How to Buy Cardano UK – Beginner’s Guide
With the emergence of smart contracts which could revolutionise the way businesses operate, many cryptocurrencies have sprung up that utilise blockchain technology to offer these contracts. One of the cryptos that is getting the most hype recently is Cardano, due to its exceptional technology and passionate community.
In this guide, we will show you How to Buy Cardano UK and where to buy Cardano, discussing crucial elements you need to consider and showing you how to how to invest in a cost-effective manner.
What is Cardano?
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Cardano, one of the best Bitcoin alternatives, is an open-source cryptocurrency platform launched in 2017 by Charles Hoskinson, one of the original founders of Ethereum. Charles was joined by former Ethereum colleague Jeremy Wood to create this cryptocurrency platform, in the hope of dislodging Bitcoin and Ethereum as the two frontrunners within the space. The crypto started in 2017 with a market capitalisation of $600 million; by the end of 2017, it had risen to a remarkable $10 billion. Nowadays, Cardano (ADA) is the third-largest crypto by market cap!
Like many other cryptocurrencies (notably Ethereum), Cardano utilises blockchain technology to enable the use of smart contracts. These contracts are essentially a piece of software that operates under an ‘if-then-that’ system, whereby the contract is verified automatically by the software if certain criteria are met. To use a popular example, the first ‘smart contract’ was technically vending machines; if you put money in, and chose an option, the software would automatically release the chosen item.
These smart contracts are thought to be the way that many businesses will operate in the future, and the Cardano blockchain platform is one of the most popular systems for running these contracts. In addition to smart contracts, Cardano also offers its own digital currency, called Ada. This currency is used to perform peer-to-peer transactions – for example, sending money to someone.
The great thing about Cardano (and other cryptos) is that their platform is decentralised. What this means is that transactions are technically safer, as there is no single-point-of-failure (such as a large server) that data must pass through. In addition, decentralisation also means that transactions are anonymous, further increasing security when sending money.
To summarise, Cardano is the cryptocurrency platform, whilst Ada is the actual digital currency utilised on the platform. Cardano’s aim is to provide an objectively better blockchain platform than Ethereum, through a commitment to peer-reviewed scientific research. Over the coming years, the hope is that more and more companies partner with Cardano, boosting credibility and increasing the usage of Ada. If it can achieve these goals then Cardano could become the next Bitcoin.
Why Buy Cardano in the UK?
If you are interested in cryptocurrency trading, it’s definitely worth researching Cardano due to its huge potential in the crypto space. Cardano’s price surged over 850% between December and April, reaching an all-time high of $3.101 on September 2, 2021. Since then, the currency has been exchanging at $2.40 at the time of writing.
Comparing this to the current price of Ethereum and Bitcoin, sitting at $2228 and $50,000 respectively, you can see that Cardano has a lot of space to grow over the coming years. As Cardano was late to the crypto market, many people seem to think that it has ‘missed the boat’ in a sense, but this isn’t the case. The fact that its price is still so low can actually be thought of as a good thing, as it allows a chance for investors to get involved for a lower capital outlay.
Past performance is not an indication of future results
Other than price, there are many reasons to buy Cardano in the UK. The platform utilises a unique ‘proof of stake’ algorithm called Ouroboros which helps solidify the safety of the blockchain. This proof of stake system helps to set Cardano apart from Bitcoin and Ethereum, as many experts within the sector believe that this system is objectively better than the ‘proof of work’ protocol used by these cryptos.
Another thing that sets Cardano apart is their research-driven approach. The team behind Cardano is full of experts within their chosen fields, ensuring that the technology used on the platform is as secure and efficient as possible. Furthermore, Cardano also chose to have their platform and processes peer-reviewed by top institutions before launch, adding to the credibility of their offering.
If Cardano can get some support from some global companies and brands, it could then help increase bullish momentum going forward. This process may have already started, as Yahoo Finance reported back in January that Cardano had partnered with PwC on a new commercial strategy. The hope is that this creates a sort of ‘snowball effect’ whereby other companies follow suit, further expanding the usage of Cardano and Ada.
How Much Does It Cost to Buy Cardano?
This depends on who you buy Cardano with. The best crypto exchanges will often compete with each other to offer the most inexpensive ways to buy digital currencies, with each one offering a slightly different fee structure.
The most prominent cost when buying Cardano is transaction fees/commissions. Many crypto exchanges and brokers will charge a percentage of your position size as their ‘fee’ for facilitating the transaction. This can range from as low as 0.05% to a higher price point of 0.5% per transaction. These fees can add up if you are trading more actively.
Other fees you need to be aware of when buying Cardano are deposit fees and liquidity fees. The former is a fee charged by the crypto exchange or broker when you make a deposit and can vary depending on who you trade with and which payment method you use. The latter fee refers to charges associated with the use of leverage, which is offered by some crypto exchanges.
However, there are some brokers that do not charge a commission whatsoever and instead charge a small spread. This spread is the difference between the buy and sell prices of the asset. Spread sizes can vary depending on market conditions related to liquidity and volatility.
How to Buy Cardano with PayPal
PayPal recently announced that customers in the U.S. can buy, sell, and hold various cryptocurrencies through their online platform. Currently, PayPal only supports four cryptos – Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. However, there are other indirect ways to buy Cardano with PayPal.
Many of the best stock brokers, allow you to fund your account using PayPal.
How to Buy Cardano with Bitcoin
Another way to buy Cardano is by using another popular cryptocurrency such as Bitcoin. Many crypto exchanges, such as Binance, allow you to swap Bitcoin for Cardano (Ada). This is because many exchanges do not offer the option to directly purchase Cardano with a debit card.
