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5 Steps to Safely Buying Cardano (ADA)

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Written by publisher team

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Buying Cardano is a quick and easy process once you know how to do it.

Cardano (ADA) is a popular choice among cryptocurrency investors looking for projects with strong long-term potential. At the time of writing, it is the fifth largest cryptocurrency by market capitalization. Unlike the market-leading Bitcoin and Ethereum, Cardano does not require a lot of power, which makes it an environmentally friendly cryptocurrency.

If you are interested in buying Cardano, here is all you need to do.

1. Find a crypto exchange that sells Cardano

Start by selecting a crypto exchange where you can buy Cardano. Since Cardano is one of the biggest coins, many of the best cryptocurrency exchanges list it. Here are some of the most popular cryptocurrency exchanges and investment platforms that have Cardano:

The two most important things to look for on a cryptocurrency exchange are security and reasonable fees, which all these platforms offer.

For starters, Coinbase is a great option due to how easy it is to use. It doesn’t take long to learn how to trade cryptocurrency with Coinbase, and it also has a lot of educational content available.

2. Sign up for an account

You need an account with your chosen exchange to buy cryptocurrencies. The registration process is based on the exchange, but most have a button that says “Start”, “Sign Up” or “Sign Up”.

Usually exchanges require the following information to open an account:

  • full name
  • E-mail 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 into your account. For example, instead of just entering your password, you’ll also need to enter a code that 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 added protection.

3. Verify your identity

After creating 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.

Again, the exact process depends on the exchange, but be prepared to provide the following:

  • date of Birth
  • Social Security Number
  • physical address
  • 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 pays to have a strategy. You can plan your cryptocurrency 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 buy Cardano frequently, you probably won’t want to buy a large amount on our first ride.
  • When do you plan to sell your Cardano? You can follow a time frame such as holding your Cardano for at least five years, a target price, or a combination of the two.

Here is an example investment strategy – I plan to buy $250 worth of Cardano every month. I will hold it for at least five years, but if the price triples before that, I will make my original investment to ensure I don’t lose any money.

This is just one option, and your strategy can be as simple or as complex as you like. With a plan in place, you don’t have to wonder what to do every time the price of Cardano goes up and down.

5. Buy your Cardano

Check the payment methods accepted by the cryptocurrency exchange and their respective fees. These are the most popular payment methods:

Most of the major exchanges allow you to deposit cash from a bank account for free. You still pay transaction fees when buying cryptocurrencies, but it ends up being cheaper than other payment methods. With debit cards, credit cards, and PayPal, you pay more for the purchase of cryptocurrency. Just keep in mind that the transfer from a bank account may 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 fees and the amount of Cardano you will get. If it looks correct, confirm your purchase.

After doing that, the Cardano you purchased should be available in your account within seconds. The last thing to consider is transferring your Cardano to a crypto wallet. Since cryptocurrency wallets offer more security, they are a popular way for investors to protect their coins.

Buy and sell cryptocurrencies on an exchange chosen by experts

There are hundreds of platforms around the world waiting to give you access to thousands of cryptocurrencies. In order to find the right feature for you, you will need to decide which features are most important to you.

To help you get started, our independent experts have tested the options to bring you some of our best crypto exchanges for 2021. Check out the list here and start your crypto journey, today.

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publisher team