How to Create a Cardano Wallet and Start Using It?

Cardano is a unique project in the blockchain world that has been built on a scientific foundation and rigorous research from the very beginning. This approach has made it one of the most reliable and technologically advanced platforms in the industry. Cardano is valued for its transparency, energy efficiency, and robust architecture, which attracts both developers and everyday users around the world. With a market capitalization of over $25 billion, it confidently ranks among the largest blockchains, and at the core of its entire ecosystem lies the native token ADA.

What Is ADA?

ADA is the native cryptocurrency of the Cardano blockchain, named after Ada Lovelace - a 19th-century mathematician considered one of the first computer programmers in history. The total supply of ADA is limited to 45 billion coins, which creates scarcity and helps support the token’s value as the network grows. The early distribution of ADA took place through an initial sale from September 2015 to January 2017. During this period, about 25.9 billion tokens were issued and distributed, including:

A portion sold to the general public during the open sale;
2.46 billion ADA allocated to IOHK (Cardano’s technology development company);
2.07 billion ADA allocated to Emurgo (the project’s business arm);
648 million ADA allocated to the Cardano Foundation (a non-profit oversight organization).

To manage and use ADA, you’ll need a Cardano Wallet.

TVL (Total Value Locked) in the Cardano ecosystem. Source: defillama.com

What Is Cardano Wallet?

A Cardano Wallet can come in different forms — mobile apps, desktop programs, browser extensions, or even hardware devices - but they all have one main purpose: to make it easy to interact with the Cardano network. The wallet’s main job is to store, send, receive, and manage ADA, the native token of the network. You can use a Cardano Wallet in everyday life - it works great for quick actions like sending ADA tokens to friends, receiving payouts, staking, or anything else you do within the Cardano ecosystem, as well as for safe long-term storage.

What Is A Cardano Wallet Used For?

A Cardano Wallet lets you do more than just store ADA - it helps you use it. You can get paid in ADA, send it to others, and join staking to help keep the network secure and earn rewards. The wallet also gives you access to Cardano-based DApps, lets you trade ADA NFTs, and manage other tokens on the network. Everything is in one place - easy, secure, and powered by ADA. Here’s what you can do with Cardano Wallet:

Storing ADA Tokens

A Cardano Wallet lets you safely store ADA and other native tokens on the network. In the crypto world, there’s a saying: “Not your keys - not your coins,” and it fits Cardano perfectly. If security and full control over your ADA tokens matter to you, Gem Wallet is a great choice. It’s a self-custody wallet with open-source code that doesn’t collect personal data or rely on third-party services. You’re fully in control: only you manage your ADA tokens, and your seed phrase is the only way to recover access if your device is lost.

Receiving And Sending ADA

With a Cardano Wallet, you can not only store ADA securely but also easily add tokens to your wallet and send them to others. You can receive ADA in different ways - from friends, through exchanges, or by purchasing it directly in the wallet using a credit card. When making transactions, a small network fee is charged, so it’s important to always keep a small amount of ADA in your wallet to cover the cost.

Staking ADA

With a Cardano Wallet, you can stake ADA tokens and earn regular rewards. To get started, you need a minimum of 4 ADA in your wallet. Out of this amount, 2 ADA are reserved by the network - this is a required condition for participating in staking. These tokens are not spent and can be returned later if you stop staking. The remaining ADA is used to cover network fees. Unlike many other blockchains, your tokens in Cardano are not locked - you can use them at any time to send, swap, or withdraw.

Cardano NFTs

A Cardano Wallet plays a key role in working with NFTs on this blockchain platform. Since NFTs on the Cardano network are native tokens, they don’t require smart contracts for storage or transfer, which makes interacting with them simpler, faster, and more cost-effective. With a wallet, you can securely store, send, and receive NFTs, as well as connect to popular marketplaces like JPG Store.

Participating In Decentralized Finance (DeFi)

A Cardano Wallet allows you to interact with decentralized applications (DApps), giving you access to various financial services such as lending, borrowing, and trading - all without relying on traditional financial intermediaries.

Voting And Governance

As an ADA holder, you can take part in the decentralized governance of the Cardano network. Using the wallet, you can vote on network improvement proposals and help shape its future development.