Are you thinking about buying cryptocurrency? Do you want to be a part of this market because you like how things are going or do you just believe in the idea of decentralization and want to show your support for it? Whatever the case may be, there is no doubt that you are taking a step in the right direction.
Now, before you invest any money in any cryptocurrency, it is important that you understand what it is and how it works. That should give you the context of what value you will obtain if you go for that particular cryptocurrency.
So, let’s start with a brief understanding of this currency and then see how you can buy it.
The first thing you have to know about this name is that it does not refer to the currency itself. It’s not a cryptocurrency instead it is the name of a blockchain. This particular blockchain is based on the Proof of State model. What it means is that you don’t really mine it. Instead, it is created through a process called staking wherein multiple nodes pool in their stakes to produce new coins.
The important thing you have to know is that the coin that belongs to this blockchain is called ADA. When you perform staking, you are actually producing new Cardano (Ada) coins on the Cardano blockchain. The production of the new coin takes place through the validation of a transaction. Who validates the transaction? The validator is a random choice on the network.
However, their selection depends on their stake i.e. how many coins they have put on stake. That’s the reason it is called staking. An important point to know here is that the validator or anyone else participating in the validation process cannot use their coins for any other purpose than staking.
Cardano Brings Smart Contracts
The Cardano coin, namely Ada, can be used to make transactions on the network. You can use it against other cryptocurrencies, to buy stuff, or to transfer money from one person to another person. However, the only thing that this network was missing for years was smart contracts.
However, the end of 2021 proved to be great for the network and anyone who was a part of it. The developers were able to bring the smart contracts to feature to the network, allowing for condition-based transactions to take place with safety and security.
If you look at the name, you will instantly know what smart contracts are i.e. they are contracts that involve two or more parties. In other words, an amount is credited from one party and debited from one party only after the conditions of the contract have been met.
How Can You Buy Cardano?
There are many ways for you to buy this cryptocurrency. The first thing is that you can find many exchanges for trading crypto that provide you with other means of trading this digital coin. In other words, you might not even have to buy the coin to trade it. You can also go for exchanges that let you buy it against another cryptocurrency or fiat currency. The best part is that we have finally reached a point where you can use your credit or debit card to buy cryptocurrencies.
You just have to look at the prevailing rates of Ada and then pay the amount from your credit card. The other cryptocurrencies that you can easily trade it against include Ethereum and Bitcoin. Coinbase and Kraken are two big names i.e. exchanges, where you can find this crypto coin.
Due to its popularity, you will not have a hard time buying Cardano. In addition to Ethereum and Bitcoin, many exchanges pair it with hundreds of different cryptocurrencies and fiat currencies to make its purchase and sale easy. Is it a good buy? Well, based on the progress that this blockchain is making and how energy-efficient its operations are, there is no reason to believe you shouldn’t buy it.