The complete guide to buying Cardano (ADA)
Cardano is a top 10 cryptocurrency, and despite it having dropped in price in the last year, it’s still going strong.
That makes Cardano a great candidate to add to your portfolio, but how do you buy Cardano and why should you buy Cardano?
Fear not, for CryptoMeister is here to help you out.
We’ll guide you through the world of Cardano, explaining everything as we go.
By the end, you’ll be a Cardano pro.
If you’re already a Cardano pro, it can’t hurt to go back through the basics.
After all, Cardano does change quite a bit from time to time.
Let’s learn all about Cardano and how you can buy Cardano!
What is Cardano and how does it work?
Before you dive in and buy Cardano, it’s good to get a little background on it.
If you’re a Cardano veteran, you can skip ahead as we’re going to get into the basics.
Cardano is a 3rd generation Proof of Stake (PoS) blockchain platform.
Ethereum’s co-founder Charles Hoskinson launched Cardano on 27 September 2017 after falling out with Vitalik Buterin.
The pair fell out over turning Ethereum into a for-profit organization, something Buterin didn’t want.
Interestingly, Cardano doesn’t have a white paper.
Instead, it focuses on design principles to solve issues that other blockchains face.
These issues tend to be scalability, interoperability and legal.
In fact, Cardano has been so well designed that it uses less than 0.01% of the 110.53 TWh that Bitcoin uses.
As a result, Cardano is the biggest PoS cryptocurrency in 2021.
Cardano was designed to be used as a decentralized application (dApp) development platform with verifiable smart contracts and a multi-asset ledger.
In English, that basically means it’s a more efficient copy of Ethereum.
Cardano uses an Ouroboros consensus mechanism which allows it to remain scalable, safe and secure.
Owning Cardano and what it can be used for
When you buy Cardano, you’ll be able to use it to interact with the Cardano network.
Cardano’s token is known as ADA, and you can buy ADA from the best crypto exchanges.
If you’re unsure which exchanges are the best, you can compare crypto exchanges and stock brokers here.
Once you buy Cardano, you’ll be able to use it to interact with dApps, smart contracts and to cover gas fees.
You can even use Cardano to launch your own dApps and smart contracts, which is cool.
Cardano also has the added perk that it’s very quick and cheap to use.
This makes it a great candidate for making payments, despite this not being its main purpose.
There are a few merchants that accept Cardano as a payment currency, but they’re few and far between.
It’s also worth noting that there are very few dApps live on the Cardano blockchain.
Instead, companies and governments are using the power of the Cardano blockchain to host core services.
For example, the Ethiopian government is planning to use Cardano to manage a digital identity dApp.
However, there are some issues with Cardano’s smart contracting language which is preventing dApps from launching.
But, more on that and Alonso in just a moment!
What is the Cardano blockchain?
Cardano has a powerful and versatile blockchain that solves many problems that we see with other blockchains.
Before you buy Cardano, it’s wise to learn how it works.
After all, doing proper due diligence makes the choice to buy Cardano an investment, rather than a gamble.
In a bid to become the perfect blockchain, Cardano’s development has been broken down into 5 phases.
Each phase is named after an important historical figure and the phases are known as eras.
The 5 eras of Cardano are:
- Foundation (Byron era)
- Decentralization (Shelley era)
- Smart Contracts (Goguen era)
- Scaling (Basho era)
- Governance (Voltaire era)
Currently, Cardano is currently in the Goguen era.
The Goguen era was originally split into 3 sub-eras, but a 4th was added.
Allegra and Mary went live as planned in 2020 and 2021 respectively, with the additional sub-era Daedalus going live on April 1.
These sub-eras are hard forks that add in core functionality to bring the era into fruition.
So, while we are in the Goguen era, it’s not in full swing.
Goguen is considered complete now that Alonso is live.
Unfortunately, delays and setbacks kept Alonso off the Cardano mainnet for quite some time.
But, Alonso finally went live at epoch 290 on September 12 2021.
Alonso released Platus scripts onto the Cardano blockchain, which is a massive deal.
