You have ADA on the BSC network but don’t know how to transfer them to the Cardano network? This article is for you!!!
You’ve bought ADA on an exchange or have ADA on another network and want to “skin in the game” within the Cardano ecosystem, but don’t know how to transfer it to the Cardano network?
- Buy and store ADA.
- Transfer ADA tokens from a centralized exchange (CEX) or use a cross-chain bridge to transfer funds to the Cardano network.
- Find opportunities to “skin in the game” in the Cardano ecosystem.
Let’s follow along with the article below.
About Cardano Blockchain
Cardano is a blockchain created by the co-founder of Ethereum and BitShares. Therefore, similar to Ethereum, Cardano is also a decentralized, open-source blockchain that allows developers to create smart contracts on the network to deploy applications without having to worry too much about security and scalability issues.
To participate in DeFi on Cardano, similar to other chains, you also need the corresponding chain’s native token for fees, also known as gas fees (fees that you need to pay to the network). The current AVAX gas fee is around $0.6 – $1 per transaction. Therefore, to transact, you should prepare about 5 ADA ($10) to cover transaction fees comfortably.
Step 1: Buy ADA coins on an exchange
Currently, you can buy ADA on many exchanges such as Binance, Gate, Okex, Kucoin, etc. ADA is a popular coin, so most exchanges support buying and selling it. You can choose any exchange you want to trade on
Step 2: Store ADA coins on a wallet that supports the Cardano Blockchain
After buying tokens on a centralized exchange (CEX), you’ll need a non-custodial wallet to store your tokens and interact with the DeFi space. Currently, tokens in the Cardano ecosystem can be stored in various wallets like Ray Wallet, Gerro Wallet, Card Wallet, etc. You can choose to store ADA using the following simple steps:
Step 1: Choose the wallet you will use, for example, Ray Wallet. Click on the wallet that supports ADA tokens.
Step 2: Select Receive.
Step 3: Copy the ADA wallet address or use the QR code address.
Step 3: Transfer ADA coins from another blockchain to the Cardano network
After buying ADA and having a supporting wallet, you can participate in events or “skin in the game” within the Cardano ecosystem. There are several ADA token standards such as Cardano, Binance Chain (BC), and BSC (BEP20). Depending on your needs, you can convert the token standard according to the corresponding chain.
For example, if you have ADA (BEP20) tokens and need to convert them to the ADA (Cardano) token standard, there are typically the following methods:
Method 1: Convert the tokens from one blockchain to another using a cross-chain bridge.
Method 2: Buy coins from a CEX and transfer the tokens to a wallet that supports the Cardano blockchain.
To help you visualize, I will provide specific instructions for the two methods above:
Transferring coins from another blockchain to Cardano using a cross-chain bridge
Currently, there are no bridges launched on Cardano, only a bridge to the Nervos Blockchain. If you want to convert the token standard of tokens on the Cardano network, you can use method 2.
Buying tokens on a CEX and transferring them to a wallet that supports the Cardano blockchain
If you don’t know how to buy stablecoins (USDT, USDC) with Vietnamese Dong (VND), you can refer to the article here.
After you have USDT, you can buy ADA on any exchange like Binance, Gate, Kucoin, etc., and transfer the tokens to your wallet for storage. Please follow these steps:
Step 1: Use USDT to buy ADA on the Binance exchange.
Step 2: Withdraw ADA to the Cardano network (enter the Cardano network standard wallet address).
Step 4: Invest and make money with Cardano tokens
Learn more: Overview of the Cardano ecosystem here
Lending
Lending is a way for you to lend your assets to earn interest. In the Cardano ecosystem, you can currently participate in lending on platforms like Liqwid, Kitty Party, etc.
Liqwid is an open-source, algorithmic, and non-custodial protocol built for users and developers. Liqwid establishes a decentralized financial market where lending and borrowing mechanisms can help you earn interest based on the assets you deposit or lend.
Staking
Staking is the act of holding and locking a certain amount of coins to earn rewards. The rewards will depend on the amount of time and the number of coins you stake.
In the Cardano ecosystem, you can refer to the Validator Nodes of supporting wallets such as Daedalus, Yoroi, and Ray Wallet. For those who already own ADA and want to hold it for the long term, consider staking ADA to generate liquidity for the staked tokens. When you stake ADA, you not only receive more ADA but also earn an APR of around 5% – 6% per year.
Summary
I hope this information will help you easily access the DeFi market, as well as find the best ways to optimize your profits. I wish you much success. If you have any questions, don’t hesitate to comment below to discuss with Coin98!
Read more: Guide to Transferring Coins to the Dfinity Network to Skin in the Game (2023)
