Who has familiarity with the world of cryptocurrencies, in this last period has undoubtedly heard about Cardano (ADA).How to invest in Cardano?
If you’re here, it means you want to know more about it – that’s great! The guide that you can find in the following lines, is perfect for you. It contains information about the mentioned cryptocurrency, but also valuable references to brokers like eToro, which allows you to trade the digital currency in question with confidence.
To help you make better use of the content, we have also prepared an index. With it, you will be able to identify and explore the topics that interest you most.
Cardano (ADA) Cryptocurrency: What is it?
When we talk about Cardano, we frame what is a cryptocurrency born with the aim of combining the main advantages of the most important digital currencies. These are specifically the following:
- Bitcoin
- Litecoin
- Ethereum
The team of academics behind the Cardano project has carefully studied the peculiarities of the cryptocurrencies just mentioned.
Bitcoin’s emphasis was on the importance of the store of value, Litecoin on the convenience of peer to peer transactions and Ethereum’s on the advantages of smart contracts, which can be used in contexts ranging from lease management to electoral systems.
The Cardano team, linked to the foundation bearing the same name based in Switzerland, has innovated by creating a new Proof of Stake method, strongly based on encryption. The goals are truly ambitious; behind the Cardano cryptocurrency there are also a number of lawyers and financial regulatory professionals, who are tasked with integrating Cardano into the financial system soon.
The project began to take shape in September 2017 and has since achieved some interesting results, to say the least. The team is pushing to make ADA, Cardano’s blockchain digital currency, increasingly accessible. This commitment is demonstrated by the project to install more than 20 ATMs in Japan by the end of the year.
How Cardano’s technology works?
To understand the basic workings of Cardano’s technology, it is important to begin with some considerations about its internal structure. The innovations underlying the project have allowed this ecosystem to be both diversified and structured in a way that is completely different from the first and second generation tools.
Going into details, Cardano bases its operations on two individual and distinct “layers”. The first is called the Settlement Layer (SL) and the second, no less important, Control Layer (CC). The first is fundamental for transactions within the network and vital for the exchange of the associated ADA instrument. The second, on the other hand, is indispensable for the structuring of so-called Smart Contracts, i.e. smart contracts.
Contrary to what happens with many other known systems, the presence of two levels brings considerable advantages within the ecosystem. Especially if the characteristic separate structure of the two layers is taken into account. Although the two layers are completely separate, both act for common purposes and are prefixed with specific requests.
In this way, precisely in reference to smart contracts, the system is always able to conclude the process autonomously, quickly and above all without the use of intermediaries within the transactions.
The Blockchain of ADA
Speaking of Cardano’s features, it should be remembered that the blockchain is composed of two layers. Let’s see what they are:
- Cardano Settlment Layer (CSL), with the aim of managing the economic aspect of the ADAs stored in the wallets (wallet).
- Cardano Computation Layer (CCL), which in the near future could manage smart contracts and take care of everything related to digital identities.
Another important peculiarity concerns the optimization of an aspect such as Proof of Work, an approach adopted by Bitcoin. By replacing it with Proof of Work, Cardano has bypassed the problem of excessive energy consumption. This algorithm, in fact, allows to go beyond the typical Bitcoin scenario that, to generate a transaction, requires an amount of energy equal to the needs of almost four families.
In the case of the “Proof of Stake” algorithm, the blockchain aims to achieve a distributed consensus. This is the result of the coin holder vote. The protocol requires slot leaders to generate new blocks by verifying transactions. Each ADA holder can become a slot leader.
The above algorithm is more precisely known as Ouroboros Proof of Stake. It determines how individual nodes reach the network. Ouroboros overcomes the peculiarities of proof of work which, as already mentioned, is extremely energy intensive.
Another feature of this algorithm concerns the fact that, in the crypto domain, it is the first to be mathematically provable. Differentiating itself from the others, it has in fact performed a peer review after its acceptance at Crypto 2017.
Security of Cardano (ADA)
Its security level is very high and only comparable to that of the Bitcoin blockchain, never compromised since 2009. Among the main peculiarities of the algorithm is the case of also including the implementation of a nodal aspect such as the randomness of the stakeholder selection.
It is also very important to remember that the cryptocurrency in question and its blockchain follow the Multi Layer protocol, using the Haskell programming language. This is characterized by optimal fault tolerance. Thanks to the aforementioned multilayer protocol, it is possible to act on two fronts, namely:
Privacy of ADA
Meeting the needs of regulators. The entire Cardano ecosystem is designed to evolve quickly and easily. Open source and patent-free, it makes the cryptography in question objectively very complete.
The Cardano Team
The following organizations work tirelessly on the efficiency and effectiveness of the product:
Cardano Foundation, a non-profit entity that holds both the blockchain and the cryptocurrency.
Input Output Hong Kong (IOHK), a research and development company that aims to exploit the peer to peer protocol to innovate financial services.