This allows smart contracts to be used, ushering in the deployment of decentralized finance (DeFi) to the Cardano chain.
Alonso was touted as the final nail in Ethereum’s coffin, but it’s had a bumpy ride.
In the runup to the hard fork, Cardano rose in price by more than 68%, but on hard fork day, the price tanked.
People discovered that launching smart contracts on Cardano wasn’t going to be a simple task at all.
Let’s find out why!
Warning, this may get a tiny bit technical, so we’ve tried to make it as simple as possible.
What Did the Alonso Hard Fork Do?
On September 12, 2021, Cardano deployed its highly anticipated Alonso upgrade.
The Alonso upgrade means that smart contracts can now be written and deployed on the Cardano mainnet.
This is a highly anticipated feature that Cardano has been teasing since it launched back in 2017.
It’s also the feature that’s meant to allow Cardano to rival Ethereum and potentially blow it out of the water.
However, there have been some issues with the upgrade.
Developers are still adjusting to the steep learning curve associated with Cardano’s smart contract scripts.
Cardano is an extended unspent transaction output (eUTXO) blockchain, meaning that contracts from Ethereum and Binance Smart Chain will not work.
Developers need to totally rebuild contracts from scratch, using new fundamentals and techniques.
One developer didn’t listen or read the documentation, launching a smart contract built for Ethereum on the Cardano mainnet.
But, this was due to the fact that the developer didn’t read the documentation or adhere to the Cardano standards.
As a result, Cardano issued a lengthy and technical post about why this one developer was wrong and cleared the air about Cardano smart contracts.
Developers are required to write the contracts in a way that maximizes concurrency by avoiding shared states and accidental dependencies.
This is why we saw a dip in Cardano’s price following the Alonso upgrade as many people didn’t quite grasp the technical aspects of the smart contracting language.
That being said, this insane learning curve for developers might not actually be worth it in the long run.
Developers that are already familiar with smart contracts on Ethereum could just carry on launching on Ethereum or Binance Smart Chain.
This would then leave Cardano relatively void of smart contracts and DeFi services, which is the blockchain’s main purpose and selling point.
So, while Alonso is now live, there are still very few smart contracts and actual use cases for Cardano as the learning curve is so steep, the majority of developers are still playing catch up and learning.
What is a Cardano wallet?
When you buy Cardano, you’ll need to pick out a good Cardano wallet.
Fortunately, there are lots of good ones available.
But, there are also several key factors that you need to account for, such as the eras.
Cardano is far from a finished product – it’s still developing and growing.
So, you’ll need to keep upgrading your wallets to get a new era address.
Each era address will have limited functionality, so it pays you to upgrade to the latest era wallet and address as soon as you can.
In order to do this, simply create the new wallet and address in the new era and send your Cardano from your old wallet to your new wallet.
It’s a very simple process that will take you a few minutes to complete every year or so.
There are two Cardano wallets that are worth your time in using.
Those are Daedalus and Yoroi.
You can connect both with your Leger or Trezor hardware wallets if you wish to add an extra layer of security to your Cardano wallets.
Daedalus is a desktop wallet client for Cardano that was developed by IOHK, the same company that’s building Cardano.
It’s a highly secure Cardano wallet that supports an unlimited number of CArdano addresses, as well as suite of backup and recovery tools.
You can also opt to stake your Cardano from your Daedalus wallet.
However, you will need to sync the entire Cardano blockchain in order to use it.
On slower connections, this can take a couple of hours to do.
Yoroi is brought to you by Emurgo, which is a company driving the adoption of Cardano.
It’s a light wallet that’s designed to be used on iOS and Android, as well as in your browser through a Chrome, FireFox or Edge extension.
Unlike Daedalus, you don’t need to sync the entire blockchain, so you can download, setup and go.
You can stake your Cardano from your Yoroi wallet, which makes it a great wallet if you’re into using your Cardano on a daily basis.
How does a Cardano transaction work?
When you buy Cardano, you’ll most likely be buying it from a crypto exchange.
So you’ll want to begin by picking a crypto exchange that works for you.
