What is Cardano?
Cardano is a blockchain-based platform which aims to offer smart contract functionality in a way similar to Ethereum. The platform was created by Charles Hoskinson, which was one of the main members of the Ethereum development team.
Cardano employs a Proof of Stake mechanism for its consensus, an alternative to the Proof of Work systems which requires more power. It is made out of two layers – the Cardano Computational Layer (CCL), on which smart contracts and decentralized applications function, and the second one is the Cardano Settlement Layer (CSL), an accounting layer which uses ADA in complex financial applications.
Hoskinson and his team are attempting to create a decentralized computing system which will sustain itself.
What is Binance?
Binance is an extremely popular crypto-to-crypto exchange launched in 2017, which continues to be the world’s largest cryptocurrency trading platform by 24-hour trading volume. It offers support for hundreds of coin options at low trading fees, and has its own native coin named Binance Coin (BNB), which is seen as a reputable coin in the crypto community.
Binance’s CEO and founder is Changpeng Zhao, who has years of experience in the field of blockchain and trading. He also founded an ‘exchange systems provider’ named BijieTech in July 2017, and before that he was in charge of development at Blockchain between 2013-2014, a popular crypto wallet.
Before getting into trading you will need a secure wallet that is compatible with ADA, in which you will store your coins while you are not trading.
The Daedalus wallet is currently the only wallet available that offers Cardano support. Created by the Cardano team, Daedalus is an open-source desktop wallet which is set to eventually become an app store for decentralized apps built on the Cardano blockchain.
The Daedalus wallet can be downloaded for free from their website. You have to set up a secure authentication as well as recovery phrase, and wait for the wallet to synchronize with the Cardano blockchain.
1. Register on Binance
First you will have to create an account on the Binace platform from which you can buy your ADA. No verification is needed for withdrawals that do not exceed 2 BTC per day, and the exchange also has a mobile app for trading on the go.
2. Deposit cryptocurrencies
As Binance offers only crypto–to–crypto trading options, you will have to deposit in your newly –created account some digital coins. The crypts of choice are Bitcoin (BTC) and Ethereum (ETH) as they both have trading pairs with the most of the coin listed on the exchange and thus giving you the highest degree of flexibility.
To make your deposit, go to the navigation bar at the top of the website and hit Funds.
The website will then generate a deposit address for the cryptocurrency you have selected. The address that will be displayed will be a string consisting of numbers and letters (both lowercase and uppercase). Copy the address and then go to your chosen wallet.
Send the sum you want to deposit to copied address. Transactions can usually take up to half an hour to process, so don’t panic if the funds do not appear in your Binance account right away.
3. Verify your balance
To verify your balance, access Funds > Balances in the navigation bar at the top of the page.
If your deposit has already been completed, the coin and amount will show on the list.
4. Place a buy order for Cardano.
Access Exchange > Basic to place your order.
On the top right corner, choose your deposited coin and search for ADA, and the pairing should appear.
You then click on the trading pair and a price chart will be featured in the center. Under the chart, you will be able to place your buy order. If you want to buy ADA at a certain price, use the Limit order. Enter the desired price (in BTC/ETH) and how much ADA you wish to purchase, then click Buy ADA.
If you intend on trading with different cryptos, it would be recommended that you buy some BNB first. The BNB token can be used to get 50% discounts on your trading fees on Binance. To get the 50% discount, click on the user icon, select the Account menu and activate the discount option.
If you have in your account a larger amount of coins, try not to buy your ADA at the same time and instead buy them at different market values. This strategy is known as unit cost averaging.
This has been our article on how to buy Cardano (ADA) using Binance’s exchange platform.
Should you want to use another exchange aside from Binance, there are many other trading platforms which also have this option, just go to CoinMarketCap and type Cardano and click on the Markets tab to see which exchanges have ADA listed.