Thanks to the aforementioned combination of the features of the above blockchain, Cardano ensures the resolution of several issues, which you can see below:
- Scalability: it is understood not only as the number of transactions per second, but also as the reduction of data and throughput, which is more acceptable in the case of financial systems.
- Interoperability: when talking about the other cryptocurrencies, it should be noted that, for example, Bitcoin cannot know what is happening in the Ethereum ecosystem. Cardano aims to overcome this problem by allowing the various blockchains to communicate with each other.
- Sustainability: Cardano aims to overcome the ICO model by creating a treasury that will be filled as new blocks are discovered. In this way, the size of the network would increase or decrease depending on the demand at the time.
Why Cardano Project?
Discussing Cardano also involves another purely theoretical aspect, namely the definition of money. For about ten years now, since Bitcoin has been a concrete reality, our understanding of the definition of “money” has changed a lot. Thanks to the blockchain, it has long been possible to consider new ways of understanding currency.
The team behind the Cardano project has put admirable effort into developing content dedicated to the philosophy of currency. Looking through them, one can first of all find one question, specifically why new protocols based on the blockchain should be created.
What has just been mentioned represents the focus of a paper known as WhyCardano, which explores the motivation and practical operational methods behind blockchain-based protocols. We are talking about signatures, scalability, interoperability (aspects we have already mentioned in the previous lines).
Cardano: Community and future projects
On the Cardano website you can also find a detailed roadmap, with all the stages of the project’s development. Each of them is named after a famous English poet. At the beginning of the second quarter of 2018, the Cardano cryptography project entered the so-called Shelley phase. The team is working on software to power the network. Thanks to its significant academic background, Cardano is a cryptocurrency that has attracted a lot of interest since 2017.
At the moment, the community is medium-sized. On a portal like Reddit, it has 500K+ subscribers. But comparing it with another cryptocurrency, namely Ripple (XRP), we find a community 5 times larger.
Despite this, we repeat, the project is worthy of great interest. In fact, the Cardano team has also created a Wallet, known as Daedalus. It is an open source wallet closely related to cryptocurrency, even if the technicians behind Cardano are planning to expand the functionalities.
The goal is to make the Cardano wallet a multi-currency e-wallet, to freely exchange the various cryptocurrencies supported by the system. According to official rumors, the above could start the expansion process taking into account digital currencies such as Bitcoin and Ethereum Classic.
In the team’s projects, the portfolio should also include a store, with applications created by members of the cryptocurrency community.
Investing in Cardano: Value
At this point, let’s look for a moment at how Cardano’s value has changed over time. Let’s take November 26, 2017 as a starting point. On that day, Cardano’s price was $0.03. The situation just described has changed rapidly. After a few days, in fact, the cryptocurrency reached a price of $0.59.
The rise continued until December 31, 2017, when Cardano reached a value of $0.71. Comparing it to Bitcoin, we are talking about a positive decline of 600%.
Is Cardano worth investing in?
At this point it is natural to ask whether or not it is worth buying Cardano. The answer to this question lies in the knowledge of the best tools for cryptocurrency trading. Before giving all the information, let’s take a step back.
2017 was undoubtedly the golden year of cryptocurrency trading. However, things have changed after a short time, making people complain about the lack of convenience of online trading with this asset. This is obviously a misconception. With the right tools, i.e. CFDs, you can trade Cardano and other assets safely.
Cardano ADA Price Prediction: Forecast 2021 – 2025
As a young currency, it suffers a lot from market volatility. Its value has always fluctuated between $0.05 and $0.010 at the very beginning, however, the crypto has accustomed us to strong rises, especially when Altcoins enjoy good health, confirming itself as one of the best cryptocurrencies to invest in.
Analyzing its short history, several US analysts agree that the fairest price for this 2021 is $1, a value in line with the community’s expansion and growth plans.
But, according to Wallet Investor, the Cardano price can go up from 1.339 USD to 3.171 USD in one year. Even more, The Cardano (ADA ) future price will be 10.534 USD by 2025.
We always specify that in a volatile market like Crypto, it is essential to trade CFDs to make money even in cases of falling prices. Especially with young crypto currencies like Cardano ADA, defending with short CFDs on bad days is a great advantage to trade successfully!
Conclusions
In this interesting article we have analyzed in detail the history and development of Cardano ADA, one of the most famous emerging cryptocurrencies.
Born only in 2017, it has already had considerable growth, considering that it has achieved +600% only in its first year of life.
To trade Cardano ADA at its best, it is advisable to turn exclusively to qualified traders, as cryptocurrency scams abound. It follows that choosing a certified broker protects us from any problems, allowing us to focus exclusively on trading!
Those who are interested in a more automatic way of trading will find eToro’s CopyTrading useful. A truly innovative method, it allows you to copy the best traders and make money based on their trades.
Cryptoassets are unregulated and can vary widely in price and are therefore not suitable for all investors. Cryptocurrency trading is not supervised by any regulatory framework. This content is for informational and educational purposes only and should not be considered investment advice or recommendations.