You can check out the best crypto exchanges with our detailed reviews.
Once you’ve picked an exchange and created an account, you’ll need to fund it.
Most crypto exchanges will let you deposit and buy Cardano with fiat and crypto.
If it’s your first cryptocurrency purchase, you’ll want to deposit using your debit/credit card or with a bank transfer.
Once it has made its way into your account, simply head to Cardano.
Once there, type in how much you’d like to buy, select market price and hit buy Cardano.
Congratulations, you now own Cardano!
If you plan on keeping hold of your Cardano for a while, rather than a quick trade, you’ll want to move it off the exchange.
Crypto exchanges are risky and dangerous places to store your crypto long-term.
So, pick a good Cardano wallet, which you can find here.
Now you’ve got a Cardano wallet and an address, you can go ahead and hit send Cardano in the exchange.
Fill in your Cardano address, then triple check it.
Hackers can inject code into your computer that replaces crypto addresses when you paste, so take the time to check carefully.
Once you’re happy everything is correct, hit send and the transaction will make its way to the blockchain.
In a few moments, your Cardano will be stored safely on your very own CArdano wallet!
Transactions make their way to the transaction queue, where they’ll be added to blocks by the miners.
Once your transaction is included in a block and the block has been validated, the Cardano will show up in your wallet.
How does a Cardano address work?
Cardano addresses can be fairly confusing, especially if you’re new to Cardano.
Due to the fact that Cardano is still being developed and is not completed, there are several types of addresses that you can use.
The original Cardano addresses were formed in the Byron era, which is now considered legacy.
These became outdated in 2020, but you can still use these addresses if you have a wallet that supports them.
However, they’ve basic wallets and do not support delegation or earning rewards from staking.
Icarus style addresses begin with Ae2, while Daedalus use DdzFF at the start.
Out of these 2 addresses, only the Daedalus is still in use and can be generated.
In the Shelly era, we saw a new type of address launched, beginning with addr1.
These addresses allow for all Shelly era features to be used from the wallet.
Depending on which wallet you’re using, you will need to triple check the address.
Daedalus supports DdzFF and Addr1 addresses, meaning that as long as you’re using a new wallet, you’ll be able to make use of all the features from the Shelly era and the beginnings of the Goguen era.
Are there any risks with Cardano?
All cryptocurrencies have a deal of risk built in, but that’s part of the fun.
Cryptocurrencies are still new and so too are procedures to protect you when you make a mistake or have your coins stolen.
This makes using crypto like living life on the edge – it’s nerve-racking and exciting at the same time.
When you buy Cardano, you open yourself up to all the regular risks plus one additional one – thanks for that, eras.
The regular risks, such as hacking, theft and burglary can be mitigated by following cyber security best practices.
Use unique passwords for every single site, application and platform that you use.
Also, you’ll want to add on 2-factor authentication (2FA) to your accounts.
Use a 2FA app like Authy or Google Authenticator, rather than an SMS as sim swapping is very easy to do.
When you paste in addresses, make sure that you verify them manually as hackers can inject code that messes with your paste function.
The code will change your pasted address into one the hacker controls.
Once you hit send, you can’t roll back time, so spend 30 seconds to cover your bacon.
With Cardano being a coin in development, you’re exposed to even more volatility than with other big coins.
A single flaw in the development could crash Cardano’s price.
Daily swings of 15% or more are usual, so be prepared to ride the waves of volatility.
Finally, the last, and most unique, risk is the eras that Cardano uses in production.
Each era adds new features and requires you to upgrade wallets.
If you accidentally send your crypto to an incorrect wallet, or forget to note down your new seed phrases, you could lose everything.
So, when you’re upgrading your Cardano to the latest era, make sure that you take your time and do it properly.
Otherwise, you could lose everything.
Is Cardano legal?
Cryptocurrencies don’t necessarily have the best reputation around the world, leading many governments to take an anti-crypto stance.
For the most part, crypto is legal to buy, trade and own.
But a few countries buck the trend.
All cryptocurrencies are regulated with the same brush.
