Cardano Day Trading 2024 – Tutorial & Brokers

Cardano, also known as the Japanese Ethereum, is one of the most popular crypto coins by market cap. But what is Cardano and how does it work? In this article, we’ve explained all there is to know about this ambitious altcoin, including how to buy it, whether it is a good investment, and future price forecasts. We’ve also listed some of the best brokers for trading Cardano.

Cardano Brokers & Exchanges

#1 - LQDFX

Why We Chose LQDFX

You can trade 16 well-known cryptos including Bitcoin, the majority paired with USD or EUR. Spreads are low, starting from 1.02 pips. You can also deposit instantly via crypto with minimum deposits from $20 and no fees.

"LQDFX is best for active day traders looking for ultra-tight spreads, low fees and high leverage up to 1:1000. Forex traders will particularly appreciate the strong range of 70+ currency pairs with minimum deposits starting from $20."

- DayTrading Review Team
  • Coins: BTC, LTC, ETH, DSH, XRP, BCH, NEO, ZEC, XMR, ADA, BNB, SOL, LUNA
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: 1.02 - 28.0 pips
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: MT4
  • Minimum Deposit: $20

About LQDFX

LQDFX is a straight-through processing (STP) broker based in the Marshall Islands. The offshore trading firm offers competitive spreads from 0.0 pips, free deposits, 24/5 support and access to the hugely popular MetaTrader 4 platform. LQDFX also runs a competitive bonus program for short-term traders.

Pros

  • Tight forex spreads from 0.0 are available in the raw spread account and the $3.50 per lot commissions are in line with competitors
  • Leverage is available up to 1:1000 for experienced day traders
  • There are multiple STP account types with fast execution speeds, plus an Islamic swap-free option and PAMM accounts

Cons

  • Market research tools and educational resources are very limited compared to top brands like IG
  • The lack of regulatory oversight is a concern, although the broker does claim to use segregated accounts and balance protection
  • There are no additional charting platforms available, such as MT5 or a proprietary solution

#2 - IG

Why We Chose IG

IG's modest selection of 11 crypto CFDs trails top crypto brokers like Vantage which offers 40+ tokens. That said, it stands out with its crypto index, which tracks the value of the top 10 digital currencies by market cap and provides a holistic way to speculate on the value of the crypto market.

"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."

- DayTrading Review Team
  • Coins: BTC, BCH, LTC, ETH, ADA, DOT, DOGE, LINK, UNI, XLM
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: Variable
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral
  • Minimum Deposit: $0
  • Regulator: FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA

About IG

Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

Pros

  • The ProRealTime advanced charting platform is free as long as certain modest monthly trading activity requirements are met
  • The proprietary web-based platform continues to caters to traders of all levels, with advanced charting tools and real-time market data useful for day trading
  • IG is amongst the best in terms of its range of instruments, which includes stocks, forex, indices, commodities, and cryptocurrencies, providing ample diversification opportunities

Cons

  • While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients
  • IG applies an inactivity fee of $12 per month after 2 years, deterring casual investors
  • Stock and CFD spreads still trail the cheapest brokers like CMC Markets based on tests

#3 - Pocket Option

Why We Chose Pocket Option

Pocket Option offers a modest crypto offering with 10+ digital currencies including Bitcoin and 65+ tokens if you deposit $1000. The integrated analytics feature in the platform is helpful for finding opportunities, while the daily signals service makes it straightforward to act on short-term crypto opportunities.

"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."

- DayTrading Review Team
  • Coins: BTC, ETH, BCH, LINK, AAVE, ALGO, TLM, ALPP, ANT, AVAX, AXS, BNB, ADA, CHZ, COMP, ATOM, DASH, MANA, DGB, DOGE, ENJ, EOS, FIL, GLMR, ILV, ICP, KAVA, LTC, MKR, MASK, MIOTA, XMR, ALICE, NEAR, NEO, NULS, OMG, DOT, MATIC, QTUM and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: N/A
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: Web, MT4, MT5
  • Minimum Deposit: $50
  • Regulator: MISA

About Pocket Option

Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.

Pros

  • Well-funded traders who deposit $1000+ can qualify for a 2%+ payout boost, more tradable assets and exclusive perks
  • Extremely fast and smooth sign-up process that takes less than 2 minutes
  • The MetaTrader platforms offer integrated analysis with helpful technical summaries for short-term traders

Cons

  • Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders
  • The MISA is a weak regulator with limited investor protection for retail traders
  • Despite offering competitive payouts up to 92%, binary brokers like IQCent offer higher returns up to 98% based on tests

#4 - CEX.IO

Why We Chose CEX.IO

CEX.IO offers hundreds of popular cryptocurrencies including big names like Bitcoin, Ethereum and Litecoin. The trading platform is well-designed with sophisticated charting and analysis tools, including 50+ in-built indicators. Traders can also reduce their monthly volumes through the tiered pricing structure.

