Buy Cardano (ADA) or not in 2021?

 The Cardano blockchain project has set itself the task of researching and solving all existing blockchain problems. Cardano promises real decentralization, scalability for mass use, and interoperability between different blockchains.

Buy Cardano (ADA) in 2021?

With cryptocurrency 3.0, Cardano promises its users a currency that has learned from the mistakes of previous generations and developed from them.

We took a look at what exactly is behind this and where you can buy Cardano in just a few steps. Furthermore, we have looked at the course of the currency and given a forecast for potential future price developments.

    What is Cardano (ADA)?

    Founder: Charles Hoskinson
    💰 Coin: ADA
    🏁 Project start: 2015
    🔁 ADA start in the mainnet: 2017
    🏢 Company: Cardano Foundation, IOHK, Emurgo
    🏆 Maximum supply: 45,000,000,000 ADA
    📊 Circulation supply: 32,041,069,499 ADA
    💵 Market capitalization: € 28,893,187,592.47

    Cardano is an open-source project that aims to restore trust in global systems. The makers behind the project use the science of blockchain and cryptocurrencies to create a secure, transparent, and sustainable basis for individuals to carry out transactions in existing systems.

    The Cardano development platform has been developed for many applications and aims to solve problems in existing industries.

    To date, Cardano is the largest blockchain that successfully uses a proof-of-stake consensus mechanism. This means that the Cardano sustainability concept works. In addition to PoS, Cardano uses the Ouroboros protocol, making it the first blockchain Ouroboros has implemented.

    It enables greater decentralization of the blockchain and allows adjustments without compromising network security.

    What are the advantages of buying Cardano?

    • The current low price is interesting for small investors
    • Active community with voting rights for new developments
    • Project of Ethereum co-founder Charles Hoskinson
    • Staking enables passive income from ADA
    • Is being developed by three independent bodies
    All ideas and innovations developed in the network must go through a so-called “peer review”. Within this process, developments are questioned and checked before they are released into the network. Cardano itself wants to use this process to increase the longevity of the network. Potential difficulties can be counteracted in advance through the process.

    Current Cardano use cases

    • Anti-counterfeiting with Atala SCAN
    Atala SCAN uses blockchain technology to provide a tamper-proof system that detects counterfeit products. The aim is to make it easy for traders to report counterfeiters and to reduce the damage caused by counterfeiting to the global economy.

    The trade-in of counterfeit drugs is flourishing not only in retail but also in the health sector. Atala SCAN can also be used here and authenticate and verify the origin and the supply chain of pharmaceutical products.

    • Transparent supply chain with Atala Trace
    Farmers, freight forwarders, and retailers can use the blockchain application for product certification and product traceability along the supply chain. The transparency of the supply chain provides the end consumer with more information about the origin of the food and the raw materials used.

    • Digital identity with Atala PRISM
    Atala PRISM enables the provision of a digital identity service. It gives users full control over their personal information, which they can share and review instantly anytime, anywhere. There is no costly and time-consuming process if identity documents are lost and identity can be confirmed within a few seconds.

    Atala PRISM also enables the storage and immediate verifiability of academic performance records and replaces other intensive processes, such as passport applications or opening new bank accounts in some countries.

    Contrary to other new cryptocurrencies, Cardano has developed into one of the largest cryptocurrencies currently on the market. The creation of a society that is safer, more transparent, and fairer than the one we currently know is generating great interest not only among crypto enthusiasts.

    Is it advisable to invest in Cardano?

    Of course, you will ask yourself whether you should really put your money in Cardano. First, think about something else. Before you come to a conclusion for yourself whether or not to invest in Cardano, clarify the following for you:
    • What goal do you want to achieve with your investment? Of course, the desire for wealth and prosperity is understandable, but the motivation to want to get rich quickly is not a good reason that you should buy Cardano.
    • You should also be aware that it is no longer easy to make big money with Cardano in a very short time. But no reason to despair! Any well-informed and experienced retailer can continue to achieve attractive returns with Cardano.
    • You don't see yourself as a trader, but would rather invest in Cardano for the long term? Even then, a definition can be very useful. Because many analysts foresee that prices will clearly pick up again in the long term.
    • However, you should be prepared for one thing. As before, cryptocurrencies like Cardano are associated with high price volatility. Daily fluctuations in the double-digit range have become rarer, but they do happen again and again. When that happens, stay calm and don't panic.
    • Also, make sure that you have clarified for yourself how much you are willing to put aside for your investments. The iron rule of any investment also applies here, of course: Be aware of your willingness to take risks and the goals of your investment. If you have reached this point, then you can get down to the responsible work of every investor and trader. Keep an eye on how your investment and the market are doing.

    How is the Cardano network secured?

    To protect the network, Cardano uses an environmentally friendly and proven secure PoS protocol known as Ouroboros. Ouroboros divides individual transaction blocks into epochs and these in turn into further time windows. A so-called slot leader is responsible for each of these time slots. In order to protect the protocol, the slot leaders consider the last blocks of the received chain to be perishable.