With this in mind, Cardano is illegal in the following jurisdictions:
This doesn’t mean that you can’t buy Cardano from these countries but trying to do so will be considerably harder than elsewhere in the world.
Some of these countries will also actively punish you for owning cryptocurrencies, so it’s not really worth the risk.
Egypt will fine you and potentially arrest you if you’re caught flaunting your crypto portfolio or accepting it as a merchant.
Other countries have partial bans on Cardano.
These could be banking bans or bans that prevent you from buying Cardano or using in the country.
The following countries have partial bans on Cardano:
- Saudi Arabia
Is it safe to buy Cardano?
If you’re worried about your safety when you buy Cardano, then you’re in good hands.
If you’re using an exchange that we’ve recommended, then it has passed our test of approval.
This means you can relax somewhat, but not totally.
Crypto exchanges have a nasty habit of vanishing overnight.
We’ve done our best to pick well established exchanges to inform you about, but there’s still risk.
Exchanges can get hacked and employees can go rogue, stealing funds.
We’ve seen it time, time and time again.
So, there are a few tips that you can follow to make it as safe as possible to buy Cardano.
Leave funds on your crypto exchange of choice for the shortest amount of time possible.
That means don’t store piles of fiat currencies or cryptocurrencies for more than 48 hours.
Withdraw them to your own bank account or wallets.
This way your money is safe from anything that could happen to the exchange.
Not many people sell Cardano in-person, so you don’t have to worry too much about meeting a stranger in a dark alley.
If you do opt to do this, make sure you take a friend with you and always meet in a public place.
If you follow these tips, you’ll be as safe as possible when you buy Cardano.
Can someone hack me or steal my Cardano?
For the most part, hacking someone and stealing their crypto is a pretty easy afternoon of work.
More than 50% of people that use the internet use the same password for everything.
If you’re one of these people and your password is compromised, then you stand no chance against hackers.
Now, if someone really wants to hack you and you have the tightest security, it can still be done.
But it’s considerably harder and would have to be a targeted hack.
This likely won’t happen to your average Joe crypto hodler, simply due to the resources required – unless someone really has it out for you.
So, follow basic cyber security and you’ll be as safe as you need to be, if you’re an average Joe crypto owner.
Whales should consider hiring a cyber security firm if they’re worried about getting hacked.
Start out by changing your passwords to unique alphanumeric ones that are at least 12 characters long.
You can use a password manager such as LastPass or KeePass.
Also, set up 2-factor authentication (2FA) on all your accounts.
Use an app like Authy or Google Authenticator rather than SMS 2FA.
Sim swapping is easy to do, so using a dedicated app protects you from this attack vector.
Finally, don’t brag about how much Cardano or other crypto that you own online.
If you do brag, you’re painting a target on your back.
Follow these steps and you’ll be fairly safe from hackers.
There are more things that you can do, but they’re not worth it if you’re an average Joe crypto trader.
Read more in our guide to the best Crypto Security Tips if you are interested in the maximum amount of safety.
How to buy Cardano?
When you’re looking to buy Cardano, you’re going to be faced with a few options.
Some are safer than others, so read on if you want to be as safe as you can when you buy Cardano!
The most important thing to consider when you buy Cardano is your needs.
Decide if you want quick and easy access, or if you’re happy to jump through some hoops to save a few bucks on fees.
Everyone is different, so it’s understandable if you don’t wish to buy Cardano the same way as everyone else!
Buy Cardano with an exchange
The most common way to buy Cardano is with a crypto exchange.
Virtually all crypto exchanges have Cardano for sale, so you can sign up and buy Cardano with confidence.
First up, pick the best crypto exchange for you and your needs.
You can compare crypto exchanges and get in-depth, unbiased reviews here.
Remember, the lower the fees, the more Cardano you can buy!
Once you’ve picked an exchange, make a deposit in your currency of choice.
Card deposits will go through in a matter of seconds, while bank transfers can take up to 3 working days.
Cryptocurrency deposits will vary depending on the blockchain you’re using, and the number of confirmations required.
Once your account has been funded, head on over to the Cardano trading pair you wish to use.
