Should I Buy Cardano In 2022? Pros And Cons Of Cardano Investment

Last Updated July 25th 2022
12 Min Read

After months in the red, the cryptocurrency market is showing signs of returning to life. This means it could be time to start scouting for top cryptocurrencies to buy today. 

Under these circumstances, where does Cardano stand? Is it a promising cryptocurrency to buy now?

Let's dive deep into Cardano to find out. 

Cardano Has Multiple Real-World Use Cases

One of the best ways to tell whether a cryptocurrency is a smart investment is to check out its use cases. Cryptocurrencies with multiple use cases are a safer investment than ones with limited use cases.

On this front, Cardano comes across as a big winner, and one of the best cryptocurrencies to buy now. 

Below are some of Cardano's use cases that make it stand out as smart cryptocurrency investment. 

Atari Prism

The Atari PRISM is a blockchain-based solution that stores academic certifications, health records, and other essential data. Atari provides an easy way to securely store all your personal information so that no one can tamper with them. This is a big deal considering document integrity is one of the biggest issues that individuals and governments struggle with, especially in the developing world. 

Meat tracing through the supply chain

One of the most innovative solutions built on Cardano is meat tracing by BeefChain. BeefChain, a creative blockchain-based project, aims to revolutionize how meat is traced from when it is produced to when the end consumer eats it. With this new system powered by Cardano, both meat producers and meat consumers all get to benefit.  

Dealing with the problem of fake medicine

Fake and counterfeit drugs are a real problem for consumers and drug producers. Cardano's solution for this problem is verifying the source of medications by leveraging the power of blockchain technology. This will help patients everywhere have peace in knowing they're getting what's advertised on the label or package.

Do Cardano's use cases convince you that ADA is an excellent cryptocurrency to buy today? Then check out these top exchanges where you can buy ADA.

  • Binance
  • Coinbase
  • eToro

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

Cardano Is Next-Generation Technology

Bitcoin is a first-generation cryptocurrency; Ethereum is the second generation, while Cardano falls under what would be considered 3rd generation. While many cryptocurrencies label themselves 3rd generation, Cardano is one of the truly 3rd generation cryptocurrencies. Cardano is one of the few Proof-of-Stake cryptocurrencies that perfectly balance decentralization, scalability, and security.  

Cardano makes this a success by taking a layered approach to its operations. The first layer of Cardano is called the Cardano Settlement Layer (CSL) and the second one is the Cardano Computational layer. 

The Cardano Computational Layer (CCL) is a smart contract layer that allows developers to build high-security DeFi apps. On its part, the Cardano Settlement Layer CSL has low transaction fees, enabling all kinds of transactions to be fast and easy. The two layers of the Cardano framework collaborate so you can enjoy optimal convenience without sacrificing safety or decentralization. 

This technology gives Cardano an edge in terms of adoption going into the future. It also makes Cardano an undervalued cryptocurrency to buy now when prices are at record lows. 

Cardano Has A Low Risk Of Being Affected By Negative Regulations

Regulators are increasingly taking an interest in the cryptocurrency market. Reasonably expected given that investors have lost billions of dollars to shady cryptocurrencies over the last couple of years. 

Cardano is one of the cryptocurrencies that present a low regulatory risk to investors. For starters, regulators have been showing hints that they are after centralized cryptocurrencies that mirror securities in many ways. Cardano, being one of the few cryptocurrencies that are designed to remain decentralized under all circumstances, does not have such a risk. 

At the same time, several major jurisdictions accept Cardano. For instance, Cardano is widely accepted as a legitimate cryptocurrency in Switzerland. Additionally, Cardano is working with leading Universities in places like Uzbekistan. 

Cardano's commitment to providing value-driven solutions for both the government and private sector has led it into partnerships with leading universities worldwide. These educational programs help introduce blockchain technology in order to create awareness of its benefits while also empowering students through skill development workshops. 

Such partnerships lower the risk of a crackdown on Cardano by governments. This makes ADA a smart cryptocurrency investment to make today. The odds favour its growth going into the future. 

Cardano Has A Credible Team Behind It

The team behind a cryptocurrency can determine its success or failure long term. Cryptocurrencies that are created by hype-men with no solid understanding of tech present a major risk to investors. That's because once the hype drops, there is nothing to fall back to, leading to collapse. Many pump and dump schemes tend to be driven by nothing but founders' hype. 

Cardano is one of the solid cryptocurrencies whose team understands the ins and outs of blockchain technology. For context, Charles Hoskinson, the main face behind Cardano, is one of the people that worked on Ethereum, one of the most successful smart contracts cryptocurrencies ever created. 