    Only chains that have been preceded by a specified number of ephemeral chains are considered completed. The resulting billing delay is the mechanism by which transactions are passed on between participants. Ouroboros is only safe if at least 51% of the ADAs are held by honest participants. Therefore, the protocol rewards participants for their honest participation.

    Buy Cardano with PayPal, credit card, instant transfer, and more

    ADA is listed on the most important trading venues and with reputable CFD brokers and is available for trading as a real coin or as a CFD. We recommend buying ADA from our test winner eToro, which offers many payment options:
    • Credit card:
      • Immediate availability
      • Almost all credit cards are accepted
    • PayPal:
      • Great comfort and security
      • Fees are relatively low
    • Instant bank transfer:
      • Immediate availability
    • Bank Transfer:
      • Immediate availability
      • Most popular method
      • Available on the trading account within 4 days

    Is it better to speculate Cardano in the short term or invest in the long term?

    If you want to buy Cardano, you should first be clear whether you want to make quick profits with a small stake, or whether a long-term investment in the project and the coin is the better solution. From our point of view, Cardano is equally suitable for both investment strategies.

    Traders looking to make quick profits can buy the real ADA or invest in CFDs.
    • Cardano CFD: Speculation with CFDs in particular promises to achieve large profits with a small investment through leverage. Since Cardano, like most cryptocurrencies, is extremely sensitive to market developments and the media, they are highly volatile and suitable for short-term speculations. However, traders should not lose sight of the risk of total loss.
    • Real Cardano Coins: For investors interested in long-term investments, ADA could also be of interest. Cardano promises Blockchain 3.0 and is constantly developing new technologies that result in a wide range of possible applications. The goal of creating a fairer, more transparent, and sustainable world also attracts many investors to the Cardano network, so that the demand and thus the value of the ADA Coin could increase.

    Buy Cardano anonymously, without logging in, registering, or verifying

    Completely anonymous purchase of ADA Coins is not possible and, above all, not advisable. Even in the decentralized blockchain world, data is required behind generated keys or addresses to ensure that the recipient of an asset is authorized to receive it. However, there are protocols in which no address is stored.

    If you want to buy ADA Coins in a safe way, we recommend using eToro as a trading platform. Registration is necessary in order to comply with the requirements of the Money Laundering Act. The verification ensures security and legitimation on the trading platform.

    If you want to buy cryptocurrencies anonymously, you do so at the expense of security. Providers like eToro are subject to government supervision and include deposit protection as well as separate and secure storage of customer capital. The crypto market has not yet been regulated and is vulnerable. Anyone who falls victim to a cyber attack or a dubious transaction must expect that all of their capital can be lost in the process.

    Which Cardano wallet do you need?

    If you want to buy physical ADA coins, you have to think about their safekeeping. Wallets are available in different options and security levels for storing coins. When choosing a wallet, security and compatibility with Cardano are primarily important.

    • Online wallets are one way of storing them. These are also called hot wallets and are constantly connected to the Internet. Cardano Coins are stored on the network. There is a risk that resourceful hackers will find ways to illegally access the wallet, which is why hot wallets are unsuitable for the long-term storage of cryptocurrencies.
    • Desktop wallets are a better way of storing them. As long as the end device with the wallet is not stolen or malware is on the device, these wallets can also be classified as secure.
    • For long-term storage of coins and tokens, we recommend hardware wallets such as those from Ledger or Trezor. Hardware wallets are considered a very safe way to store digital assets, as they do not have a permanent internet connection.
    The best-known wallet for storing ADA coins is the Daedalus (desktop) wallet. Within the Cardano community, Daedalus Wallet is referred to as the official ADA wallet. Alternatives to Daedalus Wallet are:
    wallet comparison

    Our test winner eToro offers an integrated wallet for each trading account. Anyone who trades with CFDs does not need a wallet, as they only participate in the value of the coins, but do not acquire any physical coins.

    How does Cardano Mining work?

    Since Cardano relies on a proof-of-stake mechanism, passionate miners are looking in vain for classic ways to mine ADA coins. All coins are already generated. Instead, Cardano also uses Ouroboros here to ensure the supply of ADA Coin. Users make their cryptocurrencies available in the network as part of a staking process and receive rewards in the form of ADA.

    Staking explained simply
    When staking, users hold back their cryptocurrencies in order to receive rewards. In some cases, users can stake their coins and tokens directly in the wallet, or exchanges offer their users so-called staking options.

    How is the Cardano price created?

    Unlike traditional assets, the price of cryptocurrencies is mainly determined by supply and demand. If demand increases, the coin or token, in this case, Cardano, becomes more expensive, and if many holders sell their coins or tokens, the price drops.

    A second point is a potential that lies behind every blockchain project and thus behind every cryptocurrency. Further developments, new products, and an active community have a positive or negative effect on prices. With the Shelley update, Cardano was able to increase the demand for ADA Coin, which means that the ADA rate and thus the Cardano price have increased accordingly.

    Other indicators are important trading venues where coins and tokens can be traded. The more trading venues that list the coin, the easier it is to buy Cardano. The demand and the price of ADA Coin are increasing accordingly.

