Crypto News

What is Cardano(Ada), and Is It A Good Investment in 2021?

What is Cardano, and Is It A Good Investment in 2021?
What is Cardano, and Is It A Good Investment in 2021?

Yerevan (CoinChapter.com) — Cardano is a cryptocurrency network and an open-source project that runs a public blockchain platform.

Launched by Charles Hoskinson in 2017, the network is not a new player on the crypto-market scene, but it’s getting increasingly more attention from investors and traders. The project’s native token ADA is rating $1.5, an all-time high for this cryptocurrency. There are grounds to suggest the token could extend its bullish sentiment further this year, making it a prime candidate for a 2021 investment.

Cardano's ADA had a 28% rise this week. Source: ADAUSD on TradingView.com
Cardano’s ADA had a 28% rise this week. Source: ADAUSD on TradingView.com

Cardano: How Is It Different From Other Networks?

Cardano network calls itself the 3rd generation cryptocurrency. It improves upon Bitcoin blockchain and Ethereum smart contracts by proposing to offer alternative solutions.

The network uses peer-reviewed papers instead of white papers. This means that these papers are reviewed by a team of specialists and professionals worldwide before implementing code.

It adopted the proof-of-stake principle for its blockchain, rather than the energy-intensive proof-of-work, which backs Bitcoin and Ethereum. Mining tokens in a proof-of-work paradigm is wasteful, slow, and requires large amounts of computing power.

Instead, the proof-of-stake algorithm selects a few nodes (participants in the blockchain) to create new blocks. An alternative to having all nodes mine with equal outcomes. This solves sustainability, transactions-per-second, and the network can safely face the increasing number of transactions.

Cardano also poses the necessity of creating a network that can unite cryptocurrencies and make the exchanges between them easier and faster.

A Good Investment Opportunity Ahead?

Cardano’s ADA is one of the top cryptocurrencies by market cap with $39 million. It is one of the top-performing digital assets in 2021 and had a 28 percent rise since April 7. The prospect of Cardano further gaining value in 2021 increases with considerable advantages it has over cryptocurrencies like Bitcoin (BTC) and Ether(ETH).

ADA’s next ascent could surface from a breakout from the triangular pattern. So it appears, the token is on the verge of its second leg up in the upcoming month. Such a move could push its value to approximately $2.

ADA could rise to $2 according to the rising pattern. Source: TradingView.com
ADA could rise to $2 according to the rising pattern. Source: TradingView.com

Given the strong development and large market cap, ADA looks stronger as a 2021 investment. However, it is advisable to stop losses against aggressive upside positions to minimize losses if there is a surprising trend reversal.

Photo by Stephan Henning on Unsplash

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Lilit Chichyan

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