What is Cardano?
Cardano is a blockchain platform built on a proof of stake consensus protocol that validates transactions without high energy costs. Cardano’s native token, ADA, was created in 2017 by Charles Hoskinson (co-creator of Ethereum).
Cardano is one of the hottest altcoins around that’s up over 3,700% over the last year. I bought some ADA to further diversify my crypto portfolio in anticipation for a massive runup as we progress through the year.
While Ethereum is currently the #1 altcoin in the world, many crypto bulls believe Cardano could flip Ether and surprass its market cap in the future.
The problem with Ethereum is its high gas fees that make it completely impractical to use for fast, every day transactions. Even with an upgrade to Ethereum’s code, I think Cardano is a better solution to the smart contract problem.
Step 1: Register on Trusted Cryptocurrency Exchange
You will have to create an account on a major cryptocurrency exchange to trade U.S dollars (USD) for Cardado (ADA). I recommend most people (especially Americans) choose Coinbase because it’s the largest crypto exchange in America with over 68 million verified accounts.
Step 2: Buy ADA with U.S. Dollars (or Another Fiat Money Currency)
Once you finish the verification method, you will be asked to claim your free $10 bonus by making your first deposit. You can deposit funds using credit/debit cards, bank account, or Paypal (only available for certain countries).
Bank transfer is the cheapest and recommended option and U.S. customers receive instant deposits so you can buy ADA immediately. Credit/debit cards charge a higher fee and have lower buying limits. Paypal will also cost you additional fees but it’s pretty convenient for most people.
You’ll need to link either your bank account or credit card to pay Cardano. I recommend linking your bank account to save money on fees.
Head over to Coinbase Prices section and Select Cardano (ADA) from tradable assets.
Enter the amount of Cardano you want to purchase and select your payment method.
That’s it! Your order will be confirmed and you will get ADA in your account. You cannot transfer your Cardano out of your account until your deposit is confirmed (usually takes a few business days).
Best Coinbase Alternatives for Buying Cardano (ADA)
Most of you reading this article live in the United States so Coinbase is your best option. However, some of you may hate Coinbase or live in a country that Coinbase doesn’t support.
If you don’t want to use Coinbase then you can buy Cardano on the following exchanges:
Earn Up to 5% APY on Your ADA Investment
If you want to earn additional ADA without investing more money then consider earning yield in a crypto interest account or stake pool. I recommend researching which crypto interest accounts pay the highest rates and sending your ADA to earn yield.
I currently earn yield with my ADA on Voyager and they have a low 100 ADA minimum with a 5.75% APY.
Last Step: Store ADA Securing in a Hardware Wallet
Cryptocurrency exchanges and accounts are a prime target for hackers so perhaps you want to store your Cardano offline by holding your private keys. A hardware wallet makes it virtually impossible to get hacked and protects your investment over the long term.
Ledger and Trezor are the two best hardware wallets on the marketplace.
Track Your ADA Portfolio Performance & Capital Gains Taxes
Tracking your ADA investment is crucial to improving your returns over time and knowing key metrics like total holdings, average cost basis, and total investment return. If you have multiple crypto accounts then you’ll need a massive spreadsheet to keep everything organized.
If you live in the United States and sell ADA for a profit then you are subject to capital gains taxes. You can calculate this yourself but it becomes difficult when you actively trade crypto on a regular basis.
Cointracker.io tracks your ADA holdings for free plus you can also calculate your crypto taxes by upgrading to a paid account.
Will Cardano Reach $10? My ADA Price Prediction
Cardano could easily hit $10 before the end of this current bull run if things work out well. Cardano Africa was a huge success and many organizations are using ADA to help people create an identity and use Cardano to verify their educational background, health records, and other important credentials.
As more people understand how Cardano is a more practical versio of Ethereuem, we could see the price of ADA coin surge. Right now, ADA is $56 billion market cap and could hit $150 billion or more in the near future.
I bought 100 ADA coin as a speculative bet and will continue to hold in the future. I’m extremely bullish on Cardano.
Investing in Cardano could provide massive crypto gains but there are several risk factors to consider.
- Many Cardano investors are buying ADA only because they believe the price will increase. That means a lot of speculative money is entering ADA coin since Cardano doesn’t have any current practial use. If speculative investors dump Cardano then ADA coin prices may fall quickly.
- Cardano is only a few years old and we don’t know exactly how ADA will be used in the future. It may take 3 or 4 years until Cardano becomes as possible as Ehtereum.
- ADA has a much bigger supply than Ehtereum, making it more common and less rare than other altcoins. It could take a lot longer for Cardano to reach $10 or more since the supply is much greater.
Cardano is one of the top 10 crypto coins by market cap for a reason. The Cardano Foundation has done a remarkable job at developing ADA and making deals with governments and organizations to push mass adoption.
ADA is a long term hold for me and I don’t plan on selling my 100 ADA coins for a long time. If Cardano continues to make gains then I may double down on my position because ADA could be the top altcoin in the future.