Is Cardano (ADA) a Good Investment in 2021?
Cardano (ADA) – Without any sort of doubt, the biggest investments today are happening in the crypto field. Cryptocurrencies have become extremely popular, especially in the last decade, and many Wall Street investors tried to turn a blind eye to this, until now. It is something new, fresh, that quickly attracts anyone who is willing to invest and potentially get amazing gains in return.
Unlike the traditional way of making money, cryptocurrencies offer something unheard of before. You can choose from thousands of different currencies and at the same time trade and make profits with the volatility that’s going on around the markets. With the growth of Bitcoin in the last decade, the crypto king has proven to be one of the best ways when it comes to online trading, and it is becoming more and more interesting every day.
However, there is an abundance of hesitation from new people in this world, partly due to the confusion and lack of knowledge around it. This can be easily overcome with a lot of research, and by diversifying the source of information you can also diversify your type of investment because Bitcoin is not all there is to it.
While Bitcoin seems to be the “big brother” in the world of cryptocurrencies, it is certainly not the only one. There are many other cryptocurrencies that are flourishing in this era, and definitely worth keeping an eye on. One of the most talked-about altcoin these days is Cardano (ADA), which is becoming a huge phenomenon lately.
Cardano (ADA) Investing – What does it mean?
Investing in Cardano (ADA) does not differ much from investing in other cryptocurrencies. It is one of the top 5 cryptos and seeing amazing gains especially with this new bull run that seems to keep ongoing.
If you’re looking to invest in ADA, all you need to do is get some FIAT (stable currencies such as USD, EUR) on an exchange, buy Cardano (ADA) using that money, and from here on you have two options – either HOLD, like many investors tend to do, or trade with that money on the market fluctuations.
Trading means either buying and selling at a later time when the price goes up, or you can do what investors refer to as “shorting” – sell your Cardano (ADA) just when you think the price is going to drop, and then buy again when the current price is lower than what you sold for. This way, you end up with more ADA in your account, not spending any more of your own money on it.
ADA is listed on almost every exchange out there, you name it – you can find it on Crypto.com, Binance, Coinbase, eToro, and many others.
What makes Cardano special and why should you invest in it?
Since ADA is the big topic we’re discussing here, let’s see what makes it special amongst the other cryptocurrencies and what could make an investor choose it.
The name was derived from Girolamo Cardano, who was an incredible polymath and physician. He was the first person to develop systematic calculations of probabilities, theories that are still used even in our times.
All the goals that Cardano (ADA) developers set are visionary and with a lot of perspectives. Through their work, they want to restore confidence in global economic systems, all through Cardano technologies. Moreover, the platform has a seriously transparent and secure way of conducting commercial and commercial activities, both nationally and internationally.
Cardano is a PoS (Proof of Stake) crypto, which is an extremely reliable way of managing the blockchain. In contrast, Bitcoin and many other coins use a PoW (Proof of Work) system, which relies on miners validating the transactions. With Proof of Stake, the blockchain maintains its integrity through holders who choose to stake their crypto, validating the blockchain and preventing other users from using the same coins twice or more. Long story short, this way of maintaining a blockchain is extremely safe.
In the PoS system, users who choose to stake their coins are given a certain amount of rewards every few days from the Cardano (ADA) network, depending on the amount of ADA they have staked.
In contrast, other cryptos such as Bitcoin that rely on Proof of Work are different. The blockchain is maintained mostly by miners, who earn rewards by mining crypto and validating the blockchain.
The Proof of Stake method that Cardano and a few other altcoins use is generally considered to be a much more eco-friendly system since it does not require any electricity, unlike PoW which requires mining, and thus, higher electricity costs.
To add to this topic, smart contracts are also on the roadmap of Cardano and are expected to become available soon. This will allow other cryptocurrencies to function using Cardano’s blockchain, thus helping the community even more, and potentially driving the crypto’s price further.
Is Cardano a good investment now? How did it perform in 2020?
If you’re looking to invest in ADA, you need to determine if it’s the right crypto for you, and also understand a bit about the key factors that determine the coin’s price.
Looking at the performance of Cardano’s past in recent years, it’s vital to understand if the ADA is still a viable investment in 2021 and if you should buy it.
Cardano (ADA) suits a number of different traders and investors. It is a great option for cryptocurrency enthusiasts, and also a good investment for the big investors in the crypto sector.
According to Sean Williams, Cardano’s performance in 2020 was as follows:
“Crypto investors have also seen Cardano’s Ada token blow bitcoin out of the water this year. Ada’s 307% ascent more than doubles the return of the world’s most popular digital token.
To keep with the ongoing theme here, investors appear to be really excited about the ongoing reinvestment in developing Cardano’s blockchain. In late July, the Cardano team launched Shelley, which will allow more nodes to be run by network participants. In other words, Shelley is designed to vastly increase the decentralization of the network, presumably making it more secure. ”
Unlike the Bitcoin blockchain, Cardano (ADA) actually works through an algorithm that approves transactions and then processes them on its blockchain. It was founded by one of the people who participated in the creation of Ethereum, Charles Hoskinson.
As a currency, Cardano is like no one other in the blockchain community, because the academic research credentials it has been incomparable. It does not necessarily translate into immediate success, but it gives the impression that it is safe, well developed, and well researched. It ranks as one of the top cryptocurrencies in the market capitalization, often reaching heights, as in the top 5 rankings, according to CoinMarketCap.
Is investing in Cardano (ADA) in 2021 a good idea?
If you understand the background of Cardano’s reputation over the last decade, then you can also assess whether the currency is a viable investment in 2021 and whether you should go for it. In order to reach such a conclusion, some details need to be carefully considered.
First of all, it is crucial to make a personal decision whether Cardano (ADA) as a currency serves you on the basis of somewhat personal interest. If it meets certain needs and desires that you have, then it is most likely a great coin for you to invest in.
Cardano is very suitable for many traders and investors. It is a flourishing crypto in the altcoins enthusiast’s world, a realm different from that of Bitcoin, but still full of potential.
In June 2019, Cardano, which was worth just $233,000 was taken from the Bitrue digital money trade. This seems to have matched the rapid and huge decline in value that Cardano saw simultaneously. The hottest news came for Cardano (ADA) in late November when Weiss assessments said the Hoskinson Foundation was “predominantly indefinitely” in the EOS blockchain contender. It has shown a lot of potential as an investment channel and many crypto traders are turning their attention to this currency. Cardano’s solid presentation in March 2020 could be clarified by a progression of positive statements. First, equipment wallet maker Ledger reported adding support for ADA. Towards the end of March, Cardano (ADA) said it had actually revealed a significant upgrade to its core network ahead of the arrival of its BFT (Byzantine Fault Tolerance) protocol. This also strongly supports its bright future in 2021 and forecasts say it could prosper.
Source: Tradingview
As you can see, Cardano seems to have an extremely bright future for 2021. With this new bull market, Cardano (ADA) was very close to hitting a new ATH, and at the time of writing this article, it is trading at around $2.1.
Many investors consider ADA an extremely stable coin, and some of them predict that it could even reach $5 (or more) by the end of 2021. As will any altcoins, unfortunately, it is still tied up with Bitcoin – if something happens and BTC crashes, there’s a good chance that all altcoins will suffer losses – just like in the previous bear market.
However, even despite this, Cardano has proven itself to be very reliable and maintained a good price level even when BTC and most of the alts were crashing.
Our advice is, as always, to do your own research and take the time to decide what coin suits your interests best. Cardano (ADA) is considered to be a great option in the cryptocurrency scene, and many analysts believe that it’s going to grow exponentially within the next months.
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