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06.06.2022
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All about Cardano
Each day, cryptocurrency keeps scaling new heights to the surprise of many who could have dismissed them as a passing cloud. New blockchains, cryptocurrencies and NFTs keep emerging with their own unique selling points and a presentation of learning opportunities. Cardano is one such development worth knowing.
WARNING: Investing in crypto, or other markets, can be of a high risk for your savings. Do not invest money you cannot afford to lose, because there is a risk for losing all of your money when investing in crypto, stocks, CFDs or other investments options. For example 77% of retail CFD accounts lose money.
Cardano is a blockchain for visionaries, innovators, and changemakers. It is also a decentralized proof of stake (PoS) which is believed to be more efficient than proof of work (PoW). Cardano combines different technologies in offering unparalleled security as well sustainability to decentralized societies, systems, and applications.
Important Facts About Cardano
The maximum supply of Cardano is 45, 000, 000, 000 ADA. In addition, it is an open source and PoS platform. The platform enables smart contract execution. The unique thing about it is that it is known for its reviewed research development.
Charles Hoskinson created Cardano in 2017. Initially, he was part of the development of the Ethereum Network and this means that he is an expert in the sector. Besides, ADA is a utility token powering transactions in the network. The main aim of creating Cardano is to offer a sustainable and more balanced ecosystem for cryptos.
Cardano is different from the other PoS blockchains. First, it is different in that it did not release a white paper. Instead, it is a scientifically peer-reviewed blockchain. Secondly, Cardano is a layered architecture. It is mainly composed of two elements including The Cardano Computational Layer (CCL) and The Cardano Settlement Layer (CSL). CCL helps in deploying smart contracts as well as governing the network. On the other hand, CSL is where all transactions are carried out. The layers can communicate and interoperate seamlessly.
Another important element of Cardano is Ouroboros PoS. This mechanism enables the users to be more full node validators. They can also delegate their stake to other users who are super so that they can validate the transactions on their behalf. In Ouroboros we have epochs into which time is divided to. For every epoch, a new set of validators is voted by the system. The strategy enhances the decentralization and diversity of the pool of validators.
The Process of Buying Cardano
The initial step is creating an account with the top crypto exchanges. We recommend Binance, Plus500, and eToro. The reason is that before purchasing crypto, you have to open an account and as well verify your identification. You can make registration using your email or even mobile number.
Secondly, you will have to choose the way you want to purchase an ADA asset. There are different options including credit or debit cards as the exchange platforms support Mastercard and Visa. Another option is third-party payment and this is done by choosing the available third-party options on the website. There is also P2P trading in which you purchase Cardano from other users. The last option is a bank deposit.
After making a purchase, you will have the option of confirming your order using the current market price. The allocated time is just one minute. After one minute, one’s order is recalculated using the current market price. To see the new order amount, you can refresh.
The last step is using or storing your Cardano. After purchasing your crypto, you may hold it in your crypto exchange account or store it in your personal crypto wallet. In earning passive income, you may trade it for other cryptos.
Advantages of Trading Cardano
Since Cardano was created in 2017, it has been ranked among the best coins in Coinmarketcap. It has also garnered a lot of attention. This was after it transited from the federated Byron model to a decentralized Shelley model.
Due to ADA’s huge liquidity, it is available on most of the crypto trading platforms. Most of the top crypto trading platforms provide the margin trade of Cardano with varied leverage options. Some even provide up to 100x on your capital for trading ADA.
As compared to the other blockchain systems, ADA is more environmentally friendly. In an interview, Hoskinson said that it was 1.6 million times more efficient. He compared it to the blockchain. Therefore, that is an indication that it is good for the environment.
Cardano enhances faster transactions. As compared to Ethereum 1.0 and Bitcoin, Cardano processes transactions faster. It has the capacity of processing over 250 transactions per second (TPS). This is fast as compared to Ethereum 1.0 which processes between 15 to 45 and Bitcoin processing 4.6TPS. However, Ethereum is working on upgrading its network to process over 100, 000 transactions per second.
Furthermore, ADA has cheap gas fees. The fact that it uses PoS enables it to provide nominal transaction fees in the network. Averagely, Cardano transaction fees are about 0.1 ADA. This is low as compared to Ethereum costing about $15 per transaction.
As a Cardano trader, you can make passive income. This is done by staking ADA coins. All you have to do is to purchase this crypto tokens and then lock them in a wallet.
Cardano is secure. It is a proof of stake protocol ensuring mathematically proven safety. Currently, there is a high number of cyber attacks in the cryptocurrency sector. This means that security is very important for both developers and traders.
The Disadvantages of Investing in Cardano
Cardano is still developing even though it has undergone important testing and review. This is the reason you should be cautious when investing in it. It still has incomplete token standards and smart contracts. ADA is still behind in the number of transactions that it processes. For instance, Ripple processes about 1000 TPS while ADA processes 250 TPS.
High competition is another issue facing Cardano. This crypto is finding it difficult to catch up with some of the well-established competitors. Although ADA is doing its best in developing a better blockchain version, the top competitors including Ethereum have the advantage of more uptake by the developers and long histories.
