How to buy Cardano (ADA) on Binance
Do you want to buy Cardano (ADA) on Binance? In this short guide, we will show you how to invest in this crypto on Binance.
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How to buy Cardano on Binance?
Before you can buy ADA on Binance, you first need to make sure you have enough money in your account. You can buy Cardano with fiat currencies as well as cryptocurrencies on Binance. Navigate to your wallet via Wallet and Fiat and Spot to add money to your account. With the Deposit button, you can then easily add funds to your account. Do you require help with this? Then read our article about depositing money on Binance.
After adding money to Binance, you can easily convert this amount to Cardano. To do so, navigate via Trade to Convert.
In the convert overview, you can subsequently indicate which currency or crypto you wish to exchange for ADA. In the order screen you can choose between a market order (where you buy ADA directly at the current price) and a limit order (where you buy ADA at a specified price). Then press Preview conversion and check your order again. If everything is correct, you can execute the order: congratulations, you have now bought your first Cardano with Binance!
What is Cardano (ADA)?
Cardano was founded in 2015 by Charles Hoskinson, one of the founders of Ethereum. The team behind the crypto develops ADA entirely based on scientific research from the Cardano foundation based in Switzerland.
Like Ethereum, Cardano’s network also allows you to use smart contracts and decentralized applications. You can use ADA to pay the transaction fees on the network.
An advantage of ADA is that it uses Proof of Stake, which is more environmentally friendly than Proof of Work. This makes ADA a formidable competitor to Ethereum and a potentially interesting investment.
Is it smart to buy ADA on Binance?
Binance is a reliable exchange where you can buy and sell ADA. Because it is one of the largest crypto exchanges in the world, there is always enough liquidity. Moreover, Binance is an extremely fast exchange; 1,400,000 orders can be executed per second, so you never have to wait long.
What can you do with Cardano?
- You can store ADA in your wallet in the hope that it will become more valuable
- By staking Cardano, you can earn new ADA coins
- You can speculate on Cardano within the trader
- You can send ADA to friends or family
- You can buy goods and services with ADA
Is it wise to invest in Cardano?
Cardano, like many other cryptocurrencies, is extremely volatile. If you had bought in at the launch, you would have made a huge return. However, it is hard to predict where the Cardano price will go next.
The price of Cardano has a strong correlation with the price of Bitcoin and the crypto market. When other cryptos perform badly, Cardano also often decreases in price.
It is advisable to keep a close eye on the competition. Cardano is called Ethereum 2.0, but so far, Ethereum is more dominant. It remains to be seen how many cryptos will survive in the long run.
It can be a smart strategy to spread your investments across different cryptos. This prevents you from losing your entire deposit when one cryptocurrency performs poorly. You can also buy at different times, allowing you to benefit from an average return on Cardano’s price development.