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The Cardano blockchain platform and its native cryptocurrency, ADA, launched in 2017 by one of the co-founders of Ethereum blockchain.
Like most cryptocurrencies, the price of Cardano ADA has fluctuated significantly since it was created. The value of Cardano ADA peaked at $US2.95 in late August of 2o21 before falling to around $US0.79 today (13th March 2024).
Being a relatively new asset class, the cryptocurrency market is tiny when compared to other traditional assets like stocks and bonds. Crypto can therefore experience wild swings in price as it doesn’t take much money flowing in or out of the market to have a big impact on price. The digital asset market is infamous for volatility, and while this presents many opportunities for investors, it is not for the faint hearted.
The volatility of crypto assets has led to Australia’s financial watchdog, the Financial Conduct Authority (FCA), to issue repeated warnings to would-be investors. In 2023, Australians lost over $475 million dollars in scams, many of which were related to investment scams. Due to its borderless nature, many scammers have turned to using cryptocurrencies as a component of their scam activity, so if you hear about a crypto investment that sounds too good to be true—it probably is. Stay away.
But if you understand the risks and you’re looking to buy Cardano (ADA), here’s how you go about it.
Related: Cardano Price Prediction: Will the Wildcard Prevail?
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Choose an Exchange
To buy Cardano (ADA), you’ll need to use a reputable crypto exchange to swap your fiat currency, such as Australian dollars, for cryptocurrency. An exchange is a website or app that enables the buying, selling and trading of cryptocurrencies.
There are many exchanges to choose from, including big names such as Coinbase and eToro as well as local Australian-based exchanges, such as Swyftx.
When choosing an exchange, there are a few things to consider:
- What payment methods are accepted? Most exchanges allow credit and debit card card deposits, as well as bank transfers. Very few accept PayPal in Australia, aside from eToro.
- What are the fees? Some payment methods attract fees. Credit card deposits, for example, tend to come with a hefty fee and are considered a cash advance by your credit card issuer, meaning that high interest rates will kick in straight away.
- Does the exchange offer an integrated wallet? Some exchanges have integrated crypto wallets, allowing you to store crypto on the exchange. Other exchanges require that you already have an external wallet set up, and they send any purchased crypto straight to there following the transaction.
- Can I transfer to an external wallet? The vast majority of reputable exchanges allow you to transfer your assets to a private wallet that isn’t associated with the exchange. Transferring to an external wallet is a good idea for enhanced security, particularly if you opt for a hardware wallet which keeps your private keys disconnected from the internet when in storage. If you find any exchange does not allow you to transfer your crypto to an external wallet, be careful to do your due diligence as it could be a fake exchange or part of a sophisticated scam. Read more in our guide to the best crypto wallets for Australians.
- Are there fees for transfers out? Where withdrawals are permitted, there may be fees applied.
- What currencies can be traded? Some exchanges allow you to trade thousands of cryptocurrencies, while others offer only a select few. If you want to buy Cardano ADA, you’ll need to check if it’s available on your preferred exchange.
Choose a Payment Method
Next, you’ll need to decide how you’re going to pay for your Cardano ADA.
Be sure to check if there are any fees associated with the payment method you want to use. For example, Coinbase charges no fees on bank transfers but 3.99% on debit card payments. Fees for credit card payments on other exchanges often run at least this high.
Credit card payments on these exchanges are typically classed as cash advances, which means they attract interest at a much higher rate of interest than a normal purchase, and it is charged from the point the transaction is made, regardless of whether you pay off your balance in full when it comes due.
Taking on debt to invest in crypto is generally not advisable.
eToro accepts PayPal, but most Australian exchanges do not.
Place an Order
Once you’ve created and funded your account, navigate to the Cardano ADA page in the app or website and enter the amount you’d like to invest.
When placing an order, you can generally choose between a “Market Order” which will instantly buy the crypto at the current market price, or a “Limit Order” which allows you to set the price you would like to buy at. A “Limit Order” will not execute until that price is reached.
Choose a Storage Method
Most exchanges come with an integrated wallet in which to store your Cardano ADA. However, you may prefer to hold your assets in a non-custodial wallet.
You can use either a ‘hot’ wallet, which uses online storage, or a ‘cold’ wallet, which is an offline storage device such as a flash drive or a hard drive.
Exchange wallets and ‘hot’ wallets are much more vulnerable to hackers, but are generally seen as more convenient.
