/  Uncategorized   /  How To Buy ADA

How To Buy ADA

Interested in buying Cardano (ADA) and staking it? Here’s our walkthrough on how to buy ADA. We’ve used Binance in our explanation, but you can use other major exchanges which will have similar processes.

 

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service, or offering. It is not a recommendation to trade.

What is ADA?

ADA is the coin native to the Cardano platform. Known as the third-generation Ethereum, Cardano is a sophisticated blockchain that is meant to solve a lot of the problems around blockchain security, sustainability, operating capabilities, and transaction rates. 

 

Cardano differentiates itself from other smart contract blockchains (like Ethereum) in minimizing the cost of mining and operating. Cardano uses the Ouroboros protocol, which creates epochs and uses lottery-chosen slot leaders to mine blocks. 

 

Adding money to a stake pool gives the blockchain an opportunity to use that money, make another node, and then reward the users. 

Best Way to Buy ADA

In order to delegate a stake in a verified ADA stake pool, you first have to purchase ADA coins. Delegating can happen in a hard wallet like Daedalus or a light wallet like Yoroi. However, these programs do not allow you to buy ADA. 

 

Instead, you have to go to an exchange that supports ADA purchases and go through that process separately. Once you purchase ADA, you can then transfer it to your desired staking wallet, like Daedalus, and stake it in your first stake pool. 

Buying ADA Through a Crypto Exchange

In order to buy ADA, you must register with a crypto exchange. There are several popular exchanges, such as Binance and Coinbase. The one you choose will depend on your geographical location, the coins you wish to purchase or exchange, and other factors (like security). 

 

For the sake of this guide, we’re going to walk you through setting up on Binance and buying ADA. For the most part, you can apply similar steps to other crypto exchanges:

Registering With Binance

Step 1: Head over to Binance (binance.com) and click Register Now.

 

Step 2: Create a free account by providing your email or mobile and creating a password. You can include an optional referral ID (if you were referred to Binance by a friend), but you must agree to the Terms of Service.

If you already have an account, then you can skip this part and click Log in.

 

Step 3: If you don’t already have an account, you’ll need to move through to the security and account verification. The security verification involves user manipulation. You must grab the yellow arrow and slide it to complete the puzzle. This yellow arrow will change to a green checkmark when it is complete. In this image (below), the puzzle pieces must be aligned.

Step 4: Once you complete the security verification, you will be sent an email and asked to complete the six-digit verification code. The code is only valid for 30 minutes, so make sure that you can access your email and complete the account verification then. 

If valid, you will be prompted that the code was a success and sent to the welcome page. 

 

Then, you’ll be on your dashboard. You may have to complete additional verification steps, like two-factor authentication (mobile and email verification, or Google verification). You’ll also need to do KYC, or Know Your Customer since payment data will be shared. 

Account Verification

For the basic Binance account, you’ll be allowed a crypto limit, but you can always upgrade to higher limits (which include 500,000 USD monthly and 50,000 USD daily). 

 

Binance account tiers actually have little to do with paying into a subscription, and instead, users are rewarded based on the level of verification that a user does. 

 

For example, the Intermediate Binance account has all the basic requirements, plus a government ID, facial verification, and a review time of 10 days; however, it gets you higher crypto and fiat deposits, higher fiat withdrawals, and higher crypto withdrawals.

If you are serious about crypto or staking, then you should continue to the Intermediate verification as soon as possible. 

Buying ADA

When buying crypto, you have to make sure that you have the right method in place. Binance, for example, is your exchange and one of the places where you can purchase crypto. 

 

However, once in Binance, you may need to either purchase a modifier coin (like Tether USDT or Binance Coin BNB). Know that exchanging a stablecoin like Tether into another coin is easier, and for many coins, this is the only way to get them. 

 

Luckily, this is not the case for ADA. With ADA, you can purchase it directly with your own cash or through a credit card.

 

There are also a few ways to get to buying coins. We’ll show you the places where you can do this. 

 

Option 1: If you are just registering, you will be prompted to Deposit Funds as part of your welcome. 

 

You can transfer fiat to Binance via a bank transfer or Revolut too (which only takes 5-10 minutes and is free). 

For ease, you can click “Buy crypto with your credit card.” If you do, you will be sent to the Buy Crypto page where you must find your coin. 

Search ADA in the search bar and select it by clicking on it.

You will then be able to specify how much Cardano (ADA) you want. Keep in mind that you may have to meet a minimum amount of ADA in order to stake and that fees may apply during transfers. 

 

For Bonafida ADA, at least, there is no minimum. 

