The crypto currency Cardano

Cardano Logo
Official Logo

Cardano is a network created by Ethereum co-founder Charles Hoskinson. The goal behind Cardano is to fix all problems that other cryptocurrencies have (e.g. slow transactions, no decentralization, etc.). All of this should be done from a scientific point of view, so team members agreed on some basic principles at the beginning in 2015. For example, Cardano should be open source and completely transparent. Within Cardano, the cryptocurrency ADA is used to pay for transactions. The distinction is important, Cardano is the name of the network or blockchain and ADA is the name of the cryptocurrency. Nevertheless, the name Cardano is commonly used, while ADA is rarely used.

No mining with Cardano

One big problem that Bitcoin in particular has is its energy consumption. Huge amounts of electricity are consumed worldwide for mining Bitcoin, which is not necessarily sustainable, especially in this day and age. Therefore, there is no mining at Cardano, new coins are created via Proof of Stake. Proof of Stake means, that anyone who owns ADA and holds it in a wallet that is available online, automatically helps to ensure that transactions are done correctly. For this, you will get a reward of about 4% per year, depending on various factors. This process is called staking.

So if you own Cardano, they will automatically increase over time, without your intervention. You don't need expensive hardware or electricity to generate new Cardano. This system is of course very sustainable and also of great advantage for you, because you automatically get interest on your investment in Cardano.

However, the process is still a bit complicated. You have to download your own wallet and delegate your ADA to a staking pool. It is somewhat easier if you use a provider such as Coinbase. There you can stake different currencies automatically, if you have the minimum amount in your wallet. The first option is generally safer and more profitable, because you are not bound to a middleman like Coinbase.

If you choose this option, download either the Daedalus or Yoroi wallet. Use ONLY the official links on the Cardano site. There are many scammers on the Internet who could steal your Cardano. You should be on the safe side in any case.

What is Cardano? ADA Explained with Animations

Advantages of Cardano

One of the big advantages of Cardano is of course the Proof of Stake. With this method, new coins are created permanently without burdening the environment with unnecessary energy consumption. Also the scalability with Cardano is great, so transactions can be carried out quickly and cheaply worldwide. Since you generate new Cardano relatively easily with staking, you get a good interest rate on your Cardano, roughly between 4% and 7% per year.

Charles Hoskinson has a very good reputation in the community and therefore the trust in Cardano is very high. Additionally, since Cardano is very transparent and decentralized, it has secured a place in the top 10 cryptocurrencies in just a few years.

- Staking brings a high interest rate
- No unnecessary energy consumption
- Transactions are carried out quickly and cheaply
- Cardano enjoys a lot of trust from the community

Disadvantages of Cardano

Currently, while transactions are cheap, that may change. Since transactions cost a fixed value in ADA plus a variable value depending on various factors, sending Cardano could become very expensive if the price increases accordingly. Currently, it costs about 0.16 ADA, which is only a fraction of a Dollar at a current price of around 2 Dollar per ADA. However, if the price were to rise to 100 euros, the price would also rise accordingly. However, the community could then vote to lower the fees, but if there is no majority in favor, the fees would remain accordingly high.

The vision of Cardano is big. Fixing all the problems of other cryptocurrencies is a lot of work. That’s why Cardano is still in development. Whether everything will be implemented as promised remains to be seen.

- Transactions could become very expensive as the price of Cardano rises
- Whether everything will be implemented as promised remains to be seen

Services where you can earn Cardano for free:

Rating Name Country Earnings Currencies Type
of Service
Coinpayu USA High Bitcoin Bitcoin Cash Cardano Dash Doge Ethereum Litecoin Tether Tron Bitcoin Faucets, Paid Clicks, Paid Surfing 2017
Autofaucet Dutchycorp France Good Bitcoin Bitcoin Cash Cardano Dash Doge EOS Ethereum IOTA Litecoin Monero Ripple Stellar Tether Tron Zcash Bitcoin Faucets, Paid Clicks, Paid Surfing 2018
Crypto Junkie USA Middle Bitcoin Bitcoin Cash Cardano Dash Doge Ethereum IOTA Litecoin Ripple Tether Tron Bitcoin Faucets, Paid Clicks 2020

Conclusion on Cardano

Cardano is an enormously interesting project. Above all, the Proof of Stake concept gives Cardano a great advantage in the battle with other cryptocurrencies such as Bitcoin, since the large energy consumption is increasingly coming into focus. The cryptocurrency community also sees great potential in Cardano, and it is not without reason that the cryptocurrency has always been among the top 10 for quite some time. The current price of Cardano also speaks for the success of the digital currency. Since the beginning of 2021, the price has been rising inexorably, and there is no end in sight to the success story of Cardano.

Any news from the developers is usually accompanied by a jump in the share price, which also shows the great trust of the community. If Cardano can actually implement the great vision as the founders have imagined, Cardano could perhaps even knock the big top dog Bitcoin off its throne at some point. The potential would definitely be there.

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