s offer an example to clarify:

    • You apply leverage of 1:2 on the above $600 ADA/USD trade
    • Your Cardano position is now worth $1,200
    • As such, your gains from this trade are boosted from $132 to $264

    If you had speculated the pair would rise in value – you would have instead doubled your losses on this Cardano position. Crucially, CFD broker restrictions exist in many countries. As such, whether or not you are offered leverage will ultimately depend on if it is permitted, or restricted where you reside.

    For instance, Australians are confined to a maximum leverage of 1:2 – as used in the above example. On the other hand, US and UK citizens are prohibited from accessing crypto CFDs in their entirety.

    Where to Buy Cardano

    Whilst deciding what might be the best way to buy Cardano – you might also want to consider where you are going to purchase your coins.

    Below we discuss some of the best ways to buy Cardano.

    Buy Cardano Debit Card

    These days most online services can be paid for using a debit card – and Cardano is no different. The thing to be mindful of is that not all trading platforms will offer this payment type. Not only that, but sometimes when they do it comes at a hefty cost.

    For instance, crypto provider Binance charges between 3-4% for every debit card transaction, albeit, the amount you pay depends on where you live.

    eToro on the other hand stipulates a 0.5% FX fee to buy Cardano with a debit card. But,  this charge only comes into play if you are not depositing in USD. The reason is simple, this trading platform operates using US dollars.

    Buy Cardano Credit Card

    The first thing to note about trying to buy Cardano with a credit card is that providers often tend to charge high fees. That’s if they even allow you to use your credit card for this purpose.

    Top-rated broker eToro accepts credit card deposits and the only fee you will pay is the aforementioned 0.5% – if not paying in the broker’s stipulated currency of USD (also check with your provider).

    Buy Cardano Paypal

    Rarely do trading platforms allow you to buy Cardano with PayPal. It’s said that processing a deposit in this way is more expensive for the brokerage.

    If this is your desired payment type – head over to eToro where you can buy Cardano commission-free using PayPal! In fact, eToro also supports several other popular e-wallets – including Neteller and Skrill.

    Cardano Strategies

    Firstly, the Cardano strategies you are interested in will depend on your investing style. For instance, where one person might be happy adopting a simple dollar-cost averaging system – others also opt to join a crypto Telegram group to save having to get to grips with complex technical analysis.

    To give you an idea of what strategy you might want to use yourself, see a few ideas below.

    Dollar-Cost Averaging

    A great way to reduce the impact of such a volatile market is to add dollar-cost averaging to your strategy.

    When electing to buy Cardano using this strategy, you will consider how much you can or wish to add to your crypto investment pot on a regular. For instance, you might decide to purchase $200 of ADA tokens per month – placing a $50 buy order each week.

    Regardless, the idea is to never invest beyond that amount, no matter how tempting it might be. This way you are slowly but surely able to build up the contents of your Cardano portfolio – without ever risking too much at any one time.

    Buy the Dip

    For those who have never heard of the expression ‘buy the dip’ – during times when a particular asset is experiencing choppy waters – people invest whilst it’s at a low price. This is buying the dip in a nutshell.

    You will find an example below for clarification:

    • Market sentiment dictates that a large, but short-term price drop is widely considered to be on the cards for Cardano
    • Subsequently, you wait for the drop before placing multiple orders to grow your collection of ADA tokens
    • Your goal is to buy Cardano at a lower price than it is thought to be worth
    • This is buying the dip and only usually presents a small window of opportunity

    This strategy can be used hand in hand with the previously mentioned dollar-cost averaging.

    Diversify

    Although you may only have eyes for Cardano now, you really should consider diversifying your portfolio at some point. The reason many seasoned investors do this is that it’s a good way to protect yourself when some of your investments are floundering.

    For instance, let’s say you buy Cardano, but also invest in an index like FTSE 100. If your ADA coins lose value, you still have the basket of stocks from within your index investment to fall back on. For this reason, many experienced investors create a diverse portfolio that includes everything from digital currencies and stocks, to gold, silver, and ETFs.

    Cardano Trading Signals

    Some people prefer to skip the analytical stuff and make use of crypto signals instead. For anyone who has never tried this – it’s a case of leaving the sophisticated research and analysis to someone else. This means all you have to do is decide whether to act on the order suggestions sent to you.

    For instance, here at Learn 2 Trade, we offer both Premium and free Cardano trading signals. In laymen’s terms, we have a team of seasoned traders who are assigned to seeking out profitable opportunities, by performing in-depth technical and fundamental analysis.

    The final verdict is then sent out to our thousands-strong crypto Telegram group as a signal. Our signals always include the pair, a limit price, and also a suggested value for the stop-loss and take-profit side of things.

    How to Buy Cardano Online – Full Walkthrough

    For any newbies reading, we have included a full walkthrough detailing how to buy Cardano from start to finish.

    On this occasion, we are using eToro – as the regulated broker allows you to invest in Cardano from a minimum of just $25 and you won’t pay any commission!