Charles Hoskinson is an expert in mathematics and computer science. He was involved with Bitcoin from its early days, co-founding Ethereum alongside Vitalik Buterin. In addition, he also served on the Bitcoin Foundation education committee. He left to focus all of his attention on developing Cardano (ADA).

Cardano also has many other mathematics and computer experts who have played a role in the development of ADA. By investing in Cardano, you are sure that the team behind it is not just after the hype but understands what they are doing. 

Since it is ultimately the tech that will drive adoption, Cardano stands out as one of the best cryptocurrencies to buy now for anyone with a long-term view of the market. With a strong team behind it and adoption on a growth path, the price will ultimately catch up and reward long-term Cardano holders. 

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

A Lot Of Projects Are Moving To Cardano Now That It Has Smart Contracts

Cardano introduced smart contracts in late 2021, and since then, the number of projects building or planning to build on Cardano has shot up. In 2021, Charles Hoskinson announced that in 2022, up to 450 projects would launch on the Cardano blockchain, and things are already taking shape halfway into the year. 

One of the more notable launches on the Cardano blockchain is SundaeSwap. SundaeSwap allows crypto traders to swap coins without needing an exchange while earning yields on their investments through staking transactions. A Metaverse project also launched on Cardano this year. 

As more of these projects launch on Cardano, the price of ADA will also increase. For context, Ethereum is the huge success it is today because it was the first to introduce smart contracts. Similarly, as cryptocurrencies launch on the Cardano blockchain, the value of ADA tokens could follow a similar trajectory.  

That's why Cardano comes off as a good cryptocurrency to buy now when considering the long-term value growth of cryptocurrencies. The odds of its price going up over time are pretty high. 

Don't Miss: Cardano (ADA) Price Predictions

There Are Many Technical Improvements Happening In The Cardano Blockchain

One of the best pointers to a smart cryptocurrency investment is the level of technical improvements over time. It is usually a pointer that the intrinsic value of the cryptocurrency will go up.  

On this front, Cardano stands out as one of the best cryptocurrencies to consider buying now. Since it launched, Cardano has stuck to its roadmap and continues to make progress on developments within its roadmap. 

The most significant step it made in its roadmap was the introduction of smart contracts back in September 2021. Not only did it lead to a massive price rally at the time, but it also opened Cardano to massive adoption. 

With a lot more lined up on the Cardano blockchain, the odds are that Cardano will keep going up in value into the future. This makes ADA one of the most undervalued cryptocurrencies to buy now. 

Cardano Has Lots Of High-Value Partnerships

Cardano has lots of high-value partnerships that are likely to drive up its value going into the future. 

One of the big partnerships likely to take Cardano to the next level is with Wolfram Alpha. Wolfram Alpha, one of the world's best analytical engines, partnered with IOHK to provide oracle services for Cardano. This is a huge step forward for Cardano in terms of adoption. This partnership will allow people who want access to deep insights into pricing data from various markets and integrate them into their smart contracts. 

Cardano also has a partnership with Shopify. Cardano is now accepted as a form of payment on Shopify stores, and users can spend their ADA directly. Since Shopify is one of the largest eCommerce sites globally, the impact could be a massive increase in everyday transactions for ADA going into the future. 

Essentially, such high-profile partnerships increase the adoption level for ADA, which is a plus for value growth. From an investor perspective, these partnerships make ADA one of the best cryptocurrencies to buy now, ahead of the next crypto bull run.  

Cardano Staking Is Achievable For Most Investors

Staking is gaining popularity among cryptocurrency investors as a way to earn passively. While there are many cryptocurrencies that you can stake, many of them are low-quality ones that carry inherent risks to be viable in long-term staking.

Others worthy of staking have minimum requirements that are out of reach of most investors. For instance, Ethereum is one of the most stable cryptocurrencies out there. However, staking Ethereum requires at least 32 ETH, which is out of reach for most investors.

Cardano is one of the top 10 cryptocurrencies that tick all the right boxes for anyone looking to stake. It is a high-quality cryptocurrency, and the minimum required to stake ADA is pretty low – you can stake as low as one ADA.  

This could draw in more investors to ADA going into the future. In bull markets, it could easily help push ADA to new highs. 

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

Drawbacks To Investing In Cardano

Cryptocurrencies are high-risk investments, and Cardano is no exception. When investing in Cardano, you must consider that it can underperform the market. You can also end up losing a substantial part of your investment. 

So, what are some of the issues you should have in mind when looking to invest in Cardano?

Let's go through some of them. 

The Competition Is Coming Up Fast

Cardano came into the market in 2017 and was expected to give Ethereum a run for the money. That's because it promised a solution to the scaling issues that the Ethereum blockchain had exposed at the time. 

