Basics of the Cardano Coin

Cardano is one of the largest digital currencies by market cap. In this article, we will talk about the basics and what you need to know about it.

Introduction

The Cardano blockchain is designed to be a very scalable platform to run smart contracts. Its creators designed it to be sustainable, which is a big plus if they can pull that off. This blockchain platform will allow many types of decentralized finance apps and games.

As mentioned above, Cardano is one of the largest cryptocurrencies and it was designed to improve on what Ethereum does. It is still being developed so not all of its planned features are available yet. However, this goes for many cryptocurrency coins. Most are being updated with new features on a regular basis and this is a good thing. 

The Token

Cardano’s token is the ADA. You can buy this at almost every exchange. Many people use the coin to invest money or make payments with it. As with all stocks and cryptocurrencies, it fluctuates regularly. This does create buying opportunities if you are an investor. So keep that in mind. 

How It Works

Its creators envisioned it to be a sustainable blockchain. To achieve that goal, it uses a proof of stake system instead of a proof of work system that uses much more electricity. Using a validation system, people stake their own ADA instead of mining. Whoever has staked the longest and with the most coin, wins and gets the reward. Others will validate the transaction at this point. Once this is done, ADA will be distributed as rewards in accordance with how much ADAyou staked on your own. 

Metrics

At the time of writing, the ADA coin is valued at $0.43 per token. It has a market cap of $14.79 billion dollars. This makes it one of the largest cryptocurrencies. The 24 hour trading volume is $24 million dollars. Since it’s all-time high is $3.10, this is probably a good buying opportunity if you are a fan of Cardano. Remember, only invest what you can afford to lose and use a reputable exchange. 

Conclusion

Cardano, being a third generation blockchain, will likely become more developed and useful. It is already making headway in that direction. Its token, the ADA, has many people looking at it. Since this is a proof of stake platform, it has generated much interest because this helps the environment.