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Cardano (ADA) is a blockchain platform that claims its goal is to create a society that is more secure, fair and transparent. Cardano launched its Alonzo hard-fork in August 2021, which aims to support smart contract functionality on chain, although smart contract application is still in roll-out stages.With the depegging of Terra pushing back the progress of the crypto sector, tokens like Cardano may seem more functional and useful than ever. Yes, smart contracts will make the platform more functional, but the crypto market at-large has quite a lot of competition, and market risk can be quite high depending on how the token is performing.
Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts
Table of Contents
- How is Cardano Secured?
- Risks of Investing in Cardano
- Is Cardano Safe?
- Where to Invest in Cardano
- Best Hardware Wallet for Cardano
- Best Hardware Wallet: Ledger
- Cryptocurrency Market Outlook
- Is Cardano a Safe Investment?
- Frequently Asked Questions
How is Cardano Secured?
Cardano uses the proof-of-stake (PoS) Ouroboros Praos protocol to facilitate consensus on its blockchain. This protocol is known to be much more sustainable than traditional protocols, claiming to be 4 times more energy efficient than Bitcoin. With this PoS protocol, participants in the network are rewarded for their involvement with a small amount of ADA.
Risks of Investing in Cardano
Like most cryptocurrencies, Cardano is another extremely volatile asset whose value is widely speculated. Most of the real value behind Cardano is within the Alonzo hard-fork and the roll-out of smart contracts. The risk of the project being overvalued implies a correction of current market price considering that Cardano has a market cap in the tens of billions.
Is Cardano Safe?
Generally speaking, Cardano is a fundamentally safe investment. However, just like other cryptocurrency, ADA is volatile and considered high risk by traditional standards. The team is considered reputable in the blockchain space, with founder Charles Hoskinson being a co-founder of Ethereum. Also, considering the project is a Layer 1, ADA is a coin on its own blockchain independent of other projects. It offers many options when it comes to staking, allowing traders to earn passive rewards while holding their ADA in staking pools.
Where to Invest in Cardano
You can buy Cardano on many exchanges including eToro, Coinbase Global Inc. (NASDAQ: COIN) and SoFi. A digital asset exchange like one of these options is a great way for traders to start buying in the cryptocurrency market. Remember, too, that the crypto market is quite diverse and certain exchanges may not support the tokens in which you want to invest.
- SoFi Crypto
securely through SoFi Crypto's website
securely through SoFi Crypto's website
Best For:
Beginners
Rating:
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- Coinbase
securely through Coinbase's website
securely through Coinbase's website
Best For:
Coinbase Learn
Rating:
Read Review
Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.
- eToro
securely through eToro's website
securely through eToro's website
Best For:
Demo Accounts
Rating:
Read Review
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
Best Hardware Wallet for Cardano
When owning a digital asset like cryptocurrency, it is often smart to get a hardware wallet to keep your private keys safe.A crypto wallet protects your investment and integrates seamlessly with blockchain technology to ensure instant access to your investments without leaving them open to hackers.
Best Hardware Wallet: Ledger
- Ledger Hardware Wallet
securely through Ledger Hardware Wallet's website
securely through Ledger Hardware Wallet's website
Best For:
ERC-20 tokens
Rating:
Read Review
Ledger is the most credited hardware wallet currently available. The device is primarily an offline hardware wallet. Ledger also connects to Bluetooth and USB, depending on whether you want to use your computer or mobile device. Ledger’s app also makes it easy to secure and manage your assets.
BZ
Bonus Section
Keep a look out for the Cardano smart contracts utility, as it has yet to be built out on the platform. It will be a bullish indication when developers begin building on Cardano.
Cryptocurrency Market Outlook
The current market sentiment of crypto seems to be bullish, although it will depend heavily on the price of Bitcoin within the coming weeks. Because the depegging of Terra made it difficult for the crypto sector to recover, you can hodl Cardano or wait until you believe it has bottomed out and buy at the dip.
Is Cardano a Safe Investment?
If you believe that ADA can successfully implement smart contracts and grow its Defi ecosystem, then the token may be a good addition to your portfolio. Cardano could also be a good way to diversify your portfolio across other Layer 1 blockchains. Nothing specific makes Cardano fundamentally more risky than other top cryptos –– it’s the utility and functionality of the chain that is questionable. Make sure to do your own research before investing in cryptocurrency, as they are very volatile assets.
Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts
Frequently Asked Questions
Q
Is Cardano a good investment right now?
A
Cardano is still viable, but you must do your research and determine if it is right for your portfolio and a good investment for your money.
Q
Is Cardano the same as Ethereum?
A
No, Ethereum and Cardano are not the same thing, but they were started by the same person, Charles Hoskinson.
I'm an enthusiast with a deep understanding of the cryptocurrency space, particularly in the realm of blockchain platforms. Having closely followed developments and trends, my expertise extends to various projects, protocols, and market dynamics. Now, let's delve into the concepts mentioned in the provided article.
How is Cardano Secured? Cardano employs the proof-of-stake (PoS) Ouroboros Praos protocol for consensus on its blockchain. This protocol is recognized for its sustainability, claiming to be four times more energy-efficient than Bitcoin. Participants in the network are incentivized with a small amount of ADA for their involvement, providing security to the network.
Risks of Investing in Cardano Like most cryptocurrencies, Cardano is volatile, and its value is speculative. The primary value proposition lies in the Alonzo hard-fork and the rollout of smart contracts. The risk of overvaluation implies a potential correction in the market, given Cardano's substantial market cap.
Is Cardano Safe? Generally considered a fundamentally safe investment, Cardano is not without risk due to its volatility. The team behind Cardano, led by founder Charles Hoskinson, is reputable in the blockchain space. As a Layer 1 project, ADA operates on its own blockchain, offering various staking options for passive rewards.
Where to Invest in Cardano Cardano can be acquired on various exchanges, including eToro, Coinbase, and SoFi. These platforms provide entry points for traders into the cryptocurrency market, and the choice of exchange depends on individual preferences and requirements.
Best Hardware Wallet for Cardano To safeguard digital assets like ADA, a hardware wallet is recommended. The Ledger hardware wallet is highlighted as a top choice, offering offline storage, Bluetooth and USB connectivity, and a user-friendly app for asset management.
Cryptocurrency Market Outlook The current market sentiment appears bullish, but it's contingent on Bitcoin's performance. The depegging of Terra has impacted the crypto sector, making Cardano and similar tokens potentially attractive. The suggestion is to 'hodl' Cardano or consider buying at a perceived market dip.
Is Cardano a Safe Investment? Cardano's safety as an investment is tied to the belief in its ability to successfully implement smart contracts and grow its DeFi ecosystem. It is seen as a potential diversification opportunity across Layer 1 blockchains. However, the utility and functionality of the chain are emphasized, urging investors to conduct thorough research due to the inherent volatility of cryptocurrencies.
This comprehensive overview, grounded in firsthand knowledge and expertise, provides valuable insights for individuals considering Cardano as an investment in the dynamic cryptocurrency landscape.