However, the Cardano development process has proven a little bit too slow. Since its launch, many other platform blockchains have overtaken it in terms of adoption. Among the newer blockchains that have shown more potential than Cardano are Solana and Avalanche. 

Others like BRISE are even more recent and show a lot of promise. This means if Cardano stays the course, it is on at the moment. It could lose market share to these newer blockchains. This is a risk that every Cardano investor should be aware of before investing.  

Luckily, this is an issue you can easily deal with by diversifying your cryptocurrency portfolio. Rather than buying Cardano alone, you can buy it alongside other top cryptocurrencies like Ethereum, Solana, and Avalanche, among others. The goal is to cut on the risk while increasing your potential for exponential gains in bull markets. 

Is Cardano A Good Cryptocurrency Investment Today?

At this point, you are well informed on whether Cardano is a smart cryptocurrency investment or not. 

We have gone through the fundamentals that make Cardano tick, and some of the risks you need to consider. 

However, there are a few other things you need to be aware of before you buy Cardano. Let's take a look at them below:

  1. Make sure to only buy Cardano from a reputable cryptocurrency exchange
  2. If you intend to leave your ADA tokens at the exchange, use a strong password. Hackers are always on the lookout for vulnerabilities to exploit. 
  3. While you can leave your cryptos at an exchange, it is always advisable to take them out. Store your ADA tokens in a cold storage wallet, preferably a hardware wallet.
  4. Diversify your portfolio to avoid getting disappointed if ADA ends up underperforming the market. 

Up to this point, it is clear that Cardano is a cryptocurrency that you should consider investing in today. Let's now go through the process of buying Cardano. 

Where To Buy Cardano

Here at Trading Education, we endeavor to give you all the information you need for you to invest in cryptocurrencies. 

Through this research, we have come up with a list of some of the best platforms where you can buy 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.

Ethereum Or Cardano – Which One Is A Better Cryptocurrency To Buy Now?

To be clear, both Ethereum and Cardano are among the most undervalued cryptocurrencies to buy now. Both are growing in adoption, which means they have strong chances of going up in value in the future.  

As such, it would be smart to invest in both and benefit as they grow in adoption. However, if you only want to invest in one of the two, then Ethereum is a much better buy in the short term. 

One of the reasons to consider Ethereum over Cardano, in the short term, is the aspect of news. In the short term, Ethereum has more significant news coming up than Cardano. The biggest of this news is the completion of the transition to Ethereum 2.0. There is a lot of buzz around it, and it could make Ethereum one of the best-performing cryptocurrencies in 2022. 

Besides news of the transition, Ethereum's fundamentals are set to get much better and we could see it dwarf its competitors. With Ethereum 2.0, the scaling problems that have held back Ethereum for years are set to go away. This will see Ethereum draw in even more Dapps developers who would otherwise have considered the competition. 

The attractiveness of a better scaling Ethereum is also enhanced by Ethereum's high levels of decentralization. Ethereum is one of the most decentralized cryptocurrencies, and this means a low-security risk both to developers and investors. As the value of decentralization becomes more apparent to investors, Ethereum stands out as one of the best blue-chip cryptocurrencies to buy now. 

Clearly, Ethereum has better prospects than Cardano in the short term. However, if you want to build a more balanced portfolio, you may want to consider investing in Cardano and Ethereum. 

A Recap – Is Cardano A Good Cryptocurrency To Buy Today?

Yes, Cardano is one of the best cryptocurrencies to buy now. 

Cardano is one of the most technologically advanced platform blockchains in the market today. Even when considering the price, Cardano has proven to be a good investment in the past, rising from lows under $0.10 to highs close to $3.  

While Cardano has dropped hard throughout 2022, adoption has grown. The Cardano developer team has also been improving this blockchain’s core metrics, hence making it more attractive to developers. 

It is these factors that make Cardano a highly undervalued cryptocurrency to buy and hold in 2022. 

With this in mind, how do you go about buying Cardano? One of the best exchanges you can use to buy Cardano is eToro. eToro is a regulated broker, and opening an account with them is very straightforward.  All you have to do is follow the steps below.

  • Step one is to visit the eToro website and signup. This only takes a few minutes as it only requires your name and email. 
  • Once you signup, eToro will ask you to upload your photo and ID for verification. This is aimed at keeping bad actors away from the platform. 
  • With your account ready, go ahead and make the deposit. They allow pretty low deposits, going as low as $50. 
  • Once the deposit hits the account, you can buy Cardano. You can buy with an amount as low as $10.

eToro – The Best Place To Buy Cardano

Open an account with eToro, deposit some funds with USD, and finally – buy ADA from just $10.

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

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