"CEX.IO continues to serve a range of crypto investors looking to buy, sell, trade, hold and earn with low fees. The tiered pricing structure will appeal to active traders while rookie investors will enjoy the straightforward platform interface and excellent education."

- DayTrading Review Team
  • Coins: ZRX, 1INCH, AAVE, BTC, BCH, ADA, LINK, COMP, ATOM, DAI, DOGE, ETH, GUSD, ICP, LTC, LRC, MATIC, MKR, DOT, SHIB, SOL, XLM, SUSHI, SNX, USDT, XTZ, USDC, UNI, WBTC, ZIL
  • Crypto Mining: Yes
  • Auto Market Maker: No
  • Crypto Spread: 0.15% maker & 0.25% taker (Standard)
  • Crypto Lending: Yes
  • Crypto Staking: Yes
  • Platforms: TradingView
  • Minimum Deposit: $20
  • Regulator: GFSC

About CEX.IO

CEX.IO is one-stop-shop for crypto investors where you can buy and sell popular digital tokens, speculate on prices with margin trading and earn rewards through staking. Since it launched in 2013, more than five million traders have deposited over $7.5 billion. CEX.IO is registered with the FinCEN in the US and the GFSC in the EU.

Pros

  • CEX.IO continues to offer competitive pricing with 0.01% taker and 0% maker fees for high-volume traders
  • The range of 200+ cryptocurrencies is competitive and will serve more experienced traders
  • The proprietary terminal features an advanced charting package from TradingView, including 50+ technical indicators

Cons

  • A maintenance fee applies after 12 months of no activity
  • The broker has limited regulatory oversight
  • It's a shame that there's no demo account for traders looking to practice strategies

#5 - Uphold

Why We Chose Uphold

You can buy and sell 250+ crypto assets with fiat currencies or in crypto pairs using the straightforward mobile app or through Uphold's browser-based account homepage. This is significantly more than many rivals. You can also earn up to 16% APY by staking one or more out of 32 valid tokens, or send tokens to an external wallet.

"Uphold remains a top choice for crypto investors looking for a one-stop-shop solution to accessing the markets. There are over 250 tokens to buy, sell and trade through flexible platform options."

- DayTrading Review Team
  • Coins: BTC, BTCO, AAVE, ALCX, DYDX, INH, XYO, API3, GHST, LSK, AUDIO, GLMR, NMR, CAKE, GODS, REQ, CHR, TRB, DAO, ROOK, XRP, ETH, BAT, ADA, ALGO, ATOM, AVAX, AXS, BCH, BAL, BTG, CSPR, COMP, CRV, DASH, DCR, DGB, DOGE, DOT, EGLD and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: Up to 1.5%
  • Crypto Lending: No
  • Crypto Staking: Yes
  • Platforms: Desktop Platform, Mobile App
  • Minimum Deposit: $0

About Uphold

Uphold is a digital asset platform offering a range of services, from crypto trading and staking to payment cards that provides rewards and easy multi-currency payments. The company was established in 2015 and has enabled $4+ billion in transactions. Uphold is now active in 180+ countries and deals in 200+ crypto and fiat currencies.

Pros

  • Two-step authentication bolsters user security
  • Fees are competitive based on tests, with 26 underlying platforms helping to source the best prices
  • Crypto staking is available on 30+ tokens with above-average rates up to 16%

Cons

  • Uphold operates with limited regulatory oversight
  • There is a 2.49% fee if you want to use debit or credit cards
  • Customer service is slow based on tests, with limited contact options

What Is Cardano?

Cardano is a cryptocurrency with the ticker symbol ADA, named after the mathematicians Gerlado Cardano and Ada Lovelace. Just like other cryptos, it uses blockchain technology to record transaction history.

Founder, Charles Hoskinson, was one of the original creators of Ethereum (ETH) but left the project following a disagreement with co-founder Vitalik Buterin over venture capital investment.

The coin launched in 2017. After its first round of investment, Cardano went public via an initial coin offering (ICO) with a market cap of $600 million, sparking interest within the community. The crypto is now worth over $48 billion and continues to beat its highest price record on a weekly basis.

Similar to Ethereum, Cardano’s aim is to run smart contracts which can be developed using the programming language, Javascript. ADA itself is written in Haskell.

Trading Cardano

Cardano has no official owner. It is a decentralized currency meaning every ADA holder has a stake in the Cardano network. It does not have a white paper, unlike most other altcoins, but instead is the first crypto to be peer-reviewed.

The Cardano Foundation set out its mission statement, with the core aim to increase adoption of the network. Cardano is a limited supply coin with a max of 45 billion ADA.

