Buying Cardano (ADA) in 2024 | Top Pros and Cons

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Cardano (ADA) has emerged as one of the largest cryptocurrency projects by market capitalization in recent years and has proven to be one of the most active and busiest digital assets within the crypto space as far as activity and trading are concerned. As both cryptocurrency markets and the Cardano ecosystem continue to evolve rapidly, many investors are looking to understand both the opportunities and risks associated with investing in ADA.

This article provides a comprehensive overview of the key factors to consider for anyone wondering whether now is the right time to buy Cardano. We'll analyze the fundamentals of the Cardano network and project, discuss the top pros and cons of investing in ADA, offer strategic tips for building a position, and provide insights from cryptocurrency analysts on the long-term price potential of Cardano. By weighing these perspectives on Cardano's utility, community, competition and technical analysis, readers can gain a well-rounded perspective on the rewards and risks that come with investing in this permanently innovating cryptocurrency.

Key points from the article

  • Cardano (ADA) is a proof-of-stake cryptocurrency that aims to provide a more efficient alternative to Ethereum. It has fallen significantly from its all-time high but still has long-term potential.

  • Pros of buying ADA include its similarity to Ethereum, significantly lower price after the correction, potential growth in NFT/metaverse markets, decentralization, and growing popularity of cryptocurrencies overall.

  • Cons include potential further price drops, its smaller developer community/adoption compared to Ethereum, and regulatory risks from the SEC regarding some cryptocurrencies.

  • Tips for buying ADA include gradual investing at different prices, analyzing price charts, only investing disposable funds, using staking as a long-term strategy, and diversifying beyond just ADA.

  • Long-term price predictions vary but generally estimate ADA could reach around $1 by end of 2024 and $2-3 by 2025-2030 depending on adoption and market conditions.

Start Investing in Cardano Now With ByBit!

What is Cardano (ADA)?

Cardano is a decentralized proof-of-stake (PoS) blockchain, which is intended as a better solution to prove-of-work (PoW) blockchains in terms of efficiency. Scalability, interoperability, and sustainability are among the fundamental tenets behind the development of Cardano.

The Cardano platform was launched in 2017 by Charles Hoskinson, the co-founder of Ethereum, and was named after the Italian polymath Gerolamo Cardano. The ADA tokens are named after 19th-century mathematician Ada Lovelace, who is widely considered the first computer programmer in history. The ADA token is designed to allow owners to participate in network operations. Therefore, those who hold cryptocurrency have the right to vote on changes proposed to the software.

Cardano is one of the biggest cryptocurrencies by market cap. It is designed as the next generation of the Ethereum concept. Blockchain technology will provide a flexible, sustainable, and scalable platform for running smart contracts. As a result, decentralized financial apps, new crypto tokens, games, and other applications can be developed.

Like the Ethereum blockchain, the Cardano blockchain has its native cryptocurrency, ADA. Like Ethereum's native cryptocurrency ETH, ADA can be purchased and sold on exchanges like Coinbase. There are many uses for ADA today, including storing value (which might be included in your investment portfolio), sending and receiving payments, stakes, and paying transaction fees across the Cardano network.

Cardano’s price performance

Cardano Price 1y Return

-141.43%

Cardano Price 1m Return

-9.32%

Cardano chart

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Created with Highstock 6.1.1Period1m3m6mYTD1yAllHighcharts.com

Top 7 reasons to buy Cardano in 2024

1. Cardano is similar to Ethereum

Cardano is a new cryptocurrency that is similar to Ethereum in many ways. Cardano and Ethereum use a blockchain platform to run smart contracts and decentralized applications.

However, there are several key differences between the two platforms. Cardano is built on a proof-of-stake consensus algorithm, whereas Ethereum uses a proof-of-work algorithm. This means that Cardano is more energy efficient than Ethereum. Cardano also has a more sophisticated programming language for more complex smart contracts.

Finally, Cardano plans to integrate with fiat currencies, making them even more widely used. For these reasons, Cardano has the potential to surpass Ethereum.

2. The price has corrected significantly

The price of Cardano (ADA) has dropped significantly since its all-time high of $3.10 in January 2023. This is not surprising, given that the entire cryptocurrency market has experienced a bear market over the past year. However, Cardano's price has dropped more than most other cryptocurrencies.

This could be because Cardano is a relatively new cryptocurrency and has not yet been widely adopted. However, as the price is now much lower than it was just a few months ago, this might offer a good buying opportunity for investors who believe in the long-term potential of the platform.

3. Development of the NFT market and metaverse

The development of the non-fungible token (NFT) market and metaverse could be a significant driver of Cardano's price in the future. An NFT is a digital asset representing anything from a piece of art to a virtual world. The metaverse is a virtual world created by the interaction of multiple users.

