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If you are new to crypto, you are probably unaware that Cardano is the platform while ADA is the coin that represents the profitable investment. The chances are you have probably heard of the coin and considered it, but you’re still not sure that investing in Cardano is the right next step. Hopefully, by the end of this article, you will be able to come to this conclusion by yourself.
Cardano is one of the top digital assets by market cap in 2021 and is one of the rare pioneer peer-reviewed decentralized open-source Blockchain platforms available for consumption. Cardano does Indeed represent a viable alternative to traditional banking. However, unlike conventional banks, it is not under any central authority and available to anyone worldwide.
Cardano platform has undergone numerous tests to ensure that it is highly efficient and safe. Its scalability is considerably better than Bitcoin, and its innovative contract development is just as good if not better than Ethereum.
Our focus in this article is ADA which is the platform’s central and only coin. At the time of writing, it ranks 6th by market cap with a value of $40,000,000. Its maximum supply is limited to 45 billion coins, and so far, 31 948,309,441 of them are in circulation for $1.25. This number is subject to constant change.
What makes Cardano a good investment?
Like any other crypto project, Cardano has had its ups and downs. Its price is volatile, making it a risky investment. However, experts continue to believe that this project holds great potential and any crypto holder should consider investing in Cardano. After the pandemic, people increased their use of Blockchain technologies, and there’s reason to believe that the future is very bright.
The first thing that you need to consider is the amount you are willing to invest. Before doing this you will need to know a few rules. The first and most basic one being that you should never invest more than you can afford to lose. It is also a common rule to buy low and sell high; another everyday practice is never investing more than 1% of your funds on a single trade.
Investing in ADA is simple; you can buy and trade with as little as $100. The coins are not mined like most other cryptocurrencies, and that makes them easily accessible for beginners. Also, note that the Cardano network encourages its users to store ADA in their native wallets Daedalus and Yoroi.
Here are a few things that make Cardano an excellent investment:
- Scarcity: Cardano is limited in supply, and this scarcity is bound to increase its value and demand as the years go by.
- Unique characteristics: Cardano holds excellent features that attract investors worldwide. It uses a two-layered architecture; the first layer executes transactions while the second layer executes smart contracts. Its Ouroboros algorithm also makes it unique; this is a proof-of-stake algorithm that splits rewards between multi-party computation stakeholders, input endorsers, and slot leaders.
- High-profit rates: Most people prefer to earn profits through staking ADA; you can make up to 4.5% profit in a year.
- Wide range of use cases: Its uses are many and are not limited to payment; it has applications in the agricultural sector, education, trading, and even healthcare.
- Smart contracts: Cardano supports smart contracts, which makes them valuable on both private and public scales.
- High scalability: As already mentioned, Cardano promises unparalleled scalability (millions of transactions per second), which gives it a competitive edge over crypto giants like Bitcoin and Ethereum.
- Chance to diversify your portfolio: Cardano is an excellent investment if you are looking to diversify your portfolio, reduce risk and spread rewards.
Based on historical data and price projections, many experts seem to believe that Cardano’s value is bound to multiply over the next few years. Cardano has come a long way to boast close to 1,500 staking pools and collaborations with international institutions.
In December 2020, the price of ADA fluctuated between $0.135 and $0.19, and the closing price for the year was $0.18. Its growth rates have greatly outperformed Bitcoin by close to 200%. Investing in Cardano is a good start because it stands a good chance to become a leader in the crypto market.
Experts predict that it may soar to $5 or more at the peak of this bull run which could be any time from the end of this year to the start of 2023.
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