How To Buy Cardano In The UK In 5 Easy Steps 2021

how to buy Cardano UK

Cardano is a proof-of-stake blockchain platform offering the benefits of blockchain but using technologies that only use a fraction of the power. Cardano was invented by one of the creators of Ethereum, Charlie Hoskinson, leaving the Ethereum project due to differences as to where the platform should go. Cardano is powered by its token, Ada.

Cardano is the largest proof-of-stake (opposed to the traditional proof-of-work used by Bitcoin/Ethereum) cryptocurrency in the market with a market cap of around £56m as of May 2021. The platform aims to provide all of Ethereums benefits, whilst also improving some of the drawbacks that come with cryptocurrencies like Ethereum and Bitcoin.

How to Buy Cardano in the UK Using Our Preferred Trading Platform: eToro

1. Sign up with eToro

You need to create an account with etoro. You do this by going to their site, www.etoro.com and selecting the join now button and the below form will appear, complete it and it will take you to the next page.

How to buy Cardano UK using eToro. Sign up page.

2. Account verfication

Verify your account. When prompted, complete your profile, and keep your National Insurance number near by to get everything verified. You’ll need to upload a valid proof of identity (e.g. passport or driver’s license) and proof of address (e.g. bank/credit card statement, internet bill).

eToro account verification UK.

3. Deposit fiat currency

Connect your bank or e-wallet, deposit funds to fund your account using the following options pictured below. You must have fiat currency in your eToro account to buy ADA.

eToro payment methods for buying Cardano in the UK.

4. Navigate to Cardano and make a purchase

Once your funds are available in your account, you’ll be ready to buy Cardano! Simply navigate to the Cardano page and make your first purchase.

How to buy Cardano UK using eToro.

5. Cardano is added to your eToro portfolio 

Cardano in an eToro portfolio.

Best Ways to Buy Cardano in the UK

1. eToro

The first platform that’s a great option to buy Cardano in the UK is eToro. eToro can support both long and short-term investments, but also allows investors to buy a wide range of investments on top of cryptocurrencies.

Given the price analysis below, eToro is a great option for those looking to buy and hold Cardano for some time as a less speculative investment compared to strategies used for other cryptocurrencies.

Purchasing Cardano with eToro.
FeesCryptocurrencies SupportedTransaction Type
$5 for withdrawals (even for UK investors), 0% on trades, although spread costs apply, eToro also only operate in USD so you will also face spread costs for any other currencies18 supportedBuy, sell, market orders and limit orders

Another reason that eToro is a solid platform is its security. Given that Cardano might be an investment for someone who may want to hold for some time, security of a platform becomes a little more paramount than other factors, making eToro a top option here.

On top of the above, eToro is a great platform for the same reason it’s a great platform for trading cryptocurrencies. It offers competitive fees, lots of different currencies to support, various transaction types as well as social trading. Social trading can be a great way for beginners to get into trading cryptocurrencies in a more successful way by copying the strategies employed by the best traders.

2. Binance

Binance is the world’s largest cryptocurrency exchange and another great option for buying Cardano. Binance can be a good option due to the speed of transactions. Being the largest cryptocurrency exchange in the world with over 30 million users, Binance can execute trades, faster than any other platform.

This is great for those looking to take more short-term trading strategies, but given the volatility of cryptocurrency, this can be an effective strategy for many different cryptocurrencies, including Cardano.

Buying Cardano on Binance.
FeesCryptocurrencies SupportedTransaction Type
0.02%- 0.1% purchase and trading, 3% to 4.5% for debit card purchases, free single EuroPayment Area transfer, Free UK bank transfersOver 500 for global investorsLimit order, market order, stop-limit order, trailing stop order, post only order, peer-to-peer trading, margin trading, one-cancels-the-other order.

The second reason to use Binance is its low fees. Binance offers some of the lowest fees in the market, which means for high volume trades or larger trades, Binance can help reduce the overall cost of trading.

On this, Binance also supports more trading strategies as it supports more transaction types compared to other platforms. Although this tends to be a benefit for more experienced traders compared to beginners.

Binance is a great platform for more experienced traders, irrespective of their trading strategies or whether they intend to take long or short positions. With this in mind, it is worth noting that Binance can be a little more complex for less experienced traders compared to other platforms.

3. Kraken

Kraken can be another viable option to buy Cardano in the UK. It allows investors to buy directly using fiat currency (5 different types).

Other platforms require investors to buy Cardano using other cryptocurrencies, which could incur additional costs for investors who don’t hold these cryptocurrencies. With this in mind, this transaction type could incur different charges which may negate the benefits of the direct purchase. 