Note that in the top right corner, you can click on the currency and change it to one of 18 different currencies that Binance accepts (at the time this article was printed). If you don’t see your currency listed, then know that your credit card may charge appropriate currency exchanges. You may also need to call your credit card company to confirm that you can make a cross-border purchase.

 

Currently, Binance accepts the Pound Sterling, Euro, Nigerian Naira, Australian Dollar, Brazilian Real, Russian Ruble, Ukrainian Hryvnia, Turkish Lira, Kenya Shilling, Mexican Peso, Chilean Peso, Peruvian sol, Hong Kong Dollar, USD, South African Rand, Philippine Peso, and Canadian Dollar. 

 

If you haven’t verified your account, you’ll be prompted to at this point. 

Click Verify Now. You’ll be asked to move through KYC steps, which need to know your country of residence for verifying a valid government ID. You’ll need to provide Basic Information, like your nationality, first and last name, middle name (if you have one), and date of birth. 

 

If your account is verified, you’ll be approved. 

 

Once you get to the payment option, you can plug in a Visa/Mastercard, or use your Cash Balance (which we will go over later). You’ll be shown the final amount to approve. The exchange might ask you to confirm again. You’ll have 60 seconds to confirm the payment.

 

Not all banks are accepted, so you may have to go through some trial and error. For example, in Canada, your bank account must be Visa, Mastercard, and Interac, specifically. 

 

Option 2: You can always fund your account by choosing the drop-down labeled Buy Crypto in your Binance menu bar. 

Choose to either deposit money into your Binance account, pay with a credit or debit card, trade from another wallet or exchange, or use third-party payments. 

 

This is pretty straightforward. How you go about making the purchase, though, will depend on the bank accounts you can link, your verification status, and your preference. 

 

Buying ADA through P2P is not available for all users and is based on local P2P exchanges. P2P exchanges have zero fees, though, so if you can get ADA for a good price, that is a good way to go. 

 

Simplex, Banxa, and Paxos are third-party options if you want to go that route. 

 

Option 3: Another option to purchase ADA is to buy a stablecoin and then transfer it into ADA. This is the most recommended option because the crypto to crypto exchange is the fastest and most reliable method. 

 

We recommend buying USDT Tether or Binance Coin (BNB). In this walkthrough, we purchased USDT with Canadian Dollars.

 

Note: From our experience (on Brave Browser, on a macOS), there is a glitch here. It prompted us to confirm again and refresh the quote, but the purchase was made. Navigate into a new tab to view your wallet. If the amount is in your wallet, then the transaction has gone through. You shouldn’t need to confirm twice. 

Once you have your Tether, you can convert it or Trade it. You can do this in two places:

 

1. Trade Dropdown > Convert

 

Go through the same motions of buying or transferring the coin of choice into your Binance account, then move to the Trade section. From here you will be prompted to convert or trade Bitcoin, BNB, or another crypto coin. 

2. You can also access it from the market graphs. From the homepage > click any of tickets cycling through (below where it says Buy Now), or Markets > Click Trade next to any coin.

Once in the graphs section, you can use the tutorials to buy directly in the graphs section. You can place an order in the menu on the right-hand side, or select the drop-down of the coin that is highlighted to pick your conversion. 

Note that at the top left you’ll see ADA/USDT. That lists the crypto you want to buy and the fiat you are using to purchase it.

 

Before we convert our USDT to ADA, we actually converted some of our BNB first into USDT. 

Now, we will convert all our USDT to ADA at our personal limit.

In this instance, we did a limit buy, which is the limit at which we are willing to spend. This is an amount created by each user. You can always buy at market value, or you can set an amount that you don’t want to spend above.

 

There are also automated sell-off options as well, and your Binance account will sell the amount listed if your crypto drops too low.

 

And you’re done!

 

Delegating Your ADA

It’s safer to remove your coins from the Binance chain. If you plan to stake your ADA, you can easily transfer it to your Yoroi or Daedalus wallet. 

 

Go to your Wallet > Fiat and Spot in Binance. 

Find ADA > Click Withdraw next to it. You will then be asked where you want to withdraw to. Click the drop-down for the Address Book or Add New Address. We have addresses whitelisted (an added verification check) already listed. 

 

You may need to include your wallet address. You may also need to detail which blockchain that you will be doing the transaction on. With ADA, the available blockchain is Cardano. If you’re sending to a wallet, you’ll never be sending along the Binance smart chain. 

 

It might cost around 1 or half an ADA.

 

Once you input the address, go through the processes to complete the transfer.

Dennis is the owner / operator of BonafideADA Stakepool. He has a degree in Architectural Technology and works as BIM Manager at an Architectural practice in Dublin. In his spare time, he operates the pool and helps provide educational content for new delegators to grow the pool and increase the adoption of Cardano.

Post a Comment

You don't have permission to register