There are lots of reasons why you might want to invest in Cardano. Many think that they have to be a savvy crypto investor with lots of money — but, with some common sense and research, it’s pretty accessible to invest in Cardano, even for beginners.
After the launch of the first cryptocurrency based on decentralized blockchain Bitcoin, other developers saw the need to improve on the deficiencies that were glaring on the Bitcoin blockchain, and so they create Ethereum. Ethereum utilized the power of blockchain technology but went a step further to introduce smart contracts and host decentralized applications or dApps.
Over time, and with the need for new use cases, other developers saw the need to have networks that could be scaled to host mass transactions and improve the speed of these transactions. Eventually, they developed Cardano (ADA).
Cardano developers launched this app in September 2017. These developers aimed to have a platform to launch and execute smart contracts at a higher speed and more efficiently. They also needed a network where various blockchains can communicate without the need for an intermediary. Elimination of an intermediary meant faster and efficient transactions.
You can learn a lot more about the features of this fantastic digital currency online. This article highlights the reasons why you should invest in Cardano.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
11 Reasons Why You Should Invest In Cardano ADA
There are all kinds of reasons why you might want to invest in Cardano — probably some you’ve never considered. Here are the top 11 that we found.
1. Cardano Provides Practical Uses
Currently, Cardano is the fastest-growing cryptocurrency in the crypto industry. The blockchain platform fuels this growth uses in the physical world. It is among the few blockchains that both governments and large enterprises use.
As mentioned before, Cardano aims to improve the smart contract functionalities provided on the Ethereum platform. In line with this, Cardano enables users to develop smart contracts that do not need them to enter into third-party agreements. They aim to make dApps as stable and secure as possible.
In terms of its uses, this platform is already helping out one of the world's most important organizations, the World Health Organization (WHO). This body estimates that a substantial amount of currently being sold online is substandard or fake. Cardano blockchain has a solution to this problem in that it can easily validate and authenticate the source of all pharmaceutical products hence ensuring safety to people worldwide.
Another vital use of this platform is securing all academic certificates. Developers have designed the Atala PRISM, and ID and credential system that provides a tamper-proof ecosystem for storing these certificates and other data including health records, civil records, and career references. Further, the BeefChain works with the Cardano system. It coordinates with primary producers to ensure there is transparency from field to fork.
2. Cardano has Been Growing from Inception
Digital currencies fluctuate a lot due to their volatility. Before you invest, you need to find that one that shows some aspects of stability. Cardano, with its practical uses, has been growing in importance over time. This growth also reflects on its value.
Since its inception in 2017, this currency has been growing slowly but steadily. Among the reasons why its value has been growing is its numerous uses. Many users consider it a solution to the challenges that both Bitcoin and Ethereum have been facing.
The issue of transaction speed and fees charged on the network has barred the mass acceptance of cryptocurrency. Bitcoin, for instance, can only confirm or process about 3-7 transactions, while Ethereum can manage only about 20 on the higher side. Cardano with its Ouroboros proof-of-stake algorithm can manage to process more than 1000 transactions per second.
Bitcoin has been using a proof-of-work protocol that consumes a lot of energy to confirm blocks making transactions slow and expensive and unreliable when it comes to scaling up for multiple uses like on the Cardano platform. The minimal energy that Cardano requires makes it more efficient hence its wide acceptance. This acceptance has significantly led to its growth, making it a viable asset for investment.
3. Cardano has a High Market Capitalization
An issue that would-be investors have when considering whether or not to invest in altcoins is liquidating them. Liquidation involves exchanging those digital currencies for fiat cash or other digital currencies when the price is ripe, and the conditions are favourable.
The market capitalization for Cardano stands at $17.6 billion. This high capitalization is an indication that the coin is liquid enough. With all the users currently in its network, you would easily find many willing buyers when you want to liquidate your investment. In the last 24 hours alone, the coin's trading volume was about $790 million.
As long as you use the appropriate selling platform, you are sure to have your coins sell as soon as you float them and have your money in no time. This aspect makes it an excellent digital currency for buying, keeping then selling with the price is ripe to make significant profits.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
4. Cardano has a High Potential Market
Cardano is described as an academic cryptocurrency. The developers build this platform from scratch using academic conventions, scientific research, and evidence-based methods and finally confirmed its inception via peer-reviewed research. Their main aim was to have a platform that could serve the masses without the deficiencies existing in Bitcoin and Ethereum.
One of their goals was to include the unbanked or the people not within the world’s financial system get on board, but now on a system, they could trust to conduct business transparently. The team focuses their activities in Africa and other developing countries where estimates show have a high prevalence of unbanked individuals.