If you’re using Euros, you’ll want EUR/ADA, but if you’re using Bitcoin, you’ll want BTC/ADA.
Then, pop in the amount you wish to buy, set it to market order and hit buy.
That’s it, you’ve bought Cardano!
Now you’ve bought Cardano, it’s worth moving it to your own Cardano wallet, as it’s a safer long-term storage than the exchange.
Buy Cardano with your stockbroker
If you don’t fancy signing up to a new crypto exchange, then that’s totally fair.
It’s a lot of hassle and can be scary, especially if you’re new to crypto.
So, you’ll be pleased to know that you can buy Cardano through some stockbrokers and stock trading platforms.
Unfortunately, there are no exchange traded notes, funds or products that track the price of Cardano.
This means that you’re replying on your stockbroker or stock trading app to have a Cardano contract for difference (CFD).
You also run in to a few other issues such as crypto CFDs are banned in the UK, and other European countries are looking at following suit.
Nonetheless, it’s a quick, easy, and safe way to buy Cardano.
Simply navigate to the Cardano market, input how much you wish to buy, and hit buy.
The process is the same for buying stocks on the app, so this shouldn’t be too tricky.
When it comes to tax time, you have the added benefit of using the same tax reporting systems that you already know.
Buy Cardano in person
If you prefer that human touch, you can always arrange to meet up with a Cardanian and swap in person.
There are some risks attached here, such as theft and murder.
But, it gives you a chance to get some Cardano on the down low, without the tax man knowing.
It’s one of the few ways that you can buy Cardano and remain anonymous.
You’ll have to arrange a meet with someone from a forum, group, or club.
It’s best to agree on a price beforehand, otherwise things can get tricky at the meet.
You could also opt do this all online, but you run into more risks, such as one party never sends the money.
In person, however, you can watch the person input your wallet details and hit send.
You can also make the bank transfer or hand over the cash at the same time.
Whatever you do, make the meet as safe as possible.
Meet in a public area where there are lots of other people around.
Do it during the day and take a friend with you.
This limits your chances of something going wrong and you ending up in a body bag.
How can I pay for Cardano?
When you are ready to buy Cardano, you’ll want to know what payment methods you can use.
Obviously, it depends on which country you’re in and which method you’re using to buy Cardano, such as your stockbroker, a crypto exchange or with another person.
But, for the most part, you can narrow it down to a small handful of payment options that we all have access to.
So, let’s dive in and find out which payment methods are best to use when you buy Cardano!
Fast, efficient, and widely supported, credit and debit cards are the payment method of choice.
Virtually all crypto exchanges accept credit and debit cards, you can sign up knowing that your card will work.
If you live in a country that has a banking ban, there’s a good chance the transaction will be declined.
If this is the case, you can get around this by using a different payment processor on the exchange, such as Trustly or PayPal.
Card deposits are the fastest, taking a few seconds to complete.
However, they usually come with a fee or between 0.5% and 5%, depending on the exchange.
It’s always nice to have peace of mind, as your bank will support you and help you recover money if the exchange vanishes or takes your money.
Plus, if you’re using a credit card you’ll get reward points – double win!
If you don’t mind waiting a little bit, then a bank transfer will be a good choice for you.
Bank transfers are free to make but come with a delay of up to 3 working days for it to be fully processed.
All exchanges and stockbrokers accept bank transfers, which is fantastic.
You also have the peace of mind that the bank can help you get your money back in the unlikely event that you’re scammed by an exchange.
Withdrawals to bank accounts via bank transfer are also free to make, and usually have higher maximum amounts than a card transaction would.
Again, if you’re in a country with a banking ban, you won’t be able to use this payment method to buy Cardano.
PayPal and crypto are becoming closer with every passing week.
Ever since PayPal announced that you can buy crypto through its app, exchanges have been listing it in droves.
This means that when you come to make a deposit at a crypto exchange, you can click pay with PayPal.
You’re then directed to the PayPal interface to complete the transaction.
If you don’t have a PayPal account you can create one in seconds, funding it with a bank transfer or a credit card deposit.
