Cardano is rising and making its place in the global crypto market. Let’s look at how Cardano is different from existing ones, what it offers, and how you can invest in Cardano’s ADA.
What is Cardano?
Cardano (ADA) is a third-generation public blockchain development platform. Cardano is a Proof of Stake blockchain network developed as a decentralized application development platform (dApps) with a multi-asset ledger and verifiable smart contracts. Cardano’s ADA has soared by more than 1,300% this year as the world’s largest cryptocurrency. Unlike many other similar projects, the Cardano project includes both a platform and a cryptocurrency (ADA).
Why should I invest in Cardano?
Cardano differs from others in its commitment to peer review, scientific research, and block updates on a third-generation decentralized blockchain platform.
- The high potential market as Cardano is beating the market leaders and making a hold in the market.
- A limited number of Cardano’s ADA are available as the cryptocurrency is capped at 45 billion, making it valuable.
- Cardano helps save the environment as it is energy efficient.
- Cardano is low in price right now and is a great investment for beginners.
- Cardano has high scalability, practical applications and has a strict protocol, Ouroboros for privacy and security.
How can I invest in Cardano?
Several market exchanges support ADA cryptocurrency, such as Binance, Coinbase, Bithumb, etc. The whole list of exchanges where ADA can be traded can be found here. Create an account on a crypto exchange to start trading with ADA. It is recommended to store ADA in a Yoroi or Daedalus wallet, which are open-source wallets designed for Cardano, built to grow with the blockchain.
How to invest in Cardano and make money
Remember that ADA cannot be bought with fiat currencies, which means you need to buy another cryptocurrency first and then exchange it for ADA on market exchanges. You can invest in Cardano in the following ways –
- Trading: You can make trade transactions on exchanges and sell Cardano’s ADA, making a profit.
- Crypto Mining: If you have technical expertise for mining, you can gain and receive Cardano’s ADA by allowing new tokens into the network.
- Lending: If you wish to keep your Cardano and make a steady profit, you can lend your cryptocurrency to an exchange platform and earn interest. The best place for this is AADA Finance by Cardano.
- Investing: You can buy and keep the Cardano for a long time and sell it, making a profit when it reaches a higher value.
- Staking: Staking is a way for you to earn rewards by locking in your cryptocurrency for some time to promote the network on the blockchain. Staking Cardano’s ADA will earn your rewards and also be an investment because the value of your committed tokens will rise as the price of ADA rises.
- Dividends: You can buy Cardano’s ADA and hold it to earn dividends. You can also leverage your crypto tokens to others and earn interest.
- HODLing: This is a term that is used for specifically holding cryptocurrency. Hodling refers to buying a cryptocurrency and doing nothing with it. The money stays protected in your wallet and can be sold after time when its value rises. One of the best ways for inexperienced players who want to invest in Cardano’s ADA.
Can I lose all my money in Cardano?
Yes, you can lose all your investment in Cardano or any other cryptocurrency as well. This can happen by:
- Amateur Investing: Just like gambling, you can lose all your Cardano pursuing Ponzi schemes, bad trades, etc. Not using a reputable exchange can also result in losses.
- Cryptocurrency Scams: Getting scammed out of your Cardano by fraudsters offering you money for your Cardano.
- Cybercrimes: Hackers can break security and steal your Cardano or hijack your transactions. Since all the cryptocurrencies are stored in wallets, and all transactions take place online.
- Phishing: Fake websites, applications, and phishing emails can lead to theft of your Cardano as well.
- Password Loss: Cardano is stored in wallets or exchanges. In case you forget a password and are unable to recover your wallet, you will end up losing all your Cardano.
Risks of investing in Cardano
The world of cryptocurrencies is ever-evolving and competitive. Popular crypto exchanges do everything to stay at the top. However, there may be some risks while investing in the crypto.
- Volatility: The crypto market is highly volatile, meaning that the asset price is just as likely to go down as up.
- Not regulated: Cardano is also not regulated, meaning that the transactions are P2P (peer-to-peer) and not facilitated by any financial institution or government.
- Conversion Risk: Since Cardano cannot be bought with fiat currency, there is a conversion risk when buying it using other cryptocurrencies or stablecoins.
- Exchange hacking: All transactions of Cardano is online, which means there is a risk of exchange hacking resulting in you losing your Cardano.
- Abrupt Closing: Online exchanges can malfunction or glitch due to overwhelming transactions, resulting in an abrupt close in the middle of trading your Cardano.
Things to consider before investing in Cardano
- The founder of Cardano, Charles Hoskinson, is experienced and shows great leadership.
- Steady growth in Cardano price has led it to popularity, making it one of the top 10 cryptocurrencies today.
- Cardano’s blockchain has practical uses in Finance, Agriculture, and Healthcare.
- Cardano is peer-viewed, secured, and can handle a lot more transactions than competitors, showing 257 transactions per second during tests.
- Cardano cryptocurrency is developing a smart contract platform that will serve as a stable and secure platform for developing decentralized enterprise-level apps.
In 2015, the Cardano team decided to do something different, building a local blockchain from scratch. Today, Cardano has become one of the most exciting cryptocurrencies in the world. The individual investors themselves must answer the question of whether Cardano ADA is a good investment. If you are interested in the Cardano network project and its technology, investing in Cardano Coins is an excellent way to support the project and make money when the price of coins increases and interest rates rise.