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 - Pepperstone
Why We Chose Pepperstone
Pepperstone continues to prove itself as one of the most trusted crypto brokers. Although its selection of digital tokens is average, you can trade popular cryptos like Bitcoin and altcoins like Ripple with up to 1:10 leverage, while its crypto indices provide a holistic view of the digital currency markets not found on most day trading platforms.
"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."
- DayTrading Review Team
- Coins: BCH, BTC, ETH, LTC, DASH, ADA, LINK, DOGE, EOS, DOT, XRP, XLM, XTZ, UNI, BNB
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: BTC 30, ETH 0
- Crypto Lending: No
- Crypto Staking: No
- Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
- Minimum Deposit: $0
- Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
About Pepperstone
Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.
Pros
- Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
- Now offering spread betting through TradingView, Pepperstone provides a seamless, tax-efficient trading experience with advanced analysis tools.
- Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.
Cons
- Pepperstone’s demo accounts are active for only 30 days, which may not be not long enough to familiarize yourself with the different platforms and test trading strategies.
- Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
- Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.
#2 - IC Markets
Why We Chose IC Markets
IC Markets offers 20+ cryptocurrencies which are tradable via CFDs, including lesser-known tokens such as Avalanche, Kusama and Uniswap. Commission-free trading is available, and experienced crypto traders can access high leverage up to 1:200 in the MetaTrader platforms.
"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."
- DayTrading Review Team
- Coins: BTC, BCH, DOT, DSH, EMC, EOS, ETH, LNK, LTC, NMC, PPC, XLM, XRP, ADA, BNB, DOG, UNI, XTZ
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: BTC 42.036
- Crypto Lending: No
- Crypto Staking: No
- Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
- Minimum Deposit: $200
- Regulator: ASIC, CySEC, FSA
About IC Markets
IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.
Pros
- With ultra-fast execution speeds averaging 35 milliseconds and deep liquidity, IC Markets provides an optimal trading environment for scalpers, hedgers, and algorithmic traders.
- IC Markets offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.
- You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
Cons
- Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.
- While IC Markets offers a selection of metals and cryptos for trading via CFDs, the range is not as extensive as brokers like eToro, limiting opportunities for traders interested in these asset classes.
- There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.
#3 - Eightcap
Why We Chose Eightcap
Eightcap’s crypto offering is best-in-class with 250+ crypto derivatives, surpassing that of almost every alternative. Testing also reveals Bitcoin spreads of 12 pips, coming in lower than most competitors, while it offers real-time trading ideas through the Crypto Crusher market scanner. Add in convenient deposits and withdrawals in digital currencies, and Eightcap offers the complete package for serious crypto traders.
"Eightcap delivers in every area for day traders with a growing selection of charting platforms and AI-powered tools. Now sporting 250+ crypto CFDs and the Crypto Crusher market scanner, it's also become a stand-out choice for crypto trading, winning our 'Best Crypto Broker' award two years in a row."
- DayTrading Review Team
- Coins: BTC, ETH, LTC, BCH, XRP, XMR, DSH, EOS, XLM, ADA, TRX, DOGE, BNB, DOT, MATIC, VET, AXS, NEO, SOL, UNI, AAVE, KSM, THETA, CAKE, SUSHI, ATOM, XTZ, SNX, COMP, FLOW, EGLD, PUNDIX, RAY, ZIL, QTUM, BAND, OMG, FIDA, BADGER, NEAR and many more
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: $12 (BTC)
- Crypto Lending: No
- Crypto Staking: No
- Platforms: MT4, MT5, TradingView
- Minimum Deposit: $100
- Regulator: ASIC, FCA, xCySEC, SCB
Pros
- After bolstering its roster in 2021, Eightcap offers one of the most extensive selections of cryptocurrency CFDs in the market, with crypto/fiat pairs, crypto/crypto pairs, plus crypto indices for broader exposure to the market.
- Eightcap stands out with a selection of powerful trading tools, including MT4 and MT5, the innovative algorithmic trading platform Capitalise.ai, and more recently the 50-million strong social trading network TradingView.
- Having excelled across all key areas for day traders, Eightcap outperformed more than 490 competitors to win our 'Best Overall Broker' award for 2024, also securing our 'Best Crypto Broker' title.
Cons
- In spite of an increasing variety of tools, Eightcap doesn't offer industry favorites like Autochartist or Trading Central, which offer cutting-edge charting analytics, live news, and market insights for short-term traders.
- The demo account expires after 30 days and can only be extended upon request - a notable inconvenience compared to the likes of XM with its unlimited demo mode.
- Despite a useful library of educational guides and e-books, Eightcap still trails IG’s comprehensive toolkit for aspiring traders with its dedicated IG Academy app and 18 course categories.
#4 - Exness
Why We Chose Exness
There is a small range of popular crypto tokens paired with fiat currencies available, with zero swap fees and no commissions in the Standard account. Trading is available via desktop or mobile apps, and deposits via crypto are also available in some countries.
"Exness remains an accessible broker for all experience levels, though experienced day traders will particularly appreciate the ultra-low commission rates, fast withdrawals and high-quality charting software."