Stockbrokers and stock exchange apps tend not to support PayPal as a payment method, on the other hand.
This is down to anti-money laundering protocols set out by regulatory bodies.
If you don’t mind a bit of risk, you can opt to buy Cardano with cash.
You’ll need to find someone n a forum or group that wants to sell you their Cardano, but it can be done.
There are many dangers involved with this type of transaction, but keeping your anonymity is worth it.
If you do opt for this route, take a couple of friends with you, one to the meet and one can wait around the corner with the bulk of the cash.
Once the Cardano is legitimate and you get good vibes from the dealer, you can ask your other friend to come with the cash.
Doing this protects the cash should the Cardano dealer turn out to be a shady guy who’s there to rob you.
Remember, always meet in a public place during the day.
What’s the difference between buying Cardano at an exchange and a broker?
When you buy Cardano, you need to remember that not all Cardano is the same.
If you buy it from a cryptocurrency exchange, then you’ve bought the real deal.
This is CArdano that you can move into your own wallet, track on the blockchain and use for real-world applications.
However, if you buy Cardano from a stockbroker, then you’re buying a contract for difference (CFD).
Simply put, a Cardano CFD is a bit of paper that says you own X exposure to Cardano.
If you bought 100 ADA from your stockbroker, you bought exposure to the price of 100 ADA.
You don’t actually own any ADA, nor can you withdraw it to your own wallet.
While this sounds like a negative, it’s a lot safer than using a crypto exchange as you cannot get hacked or have your Cardano stolen.
It’s ideal for less technical people and those who are not internet savvy.
So, while it’s usually better to buy Cardano from an exchange, buying from a stockbroker isn’t a bad thing.
Are Cardano profits taxed?
When you trade cryptocurrencies, you could end up making a lot of money.
You could also end up losing money – it’s all part of the fun and games.
But this opens the can of worms that is tax.
Crypto tax is a nightmare as there are so many rules and regulations.
We’ll run you through the basics of it here, but for more information and more detailed guide to crypto tax, check out our handy guide to crypto tax.
Several countries tax you on your crypto gains, but allow you to reduce the payable tax down to $0 by holding for a year or longer.
Australia, Germany and Malta currently have this practice in place.
This makes long-term holding more cost effective come tax time.
On the other hand, some countries let you pay no tax at all.
This will be because capital gains tax doesn’t exist, tax isn’t a thing, or cryptocurrencies are tax exempt.
You don’t have to pay tax on your Cardano profits in these countries:
- Hong Kong
Elsewhere, you have to pay tax, unfortunately.
The good news is that if tax is payable on your profits, it’s also deductible on your losses.
Every time you use your Cardano it’s considered a taxable event, so you need to track everything you do.
You can manually do this at the end of the year by downloading reports from exchanges and wallets, or you can use an app to do it for you as you go.
Simply hook up all the wallets you own with the app and it works its magic, giving you an easy final number to put in your tax return at the end of the year.
The best Cardano tax calculation apps are:
Alternatively, you can seek out a crypto tax expert in your area. You can also read our guide to Crypto Taxes.
Is Cardano a good or bad investment?
Cardano is already a top 10 cryptocurrency, and it’s not even fully completed yet.
This means that it’s still got a lot of development work to come, meaning there will be more use cases in the future.
As more features come online, more and more people will flock to Cardano.
It’s low fees, fast transactions and diverse range of use cases make it a potential Ethereum killer once it’s fully developed.
With that in mind, Cardano is a brilliant long-term investment opportunity.
It has already signed deals with big companies and governments, and it’s not finished.
Once Cardano is fully up and running, we’ll likely see more demand for Cardano, driving its price up.
However, just as price can rise, it can also tank.
One wrong move in production, or one major bug and it could cripple Cardano’s future.
So, do bear this in mind if you opt to buy Cardano.
Can I invest in Cardano with leverage?
If you’re going to invest in a cryptocurrency like Cardano, you might get tempted to do it with leverage.
What this means is that a crypto exchange will allow you to purchase up to 100x more Cardano than your balance will allow.
