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Is Cardano A Good Investment And Should I Invest In ADA?

13 Min Read
Last Updated March 27th 2021

Investing In Cardano : Getting Started

Shall I Invest in ADA? Is Cardano A Good Investment?

If you are new to the world of Cardano investing, you might be wondering if ADA is a good investment or shall I invest in it?. Well, let’s break all Cardano-related myths circulating online before you consider investing in ADA.

Keep on reading to learn more about Cardano - one of the top digital assets in 2021.

But let’s start with the basics first: what is Cardano in the first place?

What Is Cardano?

Cardano is one of the top cryptos worth watching in 2021. Cardano is a decentralised open-source blockchain platform that is also one of the first peer-reviewed networks.

As a decentralised network, Cardano becomes an incredible alternative to traditional banking, which can help unbanked people access financial services and execute payments. This is vital because the number of people with no access to financial services across the globe -  particularly in the majority of developing countries - is alarmingly high.

After all, cryptocurrencies aim to provide an alternative to traditional payment systems, away from authorities and governments.

Cardano is not your regular blockchain, though. The platform has undergone rigorous testing to ensure the effectiveness and safety of its protocol.

Moreover, Cardano is considered a third-generation platform that has improved scalability compared to Bitcoin, a first-generation coin, and that can potentially replace the leader in smart contract development, Ethereum, a second-generation coin.

What makes Cardano unique is the fact it uses a two-layered architecture. The first layer, the Cardano Settlement Layer, is used to execute transactions, while the second layer, the Control Layer, is used for the execution of smart contracts. 

Another unique feature of Cardano is its proof-of-stake algorithm called Ouroboros. Note that the blockchain is divided into epochs made of slots, and rewards are split between the input endorsers, multi-party computation stakeholders, and slot leaders.

Cardano’s native token ADA is ranking #6 on CoinMarketCap. It has a limited supply of 45 billion coins, with 31,112,484,646 coins currently in circulation.

We should note that Cardano has different use cases. Cardano can be used not only as a payment method and a voting tool on Cardano’s platform but across different industries, including agriculture, education, healthcare, and trading.

Though the pros of Cardano are evident, is ADA a good investment? Can it overcome possible challenges and become the leader in the crypto market?

Is Cardano A Good Investment?

Many experts believe Cardano is a good investment compared to other cryptos. Despite all the ups and downs in ADA history, experts believe that Ethereum price could grow further in the long-term.

Because of its limited supply of 45 billion coins, Cardano’s scarcity can lead to an increase in its value and demand over the years.

As stated above, its improved proof-of-stake algorithm and two-layered architecture are also unique features that attract investors worldwide.

In fact, many people choose to stake ADA to earn a profit. Data show that users can earn 4.5% in a single year by staking ADA (or by joining a staking pool).

Source: CryptoBriefing

It’s not only its development and tech properties that attract investors. The fact that ADA has a wide range of use cases is a major motivator. As explained above, Cardano can be used for the execution of smart contracts on both public and private scales.

If Cardano fulfills its promises of unprecedented scalability of millions of transactions per second, then Cardano may really replace digital giants like Ethereum and traditional payment systems like Visa.

Besides, Cardano is a good investment for people who want to diversify their portfolios and reduce exposure to risks and spread rewards, which is crucial in times of financial instability.

Talking about risks, however, although Cardano is a good investment, cryptocurrency investing remains a risky venture.

Cryptocurrencies are highly volatile, and even though dramatic price fluctuations can be a great opportunity for some day traders, they can be devastating for others.

On top of that, though the ongoing pandemic may have led to increased use of blockchain technologies, changing regulations throughout the globe may lead to a decrease in crypto demand.

Thus, before you decide to invest in ADA, always do your research and assess the risk-reward profile of Cardano.

How Much Should I Invest In Cardano?

If you decide to invest in ADA is the right financial move for you, then you may ask how much you should invest.

The rule in crypto trading is to buy low and sell high and invest not more than 1% of your funds on a single trade. Furthermore, one should never invest more than they can afford to lose as cryptocurrency investing may result in significant losses.

If you are willing to take the risk and buy ADA, the good news is that investing in ADA doesn’t have to be complicated. As Cardano coins are not mined, this ensures higher accessibility for beginners and people who want to start trading without investing a small fortune.

You can start buying and trading cryptos with as little as $100.