With more than two billion people still off the grid, there is a high potential for this platform if the team can get most of them on board. As an investor, it is all about the numbers, and these are excellent potential numbers.
Read Also: Can Cardano Make Me Rich?
5. Cardano has a Formidable Team behind it
Charles Hoskinson, the co-founder of Ethereum, is among the individuals running this platform. You can be sure as an investor that has been in the team that founded and has kept Ethereum going all those years. He certainly knows what he is doing.
Cardano's other members include a team of 24 skilled professionals distributed in 15 countries and four continents. Among the top members of the non-profit foundation include Nathan Kaiser, the chairperson, Manmeet Singh, the vice-chairperson, and other council members, including Tamara Haasen, Nicolas Arqueros, Domino Burki, and others. You can be sure that this is a team focusing on development and growth. Investing in such a team is putting value in your money.
6. Cardano is Listed on Serious and regulated Exchanges
If you want to know whether a digital currency is a serious project, just look at the exchanges on which it is listed. With so many coins and very few exchanges, these platforms have to filter through all those digital coins and select only viable solutions, and show promise. If listed in more than one serious exchange platform, then the coin is formidable.
Cardano token, the ADA is listed on Coinbase Pro among other exchanges. Immediately after getting listed here, its price shot up by about 40% before stabilizing. This effect shows you just how important it is for a coin to get listed on these platforms. It is more or less like a stock getting listed on a financial platform such as the New York stock exchange. Other exchanges on which this token is listed include Binance, ZG.com, Huobi Global, OKEx, and HBTC.
7. Cardano introduces new technologies
When Bitcoin came into existence, a few forks led to the emergence of Bitcoin Gold and Bitcoin Cash among other digital coins. These new cryptocurrencies did not introduce anything new to the crypto space, and that is why they have dwindled over time.
However, the emergence of Ethereum brought about a whole new or novel idea. While Bitcoin was acting as a store of value, Ethereum brought about developing dApps and smart contracts. These two cryptocurrencies both had something practical to give to the world and grew independently.
It is the same case now with Cardano. The Cardano network focuses on unbanked individuals and seeks to give them a solution. Even those with bank accounts will probably develop an interest in this network, considering what is offering to them.
It seeks to fast-track banking transactions at very low costs of just about 25 cents as transaction fees. When you compare this to 1.5% to 5% that banks charge and considering the length of time they take to process just a single transaction, then you can be sure that the Cardano network might just replace the existing banking system.
The unbanked population with more than two billion people could now have a cheaper option of financial services and executing payments. A digital currency that promises to replace such an important service will probably be significant and worth your investment.
The ongoing upgrade to the network is called Goguen. This update seeks to help users on the platform develop their on-chain tokens to carry out transactions. Users will be in a position to use the custom tokens to transact with them directly on the blockchain in the same manner as the native token ADA.
Other updates that the network is working on include Basho which will ensure interoperability and scalability and Voltaire that seeks to include governance and a treasury system on the Cardano network.
Check Out: Will Cardano Price Double Due to DeFi in the Future?
8. Cardano is a Unique Cryptocurrency
Terming every other new digital currency unique could be a cliché, but that is what Cardano is emerging to be. Digital currencies are classified into the first, second, and third generations. The unique first-generation cryptocurrency was Bitcoin and was also among the first in the industry.
The coin grew in popularity because it sought to replace the central controlling authority that governments have over the world's financial system and has thus gained a considerable success to date. The second generation featured Ethereum. Ethereum aimed to help investors digitize physical assets through smart contracts. It also aimed to eliminate the controlling hand that brokers and agents had over investors. Lastly, it aimed to get rid of the controlling measures governments had that prevented faster and more transparent transactions.
Cardano comes in as a third-generation cryptocurrency. Having studied the functionalities and the deficiencies of the first two, which included slow transactions and high network transactions fees, the developers of this third-generation sought to include the services offered in the first two generations in a more efficient manner.
They also aimed to streamline these transactions by lowering the costs significantly, and making them as simple as possible for the local citizen. This appeal to the masses that the first two lacked that the Cardano network is banking on and making very good progress so far.
Cardano utilizes a two-layered architecture where the first layer executes transactions and the second executing smart contracts. This combined with its Ouroboros proof-of-stake algorithm with a block of chain divided into epochs developed from slots enables the network to process transactions at super lightning speeds and keep the cost of processing as low as possible. These features make this network so attractive to the masses and a viable investment option for would-be investors.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
9. Scarcity of Coins makes Cardano Valuable
It is hard to understand how a network with a limited supply of 45 billion coins. However, if you think about the sectors this network is already serving, you would understand why this fixed supply is scarce. Currently, the Cardano network is providing services to various industries including agriculture, education, trading, and healthcare. More is yet to come on board.