Using Cardano, NFTs can be created and traded in the metaverse. This would be a primary use case for the platform and could lead to significant price appreciation if it is successful.

4. Cardano is fully decentralized

Cardano is a fully decentralized platform that is not controlled by any central authority. This is one of the key advantages of cryptocurrencies and is a significant reason they have become so popular. Decentralization also makes Cardano more secure, as there is no single point of failure that hackers could exploit.

5. The increased popularity of cryptocurrencies

The popularity of cryptocurrencies has been increasing over the past few years. This is due to several factors, including the increasing awareness of the general public, the development of new applications, and the rise of institutional investors.

Likely, the price of Cardano will also increase in the coming years as the popularity of cryptocurrencies continues to grow.

6. Strong development team

Cardano has a solid team, led by Charles Hoskinson, who is also a co-founder of Ethereum, which means they are all committed to the project. In addition to their experience and track record of success, the team consists of professionals.

Additionally, they have been backed by many well-known organizations, including the Cardano Foundation and Input Output Global (IOG).

7. Growing partnerships

The Cardano platform has developed several meaningful partnerships that are helping the platform to be adopted by many people.

A few of the most significant partnerships have been established with governments and other agencies such as Ethiopia, New Balance, and Algorand.

Top 3 reasons not to buy Cardano (ADA)

1. The Federal Reserve's tight monetary policy

There is a possibility that a tight monetary policy by the Federal Reserve could cause a decline in the demand for Cardano (ADA).

The Fed has been tightening monetary policy over the past year, which will likely continue in the coming months. This could decrease the demand for all cryptocurrencies as investors move their money into more traditional assets.

2. There is still a possibility of another price drop.

Even though the price of Cardano has dropped significantly from its all-time high, there is still a possibility that it could fall even further in the near future. This is because the cryptocurrency market is still in a bear market, and most cryptocurrencies are still trading at prices far below their all-time highs, even though the market is currently in a bull market overall.

Therefore, there is a possibility that the price of Cardano could fall further in the short term before it starts to recover fully in the long term.

3. In terms of adoption, it's far from Ethereum.

In terms of its adoption by traders, Cardano is still far behind Ethereum. This is because Ethereum has a much larger developer community and a more established ecosystem of applications. The reason Cardano has a relatively small number of users compared to Ethereum is that the platform is still in its early stages of development and adoption.

Therefore, it is possible that Cardano will never achieve the level of adoption that Ethereum has. This could lead to a further decline in the price of Cardano.

4. Potential delistings in the US

In June 2023, it became known that the U.S. Securities and Exchange Commission (SEC) considers the popular cryptocurrencies Cardano (ADA), Polygon (MATIC), and Solana (SOL) to be non-registered securities. The SEC considers trading these cryptocurrencies in the U.S. to be illegal because it’s impossible to protect investors’ rights. This position of the SEC is expressed in the lawsuit against Coinbase and Binance US that are charged with illegal trading.

The Robinhood broker and several other providers of cryptocurrency trading services have announced that they will delist ADA, SOL, and MATIC.

Representatives of the cryptocurrency projects have stated that the accusations are groundless. Nevertheless, after this news was published, capitalization of the cryptocurrencies mentioned in the lawsuit fell rapidly. Traders Union’s analysts believe that the price of these tokens will be under pressure from sellers until the situation is settled. At the same time, it should not be ruled out that in case of a successful settlement of the situation, the price may rise very significantly.

Top 5 tips for buying Cardano

1. Invest gradually at different prices.

If you're considering buying Cardano, investing gradually at different prices is essential. This will help you average out your costs and reduce your risk. Because the price of Cardano is very volatile, it's vital to spread your investments out over time.

2. Analyze the chart for key levels to increase positions.

It is important to consider that when analyzing the Cardano chart. You need to look for key levels where you can increase your position. In this way, you will be able to take advantage of any potential price increases and maximize your profits along the way.

3. You should only invest what you can afford to lose.

It's always advisable to invest only what you can afford to lose. This is especially true when it comes to buying volatile assets like crypto. Cardano is a very volatile asset, and its price can change rapidly. This means you could lose all of your investment if the price falls sharply.

4. Use staking as a smart long-term investment method.

One of the best ways to make a long-term investment in Cardano is to use staking. Staking is a process where you lock up your ADA tokens in a wallet for a period of time. In return, you earn interest on your investment.

This is a very effective way to earn a passive income from your investment and reduce risk. It's also an excellent way to keep your ADA tokens safe if you're worried about a potential price crash.

5. Add Cardano to a broader investment portfolio.

Don't invest everything in Cardano. It's always a good idea to diversify your investment portfolio. This means investing in various assets, including fiat currencies, stocks, bonds, and other cryptocurrencies.

By investing in various assets, you'll be able to reduce your overall risk and increase your chances of making a profit in the long term.

Where to buy ADA?

