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:
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A portion sold to the general public during the open sale;
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2.46 billion ADA allocated to IOHK (Cardano’s technology development company);
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2.07 billion ADA allocated to Emurgo (the project’s business arm);
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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 is a digital application or device that allows you to store, receive, and send ADA, as well as other native tokens on the Cardano network. It provides a simple and convenient way to manage your crypto and ensures secure interaction with the Cardano ecosystem.
What Is A Cardano Wallet Used For?
With a Cardano Wallet, users can manage their assets, interact with decentralized finance (DeFi) applications, and participate in staking. Here’s what you can do with it:
Storing ADA Tokens
A Cardano Wallet allows you to securely 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 fully applies to Cardano. If you value security and full control, Cardano Wallet is a great choice - it’s a self-custody wallet, meaning only you have access to your assets. You’re fully responsible for keeping your crypto safe, so it’s extremely important to securely store your seed phrase - it gives full access to your wallet and is the only way to recover it if you lose your device.
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.
How to Create a Cardano Wallet
To use all the features of the Cardano network, you need to create a wallet. Follow these simple steps for a quick and secure setup:
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Create a Cardano Wallet: Download a Cardano Wallet from the official app store for iOS or Android.
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Set Up a Cardano Wallet: Once installed, open the app and follow the on-screen instructions. Pay close attention to the security steps - this is where access to your ADA tokens will be stored.
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Save the Recovery Phrase: During setup, you’ll be given a seed phrase - a series of words that allows you to recover access to your wallet. Write it down on paper and store it in a safe place. This phrase is your only way to regain access if you lose your device or forget your password.
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Create a Password: Set a strong password - it will be required to log into the app and confirm transactions.
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Generate a Sui Address: Your wallet will automatically generate a Cardano address, which you can safely use to receive ADA and other tokens on the network.
Create Cardano Wallet, Manage ADA, and Receive ADA. Source: Gem Wallet
Your Cardano Wallet is now ready to use! You can manage your ADA assets and take full advantage of the Cardano network - from sending and storing tokens to staking and interacting with DApps.
