What is Cardano Coin (ADA)?
The year 2021, and very likely well into 2022, cryptocurrency has been a very hot topic, from both an investing, trading and general audience perspective.
So, what is Cardano coin? Going by the ticker symbol ADA, Cardano has not had nearly the same amount of attention as Bitcoin or Ethereum. That said, it is very much an up-and-coming coin with plenty of potential value and utility cases.
We explore more about what is Cardano coin and how to trade the Cardano CFD at Admirals.
Table of Contents
What is Cardano and How Does It Work?
The co-founder of Ethereum, Charles Hoskinson, is responsible for the official founding of the Cardano platform.
Let's summarize, overall, what is Cardano – as you may already know, it is not only a cryptocurrency (ADA).
Cardano as a whole is an open-source, decentralized proof-of-stake (PoS) blockchain platform. It is considered to be a more efficient alternative to proof-of-work (PoW) networks – such as Ethereum, ironically, and Bitcoin.
A PoW network, such as the one Ethereum runs on, can be deemed less efficient because the infrastructure limits the activity. Why? Slow transaction speed, leaning to more energy usage, and overall, higher costs. Both scalability and sustainability are not truly possible with these roadblocks.
This explanation gives the most direct answer as to what is Cardano coin and why was it invented, in the first place. Charles Hoskinson understood these challenges quickly, and acted just as fast in order to establish something 'better' which solved Ethereum's problems.
Cardano began its development journey in 2015, and the Cardano coin, or ADA token was launched in 2017.
To get slightly more technical in this explanation, and answer what is Cardano most effectively – we must cover the protocol (the defining factor in what makes any coin or token efficient).
The protocol which Cardano runs on is a Cardano-proprietary system called the Ouroboros consensus protocol.
The PoS Ouroboros consensus protocol is backed by a research-based framework with peer-reviewed input, with the development roadmap being purely evidence-based. The structure for which Cardano is based on makes it a very promising and secure blockchain protocol.
What is Cardano Used For?
In the blockchain and crypto community, Cardano is generally seen as a platform and token with numerous use cases and potential benefits.
Overall, the goal of Cardano is to build a more sustainable future. It aims to tackle global problems with global solutions, to truly make the world a better place.
As there are many utilities and use cases behind the Cardano technology, let summarize below the most notable:
- Cardano can run various smart contracts and applications on its platform.
- As of September 2021, Cardano can run DApps (Decentralized Applications) and mint NFTs (Non-Fungible Tokens).
- Decentralized Finance (DeFi) applications are benefitting from Cardano's multiple smart contract languages.
- ID & credentials solutions with the Atala PRISM project.
- Self-governing capabilities are a core eventual goal of Cardano, improving democratic systems.
- A transparent, secure and fair global society for individuals and businesses.
- Option to gain stake rewards when holding the Cardano ADA asset for long periods.
The truth is, there are many (many) more use cases for Cardano; the vision behind this platform is to truly improve the world and the crucial systems which operate within it. Further implementation influence in the areas of Retail, Agriculture, Healthcare... it is very exciting to see what is to come from the Cardano group and project.
Is It Good to Trade Cardano?
As always, the above question is always subjective; you must form your own educated opinion which coincides with your risk tolerance, beliefs and what fits into your trading budget.
Given how promising the history of Cardano has been so far in terms of growth and development, and the potential the future holds, it could be a digital currency worth paying attention to.
At this time in writing, the price of the Cardano coin (ADA) is around USD $1.30.
As you can see in the below chart taken directly from the Admirals ADAUSD CFD page, the price has gone as high as $2.25, to a low of $1.28 within the month of November 2021.
From a general trading perspective and outlook, such a volatile fluctuation in price can be effective when you have a swing trade strategy or day trade strategy. You can also learn more in general on how to trade crypto CFDs.
Admirals ADAUSD CFD contract specification page, one month tracking period, accessed on December 10, 2021.
Both swing trading and day trading are considered short term strategies. Admirals offers the chance to both Buy and Sell ADA paired with USD Contracts for Difference (CFDs). With the option to both Buy and Sell on the currency pair price, this allows to trade the underlying asset in all market conditions. Learn more about how to become a crypto trader here.
How to Trade Cardano (ADA) CFDs with Admirals
When you feel ready for a live account, you can easily register one in the Dashboard – the back office of your account.
ADAUSD order window shown in the Trade.MT5 WebTrader platform; accessed on December 10, 2021.
Innovators, visionaries and change makers – These are the personality types which Cardano seems to be attracting, right on point with the intention. Cardano as an overall system wants to make the world a better place, branching out possibilities for the many (and not just the few). Do you believe in a system and goal concept like Cardano, also known as ADA? Register an account with us today and you can follow the price swings and see if ADA has a place in your portfolio.
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- 3 Tech Stocks to Watch in 2023
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