How To Buy Cardano (ADA) – Forbes Advisor UK

The Cardano blockchain platform and its internal cryptocurrency, ADA, were launched in 2017 by one of the co-founders of Ethereum blockchain.

Like most cryptocurrencies, the price of Cardano ADA has fluctuated significantly since it was created. The value of Cardano ADA peaked at £2.07 in the summer of 2021 before falling to around £0.49 today (correct at time of publication).

The volatility of crypto assets has led the UK’s financial watchdog, the Financial Conduct Authority (FCA), to issue repeated warnings to would-be investors. The watchdog says anyone who buys cryptocurrencies should be prepared to lose their investments.

But if you understand the risks and you’re looking to buy Cardano (ADA), here’s how you go about it.

Choose an exchange

To buy Cardano (ADA), you’ll need to use a crypto exchange to swap your fiat (Sterling) currency for cryptocurrency. An exchange is a website or app that crypto buyers and sellers use to make trades.

There are many exchanges to choose from, including big names such as Coinbase and Binance as well as smaller exchanges such as Bitstamp. 

When choosing an exchange, there are a few things to consider:

  • what payment methods are accepted? Most exchanges allow credit and debit card card deposits, as well as bank transfers. Very few accept PayPal in the UK
  • what are the fees? Some payment methods attract fees. Credit card deposits, for example, tend to come with a 3.99% fee
  • does the exchange offer an integrated wallet? Cryptocurrencies are stored in crypto wallets. Some exchanges offer integrated wallet
  • can I transfer to an external wallet? Some exchanges allow you to transfer your assets to third-party wallets or so-called ‘cold’, offline storage devices
  • are there fees for transfers out? Where withdrawals are permitted, there may be fees applied
  • What currencies can be traded? Some exchanges allow you to trade in more than 650 cryptocurrencies, while others offer fewer than 100. If you want to buy Cardano ADA, you’ll need to check if it’s available on your preferred exchange.

Choose a payment method

Next, you’ll need to decide how you’re going to pay for your Cardano ADA.

Be sure to check if there are any fees associated with the payment method you want to use. For example, Coinbase charges no fees on bank transfers but 3.99% on debit card payments. Fees for credit card payments on other exchanges often run at least this high.

Credit card payments on these exchanges are typically classed as cash advances, which means they attract interest at a much higher rate of interest than a normal purchase, and it is charged from the point the transaction is made, regardless of whether you pay off your balance in full when it comes due. 

Taking on debt to invest in crypto is generally not advisable. 

Some UK exchanges accept PayPal, but it’s a minority – and those that do may charge a fee for the privilege.

Place an order

Once you’ve created and funded your account, navigate to the Cardano ADA page in the app or website and enter the amount you’d like to invest.

Choose a storage method

Most exchanges come with an integrated wallet in which to store your Cardano ADA. However, you may prefer to hold your assets in a third-party wallet.

You can use either a ‘hot’ wallet, which uses online storage, or a ‘cold’ wallet, which is an offline storage device such as a flash drive or a hard drive. 

The former is more vulnerable to hackers, but offers support in accessing your Cardano ADA if you lose your access codes.

Cold wallets are inherently more secure because they’re not connected to the web and can’t be reached by hackers. If you lose the access codes to the assets in a cold wallet, however, there’s no customer support to help you recover them, which means you could lose access to your currency.

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