Is Now The Right Time to Buy Cardano?

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Last Updated January 31st 2022
4 Min Read

If you are considering investing in Cardano (ADA), there is never a perfect time. If you believe in Cardano's value in the long-term, then buying and holding could prove to be a good strategy. 

The answer to the question: 'Is now a good time to buy Cardano?’ Will likely to depend on Cardano price prediction updates. As per ADA price forecasts, the price of Cardano is predicted to cross the $3 mark again in 2022, soaring towards the $5 level in 2023 and $10 in 2025.

Key points of why now is the right time to buy Cardano:

  • Cardano smart contracts came out a few months ago
  • Multiple-use cases for this blockchain
  • Top-notch security
  • Cardano’s world-class tech team
  • Low threshold for staking

The crypto market is on a rebound, and it now has a market capitalization of $1.6 trillion. One of the cryptocurrencies that have benefited immensely from the rally is Cardano (ADA), reaching $3 in September 2021. Cardano has since dropped in price but investors are still wondering, is now a good time to buy ADA?  

This article analyzes the project to try and answer this question.  

The Upcoming Launch Of Smart Contracts

The Cardano rally in September was driven by news that it was launching smart contracts on its platform on September 12th.

The excitement was driven by the fact that activating smart contracts on Cardano will give it the leverage to compete with Ethereum.

For context, once smart contracts are activated on Cardano, lots of projects could launch on it, especially DeFi-related ones.

There is an expectation that Cardano, being a 3rd generation blockchain, has what it takes to usurp Ethereum as a top platform blockchain.

That’s because it does not have the scalability problems that have plagued Ethereum for years now.

Cardano’s ability to scale is rooted in its consensus algorithm. Through its peer-reviewed Ouroboros Proof-of-Stake algorithm, Cardano can handle over 200 transactions per second on-chain.

It also has the capability to theoretically handle more than 1 million transactions per second through layer two solutions.

Since scalability is one of the biggest challenges to the launch of large-scale Dapps, Cardano could become the platform of choice for anyone looking to launch DeFi solutions that are scalable enough to compete with centralized applications.  

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Cardano Has Lots Of Use Cases

Despite being a work-in-progress, Cardano has lots of use cases. For instance, the Atala PRISM, a blockchain ID system runs on the Cardano blockchain. This is a big deal because blockchain-based ID systems are the future of secure digital ID.

Cardano is also the blockchain that BeefChain, a system that is helping bring transparency to the meat supply chain, uses.

With such top projects building on Cardano, it is clear that they believe in the functionality of this blockchain.

Now that it is launching smart contracts capabilities, the potential for even bigger projects to launch on Cardano is pretty high going into the future.

It’s a platform that has the potential for adoption even by governments in the development of world-class blockchain applications.

Cardano Is Provably Secure

Cardano is one of the most secure blockchains out there. Its security comes from the way it is designed.

Cardano operates in two layers. The first layer is the Cardano Settlement Layer (CSL), which handles regular transactions.

The second layer is the Cardano Computation Layer (CCL), which is meant for developers looking to create smart contracts.  

The separation of the two layers means smart contracts built on top of the Cardano blockchain can be built with a high degree of security.

It is also noteworthy that Cardano runs on a Proof-of-Stake algorithm that is peer-reviewed, and has been proven to be secure.

Security is important because if the project has any loopholes that can be exploited, the consequences can be catastrophic.

For starters, it would discourage DeFi projects from building on top of Cardano. There could also be a risk of the project value declining sharply in case of a hack.

Most projects that have been successfully compromised almost never recover. As such, with Cardano’s strong and scientifically proven security, such issues do not affect the project.

This places it in pole position for adoption and will add to its intrinsic value going into the future.

Don't miss: Will Cardano Make Me Rich in 10 Years?

Cardano Has A Strong Team Behind It

One of the pointers to the health of a project is the team behind it. The stronger the team, the better the chances of success in the long run.

On this front, Cardano is one of the best projects out there. That’s because it has one of the most tech-savvy teams in the crypto space.

For instance, Charles Hoskinson, who, for the most part, is the face of the project, is a top mathematician and computer scientist.

He was one of the founders of Ethereum, which means he is quite an authority in the industry.

Cardano Staking

Staking has become one of the best ways to earn a passive income in crypto. Cardano has emerged as one of the best cryptos on this front.

Firstly, Cardano has a pretty low staking limit. Unlike Ethereum which requires one to stake 32 ETH as a minimum, one can stake as low as one ADA.

This is not only good for investors, but also for project decentralization.  That’s because the number of Cardano nodes is widely dispersed too.

Secondly, Cardano has one of the highest APR yields in the market today. This coupled with the fact that it is a top crypto, by market cap, means demand for Cardano staking is high.

If you believe Cardano can give you exponential gains in the next 5-years or more, then this is a perfect time to buy Cardano. However, it is important to remember that this is still a highly speculative asset.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Read More:

Why Cardano Will Skyrocket 

What Will Cardano Be Worth in 2025?

Cardano Price Prediction

Pros and Cons of Investing in Cardano

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