Cardano is one of the top 10 cryptocurrencies by market cap. Because of its attractive use case and strong community, it has continually grown in value, assuring profits. Similarly, Cardano is a technology that hopes to revolutionize blockchain tech by improving and generating better outcomes. While the digital asset industry is growing more lucrative, it’s crucial to know the best place to buy your coin. When you buy Cardano from a good exchange, you will get value for your money. Additionally, buying from these exchanges would ensure your asset is secure and safe.
What is Cardano?
Cardano is essentially a public blockchain platform that prioritizes decentralization while leveraging proof of stake to achieve consensus. Experts see the proof of stake as a more efficient and faster way to mine cryptocurrencies, which is why many new-generation cryptos embrace this relatively new mechanism. Because of the flaws of first-generation platforms like Bitcoin and Ethereum, Cardano wants to improve on those areas. It’s important to say that while Ethereum is the first programmable blockchain, it has many structural problems resulting from its scalability issue. Scalability is the ability of a platform, particularly a blockchain, to fulfill and execute transactions, especially with a growing workload. Also, some specialists believe that Ethereum’s proof-of-work mechanism is the reason for the slower network.
What Is Proof Of Work?
Proof of work is a mechanism that ensures efforts in computing, thereby deterring frivolous use. After the technology’s creation and introduction, Bitcoin was the first blockchain to leverage proof of stake. This makes decentralization and security achievable in the community. Today, users have to put lots of effort into mining Bitcoin, consuming power, and a large amount of computing. Before miners can gain rewards in Bitcoin, they need to put in the effort the network sets to a specific difficulty standard. However, times have changed thanks to introducing a newer mechanism known as proof of stake.
What Is Proof Of Stake?
Similar to the proof of work, proof of stake is a mechanism for creating new blocks. A significant feature that sets this new mechanism from the older is reducing computational power to create new blocks. Previously, miners found it challenging to mine and thus required a large amount of power to get cryptocurrencies. However, experts saw that proof of work might not be sustainable due to growing environmental concerns. The large consumption of power has led to blackouts in some cities, leading to stringent regulations on mining. In this system, the network randomly chooses who mines, reducing the competition and efforts required in the earlier mechanism.
Cardano’s Background
Charles Hoskinson, one of the founders of Ethereum, founded Cardano. He saw the problems with Ethereum and decided to develop a blockchain that is devoid of Ethereum’s structural challenges. The creator started developing Cardano in 2015. Finally, the Cardano community released the blockchain and the native token, ADA, in 2017. Despite the years it took for the platform to gain recognition, and it can be worth the work as Cardano is one of the biggest networks in the digital asset industry.
The third-generation blockchain is seen to be quite similar to Ethereum. Some users believe that Cardano is a suitable alternative to Ethereum, especially because they support smart contracts and higher decentralized platforms. Essentially, the platform positions itself as an upgrade to Ethereum while hoping to make decentralized banking services available for everyone.
Why Cardano is a Good Buy in 2022?
According to the official website, Cardano is the nexus of five principles: people purpose, technology, research, and opportunity.
People
It is safe to mention that many specialists helped create Cardano. Experts worked together to achieve a purpose. The purpose is to build a platform that brings positive change. Users holding the ada token also get to enjoy some benefits like earning rewards, contributing to the smooth-running of Cardano for gains. The platform also assured that Users would use the native token for various purposes on the blockchain.
Purpose
The creators believe that Cardano was built for a sustainable future and to solve some global problems. This platform also focuses on decentralization, removing intermediaries from the equation, thereby making services much more accessible to people. It hopes to empower many rather than give power to the few, which is the outlook of the traditional financial system. Cardano hopes to create a decentralized world where humans have control over their data and how they interact. Also, this would lead to democracy needed for fairness and accountability.
Technology
If it’s one thing that Cardano is bringing, users would agree that it’s technology. It plans to change the standards in technology while improving openness and inclusivity. It’s safe to mention that this platform hopes to improve how users interact and transact. Ouroboros’ proof of stake consensus protocol hopes to achieve security and stability.
Research
Another principle guiding the Cardano network is research. It hopes to change the status quo by pivoting groundbreaking research. The creators assured that before integrating any technology, they thoroughly research it. With peer-review, a new concept in the digital asset space, Cardano products are thoroughly reviewed by experts and specialists. This makes it crucial to research thoroughly to enable a favorable outcome from peer reviews.
Opportunity
Opportunity is the last principle guiding Cardano’s creation. It assures users are empowered with leading-edge technologies and methodologies to discover possibilities. Additionally, Cardano hopes to improve scalability options and make them more secure. Because scalability is a huge challenge for most platforms in the digital asset space, they would benefit from better options in that aspect.
Fig.1 ADA/USD 1-day chart showing ADA’s reversal – TradinView
Top Exchanges To Buy Cardano
After deciding to buy Cardano, the next step is to find the best platform for your purchase. Using a good platform would keep your data and your assets safe. Below are the three best platforms to buy digital assets.
Binance
Binance is one of the most popular crypto exchanges globally. Founded in 2017, it has continued to grow as a brand and an exchange. Binance is also known for its focus on altcoins. Because of this, users and traders interested in purchasing altcoins buy through Binance. This also makes it a suitable choice for Cardano purchase. Offering over 500 altcoins and digital assets has helped numerous regions enjoy digital asset exposure.
Another reason for Binance’s popularity is the p2p trading feature. While users can choose to buy from the exchange, they can also buy from their peers. However, the latter is riskier than the former. So, if you want to buy Cardano, you have an option of buying from the exchange, which is Binance, or buying from another person in your country.
Additionally, this exchange has numerous tools and features for users interested in trading. While you have access to this tool, you can decide to use a simpler version for your purchase, mainly new to trading. Besides Cardano, you can also explore a wide range of altcoin options on Binance. And since Binance is available in many countries, this makes it easier to access its services.
Coinbase
Coinbase is another platform where you can buy Cardano. This platform is also an exchange that supports the buying and selling of digital assets. With over 100 altcoins, you can benefit from Coinbase’s extended list of altcoins. Similarly, this platform takes security seriously, making it trusted and reliable. It’s safe to mention that the $200 million company has over 70 million users, making it a favorite amongst traders and investors. If you are new to digital assets, it will help to use the simpler version of Coinbase to get your orders settled easily. However, if you need professional tools and advanced options, you can opt for Coinbase Pro, which gives you better options.
Bitfinex
Bitfinex is also a great place to buy ADA. While Gemini does not support a lot of altcoins, you can buy Cardano through a straightforward process. Additionally, you can buy or sell your digital assets or keep them safe. Bitfinex has a separate interface for new traders and professional traders like many exchanges.
This makes it easy for new traders to navigate and access essential services. So, if you want to trade or invest casually and are not interested in more advanced options, you can easily access a more straightforward interface. On the other hand, professional traders can access many tools for trading. If you need a good platform with excellent trading features, you should trade with Bitfinex. This trading platform is also known for its strong focus on security and stability. So, if you need a reliable exchange to buy Cardano, you can opt for Bitfinex.
Conclusion
Cardano is a popular asset in the digital asset space, making it necessary to know a suitable platform for its purchase. Some of the best platforms to buy Cardano include Binance, Coinbase, and Gemini. It’s safe to note that you should understand the coin before purchasing to avoid financial losses. Also, you should not invest an amount that you cannot lose due to the volatile nature of digital assets.
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