If Cardano goes up in price, this can pay off, landing you a significant payday.
However, if Cardano goes the other way and drops, you’ll get liquidated and your account balance will fall to $0.
Let’s say you’ve got $100 in your account, and you opt to go long on Cardano at 100x leverage.
We’ll also say 1 ADA is $1, just to make this easier to understand.
With your $100 you’ll get 10,000 ADA.
If Cardano rises in value to $2, you’ll make $10,000.
However, if Cardano drops to $0.99 you’ll get liquidated and lose your entire balance.
So, while the potential gains are huge, even a 1 cent movement the wrong way will wreck your balance.
Unless you’re a seasoned pro, steer clear of trading Cardano on leverage.
It’s far easier to lose your life savings than it is to make a fortune.
Can I day trade Cardano?
Cardano is still a highly volatile cryptocurrency, meaning daily swings of 15% are not uncommon.
This makes it prime day trading material.
Stick your chart on the 1-minute or 5-minute scale and start plotting your moves.
The whole aim of day trading is to take advantage of micro movements in the price.
You bet with a big bankroll, known as a lot, and trade a single candle at a time.
The bigger your lot, the smaller the price movement must be for you to win the trade and walk out with a ton of cash.
However, this is extremely difficult to do and takes years of practice to master.
If you’re willing to put in the time, day trading is a profitable activity.
You can also use crypto trading bots to help you.
Is Cardano a good long-term investment
All top cryptocurrencies are good long-term investments.
To quantify this, Cardano is up 5,987.31% since it launched in 2017.
While you can make good money trading Cardano, there’s a lot of money to be made by simply being patient.
Not to mention, if you’re patient and wait a few years, you’re less likely to lose money through bad trades.
The long-term investment is always a good idea, especially with cryptocurrencies that are still developing and growing.
In 5 years’ time when Cardano is completely developed and has buckets of use cases, we could see it worth thousands per coin.
That long-term potential is huge, making it well worth a go.
If Cardano dips, don’t fear.
Ride out the dips as the bull markets always come back and pump up the price.
Cardano VS. other cryptocurrencies – How does it measure up?
Cardano is looking to directly take on Ethereum, and has a good chance at giving it a run for its money.
However, Ethereum is well ahead in terms of features, use cases and number of users.
With Ethereum 2.0 just around the corner, Ethereum will get an added boost.
This will make it faster, cheaper and more energy efficient.
On the other hand, Cardano is still in development and doesn’t have many of the features that Ethereum currently does.
This means that Cardano is missing out on the current decentralized finance (DeFi) hype, despite best efforts to get that launched as fast as possible.
Binance smart chain also does everything that Cardano is planning to do, not to mention it has the name of Binance supporting it.
Cardano does its job very well and has a lot going for it.
If it can speed up development and get more big features onto the blockchain, it could very well top Ethereum.
But for now, Cardano is not really worth more than $2.
What does the future look like for Cardano’s price?
Cardano looks promising, but it’s still lacking a lot of features that its competitors have.
If it can get them in place and working well, then Cardano could rocket in value.
However, that all depends on how long it takes to get these features live, and whether people will part from a blockchain they already know and love.
If Cardano can pull off the dream move and start acquiring players from the Ethereum and Binance Smart Chain space, then we could see Cardano worth at least $100 each.
But, until more features go live, Cardano doesn’t motivate a higher price, unfortunately.
Cardano faces an uphill battle to launch its full suite of tools and features before the others run away with the lead.
But, with a bit of luck Cardano can pull it off and join the big boys at the top.
What’s the supply and demand like for Cardano?
Cardano has a maximum supply of 45 billion ADA, and this is a hard cap.
Currently, there are 31.95 billion ADA in circulation, with more added every day.
While Cardano doesn’t have all its features live, the supply versus demand is heavily swayed in the demand court.
This means there’s more demand for Cardano than supply at the moment.
But, this is likely down to crypto being in a bullish cycle, rather than people using Cardano to interact with the network.
Once more features go live and we can finally use decentralized finance (DeFi) and other smart contracts on Cardano, then this demand will increase significantly.