    Step 1: Sign Up With a Cardano Broker

    eToro is super user-friendly and signing up takes less than 10 minutes on average. Go to the official platform and look for the signup button labeled ‘Join Now’.

    As you can see, this is a simple case of entering your name, creating a password, and following the instructions on-screen. Once you have completed this part of the process, you should receive an email straight away confirming your new account.

    Step 2: Upload Some Identification

    Next, click on the link within the email to go to your eToro account and you can complete your profile.

    This will entail adding a government-issued ID like your passport, to prove it’s really you. You will also need to include proof of address in the shape of a recently dated (within 3 months) bank statement or electricity bill.

    All regulated trading platforms must obtain this documentation, in order to operate within the rules set out by the aforementioned regulatory bodies.

    With that said, at eToro, you can still use your unverified account for as long as you wish. However, note that you will have to complete it before you can withdraw funds, or deposit more than $2,250.

    Step 3: Deposit Funds Into Your Account

    By this point, you have an account at eToro and are one step closer to buying Cardano. Now, you need to deposit some funds.

    As you can see, eToro makes every step as easy as possible. Enter the amount of money you wish to deposit in the ‘Amount’ box, select from the drop-down payment method list and enter your particulars.

    It’s advisable to double-check the information entered before clicking ‘Deposit’.

    Finally, note that if you want to buy Cardano straight away, you will be better using a credit/debit card or e-wallet – as bank wire transfers can take 2-7 days.

    Step 4: Buy Cardano

    The moment you have been waiting for – you can now buy Cardano! First, you will need to your chosen market – as eToro is home to a huge library of assets.

    Simply type ‘Cardano’ into the search facility – and once found, you can hit ‘Trade’ to bring up the order box needed to buy ADA coins.

    Think about how much you would like to purchase and enter the amount in the box. Don’t forget, you can buy Cardano from a minimum of just $25 at eToro. Click ‘Set Order’ when you are satisfied and the platform will process your order immediately – commission-free!

    Conclusion

    All in all, it has never been more convenient for your average Joe Investor to buy Cardano. However, you need an online broker on your side.

    Choose with caution when looking for a safe place to purchase Cardano. The most important considerations are regulation, asset diversity, and low fees. Additionally, it’s always wise to include a strategy or two into your investment plan to ensure you stay on track.

    At eToro, you can buy Cardano under the watchful eye of three tier-1 regulatory bodies, without paying a cent in commission fees. Furthermore, you can easily utilize a dollar-cost averaging strategy as the minimum investment starts at just $25!

     

    eToro - Buy and Invest in Assets

    Our Rating

    • Buy over 2,400 stocks
    • Trade thousands of CFDs
    • Deposit funds with a debit/credit card, e-wallet, or bank account and PayPal
    • Perfect for newbie traders and heavily regulated
    • Only real cryptos are available for US users
    75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

     

    FAQs

    What is the minimum amount of Cardano you can buy?

    The minimum amount of Cardano you can buy depends on various factors - the main one being the broker in question. For instance, eToro will allow you to buy Cardano from $25, whereas some platforms either have a high minimum - or charge the earth in fees. The latter means that even if you are allowed to purchase $10 worth of Cardano - the fees make it unviable.

    How much is Cardano likely to be worth in 5 years?

    Some experts predict that Cardano could reach new heights of $2.88 in 5 years' time. However, without a crystal ball, you are best keeping an eye on the markets yourself and adding another string to your bow in the shape of in-depth technical analysis.

    Where is the best place to buy Cardano?

    We saved our readers hours of legwork and came to the conclusion that the best place to buy Cardano is at commission-free broker eToro. In addition to Cardano, the popular online broker offers heaps of assets and is watched over by regulatory bodies ASIC (Australia), CySEC (Cyprus), the FCA (UK), and FINRA (US). Furthermore, the trading platform will allow you to buy Cardano from as little as $25 - plus you can store your coins for free in the eToro wallet.

    How can I sell Cardano?

    If you sign up with a respected broker like eToro, selling your Cardano couldn't be easier. Because you are able to buy and store your crypto-assets in a safe place, - when it comes to cashing out, you simply have to create a sell order. The platform then adds the money to your account.

    Can Cardano make you rich?

    There really is no such thing as getting rich quickly when investing in Cardano or any asset. With that said, there is potential to make money if you make use of third-party tools that are designed for newbies. For instance, you might decide to cut out the need to analyze the markets by investing in a Copy Trader at eToro, or sign up to the Learn 2 Trade crypto signal service. Whatever strategy you adopt, it's important to be realistic - especially in such a volatile market as digital currencies.

     

    Author : Samantha Forlow

    Samantha Forlow

    Samantha is a UK-based researcher and writer that specializes in all-things finance. This covers everything from traditional equity and fund investments, to forex and CFD trading. Samantha has been writing financial-based content for several years and has a variety of publications in the online domain. Crucially, she is able to explain complex financial subjects in a newbie-friendly manner.