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December 12 2022 Cryptocurrency

Cardano shopping and everything behind it

To buy Cardano, you don't have to go to the hidden crypto exchanges where the latest and smallest coins are traded. Because it is consistently among the top ten cryptocurrencies with the highest market capitalisation.

Cardano is somewhat similar to the Ethereum network. The aim here was to create a blockchain that would not only allow cryptocurrency transactions to take place through it, but also allow the development of other applications. However, while the use of proof-of-stake algorithms is still a thing of the future on the Ethereum network, it is already a reality on Cardano. This makes it currently the largest cryptocurrency in the world using this type of algorithm.

Just as the native token of the Bitcoin network is bitcoin, the native cryptocurrency is called ADA with Cardan. Given its popularity, it's easy to buy it, you can do it in minutes on Coinbase or Binance. Which cryptocurrency exchanges are better to use was discussed in detail in a previous blog post.

How does Cardano work?

The primary goal of Cardano was to create a platform that is as environmentally friendly as possible. This meant that the proof-of-work protocol, which requires huge computing power and is therefore very energy-intensive, was out of the question. The Cardano network therefore uses a unique proof-of-stake consensus algorithm called Ouroboros.

Unlike proof-of-work, proof-of-stake uses non-miners trying to solve a mathematical problem as quickly as possible. In this case, participants do not create the block itself, but validate the block. Who gets the reward for validation is decided by the network, based on the amount of ADA that is staked, i.e. deposited. 

Once the winner has validated the latest block, a certain number of additional validators must approve it before the network updates the blockchain with the new block. Each participant receives a certain amount of ADA reward, depending on how much they stake.

Buying Cardano is easy

Just like with other cryptocurrencies, the easiest way to buy ADA is on a crypto exchange. Here, after registering and proving your identity, you can buy cryptocurrencies with fiat currency. You can even transfer the fiat currency, which is the slower method. However, if you pay by credit card, you will have the cryptocurrency almost immediately.

It is also possible to buy ADA at cryptocurrency ATMs, where you will need to give your wallet where the token will be sent in exchange for the fiat currency. It is also possible to buy on peer-to-peer (P2P) platforms, where you can exchange your currency directly with another person.

And once we have the ADA in our wallet, we can trade it. Initially, it's worth doing this manually, but once you get the hang of it, automating some parts of the trading process can significantly increase your profits. We have several types of automated trading bots available on our site, which you can use to automate the boring, monotonous parts of trading.

A brief history of Cardano

Cardano was launched in autumn 2017 by Ethereum co-founder Charles Hoskinson. It is intended to be the third generation of blockchain platform, building on what Bitcoin (first generation) and Ethereum (second generation) have created. Its financial backing was created by selling the initial tokens. The first ICO (initial coin offering) raised $600 million.

If you have any questions about Cardano or about buying and trading cryptocurrencies, please feel free to contact us at one of our contact details.

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