Cardano is the fastest-growing blockchain in the cryptocurrency space. The native token Ada, is among the top 10 cryptocurrencies by market capitalization.
Cardano uses mathematical principles in its consensus mechanism and unique multi-layer architecture. Its technology is advancing rapidly and is ready to take on another massive blockchain ecosystem like Ethereum.
Let’s take a detailed look at Cardano, its native token Ada, what it is, how it works, and what makes it a compelling cryptocurrency asset to invest your money.
What is Cardano (ADA)?
Cardano is a proof-of-stake (PoS) blockchain platform that uses Ouroboros. Ouroboros is the first blockchain protocol founded on peer-reviewed research and verifiably secure blockchain protocol. These pioneering technologies provide sustainability and security to decentralized applications, systems, and societies.
Ada is the Native token of Cardano. This crypto asset is named after a 19th-century mathematician recognized as the first computer programmer, Ada Lovelace.
Ada is a cryptocurrency. Anyone can use Ada as a secure exchange of value from anywhere in the world without any third party. The Cardano blockchain records every transaction permanently, securely, and transparently.
Cardano Blockchain Architecture
The Cardano blockchain has two core components: The Cardano Settlement Layer (CSL) and The Cardano Computational Layer (CCL).
The Cardano Settlement Layer (CSL): It is a unit of account where token holders can instantly transact, send, and receive Ada with minimum fees.
The Cardano Computational Layer (CCL): It is a set of protocols that is the backbone of the Cardano blockchain. It helps to run smart contracts, secures the network, and allows it to perform advanced functions like identity recognition and blacklisting.
As explained earlier, Cardano uses a PoS blockchain protocol for consensus called Ouroboros. This consensus mechanism helps users to send and receive Ada securely at any time, from anywhere. Also, Ouroboros rewards token holders if they stake their Ada to the network to ensure consensus.
How to Use Cardano (ADA)?
Currently, Ada is used as a secure medium to exchange value. This is similar to how Ethereum and Bitcoin work. But Ada has some different uses as well.
- Staking: Any user can stake their Ada to the blockchain to get more Ada in return as a reward. This system of staking Ada helps in maintaining the security of the blockchain.
- Voting: Cardano can be used in voting. Unlike other blockchains, not the miners but the token holders decide on changes to the protocol. Suppose, a new change is proposed to the Cardano blockchain. Then crypto holders use the Ada crypto to vote on these proposals.
- Smart Contract: Ada can power the Cardano blockchain smart contract platform. Developers can utilize Ada to create smart contracts and apps to run on a secure and decentralized blockchain. Without the Ada crypto, it would not be possible to execute smart contracts.
How to Buy Cardano (ADA)?
The Cardano blockchain has a native cryptocurrency called Ada. You can use major cryptocurrencies to buy Ada coins. You have to sign up with the platform to buy Ada and then you can use digital wallets to store your Ada crypto.
Where to Buy Cardano (ADA)?
The following are the 5 best cryptocurrency exchanges to buy Cardano’s Ada crypto coin.
Binance
Binance is the top choice to buy Cradano (ADA). It’s also the world’s largest cryptocurrency exchange that supports 400+ crypto coins. With low fees, deep liquidity, and an intuitive interface, Binance offers an efficient and user-friendly platform. ADA holders can also participate in staking contracts to earn interest on their holdings.
KuCoin
KuCoin offers an extensive range of altcoins and early listings of emerging cryptocurrencies like ADA. This crypto exchange is suitable for all users but has competitive fees starting at 0.1%. On the other hand, it offers a high ADA trade volume and a user-friendly design.
Kraken
Kraken is an excellent choice for beginners to trade Ada. This cryptocurrency exchange offers clean UI, wide fiat currency trading pairs, and high-volume ADA markets. It’s known for its best user experience, quick bank withdrawals, and low trading fees as compared to other Ada trading platforms like Binance or KuCoin.
Coinbase
Coinbase is known for its user-friendly interface. It’s a top choice for crypto newcomers to trade Ada. Its higher transaction fees are a drawback. But Coinbase remains a solid starting point for those entering the crypto space.
Top Cryptocurrency Features to Look For
There are many cryptocurrency exchanges in the market. You can use all of them as per your need but here, we’ll guide you on how to choose the best cryptocurrency exchange to buy Cardano (ADA).
- Security: Look for a cryptocurrency exchange that’s never been hacked, has external security audits, and offers third-party insurance against hacking for an added security layer.
- Fees: While trading, buying, and investing Ada, you need to deposit and withdraw fiat currency via the cryptocurrency exchange. Now, all exchanges ask for transaction fees. Find the crypto exchange with the best fee structure so you don’t have to spend on fees from your profits.
- UI/UX: Almost all crypto exchanges can buy and sell Cardano. But which platform makes it easy even for novice users to buy, invest, and sell crypto? You must look for a crypto exchange with complex crypto trading functionality but an easy user interface to navigate smoothly.
- Support for Crypto: Not all crypto exchanges support all the cryptocurrencies available in the market. So, if you have chosen to buy, invest, and sell Cardano (ADA), then look for a crypto exchange that lists Cardano (ADA). For example, Coinbase, Binance, etc.
- Bonuses, Staking, And More: There are only a few crypto exchanges that offer users to stake the crypto and earn rewards. Getting rewards for stakingCardano is also a good investment. But beware, if the platform charges high transaction fees and offers low rewards or bonuses, then it might not be cost-effective in the long run.
4 Best Cardano Crypto Wallet to Store ADA
Typhon Wallet
Typhon is the gateway to store Cardano securely. It’s one of the best secure and fast software wallets with rich features. It offers a beautiful web interface and browser extension.
Flint Wallet
Flint is the best choice for users who need a lightweight and user-friendly Cardano hot wallet. You can easily access the DeFi world through this app and manage crypto assets. It offers browser extensions and the app is available for both iOS and Android.
Yoroi Wallet
Yoroi is the best user-friendly, open-source Cardano wallet with a browser-based interface. It provides a secure and convenient way to manage Ada. Yoroi is also available as a mobile app for iOS and Android.
Daedalus
Daedalus is a hot wallet specifically built for the Cardano blockchain to store Ada. This software wallet supports all the major OS like Windows, macOS, and Linux.
Conclusion
Cardano is one of the best implementations of blockchain technology. In 2024, its native token Ada is in high demand and currently the eighth largest cryptocurrency with a market cap of $17 billion. It is an innovative and unique project blockchain project.
Cardano (ADA) has the true potential to be the dominant crypto asset and smart contract platform in the future. But only time can tell if Cardano will last longer and be the best asset in the crypto world. As of now, Cardano’s future is looking bright.