How Cardano Works

Cardano works by using a two-layer system. The first layer is called the Cardano Settlement Layer (CSL) which processes transactions in the ADA cryptocurrency. The second layer is known as the Control Layer, which is used to process the smart contracts.

Underpinning all of this is the Ouroboros algorithm. It is Ouroboros that uses the proof-of-stake protocol to mine coins. This means that rather than everyone mining new blocks all the time, the network elects a few nodes to mine the next block. For this reason, ADA is known as a 3rd generation cryptocurrency.

How To Start Trading Cardano

To start trading Cardano, you’ll need to select a broker that offers crypto. Popular platforms listing ADA include eToro, Binance, Coinbase and Gemini. There are a number of brokers that offer CFDs on cryptos which have benefits over owning the underlying asset, such as negating the requirement for an e-wallet to store your funds and are therefore the preferred choice for some traders. It’s worth shopping around for the best fees on offer. Many crypto brokers also offer joining bonuses to new traders.

How to start trading Cardano

Regulated brokers are subject to Know Your Customer (KYC) identity checks. So you’ll often need to provide a form of ID and a photograph before you can trade any substantial amount. Once you’ve been verified, you can purchase Cardano through most payment methods, including wire transfer and credit/debit card.

Broker functionality is also vital. If you’re looking to start day trading Cardano, you’ll likely be interested in the live 1-minute and 1-hour charts. For those looking for more long term investments, you can use the likes of Yahoo Finance and Google Trends to view charts over 5 years.

Pros Of Trading Cardano

Cons Of Trading Cardano

Security

Cardano is provably secure, meaning that it has been mathematically proven. This security is guaranteed as long as 51% of the stake is held by honest participants, which are achieved through random leadership selection. However, its reliance on this fact means that it is technically not immune to 51% attacks, like the one that left Ethereum Classic vulnerable in early 2019.

If this happened, the blockchain would have to be forked, which risks losing ledger information. Despite this, an attack of this scale is unlikely. Currently, a 51% stake in ADA would require over $20bn in capital, making it an expensive game for hackers to undertake.

Price Prediction Tips

Since its ICO in 2017, there has been continued speculation around if and when Cardano will reach the $2, $3 and $4 mark.

Historically, the price has been fairly stable, hovering at around 10c or less since the first crypto bull run in 2017. But interest in the currency sparked again when the 2020 crypto breakout took off. This continued throughout February and March 2021, when the news that the Goguen release was confirmed, leading ADA to break the 1 dollar mark.

The latest long-term price prediction is that Cardano will continue to rise, as the crypto market becomes increasingly cemented and its long-term developments begin to materialise.

Cardano price forecasts

The forecast for 2024 is healthy. In general, predictors’ outlook suggests a continued bullish market for the next year is likely. However, beyond that, 5 and 10-year price predictions become much murkier. Some speculators think a bearish trend is due, just like the one seen after the 2017 surge. Others believe that ADA will reach 40 dollars by 2030. While the future is uncertain, the piqued interest in crypto means that volatility is likely.

Final Word On Trading Cardano

In conclusion, Cardano is a cryptocurrency with serious ambition. Its aim to resolve the faults that plague Bitcoin and Ethereum make it an attractive proposition for investors. With NFTs, Native Tokens and the so-called ‘internet of crypto’ all in the development pipeline, there’s a lot to be excited about. But it still has some way to go to match the adoption of the top altoins like BTC. Plus, the development of functionality has been slow. So, is Cardano a good investment for traders? That remains to be seen.

FAQ

Is Cardano Better Than Bitcoin?

Cardano developers have worked to overcome many of Bitcoin’s biggest faults. In particular, its proof-of-stake blockchain means reduced environmental impact vs BTC. The altcoin’s ambitions are vast, with smart contracts, native tokens and multi-currency ledgers in the pipeline. But, its market cap is much lower than Bitcoin, suggesting that adoption is not yet sufficiently strong to push it into the top tier.

What Is A Cardano Staking Pool?

A staking pool is a collection of Cardano holders that join together with the aim of being selected to stake the network. Staking is the process of validating transactions on the ADA blockchain. Those that do so can earn a return on their investment and so staking pools help coin holders maximise their returns.

Why Is The Cardano Ticker Symbol ADA?

Cardano’s founders named the ticker symbol after the mathematician Ada Lovelace. Lovelace is widely regarded as the first person to publish an algorithm that intended to be carried out by a machine.

Who Is The Founder Of Cardano?

Cardano was founded by Charles Hoskinson. Hoskinson was one of the co-founders of Ethereum but left following a disagreement about venture capital.

Is Cardano Decentralized?

Yes, Cardano is the world’s most decentralized cryptocurrency with over 21.75 billion ADA staked on the network which represents 69 per cent of its total circulating supply.