- DayTrading Review Team
- Coins: BTC, LTC, ETH, XRP, BCH, SOL, SNX, UNI, BAT, DOT, XTZ, ADA, BNB, ENJ, FIL, DOGE, COMP, THETA, AAVE, LINK, IOST, CAKE, MATIC, HT, MANA, HBAR, INCH
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: Floating
- Crypto Lending: No
- Crypto Staking: No
- Platforms: Exness Trade App, MT4, MT5, TradingCentral
- Minimum Deposit: $10
- Regulator: FSA, CySEC, FCA, FSCA, FSC, CBCS
About Exness
Exness is a Cyprus-based forex and CFD brokerage established in 2008. With over 260,000 clients, several awards and reputable licensing, the broker has maintained its position as a highly respected global brand. Active day traders can access the popular MT4 and MT5 platforms, raw spreads and multiple account types.
Pros
- Top-tier licensing with the FCA and CySEC and a strong reputation with over 10 years in business
- Unlike many other brands, Exness doesn't charge any account maintenance or inactivity fees
- Exness is the first brokerage to pass the $1 trillion and $2 trillion marks in monthly trading volumes
Cons
- Unlike most competitors, Exness doesn't provide its own education section
- There are several regional restrictions for retail traders including the USA, Europe and the UK
- There are no promotional deals or loyalty schemes for high-volume day traders
#5 - eToro
Why We Chose eToro
eToro leads the way in cryptocurrency trading, offering competitive spreads and a fixed 1% commission, plus their own wallet service. The broker offers a vast list of 95+ tokens which is continually being updated. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
"eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers."
- DayTrading Review Team
- Coins: BTC, ETH, BCH, XRP, DASH, LTC, ETC, API3, CRO, SKL, IMX, ADA, MIOTA, XLM, EOS, NEO, TRX, ZEC, BNB, XTZ, DOT, MKR, COMP, LINK, UNI, YFI, DOGE, AAVE, FIL, ALGO, ATOM, MANA, APE, LRC, ENJ, BICO, BAT, BNT, OGN, MATIC and many more
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: BTC 1%
- Crypto Lending: No
- Crypto Staking: Yes
- Platforms: eToro Web, CopyTrader, TradingCentral
- Minimum Deposit: $50
- Regulator: FCA, ASIC, CySEC, FSA, FSRA, MFSA
About eToro
eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail accounts lose money.
Pros
- Exciting investment portfolios are available covering traditional market trends as well as tech, crypto and more
- Top copy traders can receive annual payments up to 1.5% of assets under copy in the broker's Popular Investor Program
- The web platform and mobile app perform better in user reviews and app rankings than top competitors, including AvaTrade
Cons
- There are limited contact methods aside from the in-platform live chat
- There are no guaranteed stop loss orders which would be a useful risk management feature for beginners
- Traders will face currency conversion fees for account denominations other than USD
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.
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.
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
- Development – ADA is undergoing constant development to resolve issues that restrict ETH and BTC. The ‘Goguen’ roadmap details vast plans for improvement with the aim of adding the ability to build decentralized applications (DAPPS). This has included the addition of a multi-currency ledger, Native Tokens and NFT marketplace functionality. The release date of Goguen was 1st March 2021 (AKA the Mary hard fork). Plus, a 2018 deal with the government in Ethiopia, Africa, allowed them to deploy throughout the country in various industries.
- Scaleable – Because Cardano uses a POS chain, it is much more scalable than other coins. With Bitcoin, all holders are mining the crypto all the time, making it incredibly resource intensive. The ADA network is different because it nominates a holder to mine during an epoch slot (a period of time). If the holder does not show up or mine, someone else will be reelected instead. ADA owners can increase the likelihood of being nominated to mine by adding their share to a stake pool. In this way, ADA is more environmentally friendly and scalable than competitors.
- The internet of blockchains – Currently, cryptocurrency is limited because while there are numerous coins available, they require an intermediate broker to allow you to exchange them. ADA has released a multi-currency ledger as part of the Goguen update which will allow you to store multiple currencies on one blockchain. This means that exchanging Litecoin (LTC) for Polkadot (DOT) will soon be possible on the Cardano network, making the crypto market as decentralised as possible.
- Governance – Cardano’s fresh take on project governance puts the power in the hands of ADA holders. Individuals with a stake in ADA can vote on the future of the platform. Ideas go through funding rounds as part of Project Catalyst. Fund 3 closed in March 2021 and Fund 4 is next to open. ADA holders can vote on ideas such as the ability to earn staking rewards from your ADA holdings while also generating yield from DeFi protocols or new blockchain explorers. In this way, Cardano curates an ecosystem where the robustness of the network is put front and centre.
Cons Of Trading Cardano
- Capability – Despite ambitious development plans, Cardano has yet to release many capabilities. Ethereum already has smart contracts, the main focus of ADA’s development. There’s a lot of hype about Cardano being better than the rest, but much of this progress has yet to materialise.
- Traction – Some investors would say that the low price means room to grow. But Cardano sitting outside the top two or three by market cap means that it is potentially suffering from a lack of adoption. As investors pile into the likes of Ethereum and Bitcoin, the smaller players are just not seeing the same traction. If the crypto race becomes a VHS vs Betamax game, those sitting further down the list have a lower chance of success.
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.
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.