Compared with the conventional banking systems where banks, in collaboration with governments, can choose to print unlimited paper money without a backing value system, then this supply is scarce. Keep in mind that the number of these tokens will never exceed their capped supply no matter how many more industries are served. This mechanism prevents the currency from deflationary and inflationary effects since there is no central controlling authority to manipulate the supply.
In terms of investment, research shows that investors who stake on Cardano earn an annual interest of about 4.5%. Its technological features and its wide range of use, coupled with its scarcity, are the key reasons this asset attracts many investors.
Developers project that the network could soon be in a position to process up to a million transactions per second. If they achieve this fete, then this currency will replace a lot of other digital coins as well as conventional models of payment such as Visa, and gain substantial value. It is such projections that you should consider if you want to invest in the long run.
Read More: Is Cardano a Good Buy?
10. It is Easy to Invest in Cardano
Whether you are a beginner investor in cryptocurrency or a seasoned one, there is always that barrier to entering a trade with a new digital currency. for a seasoned trader, this should not be a problem since you already understand the dynamics of exchange platforms, trading platforms, and crypto-wallets.
For a beginner trader, all you need to do is identify an exchange where the ADA token is listed, and then create an account to buy the coins. Keep in mind that Cardano has strict control over its network. They recommend investors store the coins they buy strictly in their Daedalus wallet, but you can also choose to use ledger Nano S or Ledger Nano X, both hardware wallets.
The development team recommends their network wallet since it independently validates all transactions and provides you with full security and a trustless operation. You can easily buy and sell within the wallet without the fear of getting hacked and losing your money.
Additionally, Cardona token ADA is still low in price. The price at the moment is oscillating around $0.5, a low entry price that does not require you to spend a fortune to add the token into your portfolio. Even though all cryptocurrency investments are risky, it would be wise to stake this coin considering its prospects and its low price. The risks of massive losses are very minimal, with the reward of growth being more prominent and probable.
11. Cardano has Great Partnerships
Another aspect of determining the viability of a cryptocurrency or a project is the partnerships it has with existing organizations. Digital currencies whose partnerships are with high-level organizations have very promising prospects of doing well in the market.
The reputation and establishment that these organizations and institutions have helped those particular projects grow alongside them. Adoption of a cryptocurrency in such organizations means that the personnel and most other business associates will get on the bandwagon.
Here are some notable partnerships that the Cardano Foundation has managed to integrate with.
The United Nations/IOHK Partnership
Cardano created this partnership to carry out U.N. proposals using the IOHK’s blockchain voting system. This blockchain ensures transparency so that the voting can happen in several different countries without the need for a central control office. This team also has a partnership with Metaps Plus in South Korea. Metaps Plus is among the most extensive payment systems in the country.
Wolfram Alpha and InputOutputHK
These two organizations partnered to help integrate the network's blockchain data into its computational technology. They did this, intending to serve Cardano with Oracle services.
Cardano/Shopify
Cardano has partnered with this big and established shopping store that has outlets all over the world. The store aims to use this token as a mode of payment across its stores worldwide. Shoppers will now shop using ADA tokens and send the same to the stores' wallets without a mediator to control the transactions, as was the case with conventional payment modules.
SingularityNET/Cardano
This decentralized network had to end its relationship with Ethereum and transferred a significant portion of its network to the Cardano blockchain. It cited slow speed and the high costs of transactions on the Ethereum platform.
Travala.com/Cardano
Another use case of the Cardano network is with the hospitality industry. Travala is an established travel site that helps link travellers with appropriate accommodations and hotels. This site is now working with the Cardano network to help streamline hotel bookings. Users can now pay for hotels on this company’s site using ADA tokens.
Cardano/Bidali
Cardano’s Emurgo, the commercial arm of the Cardano network, partnered with Bidali, a Canadian payment processor, to allow ADA holders to pay or purchase products using the tokens from more than 1200 retail brands in the world. Among these brands include Starbucks, Airbnb, Amazon, and Nike among others. This collaboration is a major move that will have most of these brands' customers join the Cardano network.
These partnerships are among the many that Cardano has already established and aims to continue getting into. More organizations realize the Cardano network’s efficiency and are willing to work with the foundation. With the developers keen on further strengthening the network and introducing new and robust features, you can only expect the value of this token to keep rising.
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Conclusion
Cardano is a viable investment option. Its demand keeps on growing, and it has a formidable team behind it to steer it into the future. With the technological advancements, it has made so far in the few years that it has been in existence, the future can only be brighter. Its wide range of practical uses makes it even better. Unlike other obsolete currencies that come and go, this one is here to stay and therefore an excellent choice for any serious investor.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.