It’s normal for newcomers to have questions about the smartest, safest way to get into crypto. If you’re looking for advice about the fastest way to 10x your money, you can easily find it on the internet (not saying that’s a great idea). If you’re interested in some level-headed answers to balance the hype, this article is for you.
I saw an article and the heading was“ Where to buy Cardano cheaply.“ Does this mean that Cardano’s price varies according to where or how you buy?
Yes, that is correct! Cardano will have a certain value at any given time, based on supply, demand, liquidity, and other wonky financial influences. It’s not guaranteed that every platform where you can buy it will agree to the penny about what that value is at any given moment, but they do all tend to stay pretty close. (Like competing gas stations, there is no competitive advantage to listing an asset at a higher price)
What can vary widely is the fee that is charged for your trade of another currency for ada. Centralized Exchanges are a common on-ramp for buying crypto, and they tend to have low, reasonable purchase transaction fees.
However, getting set up with an account on an exchange, performing identity verification, and connecting a new account to a bank, are all tedious, time-consuming steps. Even figuring out how to use an Exchange app or site can be a bit taxing. A given person might have any number of reasons they don’t want to do it, or are not able to do it right now.
So, there are other services besides exchanges that allow you to buy crypto quite directly. For example, some Cardano wallets allow you to buy ada to stick in your wallet right in the app interface. With your VISA or other bank card in hand, you can buy ada quickly and easily. Another crazy example is the bitcoin kiosks, such as the one at my local grocery store. These allow users to buy crypto quickly and easily – with CASH!
What both of these examples have in common is that the transaction fees are generally HIGHER than what you would pay for the same purchase on an exchange. So, what you gain in convenience, you are trading for higher fees.
Convenience is great. Even better is being aware of all the options available, and choosing the right one for you!
Between Ethereum and Cardano, which one would be best to invest in? Considering the fact that ethereum already has smart contracts in place.
First of all – nope. Not giving any financial advice. You pick.
But happy to talk a little bit about Doing Your Own Research (DYOR)! This question was asked a couple years ago, before Cardano had Smart Contracts. Now, Ethereum and Cardano BOTH have smart contracts.
That’s not the only thing that has changed… Ethereum used to be a Proof-of-Work blockchain, so if you are climate-conscious, Cardano and its Proof-of-Stake consensus might have seemed like the right team for you. Well guess what? Ethereum is now Proof-of-Stake too.
Does that mean they are the same? No, not by a long shot! If you want to read more about Ethereum and Cardano specifically, we have a whole page dedicated to that conversion! https://www.lidonation.com/en/tags/ethereum
The real point I’d like to make it’s that it’s smart to learn about anything you are considering getting involved in - whether you are considering an investment of your time, money, or anything else! And, in the “quickly evolving landscape of blockchain technology,” that research is probably not a one-and-done operation. I recommend finding multiple resources you like and trust, and keeping tabs on them over time to see how different blockchain networks and projects are progressing.
As participants, we all have different values and opinions. When you know more about the options, you’ll be better equipped to make decisions that match your personal values.
Do I have to buy ada or other cryptos to participate in blockchain?
No, you do not. Cryptocurrency is just money, so just like the fiat bills in your wallet, you can earn it. If you set up a free Cardano wallet, you can earn HOSKY tokens on the Lido Nation Every Epoch quiz today! You can get involved in Project Catalyst and propose a project to the community. If your idea is voted in, you’ll be paid in ada. If you have skills and want to work, you can look for opportunities on job boards, or with blockchain projects that need your skills, and get paid in crypto.
Earning money is a risk-free way to get money! (That IS financial advice!)
Is there a limit in the number of transactions or amount one can transact in a day in Coinbase?
I don’t think so; I think you are more likely to run into limits on how fast your fingers can move, and how much you want to spend in transaction fees in a given day.
There IS a limit on the total value you can purchase in one day. As of this writing, the daily buy limit on Coinbase is $25,000. That number could vary by platform, but jurisdiction, and over time, so it’s best to check current terms if you are curious.
Can a decentralized exchange be hacked?
Yes, good question. If we are imagining the Hollywood hacking scenario where a lone wolf sits in a dark room on his computer, hacking away, until he proclaims, “I’m in!”, then it’s true that that kind of hack is more of a risk at a Centralized Exchange. There, “Centralized” servers and records could be vulnerable to a hack if not properly secured. This has absolutely happened.
Hacks that affect decentralized exchanges often look a little different. There is by definition no centralized records to be stolen – instead, there are smart contracts that control the flow of money. So for a DEX, a major hacking risk is if there are any vulnerabilities in those contracts.
Finally, it’s useful to remember that by far the most COMMON type of hack is social engineering. Also known as phishing, or scams, there are various ways bad actors may try to “trick” you into giving them your money. These hacks don’t make big headlines because the value of the money stolen is probably never in the billions – but it might be everything that YOU have, if you fall for it.
So how do you mitigate your risks, if everything can be hacked? Well, you can’t control everything that might happen at Exchanges, but you can remember that you should never leave your ada parked at a CEX. If you are using a DEX to participate in DeFi, you can mitigate your risk by auditing smart contracts, reading transactions, and perhaps not putting all your money in one exchange at the same time! With most of your ada safely in a self-custody wallet, remember that you should never give anyone your seed phrase, never store your seed phrase digitally, and always read transactions before you sign them!
No comments yet…