‘Cold’ wallets are inherently more secure because they’re not connected to the web and can’t be reached by hackers. If you lose the access codes to the assets in a cold wallet, however, there’s no customer support to help you recover them, which means you could lose access to your currency if you aren’t careful keeping your passphrase safe.
Many investors use both a ‘hot’ and ‘cold’ wallet to maximise ease of use while balancing security.
This article is not an endorsement of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency or CFDs as an investment class. Cryptocurrency is unregulated in Australia and your capital is at risk. Trading in contracts for difference (CFDs) is riskier than conventional share trading, not suitable for the majority of investors, and includes the potential for partial or total loss of capital. You should always consider whether you can afford to lose your money before deciding to trade in CFDs or cryptocurrency, and seek advice from an authorised financial advisor.
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Invest with a crypto brand trusted by millions
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Frequently Asked Questions (FAQs)
Can I Buy Cardano in Australia?
Yes, you can. You just need to make sure that it is available on your preferred exchange. Cardano is popular—ranked number nine by CoinMarketCap in terms of market capitalisation—so you should not have any trouble finding a suitable exchange.
Is Cardano a good investment?
Like all cryptocurrencies, it has seen its ups and downs. It was worth $US2.95 in September 2021 and is now worth $US0.76 (13th March, 2024)—a decline of more than 70%. Whether this represents a dip and, therefore, a good time to buy, or an enduring trend that will only worsen, is anyone’s guess.
How do you purchase Cardano?
Buying Cardano (ADA) is simple if you follow these steps:
- Choose a Cryptocurrency Exchange: Select a reputable platform that offers Cardano, such as Coinbase or Kraken.
- Register and Verify: Create an account on your chosen exchange, provide the necessary personal details, and complete any required verification steps.
- Deposit Funds: Add AUD or another cryptocurrency to your exchange account.
- Buy Cardano (ADA): Navigate to the trading area, choose the ADA trading pair you’re interested in (e.g., ADA/AUD), specify the amount you wish to buy, and finalise the transaction.
- Storage and Security: To enhance security, consider moving your ADA from the exchange to a private wallet. Don’t forget to safely store and back up your wallet’s seed phrase or private keys.
- Stay Updated: Stay abreast of Cardano developments and consistently adhere to best security practices.
Always remain conscious of the inherent risks with cryptocurrency investments and think about consulting with a financial advisor before making substantial investment decisions.
How do I start investing in Cardano?
To start investing in Cardano, follow these simple steps:
- Choose a Cryptocurrency Exchange: First, select a reputable cryptocurrency exchange that operates in Australia and supports Cardano (ADA).
- Create an Account: Sign up for an account on the exchange. You’ll likely need to verify your identity with some form of government-issued ID, in compliance with KYC (Know Your Customer) regulations.
- Deposit Funds: Add funds to your account. Most exchanges accept bank transfers, credit cards, and other payment methods.
- Buy Cardano: Once your account is funded, search for Cardano (ADA) on the platform, enter the amount you wish to buy, and confirm your transaction.
- Secure Your Investment: Consider transferring your ADA to a private wallet for added security, especially if you’re planning to hold it as a long-term investment.
How to stake Cardano in Australia?
Staking Cardano (ADA) in Australia involves participating in the network’s proof-of-stake system to earn rewards. Here’s how you can do it:
- Buy/Hold Cardano (ADA): Make sure you own some Cardano. At the time of writing, the cost to stake is around 2 ADA plus the amount of ADA you wish to stake, so be sure to have more than that.
- Choose a wallet: Use a compatible wallet that allows staking, such as Daedalus or Yoroi.
- Select a stake pool: Inside the wallet, browse and select a stake pool to delegate your ADA to. Stake pools are nodes that validate transactions on the Cardano network.
- Delegate your ADA: Follow the wallet’s instructions to delegate your ADA to the chosen stake pool. There might be a small fee for this transaction.
- Collect rewards: After delegating, you’ll start earning rewards based on the amount of ADA you’ve staked and the stake pool’s performance.
Can you cash out Cardano?
Yes, you can cash out Cardano. To do so, follow these steps:
- Transfer to an exchange: If your ADA is in a private wallet, transfer it to a cryptocurrency exchange that supports Cardano and operates in Australia.
- Sell Cardano: Once your ADA is on the exchange, you can sell it for Australian dollars (AUD) or another cryptocurrency of your choice.
- Withdraw funds: After selling your ADA, you can withdraw your funds to your bank account. The withdrawal process and options will depend on the exchange you’re using.
Remember, the value of Cardano and potential earnings from staking can fluctuate, so it’s important to research and consider your investment strategy carefully.