If you are considering Cardano, do not forget that Cardano has maintained strict control over its network and allows investors to store ADA in their native wallet Daedalus

Daedalus is defined as a “full node wallet. This means that unlike light wallets (e.g., Yoroi, Adalite, etc.) Daedalus downloads a full copy of the Cardano blockchain and independently validates every transaction in its history. That way you get maximum security and completely trustless operation, without centrally hosted 3rd part servers.”

Interestingly enough, the number of ADA wallets has increased significantly. On January 5th alone, 4,000 new ADA wallets were registered.

Source: Capital

How Much Could Cardano Be Worth?

Given that Cardano is a digital novelty valued by crypto enthusiasts and investors, many experts believe that Cardano will increase in value over the next few years.

While cryptocurrency prices depend on various factors, including demand and supply, market sentiment, cryptocurrency news, and regulations, financial experts see a huge potential in Cardano and other coins as an alternative to global currencies, particularly during the ongoing pandemic when economies are down.

Though making crypto predictions is speculative, based on historical data, price projections, and Fibonacci extensions, Cardano experts believe that ADA may reach new highs.

Looking back, Cardano grew significantly over the past years; now Cardano is boasting over 1,400 staking pools and is collaborating with major institutions beyond borders. 

Its continuous development - with the Goguen mainnet (aka network) expected to launch in February-March 2021 - may help Cardano become a real Ethereum killer, which may lead to an increase in its value.

Here we should note that ADA closed 2020 at $0.18, with prices fluctuating between $0.135-$0.19 throughout December 2020, and hit $0.2572 on January 5th, 2021.

WalletInvestors predicts that Cardano may soar to $0.726 by 2023 and even reach $1.181 in 2025.

According to some even more optimistic predictions provided by CoinPriceForecast, ADA may rise to $3 per coin by 2029.

In fact, Cardano has been outperforming Bitcoin in terms of high growth rates. While Bitcoin has grown by more than 300%, Cardano has grown by more than 500% increment and has a good chance to become a leader in the crypto market.

Actually, as the total amount of ADA coins is limited, the risk of inflation is eliminated, which could increase its scarcity and value further.

Ready To Invest In Cardano ADA?

Conclusion: Is Cardano a Good Investment and How Much Will ADA Be Worth?

Should You Invest In Cardano?

Invest in Cardano or any kind of investing can be very risky if you don’t know what you’re doing, especially during uncertain times. You may be asking yourself, “should I buy Cardano right now?” So here’s a tidbit, investing your money doesn’t have to be complicated.

While no investment is risk-free, investing in Cardano has genereated about 600% return over the last two years. Whether you’re new to Cardano investing or just curious about how to make the most of your investment, understanding what to know before investing in Cardano is critical.

The below prediction figures outlines some of the Potential high and low of Cardano ADA price prediction forecasts in 2021, 2022, 2023, and 2025 offered by technical analysts and industry experts.

Year High Low
2021 $0.85 $0.22
2022 $1.52 $0.60
2023 $1.82 $0.90
2025 $3.75 $1.50

 

Cardano can also become a tool of different online services across areas, such as agriculture, healthcare, and education. It’s collaborating with different major institutions to improve interoperability and transparency.

While Cardano’s success depends on its ability to fulfill its promises and provide high scalability, as well as an effective platform for smart contracts, many experts claim that ADA is worth holding as its price may rise in the near future.

If you are still considering adding ADA to your portfolio, remember that you need a safe online exchange to get started.

In the end, the final decision comes down to you. What kind of investor do you want to be? Figure out the answer to that question, you’ll definitely know if Cardano is a good investment!

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Key Points

  • Cardano is one of the top cryptocurrencies in terms of market cap and trading volume.
  • Cardano has unique two-layered architecture and novel proof-of-stake algorithm principles that makes Cardano a real game-changer in the cryptocurrency market.
  • In fact, Cardano is considered a third-generation cryptocurrency as it has the potential to improve crypto scalability and smart contract development.
  • Cardano’s native token is called ADA.
  • ADA has grown significantly and outperformed giants like Bitcoin, a first-generation coin, and Ethereum, a second-generation coin, in terms of growth rates.
  • Many experts believe that ADA has a bright future and may reach $3 in the years to come.
  • Nevertheless, investing in Cardano remains risky and requires in-depth research and training to help you tame the volatility of the market.

 If you liked our articles Is Cardano A Good Investment And Should I Invest In Cardano? do not hesitate to share this article with anyone else interested in cryptocurrency investing.

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