Today, Coin98 will show you how to:
- Purchase and store ADA.
- Transfer funds to the Cardano blockchain by transferring ADA coins from an exchange (CEX) or using a cross-chain bridge.
- Seek Investment Opportunities on Cardano
Let's jump right into the Cardano Blockchain!
In short, Cardano is a third-generation blockchain that uses the Proof-of-Stake consensus mechanism to build a decentralized world of blockchain. With a scientific approach, Cardano is step-by-step assembling each lego to build a complete blockchain from the ground up.
Cardano's Website: https://cardano.org/
The gas fee gwei level on the Cardano is currently around $0.14 - $0.46 /transaction. So, to make transactions, about 10 ADA (~$ 0.46) can go a long way.
Step 1: Prepare tokens
Since the majority of CEXs currently support ADA, you have complete freedom to choose where to make your ADA purchase(s). The most popular Cardano-supported exchanges include Binance, KuCoin, and Gate.io.
In the following section, I'll go into details on which exchange you should use to purchase ADA.
Step 2: Prepare your Cardano wallet to store tokens
It is necessary to have a non-custodial wallet after you buy tokens on CEXs to store tokens and interact with DeFi. At this time, many different wallets, including the Coin98 Super App, can store ADA coins.
Following these steps, you can store ADA and other Cardano tokens.
- Step 1: Click on the Cardano wallet on the main screen.
- Step 2: Select "Receive".
- Step 3: Copy the wallet address or scan the QR code and send your assets to this address.
Step 3: Transfer tokens from other Blockchains to the Cardano Blockchain
After buying ADA and having a Cardano wallet, you can participate in events or skin in the game in the Cardano Ecosystem, such as joining lending, yield farming or staking activities on this chain.
Typically, there are 2 methods for transferring tokens to the Cardano Blockchain.
- Option 1: Buy ADA Coins from CEXs and transfer them to a Cardano-supported wallet.
- Option 2: Convert tokens from other blockchains to the Cardano blockchain using a Cross-chain Bridge, then trade on DEXs.
I'll walk you through the process for the two methods listed above.
Option 1: Buy tokens on CEXs & withdraw to a Cardano Wallet
Transfer and withdrawal fees will vary depending on the exchange. If you want to transfer your assets, you should pick the CEX that is most convenient for you to use. I'll recommend a few popular exchanges here, such as Coinbase, KuCoin, Huobi, Gate, Crypto.com etc.
To begin with, you'll need USDT or USDC stablecoins in order to purchase. US dollars (USD) or other currencies in your country can be used to buy USDT if you don't have any stablecoin yet.
Step 1: Login to the Binance Mobile App. I recommend reading this "How to use Binance'' article.
Step 2: Choose “P2P Trading” on your Binance Homepage.
Step 3: In this step, you will see:
- Number 2 indicates which fiat currency you have now to buy USDT.
- Number 3 indicates which token you want to buy (e.g. USDT, BTC, BUSD, etc.).
- Number 4 displays a list of sellers who will sell you USDT in exchange for your fiat currency.
After you've decided on your preferred sellers, simply follow Binance's instructions to complete the transaction (Remember to read the instructions carefully).
Buy and Withdraw ADA to your wallet address
Now that you already have USDT, you can purchase ADA directly from any exchange, such as Binance, Kucoin, Gate, etc. and transfer the tokens to the Coin98 Wallet by doing as follows:
- Step 1: On any CEX, use USDT to purchase ADA.
- Step 2: Transfer ADA to the Cardano wallet through your Coin98 wallet address.
Option 2: Use Cross-chain Bridges to transfer tokens to Cardano
Although Cardano is a well-known blockchain, there is only one activated cross-chain bridge which is Nomad to support asset transfers to and from the Cardano blockchain.
Nomad is an infrastructure protocol with a novel approach to blockchain interoperability leveraging an optimistic mechanism to increase the security of cross-chain communication. Developers can use Nomad to create secure cross-chain applications (or xApps) and asset bridges between chains.
Nomad Bridge currently supports 4 from and to chains which are Evmos, Ethereum, Moonbeam, and Milkomeda C1.
Step 4: Add tokens to Coin98 Super App
Because ADA is the native token of the Cardano blockchain, it will be displayed by default in multi-chain wallets. If you need to add another token to this multichain wallet, follow these steps:
Step 1: On the homepage, select More → Custom Tokens.
Step 2: Fill in the following information:
- Select the Blockchain.
- Enter the Contract Address (the contract address of the token)
- Token name
You can check this information on block explorers.
You only need to select the Blockchain and enter the Contract Address of the token you want to add to the wallet. The remaining data will automatically be updated after you enter the correct contract address.
In case the system fails to extract the data, you can manually fill in the remaining data into the required cells.
To finish adding tokens, select “Create” and you're done.
Step 5: Transfer Cardano tokens (Cardano) from Coin98 Super App
To transfer tokens from a decentralized wallet to another, follow these simple steps. I'll show you how to transfer ADA from your mobile wallet.
Step 1: Click the Cardano wallet.
Step 2: Choose Send.
Step 3: Select the token, the number of tokens you want to send & the wallet address to send to. Adjust the Gas fee slider to suit your needs → Slide the Send bar to confirm.
In addition, you can also go to the Send section on the main interface, then select the Cardano wallet you want to send from.
- The gas fee for each transaction is paid with ADA, approximately 0.013 ADA.
- The default gas fee on the Coin98 Super App has been set at the standard rate that offers the most optimized speed at a reasonable cost.
Skin in the game with Cardano blockchain
Cardano is one of the most ambitious blockchains in the crypto space that the development progress is relatively slow. Cardano is also expected to have a blooming year in 2022 as many missing pieces of the whole infrastructure have gradually been filled.
Keeping an eye on this ecosystem will give you many opportunities to skin in Cardano, as you will be updated with the most recent significant changes in each network.
Learn more: Cardano Ecosystem Overview
Lending is a money market that allows you to deposit your assets in order to receive interest. Some of the most prominent lending protocols on Cardano are Liqwid, Kitty Party...
Liqwid is a lending protocol with open source, algorithmic and non-custodial interest rate features which are built for lenders, borrowers and developers on Cardano.
The use of the Liqwid protocol unlocks access to a global liquidity fund for each asset. A borderless decentralized marketplace for lenders and borrowers, built on Plutus smart contracts.
Staking is the process of locking up crypto holdings in order to obtain rewards or earn interest.
Validator Nodes of supported wallets such as Dandelous, Yoroi, and Ray Wallet can be found in the Cardano ecosystem. You can use the ADA staking solution to provide liquidity for other users if you currently own the token and have long-term holding needs. When you stake ADA, you gain not just ADA but also APR of roughly 5% to 6%.
If you're interested in learning more about the Cardano blockchain and the investment opportunities it offers, I recommend checking out this article. Hopefully, this will be beneficial to you!
I've shown you how to transfer coins to the Cardano blockchain in order to skin in the game.
Hopefully, after reading this article, you will have a better understanding of the DeFi market and find the best ways to maximize your profits.