Cryptocurrency ADA (Cardano)

ADA is one of the market’s most well-known forms of cryptocurrency, but is probably also less known to many than Bitcoin and Ethereum. If you are looking for an innovative cryptocurrency that is more scalable and sustainable, ADA may be for you.

In this guide you will become better acquainted with what exactly Cardano is , how ADA works and not least – how to buy it.

What is ADA?

ADA is Cardano’s cryptocurrency. Cardano can be described as a decentralized and public blockchain project. With its open source code and smart contracts, Cardano wants to be able to offer a cryptocurrency that overcomes many of the challenges other crypto has.

Among other things, Cardano works with more advanced technology and advanced solutions than any other cryptocurrency can point to – according to themselves. Cardano also points out that they have the first blockchain developed from a research-based standpoint.

In other words, you can consider ADA as a cryptocurrency designed to be perfect. The gang behind Cardano are researchers and academics, and have a lot of knowledge in the field.

Third-generation cryptocurrency

If we go back to 2009, this is the year when Bitcoin was first launched. Today, Bitcoin is considered a first-generation cryptocurrency. However, the Bitcoin system has some challenges related to scalability and deficient metadata / history of transactions.

Ethereum was launched a few years later, and is often regarded as a second-generation cryptocurrency. Ethereum is based on smart contract technology. This opened up for more comprehensive and advanced transactions, but the challenges of scalability are still there.

This is where Cardano and ADA come into the picture, as a third-generation cryptocurrency. ADA offers new solutions that have not been seen before when it comes to blockchain technology.

With Cardano, all solutions proposed for existing challenges will have to go through a rigid “peer review”. This means that the experts behind it make an assessment. Everyone must agree before a solution is implemented. Here are some of what the ADA has to offer:

• More sustainable and balanced crypto ecosystem
• User-oriented focus
• Works as a form of internet intended for cryptocurrency
• Focus on scalability (amount of data, transmissions per second and bandwidth)

This is how Cardano and ADA work

Cardano is based on blockchain technology and is decentralized. The latter means that transactions do not go through third parties, or that any state or bank has control over the transfers.

All transactions are registered in blocks, and each new block generated will have a link to the previous block. Thus a block chain is formed. ADA has a Proof-of-Stake system, which means that those who own ADA can stake their cryptocurrency in so-called staking pools.

They can do this either by operating their own staking pot, or by locking themselves to someone else’s pot. Cardano operates in a fair and sustainable way where they reward randomly selected staking pools for mining and verifying blocks in the blockchain.

The transfers are fast and anonymous, and therefore do not go through any third party. In other words, it is the users themselves who verify the transactions.

Advantages and disadvantages of Cardano and ADA

Are you a little unsure whether to invest in Cardano or another form of cryptocurrency? Then it is important to familiarize yourself with the advantages and disadvantages of cryptocurrency.

Let’s take a closer look at why you should and should not invest in Cardano, rather than for example Bitcoin or Ethereum.

Benefits

There are several advantages to ADA compared to other cryptocurrencies. First and foremost, Cardano and ADA are research-based. Few others have spent as much time and effort perfecting cryptocurrencies as Cardano.

Cardano has also developed a unique system where universal communication can be performed. It is important for Cardano to build bridges between different cryptocurrencies and other banking systems – and they should be able to communicate effectively with each other.

Cardano’s vision is to be able to function as a kind of platform or messenger, where all systems can communicate.

Another advantage of Cardano and ADA is that the cryptocurrency is third generation. If all the plans for advanced integrations and new groundbreaking systems fall into place, Cardano and ADA’s value could potentially increase sharply. It can make ADA a smart investment object.

Disadvantages

Potential disadvantages of Cardano are that the project is possibly too ambitious. Cardano as a platform wants to solve huge challenges on its own. The team behind Cardano will undoubtedly have to work hard if the project is to be 100% successful.

Cardano is also relatively young and new among the more well-established cryptocurrencies, and did not enter the market until 2017. It is also speculated whether Cardano can manage to devise Ethereum’s protocol, which is used by many of the new solutions.

How to buy Cardano (ADA)?

Cardano or ADA can be bought on a crypto exchange, in the same way as you buy Bitcoin or Ethereum. In other words, you must create a user account with, for example, Binance or eToro, which, among other things, sells ADA.

You can also register with other crypto exchanges with ADA, such as Firi. All the mentioned crypto exchanges offer legal purchase and sale of cryptocurrency to Norwegians, and are registered with Finanstilsynet.

Once you have created a profile with a username and password, you are only a few steps away from being able to purchase ADA. You must first deposit money that can be used to trade cryptocurrencies. Deposits can be made with common payment methods such as Visa.

Finally, you go to the crypto exchange markets, where you can find ADA and any other cryptocurrency. After purchasing the ADA, you will be able to store the funds in a digital wallet.

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Is Cardano a good investment?

Investing in cryptocurrencies is almost always considered risky, which is because cryptocurrencies can fluctuate a lot in value. This means that there is a risk of losing on the investment.

However, if you are going to invest first, it is okay to choose a cryptocurrency with potentially strong growth. ADA can therefore be a smart investment, as Cardano is based on cutting-edge technology. Maybe this is a cryptocurrency for you?

FAQ

[sc_fs_multi_faq headline-0=”h2″ question-0=”Hva er Proof of Stake?” answer-0=”Proof of Stake (PoS) går ut på at en person kan drive med verifisering og mining av blokker til blokkjeden basert på mengden mynter de har. ” image-0=”” headline-1=”h2″ question-1=”Hvilke alternativer finnes til ADA?” answer-1=”Både Bitcoin, Litecoin, Ethereum, Dogecoin og andre former for kryptovaluta kan fungere som et alternativ til ADA.” image-1=”” headline-2=”h2″ question-2=”Hvor kan man kjøpe ADA?” answer-2=”ADA kan kjøpes blant annet hos eToro, NBX og Firi – for å nevne noen av kryptobørsene som finnes.” image-2=”” count=”3″ html=”true” css_class=””]