How to Get Started in Cardano Trading

One of the most promising cryptocurrencies out there is Cardano, which was founded several years ago and has really started to take off. Below, we discuss the basic things to know about Cardano, including how to find the best Cardano trading platform and how to use a Cardano broker or exchange to buy Cardano.

What Is Cardano?

The newest cryptocurrency, Cardano, has a place among the top 10 cryptocurrencies ranked by market capitalization. Currently, it is at number 9 with a market cap of more than $3 billion. The price of Cardano exploded ahead of the release of an updated development roadmap. However, there are many investors fear that its release will trigger a liquidation event. Within four days, from the 25th of November, Cardano increased from $0.03 to $0.13. This was a gain of 434% in only four days.

Even though Cardano was developed in 2015, it is still a minty fresh project. Its first appearance was on the Exchange Platform in early October 2017. Since Cardano is a decentralised platform, it allows for complex programmable transfers of value in a secure and scalable fashion. Cardano (ADA) is one of the first blockchains to be built in the highly secure Haskell programming language.

Cardano didn’t begin with a comprehensive guide or even an official white paper. Instead, it embraced a collection of design principles, developing the top practices and routes for exploration. Cardano is a decentralized public blockchain and a cryptocurrency project. It is an entirely open source. It’s developing a smart contract platform that aims to deliver features that are more advanced than any of the other protocols previously developed. Cardano was the first ever blockchain platform to evolve out a scientific philosophy and a research-first driven approach. The development team includes a large global collective of expert researchers and engineers.

Cardano protocol

Cardano is an entirely open source and patent-free, and it was built in a spirit of collaboration. It has been engineered for both efficiency and scalability. The ecosystem is developing out into the most complete and most useful cryptocurrency that has ever been constructed.

There is a multi-layer protocol that performs the advanced functions. There is a foundation layer that is linked to a control layer. This layer has a unit of account, and at the same time the control layer runs the smart contracts. The control layer is programmed to recognise identity, and assists in compliance and allows for blacklisting for example.

The design of the Cardano protocol is tailored to safely and efficiently protect the privacy rights of its users. At the same time, it takes into consideration the requirements of the regulatory body. Because of this fact, Cardano is the first contract to manage these requirements in a way that is both effective as well as nuanced, while pioneering a state-of-the-art resolution for cryptocurrencies. Also, while the platform has been solidly composing, there is still the need for it to evolve and to comply with ever changing needs. The way of soft forks can upgrade the system.

Is Cardano worth your investment?

Cardano may have been purpose-built to be the only cryptocurrency that is needed, by offering an exceptional range of features and uses. In particular, Cardano is deliberately designed to work well with the various regulations and to be highly accessible to almost anyone.

Can Cardano be trusted?

Cardano is effectively an open source and patent-free protocol. All of its source code is publicly available for scrutiny. Therefore, this does not only assist the development, but it also means that any problems could get highlighted quickly. Also, it is fronted and developed by several publicly accessible and commonly known names.

The Cardano Foundation: It is a Swiss-based non-profit that has been designed to serve as a standard basis for the Cardano protocol as it develops and evolves, also to interface with regulators in different markets.

Emurgo: A registered company that’s been formed as an interface between Cardano and businesses. It offers Cardano as a blockchain business solution.

IOHK: This is a well-known engineering company that’s dedicated to peer-to-peer financial service innovations. IOHK is behind a lot of the Cardano technology.

The Cardano advantages:

The Cardano multi-layer system has several unique advantages:

✓  Adaptability 

The computing later is adaptable in several ways without affecting ADA.

✓  Upgradeability 

The system has been designed specifically for allowing relatively smooth and easy upgrades with soft forks. With the multilayer design, each layer can be forked and upgraded separately.

✓  Privacy with compliance 

The users can get privacy for their transactions even though the computing layer can recognise individuals. This system is designed to offer a level of anonymity while at the same time, still allowing compliance with laws around the world.

Where to buy Cardano

You can buy Cardano through various cryptocurrency brokers and exchanges. At present, there aren’t many brokerages offering Cardano CFDs, however, many more are sure to be added in the coming months. If you are interested in trading Cardano because of the opportunity to profit from the incredible volatility of the cryptocurrency market, your best option is to use an online trading platform that allows CFD services. Since there are very few CFD platforms that allow this kind of trade, to see available options refer to our recommendations above.

CFD Brokers are a great option if you want to trade Cardano with the option to accept multiple forms of payment. If you want to buy Cardano with Paypal, you can, these forums also accept major credit cards and wire transfers in exchange for Cardano. Also, if you choose to trade through a CFD or Forex platform, you will pay the lowest commissions possible in comparison to other alternatives. 

Read on to learn how to find the best online broker to buy Cardano and be sure to review the platforms we suggest above, all are fully-registered and come highly recommended. For additional information regarding trading Cardano as a CFD, check out our guide on “The Basics of CFDs“. It’s important that you remember that leverage works both ways and it will magnify the gains and losses.

How to Find the Best Online Broker to Buy Cardano

With such a high level of market competition and massive volume of exchanges and brokers, it may be difficult for beginners to decide how to start investing. Before picking the right online broker to buy Cardano, keep these things in mind:

Regulation

Ensure that the Broker or Exchange you use is regulated by an organisation such as the Financial Conduct Authority (FCA) in the UK. These types of authorities and regulatory bodies develop rules and services that protect the integrity of the market and safety of traders and investors. Due to safety concerns, make sure to open your Cardano trading account with a regulated broker.

Customer Service

Cryptocurrency trading happens online 24 hours a day, which means that customer support needs to be available at all times. Primarily, you will want to speak to a live support person, and many brokerages have a local UK office. When checking out support, ask pertinent questions to find out if the representative is reliable or not.

Also, the details of a trustworthy broker should be out in the open, either online or otherwise, for the public to see.

Account Types

Your ideal broker should offer either multiple account options or an element of customizability with your account. The brokerage may even have a separate account for beginners. Look for an option that provides competitive spreads, with easy deposits and withdrawals.

Tradeable Assets

Many people concentrate on just one asset class when selecting a broker. However, keep in mind there are many other types of investment alternatives with which you can work. These include stocks, shares, Forex, ETFs, cryptocurrencies, CFDs, options, or futures.

Fees

If you want to buy Cardano, it costs money. Not only do you need to invest in the asset, you also need to consider commissions, fees and exchange rates. Cardano brokers usually charge a percentage, but you may choose to find a broker who charges a flat fee instead, as opposed to a percentage model.

Liquidity

Because Cryptocurrency is traded in a market where people are always looking to both buy and sell, make sure you consider the amount of liquidity an exchange has. Liquidity is the ability to sell an asset or currency without wrecking the price.

Here at TopBrokers.Trade, we take pride in providing the best possible online trading broker comparison, reviews and ratings. These reviews enable you to select the best trading platform for your needs. We don’t just help you to pick a great place to trade, but also do everything that we can, to show you how to get started. For more information on Cryptocurrency trading, please see our tutorial: The Basics of Cryptocurrency.