Cardano (ADA) may have yet to tickle the awareness of casual investors unlike Bitcoin, Ethereum, Litecoin and Ripple. However, judging from its current performance in the market, it can be considered as one of the fastest-rising blockchain assets in the cryptocurrency world.

Since it was launched in 2017, ADA has occupied a spot in the top 10 cryptocurrencies by market cap value each year. Analysts see ADA as slowly but surely capturing the attention of more investors including traders of eToro (here's a complete evaluation of this broker).

And that’s because of its ever-improving technology, fast processing time and ability to challenge other bigger cryptocurrencies in the blockchain system.

Cardano logo
Cardano logo

Considered as a public blockchain platform running on smart contracts with its own cryptocurrency called ADA, Cardano is open source and decentralized that can facilitate peer-to-peer transactions using the innovative Ouroboros proof of stake protocol.

Among seasoned investors who have taken a chance on investing on Cardano, the biggest takeaways are that Cardano is seen as a faster version of Bitcoin and a more scalable version of Ethereum.

Here’s how to make it simple:
To describe Cardano in the simplest terms, one could say it is a lot similar to Ethereum but with noticeable differences. Both cryptocurrencies have similar blockchain development processes in a way that the two allow developers to run decentralized applications or DAPPs and runs on smart contracts.

Another similarity between Cardano and Ethereum is that both uses Initial Coin Offering (ICO) in allowing users in creating cryptocurrencies.

The main difference between the two can be distinguished in their respective architecture, wherein Ethereum uses a single layer while Cardano relies on a unique two-layer structure of Cardano Settlement Layer (CSL) and the Cardano Computation Layer (CCL).

These two layers are also referred to as the 'Cryptocurrency layer" and the "development layer".

But wait, what is Ouroboros?

Considered as the foundation of Cardano, the Ouroboros is considered as the first ever proof-of-state protocol and the first of its kind of blockchain protocol to be developed based on peer-reviewed research.

It meshes together a distinct technology and mathematically-verified mechanisms to ensure sustainability and security of all the blockchains depending on it.

Ouroboros also make it possible for Cardano to function with much lesser use of energy as opposed to the energy requirements of mining Bitcoin.

Already thinking of investing in ADA?

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History of Cardano

Cardano was developed in 2015 by Ethereum co-founder Charles Hoskinson after he departed Ethereum and Jeremy Wood. It was designed using the secure programming language of Haskell.

Cardano came with a market cap value of $600 million when it was first released. Towards the start of 2018, it has reached $10 billion worth of market capitalization. Its market cap momentarily peaked at $33 billion in 2018 before stabilizing back to around $10-20 billion. Today, Cardano’s Market Cap is valued at more than $43 billion.

Currently, Cardano has set a limit of 45 billion ADA tokens. It remains unclear whether that limit will increase in the future.

Strength of Cardano (ADA)

Cardano was designed to offset some of the many issues hounding the blockchain / cryptocurrency industry. These includes:

  • Lessening the risk of attacks by taking advantage of mathematical equations in providing additional security to its blockchain.
  • A separate process for computational and accounting layers
  • An architecture that makes Cardano substantially scalable
  • It has a more secured "voting mechanism" for token holders

Cardano Wallet

One-upping Ethereum and Bitcoin who both do not have its own wallet, Cardano has its own wallet for its ADA crypto. The Daedalus Wallet gives ADA holders great control of their funds and the convenience of transparent transactions over the blockchain of Cardano.

Another advantage of Daedalus is it allows owners of ADA to partake in a staking system thus giving ADA investors to earn additional fund while using the network.

Always remember:
To make a backup of your wallet password. Preferably, write it down on a piece of paper or a digital file and store it in a safe location. Forgetting your password would result into permanent loss of your ADA cryptocurrency.

A good alternative is the eToro wallet which can be installed on tablets or smartphones running on Android or iOS. The crypto wallet provides high-level security and can be downloaded for free.

eToro Wallet app
eToro Wallet app

This secure and accessible multi-cryptocurrency digital wallet can store over 120 cryptocurrencies, including ADA. You will be able to buy, store, receive and transfer all your cryptocurrency here.

How to Invest in Cardano

Technically, you don't invest on Cardano. Instead, you invest on its cryptocurrency token which is called ADA.

ADA is available on many of the world's major crypto exchanges including eToro.

How to Trade Cardano on eToro

Here are the steps in trading Cardano (ADA) crypto in your eToro app:

  1. Sign up / Log-in to your eToro account.
    Logging in to eToro
    Logging in to eToro
  2. Click on "Trade Markets".
    Clicking "Trade Markets" on eToro
    Clicking "Trade Markets" on eToro
  3. Select "Crypto".
    Selecting "Crypto" on eToro's Markets screen
    Selecting "Crypto" on eToro's Markets screen
  4. Look for "ADA" and click on it.
    Looking for Cardano on eToro's list of crypto assets
    Looking for Cardano on eToro's list of crypto assets
  5. Select "Trade".
    Clicking "Trade" button on eToro's ADA crypto asset page
    Clicking "Trade" button on eToro's ADA crypto asset page
  6. Set the amount you want to invest.
    Buying Cardano (ADA) on eToro's platform
    Buying Cardano (ADA) on eToro's platform
  7. Click "Open Trade".
    Executing ADA buy order on eToro
    Executing ADA buy order on eToro

Cardano Price History

Cardano started trading its ADA tokens at a measly $0.02 when it debuted in the market.

Historically seen as volatile as most cryptocurrencies in the market, Cardano has a history of price movement ranging from tens to hundreds of % points.

Unlike Bitcoin, you cannot mine Cardano's ADA token. What you can do with it is to stake it. To do this, you need to open your Cardano wallet to receive some ADA tokens you already have as payment.

Simply say: the more ADA tokens you stake, the more ADA you can turn into an investment opportunity.

Interested now to trade Cardano? Get started here.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

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