Challenges ahead for Cardano
Cardano faces a lot of challenges ahead, a lot more than most other blockchains.
For one, Cardano isn’t yet finished.
This means it’s lacking features that other blockchains already have.
If it doesn’t get a move on, we could see Cardano holders get fed up with waiting and move over to other blockchains that are already working.
But, if it rushes development then it could end up self-destructing and riddling itself with bugs.
Neither are particularly exciting prospects, so Cardano needs to strike a balance between quality and speed if it’s going to survive long-term.
Cardano uses a Proof of Stake (PoS) consensus mechanism, meaning that it’s already very energy efficient.
It’s a 3rd generation PoS blockchain and currently uses less than 0.01% of the 110.53 TWh that Bitcoin uses.
As long as Cardano can scale well as a PoS blockchain, then it will remain one of the most efficient blockchains out there.
Laws and regulations
Currently, Cardano is regulated by the same laws and regulations that all other cryptocurrencies and blockchains face.
This is both good and bad for Cardano.
There are no laws and regulations that specifically focus on Cardano and its use cases.
This makes it hard for Cardano to really stand out and shine, but it also means that it can get in on the ground floor and help create these regulations.
If it can work with regulators, we could see specific laws and regulations for these types of blockchains, which would be fantastic.
Ethereum and Binance Smart Chain are arguably Cardano’s biggest competitors.
These 2 are already years ahead of Cardano, with real world use cases and millions of daily active users.
Cardano will have to pull something special out of the bag to overtake these 2, but if it sticks true to its vision, it could manage this feat.
If it does, we could see Cardano become a top 3 cryptocurrency with ease.
But, we’re still a very long way off this happening/
Cardano could become the king of crypto!
Cardano is an impressive cryptocurrency and blockchain, with the potential to take on the biggest names out there.
If it can continue to develop and push out updates to reach its goal of being a better version of Ethereum, it could very well be the king of cryptos.
It has a lot of potential and use cases, if it can get all its features developed and online.
But until then, Cardano is mostly just hype.
Its partnerships and announcements can’t exactly use the blockchain until more has been developed.
So, if this takes too much longer to go live, then we could see these governments and companies look elsewhere for a blockchain solution.
Cardano has all the ingredients of a top 3 cryptocurrency, and hopefully it can mix them all together as its development continues.
Frequently Asked Questions (FAQ)
Cardano is currently rising in price because demand for it is increasing on the back of partnership announcements.
As it stands, there are very few working use cases to prop up the demand for Cardano and therefore its gains long-term.
Once more features are live, Cardano will have more working use cases and more demand, which will fuel its price rises.
Cardano is a Proof of Stake blockchain, meaning that you stake ADA coins in order to validate blocks.
The more you stake, the better your chances of validating the next block and getting part of the reward.
You can join staking pools to increase your chances of validating blocks, sharing the rewards with others in the pool.
At the moment, a few merchants accept Cardano as a payment currency.You can buy travel and accomodation with your Cardano, as well as wine, sneakers and a few other bits and bobs.
The market for shopping with Cardano is still growing.
Cardano has all the ingredients to be worth a small fortune in the long-term, if it manages to continue developing and growing.
There’s no way to guarantee it, but if development continues as planned, we could see Cardano worth $100 in the next few years.
However, any setbacks or issues could destroy this potential.
Cardano was invented by Charles Hoskinson in 2017 after he fell out with Vitalik Buterin. Hoskinson wanted to commercialize Ethereum, but Buterin didn’t agree.
So, Hoskinson walked away and created Cardano to fulfil his own visions of what a blockchain should look like.
It’s very hard to earn Cardano at the moment, with only a handful of faucets out there. Your best way to get free Cardano is by completing tasks such as viewing ads or completing forms.
Some employers might pay you in Cardano, or you could complete bug bounties for the Cardano network.
Cardano is far from complete, and this means that there’s lots of room for errors and issues. If Cardano can’t finalize its smart contracting platform, it could tank the price.
There’s a lot of hype around Cardano, so if any partnerships walk away from the table, it could cause havoc on the price.