So, to buy Cardano with Bitcoin, all you have to do is purchase some Bitcoin through your chosen crypto exchange (or utilise the Bitcoin you already have). Then when you go to buy Ada, you can choose to use your Bitcoin balance to fund the purchase. Usually, this process incurs a small fee through the spread, which can vary depending on which crypto exchange you use.
Buying Cardano Safely
Similar to when buying any other asset, you must ensure you invest in Cardano safely in order to protect your capital and your personal details. The most important thing to keep in mind when buying Cardano is to use a trustworthy broker to facilitate your investment.
Another thing to consider when buying Cardano UK is the usage of a crypto wallet. These wallets can be thought of as digitised bank accounts, where you can store the cryptocurrencies that you hold, along with other crypto assets. Many brokers and exchanges will offer a crypto wallet (such as a Bitcoin wallet) as part of their services.
Risks of Buying Cardano in the UK
According to a recent article by Forbes, there are numerous risks that traders must be aware of when trading cryptocurrencies such as Cardano. One of the main risks associated with crypto trading is liquidity risk. This refers to the ease with which traders can buy or sell a specific cryptocurrency; if there is low liquidity, it can potentially mean that there are no buyers on the market, meaning you are unable to offload the currency.
Liquidity risk is more of a concern for smaller cryptos and altcoins that do not have the market cap that Cardano does. However, low liquidity can also increase the spread when trading an asset, meaning that if you decide to buy or sell you may have to pay a hefty fee to do so.
Another major risk associated with buying Cardano is volatility risk. This is more of a concern when day trading, as you would be more aware of price fluctuations. If you are investing in Cardano over the long term, then volatility is just part of the game. Cryptos do tend to be much more volatile than other assets though, so this is something to note when investing in digital currencies such as Cardano.
In terms of the actual safety of buying Cardano, it is just the same as buying any other asset.
If you do decide to sell your Cardano holding, the top crypto exchanges make this super easy to do. You can either exchange your Cardano back into Bitcoin (or any other cryptocurrency), or you can exchange it for its current value in your desired FIAT currency. After this, you are then able to withdraw it to your bank account – certain exchanges will charge a fee for this, so make sure to research their fee structure beforehand.
Where to Buy Cardano UK
Now that you have a comprehensive overview of what Cardano is, it’s time to discuss where to actually purchase Cardano in the UK. With an increasing number of brokers and crypto exchanges entering the market, all offering various different features and fee structures, it can be difficult to determine which one is best for you.
Not to worry – in the section below, we discuss two of the best trading platforms to invest in Cardano UK, highlighting all of the important information you need to be aware of when you buy cryptocurrency.
1. Coinbase – Excellent Platform to Trade Cardano
Coinbase is considered to be one of the best Cardano applications in the UK. Over 55 million users make this broker one of the most popular in the industry. In light of Coinbase’s active users, it can be confirmed that its services are safe and secure.
For beginners, it has an easy-to-use interface, and Cardano coin transfers can be made easily. The web wallet also allows you to make transactions and buy coins.
You should store your coins in the platform’s web wallet to ensure complete security. A broker reports that 98% of funds are offline or can be kept in cold storage to avoid cyber attacks. Nevertheless, Coinbase will not have any problems with that, and remembering your password is essential.
Mobile devices running iOS and Android can download the Coinbase Wallet app. In this way, your Cardano investments will be better managed.
Digital currencies can be sold, bought, and exchanged very easily. Due to the fact that this is a regulated exchange, it’s necessary to attach your identity documents to the KYC process; this process usually takes a few minutes, and then you’ll be able to use the wallet application.
- Various cryptocurrencies are supported
- In addition to Bitcoin, a wide variety of cryptocurrencies are available
- Fees are very low
- Unresponsive customer service
- Trades are charged commissions
Your capital is at risk.
2. Binance – Low Spread Platform to Buy Cardano
Binance is one of the leading cryptocurrency exchanges on the market, with over 13 million users worldwide. They offer over 100 different cryptocurrencies to trade (including BTC, ETH, and ADA) and accept a variety of currencies including GBP, EUR, and USD.
One of the best things about Binance is its attractive fee structure. They offer some of the lowest crypto trading fees on the market, only charging 0.1% per transaction. To put this into perspective, for each £1000 trade you make, you’ll only be charged £1 in fees! In addition to this, if you use Binance Coin (BNB), you can even reduce your trading fees further, by up to 25%.
Opening an account is also straightforward with Binance – you’ll have to provide some personal details and verify your ID and address. Once verified, you are then free to withdraw larger amounts from your account. In terms of purchasing digital currencies, Binance allows you to perform FIAT-to-Crypto purchases via bank transfer, debit card, and various other 3rd party payment channels. However, as Binance primarily operates as a crypto exchange, these FIAT-to-Crypto transactions do come with some higher service fees.
Finally, Binance is a great exchange for newcomers to the crypto space as they offer a wide variety of educational materials. Binance offers an open-access learning space called Binance Academy, which provides an extensive selection of articles and videos that explain everything you need to know about crypto investing. What’s more, they even offer a feature called Ask Academy, where users can ask questions and other users can answer them.
- Advanced trading platform
- Extensive selection of educational materials
- Extremely low fees for crypto trading
- FIAT-to-Crypto trading offered via debit card and bank transfer
- Regulated in the UK by the FCA
- Does not provide daily market analysis
Your capital is at risk.
This guide has discussed the different crypto exchanges from where investors can purchase Cardano – one of the leading cryptocurrency exchanges in the world. Interested investors can start trading this popular digital asset through exchanges such as Coinbase and Binance.