Buy Cardano UK using Kraken.
FeesCryptocurrencies SupportedTransaction Type
Between 0%- 0.26% based on 30 day volumes. Free faster payment deposits, but SWIFT and CHAPS incur £3/ £21 respectively.70+Buy, sell, send, receive, exchange, margin trading, limit order, market order, stop-loss limit order, stop-loss market order, futures trading, take profit market order, and more

Whilst not necessarily a high priority if storing cryptocurrency in a cold wallet, Kraken also has market-leading security practices. This can be great for investors who may not have bought a cold wallet and are looking for a secure platform to store their cryptocurrency on.

Kraken is also a great platform due to the large number of transaction types which can be useful for more experienced traders looking to support more complex cryptocurrency trading strategies. Its intuitive user interface provides a great experience for users too. Kraken also offers low transaction fees which could be beneficial for all investors, although this applies to the wider cryptocurrency markets, not just Cardano.

What is Cardano?

Founded in 2015, Cardano was founded by Charlie Hoskinson, one of the co-founders of Ethereum. He split from Ethereum as he wanted to take the platform in a more commercial direction, opposed to his counterparts who didn’t.

Cardano uses a proof-of-stake protocol called Ouroboros, which is different from other cryptocurrencies that use proof-of-work. One of the main benefits to the Cardano platform is its power usage, around 0.01% compared to Bitcoin, see here.

Cardano uses a coin called ADA to power it’s platform, which operates in a similar way to Bitcoin to track transactions, but also supports “Ethereum-like” benefits that enable smart contracts and applications to run on the platform.

Why Buy Cardano?

Despite its size, Cardano has only really just begun demonstrating its power in real time. It’s founder described it as the “Swiss Army knife of protocols”, as it is a platform aimed at solving many issues in a sustainable way.

The platform could be used to build solutions to address the inability for a lot of people to open a bank account, through to improving Microfinance solutions to help the worlds poorest (there’s a great book called “Banker to the Poor” addressing how Microfinance can help this group). Cardano can also help with solutions such as identitiy verification, all built off of the platform.

Finally the platform announced it would support decentralized financial services in 2021 to allow decentralised applications to be built off of the platform, adding more power to the platform.

Cardano Price Analysis and Prediction

Cardano, or its coin ADA, is currently the largest proof-of-stake platform on the market and the 5th largest cryptocurrency, with a market cap of £56bn.

ADA hit an all time high at the start of the year with a price of around £1.74 per coin, but this has crashed down to £1.07 per coin as of today. However, this crash was part of a wider cryptocurrency crash, so may not be limited to one coin and could be down to a larger bubble. 

Analysts predict if Cardano was to do no platform development, it could reach a high of £2 per coin, but given their intent to release new functionality, it could go much higher than this. Other analysts have cited the concerns around proof-of-stake used by Cardano leading to missed transactions which may cause it to slip down to £1.37 per coin, so it could go either way.

In any case analysts can agree that if Cardano is able to rally to £2 per coin, it is likely to continue on a bullish trend at the start of 2022.

Things to Remember Before Buying Cardano

Don’t put in more than you can afford to lose – remember, Cardano like all cryptocurrencies are speculative and you may lose more than you gain, make sure you only trade amounts you’d be willing to lose.

Resist ‘fear of missing out’ – avoid trading on emotions, FOMO is the Achilles heel of many traders who jump in when it’s too high and don’t stay the course, meaning they end up losing money as they invested on an emotional level without thinking things through.

Understand tax consequences – make sure you stay on the right side of your taxes, and cryptocurrencies, like everything else in life, are subject to taxes. Make sure you know your tax liabilities and comply with them

Long vs short-term investment – consider the benefits and drawbacks when looking at trading any cryptocurrency as a long versus short-term investment. It’s also worth looking at whether your chosen platform or exchange is better suited to longer versus shorter term positions

FAQs

Is Cardano legal in the UK?

Yes, buying Cardano is perfectly legal in the UK.

Will Cardano become the most valuable cryptocurrency?

Anything is possible, especially with cryptocurrency. That being said, it is unlikely that Cardano will become the most valuable cryptocurrency. 

Can you buy less than 1 Cardano?

Yes, fractional trading is available with Cardano meaning you don’t have to buy 1 coin.

Is it too late to buy Cardano?

We wouldn’t say it’s too late to buy Cardano as prices are currently in a dip and could recover. Given Cardano’s use cases and new functions, it may not be too late, but it’s still a little too speculative