This year, cryptocurrency has made waves in the investment world, with major names like Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) frequently making headlines.
Cardano (CRYPTO:ADA) is a younger participant in the crypto industry that has been slowly gaining momentum among investors. Cardano's price has risen by more than 55 percent in the last month, compared to Ethereum's increase of 4 percent and Bitcoin's loss of 1 percent.
While Cardano is a young cryptocurrency, it offers several significant advantages. Is now, however, the appropriate moment to invest?
Because Cardano was founded by the co-founder of Ethereum, the two cryptocurrencies share similar characteristics. Both enable the creation of smart contracts, which are digital contracts that use blockchain technology to verify transactions. Smart contracts, according to some investors, have the potential to transform society, particularly the legal sector.
Cardano is more energy-efficient than Bitcoin. During the cryptocurrency mining process, Bitcoin employs a proof-of-work protocol. This implies that Bitcoin miners must utilize high-powered computers to solve increasingly complex problems in order to validate transactions and earn tokens. That requires a lot of energy, and Bitcoin has been chastised for its environmental effect.
Cardano, on the other hand, has a proof-of-risk system in which miners must stake their own cryptocurrency holdings in order to validate transactions. As a result, transaction times are reduced and energy consumption is reduced considerably.
Nobody knows for certain if cryptocurrencies will succeed, but if you believe in its long-term potential, be prepared to ride the waves of volatility with your investments. In the past, Bitcoin has lost more than 80% of its value, while Ethereum's value has dropped by almost 95% on several occasions. If you aren't okay with short-term volatility, bitcoin might not be the best investment for you.
Will Cardano ever become a widely accepted kind of currency? Nobody knows for certain. It has advantages, but it is still very speculative at this time. It might be a good long-term investment if you believe in its potential. Otherwise, there are several alternative investing choices available.
Dogecoin (CRYPTO: DOGE) increased 1.23 percent in 24 hours to $0.24. DOGE is down 7.13 percent in the last seven days.
Solana (CRYPTO: SOL), which has seen huge increases in recent days, has dropped 5.64 percent to $160.91 in the last 24 hours. SOL is down 5.81 percent in the previous seven days.
According to CoinMarketCap statistics, SushiSwap (CRYPTO: SUSHI) was the top 24-hour gainer among Decentralized Finance or DeFi coins on Tuesday.
SUSHI increased 17.41% in 24 hours to $12.97. The token has gained 19.39 percent in a week.
At press time, SUSHI's 24-hour gains versus BTC and ETH were 11.37 percent and 12.36 percent, respectively.
Curve Dao Token (CRYPTO: CRV), Aave (CRYPTO: AAVE), and Compound (CRYPTO: CRV) were also noteworthy 24 hour gainers (CRYPTO: COMP).
CRV increased 17.36 percent to $2.77, AAVE increased 16.99 percent to $383.99, and COMP increased 15.53 percent to $442.66 over the time.