A top 10 cryptocurrency and blockchain with extremely high potential due to its strong fundamentals – that’s how we can describe Cardano. There’s plenty to be said about this digital asset and its native network since both became in focus in the crypto space after their development picked up. If you too are curious about them, here you can find more details and learn the important things about Cardano and ADA.
What Is Cardano (ADA)?
The project started in 2014 and continues to grow today. The native token of Cardano is called ADA. There are three organizations behind it – The Cardano Foundation, a non-profit organization that works to design, standardize and promote the technology of the project; Input Output Hong Kong (IOHK), company found by Charles Hoskinso and Jeremy Wood that is responsible for research and development of blockchain technologies; and Emurgo, which develops commercial incentives to promote the cryptocurrency.
The goal behind this project is to build a more environmentally sustainable blockchain than Bitcoin and Ethereum, by combining and improving their features. This is one of the fastest growing cryptocurrencies on the market since it emerged.
To achieve its goals, the blockchain is based not on the popular Proof-of-Work (PoW) consensus mechanism, but on Proof-of-Stake (PoS). This ensured less energy consumption that the PoW, lifting the environmental concerns investors have with older cryptos like Bitcoin. After the Alonzo hard fork in September 2021, the platform allows for smart contracts functionality. This means that now developers can build dApps and even mint NFTs on it.
The Current Cardano Price
The Cardano price for pre-sale was $0.0024 which the asset started steadily rising as it hit the market. In September 2021, after it implemented smart contracts on its blockchain, ADA exceeded $3.
The coin is currently trading below its high price of last year, due to the bear market. However, investors are hopeful the asset may recover again in the future. If you’re curious about the price of this crypto, consult with the price below.
Where to Buy Cardano (ADA)
If you’re wondering how to buy Cardano, the easiest and most accessible way, requiring only an electronic device with internet connection, would be to do it on a platform for crypto trading. There are two types of platforms, based on what assets they provide for trading – brokerages and exchanges. Since ADA is one of the top 10 cryptocurrencies by market capitalization and remains one of the most well-known digital assets, it’s likely to be offered on most platforms.
Brokers like eToro, which also provide assets like stocks or bonds, can be used to buy ADA. You could also buy the crypto on an exchange for cryptocurrency trading. The exchanges are two types – centralized and decentralized.
Centralized exchanges, or CEXs, are platforms for crypto trading which use a third party to monitor the transactions. Exchanges like Crypto.com, Binance, Kraken, Huobi, and Coinbase offer ADA. Unlike them, decentralized exchanges also known as DEXs, allow for peer-to-peer transactions. This means that if you use an exchange like PancakeSwap to buy your ADA coins, you will do it directly from a seller, without a third party in your transaction.
What Is the Best Wallet for Cardano (ADA)
If you’ve decided to buy Cardano on a crypto trading platform, you can research if it offers its own built-in wallet. If the platform provides a storage for your coins, you can use it to hold your ADA there after the purchase.
However, if you don’t want to store your coins on an exchange or broker, you have two options for Cardano wallets – hot storage wallets or cold storage wallet. The two types differ in how they store your private keys.
Hot storage wallets, or hot wallets, are always connected to the internet. They could be installed on your desktop or a browser extension, for example, and you need to have online connection to access your crypto. Online wallets like Daedalus, Exodus, and Atomic support Cardano and can be used to store your ADA tokens after you buy them.
Cold storage wallets, commonly known as hardware wallets, are connected to your device and the internet only when you’re buying and selling your cryptocurrencies. People who are anxious their digital coins may be attacked by hackers favor cold wallets for their safety in this manner. Some of the most popular wallets of this kind that you can use for your ADA are Trezor and Ledger.
How to Make Money With Cardano
There are several different ways how to make money with Cardano (ADA). The first step would be to acquire ADA coins, whether you buy them on a platform or any other way is your choice. Then you can do three things with your ADA tokens to potentially earn returns from them.
You can hodl (hold) your ADA. In this instance, you’ll hold your bought cryptocurrencies for a longer period of time without selling them and wait for a higher price to sell them at and get bigger returns. This way of earning passive income requires patience and you will have to be able to resist the fear and greed on the crypto market to be able to make the most of your investment.
Another way to make money out of ADA would be by trading. For this you will have to use a crypto exchange and you’ll be buying and selling your coins frequently, trying to make the most out of it in short time periods. If you want to trade ADA, you’ll have to follow the crypto market trends very closely, paying attention to things like the Bitcoin price, news and influential figures in the decentralized space, like Elon Musk, for example.
You could also earn from this crypto through arbitrage. This means you can earn from the difference in the Cardano price created between two or more exchanges.
How Can’t You Earn From Cardano?
One way you can’t make money out of ADA is by mining it. As mentioned, this cryptocurrency doesn’t apply the Proof-of-Work consensus mechanism, but the Proof-of-Stake one. This means you can stake Cardano and earn that way, but you can’t get mining rewards from it.
What Are the Pros and Cons of Cardano (ADA)
Pros of Cardano
✔️ The Proof-of-Stake consensus mechanism which it uses is more sustainable
✔️ Resolves scalability issues
✔️ Allows for smart contracts and continues to develop in the sector
✔️ Accessible for beginner investors due to lower price
Cons of Cardano
❌ The blockchain is still in early stages of development and the progress seem to be taking longer than anticipated
❌ One of the project’s creators, Charles Hoskinson, is a controversial figure in the crypto space, which could influence ADA badly at some point
Is Cardano Worth Following?
Cardano and its native cryptocurrency ADA are a blockchain and asset that have proven worth and investors still look forward to them reaching their full potential. The project aims to solve issues of older cryptocurrencies, mainly Ethereum and Bitcoin, by providing more sustainable solutions. The blockchain is still in its early stages but if the roadmap is complete sometime in the foreseeable future, it may be a true game changer.
ADA has lost the third spot by market capitalization that it managed to hold for a while. But despite the slower growth rate of the Cardano price, compared to newer projects, many crypto traders and specialists remain hopeful that this cryptocurrency will recover, once the whole market returns to a more bullish phase. The blockchain and cryptocurrency are likely to surprise the community in the next years, it only remains to be seen in what way, either a positive or a negative.
FAQs About Cardano (ADA)
As we’ve mentioned, it’s not possible to mine Cardano. You can stake the cryptocurrency, since it relies on the Proof-of-Stake consensus mechanism, unlike Bitcoin and other cryptos that can be mined, which use Proof-of-Work.
If you’re willing to wait for a while, then, yes right now ADA is worth investing, especially considering its lower price. If the predictions come true and this asset does increase its price in the future, you’ll get good returns from it. However, keep in mind that it may never reach a price beyond a dollar again too, since nobody can predict the crypto market.
Ideally, the right moment to buy any digital asset, you’re intending to make profit out of, would be when its price is low, so when (or if) it increases in the future, you’ll get a return on your investment. Keep in mind though, that ADA may remain at its lower price for a while but it may also never get to its previous highs so your investment may not prove as profitable as you’d expected.
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