Setting up Exchange account, buying ADA, Wallet choices, Staking for Passive Income
The 1st step to purchasing Cardano is to open an account with a crypto broker, also known as an Exchange, that supports the Cardano token. After creating and funding your account, you’ll use your fiat funds to purchase Cardano's ADA token.
Opening an account with an Exchange is very simple but does require patience and attention to detail. To get started, gather a bit of your personal information. When you 1st open your account, you’ll usually need to provide:
After you have your information ready, choose an Exchange that supports the purchase and sale of Cardano, ticker = ADA. Since you'll be purchasing ADA with fiat, look for the trading pair ADA/USD (for American fiat).
If you aren’t sure which Exchange to pick, consider a few of our top choices in table below:
Once your Exchange account is open and your wallet is set up, it’s finally time to purchase Cardano. You’ll purchase Cardano by placing a buy order through your Exchange. Most Exchanges allow you to choose between multiple order types, and the order type you choose when you place your order will determine how much you’ll pay for each coin that you purchase. Here are 2 of the most common types of orders your Exchange offers access to:
Market orders are more likely to be filled than other types of orders like limit orders because they don’t specify a price your order must be executed at. However, you might pay more for each coin than you see on your Exchange platform because market conditions can change at any moment.
Limit prices allow you to implement strict controls over how much you pay per coin. However, if the market price moves above your limit price, you might not have the opportunity to purchase the tokens you’ve ordered.
After you place your order, your Exchange will execute the order if possible. When your order is executed, you’ll see your coins in a wallet created by your Exchange account for the specific token you purchased.
After your Purchase of ADA
After your order closes, you want to transfer your ADA to a wallet choice from STEP3. Many Exchanges when funded by a bank debit or wire transfer will put a hold on your purchase of 3-10 days. During this time you are free to purchase and sell your crypto but you cannot transfer it to an external wallet. Once this hold is released, you are ready to stake for passive income!
From there you can stake in a stake pool for passive income of 3.5% annual APY. See STEP4: Invest & Earn Passive Income with Cardano's ADA.
After you open your Exchange account & purchase your Cardano ADA, you’ll need to select a wallet to store your cryptocurrency on. While you can store your crypto on your Exchange’s trading platform, keeping your coins in a private wallet will greatly decrease the possibility of losing money to an Exchange hack (not common but they do happen). There are 2 major types of cryptocurrency wallets:
Hot storage wallets are easier to access and hold more tokens but are less secure than their cold storage/hardware wallet counterparts. To get started quickly, we recommend these wallets for hot storage:
Cardano IOHK’s Official Daedalus Wallet
For the highest possible level of security, use cold storage/hardware wallets. Here are two of our favorite cold storage wallets to consider for your Cardano coins.
Best for Crypto Choice: Ledger Nano X
If you’re looking for a 1-stop-shop for all of your crypto cold storage, the Ledger Nano X might be the right choice for you. The Nano X supports over 1,200 individual cryptocurrencies, and you can install upwards of 100 decentralized apps on your device.
The Nano X even offers Bluetooth compatibility, which makes it easier to transfer your coins after you make a new purchase. With a wide range of application choices, highly secure cold storage and easy connectivity features, the Nano X’s higher price tag can be worth the expense.
Best Touch Screen Displays: Trezor Model T
The Trezor Model T is another popular cold storage option, with cutting edge technology and secure cold storage for your coins. The Trezor Model T features a quick and easy setup, which can have you managing your coins in as little as 3 steps and a few minutes.
The Model T’s most notable feature is its large touchscreen display, which makes it easier to manage your coins without connecting to a computer.
When you invest with Cardano’s ADA, you can also earn passive income of 3.5% APY when you stake your wallet to a stake pool. Some stake pools, like our GROW POOL, are also a vehicle for the greater common good, we donate 100% of our profits to charities like Save the Children
Staking Startup Guide: How to Stake your $ADA Facts & Expectations
With Cardano’s ADA, your money doesn’t just sit waiting for something to happen, it also provides utility. Your stake in a stake pool is a direct, material participation in the fundamental mechanics of the Cardano blockchain project. It is a voice with a vote in a large global community supporting the project’s vision, a revolutionary new global financial operating system that will power economies that strengthen humanity while protecting our natural environments from the unsustainable energy demands made by the current global banking industrial complex.
These visions will take years to realize. In that time, you will enjoy passive income of ~ 3.5% APY and take comfort in knowing you are part of making history the next seven generations will stand on.
Welcome to the revolution.
Keeping track of how cryptocurrency prices are changing can help you determine the most advantageous time to buy in (the dip) or sell for the gain. Current market rates can be found using the free online service with https://coingecko.com. There you will see prices for all the tokens, their market caps, historical charts and graphs, etc.
While we cannot offer you financial advice, we can say this: $ADA has a circulating supply of 32Billion. By comparison, because Bitcoin's circulating supply is presently much smaller, only 18Million, its price in ADA's supply is presently only $22. Cardano has engineered from scratch & baked into its 3rd generation protocol the very best of 1st generation Bitcoin & 2nd generation Ethereum.
Generally speaking, the longer you can hold your investment in ADA, the more rewarding its gains will be. Prices will fluctuate over the years, like any investment, however we believe this project and its roadmap will make this investment one of, if not the best, in the entire crypto space. Congratulations!
Selling your ADA
If & when you decide to sell your tokens, transfer your coins from your wallet back to your Exchange account and sell them for conversion back to your fiat currency. Once they are sold and converted back to fiat, you can withdraw to the bank account connected in Step 1. NOTE: Gains realized (selling crypto back to fiat) made inside of 1yr are subject to higher short-term capital gains taxes.