Cardano (ADA) Explained for Beginners 2024

Cardano (ADA) is the seventh largest cryptocurrency by market capitalization, making it one of the top contenders for the title of the leading altcoin. Launched in 2017, Cardano is a new blockchain cryptocurrency that aims to be the third generation of all cryptocurrencies.

In this article, we will discuss what Cardano is, its main features that differentiate it from Bitcoin and Ethereum, my thoughts on the price of Cardano, where to buy it, and factors to consider when investing in Cardano.

What is Cardano?

Cardano is often referred to as Crypto 3.0, as it seeks to address the issues of scale, speed, and energy consumption that are prevalent in Crypto 1.0 (Bitcoin) and Crypto 2.0 (Ethereum). Cardano is founded by the same co-founder who also started Ethereum, Charles Hoskinson.

Although there are similarities between Cardano and Ethereum due to their shared founder, Cardano is designed to improve upon everything Ethereum has done before it. It is essential to note that Cardano is the blockchain, while ADA is the cryptocurrency that fuels the blockchain, similar to how Ether and Ethereum are connected on the Ethereum network.

Main Differentiating Features

The main differentiating feature between Cardano and Bitcoin and Ethereum lies in the way the coins are created. Bitcoin and Ethereum use a proof-of-work (PoW) model, where miners help solve transactions and validate them on the network, earning rewards in Bitcoin or Ethereum. In contrast, Cardano operates on a proof-of-stake (PoS) model, where the more coins a miner holds, the more mining power they have. This means that the more Cardano you hold, the higher your chances of mining the actual currency itself.

Price of Cardano

The price of Cardano can be influenced by various factors, including market sentiment, adoption, and regulatory developments. It is essential to conduct thorough research and analysis before making any investment decisions.

Where to Buy Cardano

Cardano can be bought on various cryptocurrency exchanges, such as Binance, Coinbase, and Kraken.

Factors to Consider When Investing in Cardano

Before investing in Cardano, consider factors such as the project’s development progress, the team behind it, the market demand for the coin, and the potential regulatory landscape.

As the cryptocurrency market continues to evolve, how do you think Cardano will fare against its competitors, and what role do you believe it will play in the future of the blockchain industry?