You can access advanced trading for Ethereum (ETH) and Cardano (ADA) on the Coinbase Pro exchange platform.
Coinbase Pro, which is the largest cryptocurrency exchange in the U.S, has the largest number of coins and markets among U.S. crypto exchanges.
Cardano is now one of the cryptocurrencies available for exchange on the Coinbase Pro platform.
You can trade your Ethereum for Cardano using either the Coinbase Pro Web browser or the mobile application on IOS and Android stores.
What is Ethereum?
Ethereum is a decentralized blockchain platform that creates a peer-to-peer network for safely executing and validating smart contract application code.
Ethereum is an open-source blockchain network that supports smart contracts. (Smart contracts enable transactions between participants without the need for a reliable centralized authority.)
Participants have complete ownership and visibility over transaction data since transaction records are immutable, verifiable, and securely distributed across the network.
The platform's native coin is called Ether (ETH). In terms of market capitalization, Ether comes second after the most popular cryptocurrency, Bitcoin.
What is Cardano?
Cardano is a decentralized proof-of-stake (PoS) blockchain that aims to outperform proof-of-work (PoW) networks in terms of efficiency.
With a multi-asset ledger and verified smart contracts, Cardano is a blockchain platform that intends to be a decentralized application (DApp) development platform.
The proof-of-stake Ouroboros consensus protocol underlies Cardano's operation.
Critical principles driving Cardano's development include scalability, interoperability, sustainability, rising costs, energy use, and slow transaction times.
Cardano's main coin is known as “ADA.” The PoS consensus algorithm on the blockchain uses ADA, a native coin of Cardano. Users who take part in a stake pool receive ADA as compensation for their contributions to the blockchain.
Cardano was developed by Charles Hoskinson, an Ethereum co-founder, in 2015, and the platform was released in 2017.
Cardano has established itself as an Ethereum substitute. Both platforms aim to create a connected, decentralized system and are utilized for similar applications like smart contracts.
What is Coinbase Pro?
Coinbase Pro is one of the most well-known cryptocurrency exchanges, which sees an annual trading volume of hundreds of billions of dollars.
Coinbase Pro is a trading platform for private investors and cryptocurrency enthusiasts. It provides users with a safe and convenient means to instantaneously purchase, sell, and exchange cryptocurrencies across many trading pairs online.
Both Coinbase and Coinbase Pro are owned by Coinbase Global, Inc., although they both provide completely distinct platforms for trading cryptocurrencies.
Coinbase Pro is a professional-level trading platform geared toward active traders. Users of Coinbase Pro get access to extensive charting and trading options, allowing experienced traders greater control.
Beginner investors may find Coinbase Pro overwhelming when they first login because it was created with expert traders in mind. If you've never traded bitcoin, the live price feed, numerous order options, and real-time price graphing it offers consumers may be too much for you to handle.
With access to multiple trade options like limit orders and stop orders, users of Coinbase Pro have more control over their cryptocurrency trading. Limit orders let users set a buy point if they believe a cryptocurrency's value will fall, allowing them to buy at a lower price. Stop orders let users set a selling price to limit their losses.
Coinbase Pro is available on web browser and mobile application on the iOS and Android operating systems
How to trade Ethereum for Cardano on Coinbase Pro
Cardano is an asset that can be found on practically all cryptocurrency trading platforms because it is a well-known altcoin. Here's how to trade Ethereum for Cardano (ADA) on Coinbase Pro.
1. Create an account on Coinbase Pro
- To sign up on Coinbase Pro, go to Pro.coinbase.com
- Click on the sign-up button at the top left corner
- Complete the sign-up form, then click “Create an account”
- A verification link would be sent to your email. Click the verification link sent to your email address to verify your account.
- After verifying your email address, you will be asked to provide a phone number to set up two-factor authentication for when you sign up on a new device. A verification code would be sent to your number.
- If you already have a Coinbase account, sign in using your Coinbase.com email address and password. You may be asked to verify your identity, depending on which verifications you have previously completed in your Coinbase account.
2. Link your bank account
After you have verified your phone number, you'd be asked to add your bank account to your Coinbase Pro account to buy Crypto.
- Click on your profile > Select banking > link new account > bank account
- Select the bank that you want to link, fill in the information and you would get a confirmation page to either text or call your phone number.
3. Deposit Funds
After linking your bank account, deposit funds.
- Click on portfolio > deposit > search the asset to deposit. Could be USD or ETH
- Click bank account > select bank to deposit into portfolio > Preview deposit, funds are available to trade immediately.
4 Trade Ethereum for Cardano
At the top of the website click on Buy/Sell or Trade. Before you would be able to buy and sell, Coinbase Pro would require you to verify your personal information.
- Click on Select market. A panel of the options to convert one cryptocurrency to another would show up. Select ADA – ETH.
- The order form would show up. The prices in red are what Cardano holders are willing to sell for and the green prices are what people are willing to pay for Cardano.
- On the order form, click on Buy. You would be able to trade at either market order or Limit order. If you trade at market order you are a taker of liquidity and if you trade at limit order you are a marker of liquidity. In a market order, you do not choose the price that you trade at while in a limit order, you could limit the price you pay. What this means that is you would only buy Cardano at the price that was specified.
- Enter the amount of ETH cryptocurrency you would like to convert to ADA. For example, 0.01 worth of ETH to convert into ADA.
- You'd be paying a fee of half a percent if you trade 10,000 dollars worth of crypto a month, if you trade more, the fees would reduce further. Fees for Taker and Marker of orders are different.
- Confirm the conversion transaction.
- Click on Buy order and your order would be moved to the open order tab. (If you do not have enough crypto to complete the transaction, you will not be able to complete this transaction.)
You could also follow the same steps on the Coinbase Pro mobile app.
Conclusion
With a Coinbase Pro account, users may track the market, check trade history, keep an eye on open orders, design advanced charting views, and more.
The crypto markets may be incredibly unpredictable, and investing in cryptocurrencies is extremely risky and speculative.
Remember that the asset class that cryptocurrencies belong to is very volatile. Before making any financial decisions, you could seek advice from an experienced professional.
Make sure to handle your risks appropriately. Always invest just what you can afford to lose while making investments.