Below is a list of the two best crypto exchanges supporting Cardano (ADA). To choose, consider several factors, including assets, payment methods, fees, and security.

Bybit

Open an account
Your capital is at risk.

Bybit is one of the leading cryptocurrency derivatives exchanges. It offers a user-friendly platform and supports multiple assets, including ADA.

Furthermore, it offers a variety of payment methods to its customers, such as bank transfers and credit cards. Currently, Bybit has a tier system for its fee structure and charges, which ranges between 0.2% and 0.10%.

The exchange is also very secure, as it uses multiple layers of security, such as 2-factor authentication and SSL encryption.

eToro

Open an account
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.

eToro is a social trading and multi-asset brokerage platform with over 10 million users. The platform allows you to buy, sell, and trade various assets, including crypto.

eToro supports multiple payment methods, including bank transfers and credit cards. The platform also charges a small fee for each transaction.

When To Buy Cardano? Cardano Price Analysis

Weekly Cardano price prediction from moving averages Strong Buy
Analysis indicators
Moving average Buy (12) Sell (0)
Indicators Buy (6) Sell (0)

Cardano price prediction by TU is prepared automatically on the basis of technical analysis of moving averages and indicators for each timeframe (interval) separately. Select the timeframe you need to find out Cardano price prediction for today.

NOTE!

Signals may differ on different timeframes. If you want to buy ADA and hold the cryptocurrency for longer than one week, it is best to use the signals on daily and weekly timeframes. Timeframes from 5 minutes to 1 hour are best suitable for short-term transactions.

Get Cardano price prediction – from 5 minutes to 1 week

Forecast: Strong Buy
Analysis indicators
Moving average Buy (12) Sell (0)
Indicators Buy (6) Sell (0)

How high can Cardano go in 2024, 2025, and 2030?

Cardano's long-term price predictions have been compiled here. They can be helpful, but it is important to remember that these predictions can often be incorrect.

Cardano price predictions for 2025, 2030, and 2033

Coin Price Forecast provides a long-term Cardano (ADA) price forecast for the period from 2023 until 2033. The table shows the forecast as of the end of each year.

Year Price in the middle of the year Price at the end of the year Average growth, % per year
2023 $0.79 $0.83 +82%
2024 $0.89 $0.96 +111%
2025 $1.03 $1.16 +155%
2026 $1.19 $1.26 +177%
2027 $1.37 $1.48 +225%
2028 $1.57 $1.68 +269%
2029 $1.79 $1.80 +296%
2030 $1.90 $2.00 +340%
2031 $1.84 $1.93 +324%
2032 $2.02 $2.11 +364%
2033 $2.08 $2.16 +375%
2034 $2.24 $2.32 +410%

Should I invest in Cardano (ADA) right now?

Cardano is a very promising cryptocurrency with a lot of potentials. It's important to remember that the price of Cardano is very volatile, and you should only invest what you can afford to lose.

However, the team behind Cardano is very experienced, and they are making progress on several fronts. The project has a lot of potential and is worth keeping an eye on.

If you're looking for a long-term investment, Cardano could be a good option. However, you should only invest what you can afford to lose and continuously diversify your investment portfolio.

FAQs

What is Ouroboros?

Ouroboros is the proof-of-stake consensus protocol that Cardano uses to validate transactions and secure the network. It allows ADA holders to earn rewards by staking their tokens.

How do I stake my ADA?

You can stake your ADA by holding it in a supported wallet, such as the Daedalus or Yoroi wallets. This allows your coins to validate transactions and earn staking rewards over time.

Is Cardano more eco-friendly than Bitcoin or Ethereum?

Yes, Cardano uses a proof-of-stake model which is significantly more energy efficient than the proof-of-work protocols used by Bitcoin and Ethereum currently. Staking also requires less energy.

How volatile is the price of ADA?

ADA is very volatile as with most cryptocurrencies, often fluctuating 10-15% or more on a daily basis. Investors should expect volatility and price swings in both directions.

Team that worked on the article

Ivan Andriyenko
Author at Traders Union

Ivan Andriyenko is a financial expert and analyst. He specializes in trading in the Forex, stock and cryptocurrency markets. His preferred trading style is conservative strategies with low or medium risk, medium and long-term investments. He has 7 years of experience in the financial markets. Ivan is involved in preparation of articles for novice traders, and also of the reviews and evaluation of brokers, analyzing their reliability, trading conditions and peculiarities.

Ivan continuously tests new strategies for various assets, choosing the most effective options. In addition, he believes that helping novice traders is an important aspect of work. He shares information that beginners require – educational materials, strategies.

Ivan’s motto: continuous studying and experimentation lead to success.

Dr. BJ Johnson
Dr. BJ Johnson
Developmental English Editor

Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.

The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.

Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.

Mirjan Hipolito
Cryptocurrency and stock expert

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.