Cardona (ADA) cryptocurrency good investment?

 

While the cryptocurrency market has seen some ups and downs over the past few months, there are still plenty of reasons why Cardano (ADA) could be a good long-term investment, and even outperform Bitcoin in the future. 

In this article, we’ll take an in-depth look at what Cardano is and its potential to make money. Our short answer to this question? 

Yes, ADA could explode in value like Bitcoin did in 2017; but it’s still too early to tell whether it will or not.

Short Term vs. Long Term

In some ways, short-term and long-term are talking about different aspects of an investment. A short term investment is typically considered one that can be realized quickly—within months or a few years. 

A long term investment, on the other hand, is more of an extended commitment where you are looking to reap rewards five, 10 or even 20 years down the line. 

So, at face value Cardano seems like it might be best suited for shorter-term gains—but cryptocurrency in general isn’t well understood enough to rely on those types of predictions.

Where Does ADA Rank Among Other Coins?

Though Cardano has only been in existence for about a year, it currently ranks as 8th most valuable cryptocurrency. It is ranked by market capitalization and is valued at $1.23 billion (USD). 

Like Bitcoin, Ethereum, and Ripple, Cardano's value has gone up exponentially since its release. 

Although that could make you believe its worth investing in, those coins have very little real world value outside of their trading value on popular exchanges such as Coinbase or Binance.

What’s Ahead for Cardano (ADA)?

Cardano has been a huge underperformer so far in 2018, with ADA prices falling as much as 60% from their early January peak. 

This poor performance is in stark contrast to most cryptocurrencies—particularly bitcoin and Ethereum, which have posted 100% and 9,000%+ gains over that same period of time. 

What happened with Cardano and what’s likely to happen moving forward? In our view, there are two broad themes that will play out for Cardano in 2018. 

We see these overarching trends driving demand for both long and short positions on ADA prices. So how should investors respond to these market forces?

Pros and Cons

Over the past few months, Cardano has seen massive growth. The blockchain protocol went from trading at less than $0.01 to more than $1.00 in December 2017, although its price has since dropped back down to around $0.30 in January 2018. 

Like most cryptocurrencies, Cardano's value is driven by speculation and investment—people are investing in Cardano because they hope that its value will continue to rise over time. 

This hope stems from factors like big business partnerships and new features being added to Cardano's software ecosystem, but some people argue that Cardano hasn't made much progress since its ICO and is thus unlikely to appreciate significantly over time.

Trading Considerations

Cardano is one of more than 1,300 cryptocurrencies—the total market cap of all cryptos recently hit an all-time high above $700 billion. 

There are hundreds of cryptocurrencies that have seen 10x, 100x, even 1000x returns over short periods of time. But remember—with every coin comes a risk.

Final Thoughts

It’s clear that Cardano has made strides towards developing their currency and platform, but whether or not it will stand out in an increasingly crowded market remains to be seen. 

With so many big players entering into cryptocurrency markets, Cardano may have to work hard to distinguish itself from its competitors. 

For now, don’t expect too much too soon; still, Cardano may just be one of those riskier long-term investments that could pay off big in 5 or 10 years. 

If you want in on cryptocurrency without taking such a high risk right now, consider Bitcoin or Ethereum instead.