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How to Invest In Cardano In 2024

Open Account 82% of retail CFD accounts lose money.
By Philip Hoey - Updated 16 May 2024
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Cardano is a major cryptocurrency project that runs on an open-source basis, to provide a public platform for smart contracts. It also features an in-house crypto token that goes by the name of ADA. The development of the Cardano project is overseen and supervised by the Cardano Foundation, which is based in Zug, Switzerland.

Cardano began development in 2015, before finally being launched two years later. Charles Hoskinson, a co-founder of Ethereum and BitShares, was involved in the cryptocurrency token. The market capitalisation of Cardano has increased massively during its lifecycle, with its blockchain considered to be particularly sophisticated. This guide will discuss how to invest in Cardano and will also list some popular platforms for investing and trading this cryptocurrency.

4 Ways to Invest in Cardano

There are a variety of ways to invest in Cardano, but in this article, we’re going to look at four of the most commonly used and prominent methods. All these methods can be used with or without leverage.

1. Buy Cardano Through an Exchange

It is firstly possible to buy Cardano via a range of cryptocurrency exchanges. These are now widely available on the Internet, particularly as trading online has become popular.

While digital exchanges tend to offer storage facilities, it is still advisable to download and use a hardware wallet for the storage of your crypto assets. With this in mind, Cardano is compatible with cryptocurrency wallets that include the following:

There are other software wallets available, but generally, hardware wallets are considered the safest and most secure option.

Before you can purchase crypto via an exchange, it is first necessary to register for your exchange of choice. The registration process is not particularly arduous, but it will require you to have your identity confirmed by its developers. This is a requirement under the Know Your Customer regulations, which are also used as part of bank customer identity verification practices.

As a general rule, registration will simply require government identity documentation and proof of address to be submitted. As the space has become more regulated, such confirmation of identity has become mandatory.

2. Buy Fractions of Cardano Through an Exchange

It is possible to purchase fractions of cryptocurrency via exchanges. But this is only usually possible when the cryptocurrency in question is particularly highly valued. Although Cardano has been a successful token, its price per unit is still relatively low.

However, in the case of Cardano, you can purchase its units, referred to as Lovelace. This means that you can invest any amount of your choosing in Cardano.

3. Trade Cardano Through a Broker

Another option for cryptocurrency traders is to invest in Cardano via a broker. While there are many brokers available in the real world, cryptocurrency brokers operate almost entirely online due to the nature of the medium.

Brokers act as intermediaries between the investor and the market, both conducting trades and also offering advice and services. Brokers must demonstrate excellent knowledge of the cryptocurrency space, while they usually also have official regulation and certification.

At one time, brokers were only generally used by experienced investors, but the boom in internet trading means that they have now become widely available to beginners as well. This means that there are many cryptocurrency traders available on the Internet, and it should be possible for people with all budgets and experience levels to find one and trade Cardano.

Although brokers charge fees, they are a good place to start if you are new to the cryptocurrency space since they provide automated trading.

4. Invest in a Cardano ETF

Another option with Cardano investing is to opt for an ETF (Exchange Traded Fund). These can be used to trade cryptocurrency via methods that would otherwise be impossible, including combining a diverse range of cryptocurrencies into one tradable asset. This has often occurred with traditional commodities and equities, but is now also possible with cryptocurrencies.

A cryptocurrency ETF will track one or more digital assets, and its price will be subject to trading in the marketplace, with other investors buying and selling the particular asset. ETFs are often considered a safer way for mainstream investors to enter the cryptocurrency market place, enabling an accessible investment for people of all experience levels.

When purchasing a cryptocurrency ETF, the organisation managing the fund owns the underlying assets, and the purchaser effectively takes control of an equivalent amount of the fund without requiring to purchase the individual assets.

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What to Consider Before Investing in Cardano

There are a range of issues that investors should take into consideration before entering the Cardano market. As many factors can impact the price of Cardano, we will discuss some of the most important aspects of investing in Cardano in the section below.

Fees

Fees associated with Cardano tend to be extremely low. Every transaction on the Cardano blockchain will bear a fee of at least 0.155381 tokens, along with an extra cost of 0.000043946 ADA per byte of transaction size.

Exchanges also charge fees, with Binance currently setting its fees at at least 0.1% for Cardano. Also, if you use a credit card to fund your account, you’ll be charged a higher fee than a debit card or wire transfer.

Risks

Although there can be significant returns from investing in Cardano and other cryptocurrencies, there are also some risks involved.

Firstly, the cryptocurrency market remains relatively volatile compared to some of the other investment options available. This can result in massive profits, but it can also lead to significant losses.

Cryptocurrency also hasn’t been as regulated as some of the other markets available. Efforts are being made by central banks and governments to regulate the space, and there has definitely been some progress in this area. But there is still some debate over whether to register Cardano, and other cryptocurrencies, as a form of digital currency or a tradable commodity.

Cryptos can also be vulnerable to hackings, while hard forks and discontinuation are also an issue for investors. Finally, the CFD contracts that are particularly popular with cryptocurrencies are considered to be high-risk and unstable.

Payment methods

There are several payment methods available for Cardano, including virtually all fiat currencies, PayPal, Neteller, Skrill, and other major cryptos such as Bitcoin and Ethereum.

Why Invest in Cardano?

There are several compelling reasons to invest in Cardano. Perhaps, the most obvious of these is that the price of this cryptocurrency shot up in value during the last calendar year to unkown heights. Many people believe that this is just the tip of the iceberg, with the cryptocurrency sector set to expand further in the future.

Cardano has also been praised for its innovative, efficient, and sophisticated blockchain, which has outperformed some of the more familiar names in the space. Cardano has an active community, and its developers continue to improve the platform, to ensure that it becomes ever more efficient.

Cardano claims that it overcomes existing problems in the crypto market—namely that Bitcoin is too slow and inflexible, and that Ethereum is not safe or scalable. While many people disagree with these views, Cardano has nonetheless attracted a huge amount of attention and followers, and demonstrated that it has valid use cases going forward.

Summary of Investing in Cardano

Cardano has established itself as a successful cryptocurrency, being ranked comfortably in the top ten cryptos by market capitalisation. This is due to the qualities it has exhibited as a crypto token, with many users deeming it to be both safe and efficient.

There are a variety of investment methods available for Cardano. Day trading is one of the most common strategies but hedging is also emerging as a popular trend among investors. This guide discussed some of the most common strategies and also discussed how to purchase the tokens by opening an account through a broker or an exchange.

It is important to manage risk while trading or investing in cryptocurrencies and new traders must learn to gain experience before committing huge capital in the crypto markets.