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What is Cardano and how does it work?
Cardano is a blockchain platform with a native token called ADA. Cardano was launched in 2017 by Charles Hoskinson, a co-founder of Ethereum. Cardano is seen as a “greener” alternative to popular public blockchain platforms such as Bitcoin and Ethereum, as its underlying proof-of-stake protocol, Ouroboros, consumes less electricity than the proof-of-work ones used by competitors. ADA is currently the world’s largest cryptocurrency to use proof of stake.
The difference between proof of work and proof of stake
As cryptocurrencies are not controlled by regulators or banks, they need a way to verify transactions. The verification is carried out by network nodes, often called miners. Currently, most cryptocurrencies use a protocol called proof of work, while Cardano uses proof of stake.
In a proof-of-work protocol, miners compete to solve complex arbitrary mathematical puzzles. The first miner to solve the problem gets to add a block to the blockchain and earns rewards. This means that computing power throughout the world is being used to solve the same problems and consume substantial energy. With growing concern about how crypto mining affects the planet, proof-of-stake protocols offer an alternative that consumes less energy.
Instead of having to solve puzzles, Cardano’s Ouroboros protocol allows stake pool operators to stake their ADA coins to get their blocks added to the blockchain. The amount of stake delegated to a given stake pool determines who is chosen to add the next block to the blockchain and earn a reward for doing so. The higher the stake delegated, the more likely it is that the block will be chosen. When this happens, the earned rewards are shared by all those who delegated their stake to that stake pool.
How can you earn from Cardano staking?
You can participate on the Cardano platform by becoming a stake pool operator. This way, you earn ADA and also contribute to the decentralisation of the Cardano network. Once you have ADA in your Cardano wallet, you have a stake in the network, proportional to the amount of ADA you hold. You can then earn rewards by delegating your stake to a stake pool that another operator is running. Or you can decide to run your own stake pool.
How can I buy ADA?
You can buy or sell ADA using Australian dollars or another cryptocurrency on exchanges such as Swyftx, Coinspot, Digital Surge, and others. Check the ADA price at the time when you want to buy. You may also want to follow Cardano news and ADA price trends to perform your own analysis and decide whether you want to invest in this coin.
Cardano wallets
To hold your ADA, Cardano recommends either the Daedalus or Yoroi wallet. Daedalus is currently available only as a PC application and not in a mobile version. This wallet downloads a full copy of the Cardano blockchain and validates each transaction. On the other hand, Yoroi is a light, easy to install, browser-based wallet.
Once you’ve got some ADA in your Cardano wallet, you can decide whether you want primarily to trade or to stake, or both.
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Swyftx
Cryptocurrencies available: 245
Fiat Currencies Accepted: AUD, NZD
Trading Fee: 0.6%-0% based on a rolling 30 day's trading volume
Withdrawal Fee: $0 for AUD/ Deposit's withdrawals. Network transaction fees apply while transferring coins to an external wallet
Deposit Fees: No POLi fees. No fees on cryptocurrency and PayID deposits. Credit/Debit card deposits supported (5% fee)
An Australian owned and operated digital currency exchange that allows users to sell, trade and buy Bitcoin, and over 245+ other digital assets, with low trading fees and one of the smallest spreads available.
CoinJar
Cryptocurrencies available: 57
Fiat Currencies Accepted: AUD, GBP
Trading Fee: 0%-1%
Withdrawal Fee: No fee for AUD or GBP withdrawals. Cryptocurrency withdrawal fees are based on blockchain network fees
Deposit Fees: No fees with PayID; 2% fee with credit / debit card, Apple Pay, and Google Pay
Australia's longest-running cryptocurrency exchange with over 500,000 Australian customers and a simple to use app for both iOS and Android.
Digital Surge
Cryptocurrencies available: 245
Fiat Currencies Accepted: AUD
Trading Fee: 0.1%-0.5% based on a rolling 30 day trading volume.
Withdrawal Fee: None for Australian bank accounts - Instant withdrawals through Osko/PayID.
Deposit Fees: No fees for Osko/PayID, Direct Deposit, Bank Transfers or cryptocurrency. POLi fees range from $2-$3.30.
Because simplicity makes life better. The easiest way for Australians to buy, sell & store over 245+ cryptocurrencies. Low fees, tight spreads, Aussie-based customer support & an interface that makes crypto enjoyable & easy-to-understand. Simple. Safe. Stress-free.
CoinSpot
Cryptocurrencies available: 263
Fiat Currencies Accepted: AUD
Trading Fee: 0.1% to 1% based on order type
Withdrawal Fee: None for Australian Bank Accounts
Deposit Fees: No fees for POLi, PayID, Direct Deposit and Bank Transfers. 0.9% BPAY fee, 2.5% cash fee
Australia’s most trusted exchange since 2013.
Cointree
Cryptocurrencies available: 280+
Fiat Currencies Accepted: AUD
Trading Fee: 0.05%-0.9%
Withdrawal Fee: No fee with fiat withdrawals. Cryptocurrency withdrawal fees vary.
Deposit Fees: No fee
Buy, sell, trade and pay with crypto. Simple, low fees, easy to use and trusted by 100,000+ members. Enjoy $10 BTC credit after verification with promo code: RATE10
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