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.
And that’s because of its ever-improving technology, fast processing time and ability to challenge other bigger cryptocurrencies in the blockchain system.
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".
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.
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.
Should you be interested to trade ADA, you can click on the button below which goes directly to eToro's trading page for the Cardano cryptoasset. Take note that if you wish to use the platform, you'll need to sign-up but the process only takes a few minutes.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Cardano was designed to offset some of the many issues hounding the blockchain / cryptocurrency industry. These includes:
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.
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.
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.
Here are the steps in trading Cardano (ADA) crypto in your eToro app:
Cardano started trading its ADA tokens at a measly $0.02 when it debuted in the market. It has since peaked at a high of just above the $1.50 mark per ADA token.
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.
At the time that you opened this page, the value of 1 ADA is
If you click on the button below, you'll be taken to will take you to eToro's online trading page for Cardano. You'll be able to see how the platform looks like and in case you want to try it out, you just need to click on "Sign up" button to immediately register and open an account.
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. 67% 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.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
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.