    Cardano price development & forecast

    • ADA was traded on Bittrex for the first time on October 1st, 2017. The starting price is ADA's lowest price yet.
    • Within a very short time after the start, the Cardano price increased and developed into a serious cryptocurrency on the market. By January 2018, the price rose to a whopping € 1.10 per ADA Coin and thus increased its value a thousand times over in the short term. Due to the prolonged implementation of new technology, Cardano wavered and the price fell back to the price of November 2017.
    • In April 2018 Cardano published the solution to a large PoS problem, the ADA rate rises to € 0.29 per coin.
    • Cardano had to cope with a setback when negotiations with Georgia and Hong Kong failed. The price fell back to its initial level and remained in a sideways movement until January 2021.
    • The release of the Shelley update enables staking by the users and thus a passive income. The demand for ADA Coin is increasing and with it the price. ADA reached its all-time high on May 16, 2021. If you want to buy the coin, you pay € 2.09 per unit.
    • The current ADA rate is around 90 cents per coin. The approximate return is currently over 4,800%

    Cardano forecast: does Cardano have potential and future in the crypto world?

    So that a cryptocurrency can survive on the market in the future and how its value develops depends primarily on the usability and further development of a project:
    • A hard fork (Alonzo hard fork) is planned for September 2021, the range of functions of which can compete with the Ethereum network. Due to the higher security and lower fees, a large number of projects could easily move from Ethereum to the Cardano blockchain.
    • With the new Goguen Mainnet, Cardano offers companies the opportunity to start their own projects and native tokens. These should be anchored in the blockchain and also be usable for other smart contracts. This means that the costs for projects are lower, which in turn offers an advantage over the Ethereum blockchain.
    • Cardano thus also offers ideal conditions for the development of DeFi projects. Experts assume that numerous new projects will be started on the blockchain, including projects that will come to fruition in developing countries. Cardano thus opens up an enormously high user potential and high demand for the network.

    Cardano is currently ranked 5th among the largest cryptocurrencies. Experts see a lot of growth opportunities in the project and a high probability that the course can continue to develop positively. According to some crypto enthusiasts and connoisseurs of the scene, ADA could even reach a price of USD 20 per unit by 2025. However, a short-term damper is also possible, but it will not disrupt the long-term development of the project and thus the coin.

    When is the best time to buy Cardano?

    Since cryptocurrencies are extremely volatile, it is difficult to predict whether a time to buy Cardano is good or bad. Predicting positive and negative price developments is next to impossible. In order to achieve maximum profit from the highly volatile market, we recommend observing the market over a longer period of time.

    Basically, it can be said that buying cryptocurrencies is always worthwhile when the market or the desired currency is recovering after a crash. If the price starts to fall, then it is advisable to wait until the asset has reached what appears to be a low point before investing. If you want to invest without the helpful tools of a broker, you have to find out this point yourself and that

    Observe the market over a period of time.

    Tips on buying Cardano

    Anyone interested in buying Cardano should pay attention to a few important points before investing.
    • Above all, investors should first be clear about whether they want to buy real coins or prefer to invest in CFDs.
    • If you want to buy ADA, you need a wallet that supports the coin and has good security standards. A hardware wallet is best for the long-term storage of ADA coins. Various online or desktop wallets are available for short-term trading. Anyone who trades with CFDs does not acquire any real coins and does not need to worry about the safekeeping of the values.
    • A comparison of fees between the providers is also essential. Some providers surprise users with hidden fees, so it is important to take a close look at the terms and conditions and to have a special look at the fees.
    • When choosing a trading platform, investors should pay attention to security. Verification and two-factor authentication should go without saying. Anonymous trading is always at the expense of security and should be avoided if possible.
    • The option of staking is special at Cardano. Users who keep their cons should definitely activate staking in order to receive a staking reward.

    How can you sell ADA?

    There may come a time when you want to sell your ADA. In this case, you will have to go through the steps of the buying process in the wrong order. In the suboptimal case that you still have your ADA in your wallet at the exchange, you have the option of selling it again here.

    If you have DA in your own wallet, you have to take one more step. First, transfer the ADA to the exchange where you want to sell it. But don't worry: you can sell your ADA on a different exchange than the one you bought it from. You are free to choose your preferred provider.

    Cardano pros and cons

    • pros:
      • Active community
      • Right to vote for coin holders
      • Rewards for staking
      • Alternative to Ethereum
      • Even cheaper entry price
      • Realistic use cases
      • Experienced developers in the background
    • cons:
      • Volatile cryptocurrency
      • Strong competition on the market

    Conclusion: buy Cardano or not?

    If we look at Cardano's past and price development, we can recommend buying Cardano Coins with our heads held high. Yet this is only our personal assessment. From our point of view, the forecasts for Cardano also suggest a clear buy recommendation.

    Nevertheless, investors should note that cryptocurrencies and blockchain projects are still a young market that no one can yet assess. A total loss of the capital invested is just as possible as the possibility of becoming a millionaire overnight. From our point of view, Cardano definitely belongs in a well-stocked portfolio of cryptocurrencies.

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