Cardano (ADA) Cryptocurrency and Where to Store ItMar 24, 2023
Cryptocurrency holders are always on the lookout for new digital assets to acquire and store securely. One of the most promising cryptocurrencies today is Cardano. It has been steadily growing in popularity due to its compelling vision and commitment to providing a secure platform for digital asset management.
Dive into this post to learn more about Cardano, why it’s labeled an “Ethereum killer” token, and explore wallet options Cardano users have.
What is Cardano (ADA)?
Cardano is a public blockchain and cryptocurrency project led by one of the Ethereum co-founders Charles Hoskinson. Launched in 2017, the blockchain was founded with the vision to create a platform that is secure, scalable to worldwide adoption, and has advanced features for scalability and privacy. ADA is the native cryptocurrency of this network, offering users a variety of purposes such as payment transactions or staking rewards.
The platform is controlled by a global community of developers, contributors, and ADA holders. Due to its open-source nature, anyone in the public can collaborate with the project and benefit from the positive changes to the infrastructure.
In 2021, Cardano introduced smart-contract support that made it one of the main Ethereum rivals. Since the update, the blockchain welcomed developers choosing to build NFTs, Web3 applications, and DeFI tools with Cardano.
|Incomplete Representation of Cardano Ecosystem as of March 2023 / Source: Cardano Feed|
How Cardano Works?
What makes Cardano stand out among fellow blockchains is its commitment to peer-reviewed scientific research in the cryptography field. While the experimental approach is common to the yet nascent crypto industry, the Cardano team bets big on science.
Quite complex mechanisms are utilized to make transacting with ADA simple, fast, and secure. The blockchain is fueled by the Proof-of-Stake protocol Ouroboros. It allows a superior way to achieve consensus in a distributed group setting, ensuring greater security against malicious attacks or unexpected system output. Cardano uses a EUTXO model for sending and verifying transactions, which outright requires smaller fees and minimizes risks of failure.
|Source: Charles Hoskinson via Twitter|
One of the most outstanding gainers during the previous bull market, ADA is currently valued at around $0.3 while remaining the seventh largest cryptocurrency on CoinMarketCap by capitalization. It is also the second biggest Proof-of-Stake coin after Ethereum.
ADA repeatedly tops lists of the most undervalued assets despite its outstanding features that will be reviewed further.
Cardano (ADA) Use Cases & Advantages
Cardano is often called a new-generation blockchain as the platform was designed to resolve the fatal flaws Bitcoin and Ethereum had. These include scalability, interoperability, and a resolute focus on decentralization.
- Transacting Power
ADA is becoming a beloved alternative to Ethereum cryptocurrency thanks to faster and cheaper transaction processing capabilities. While the high ETH gas fees and sluggish performance narratives aren’t getting old, Cardano handles 250 transactions per second (TPS) with a median transaction fee as low as 10 cents.
|Ethereum Community showing love for ADA / Source: Vitalik Buterin via Twitter|
Although ADA is not the fastest cryptocurrency, the blockchain was designed to be adaptable to growing demands while maintaining minimal network fees. Specifically, developers are currently in the works for launching Hydra — a layer-2 solution that potentially boosts the speed up to 1,000,000 TPS. The update will give a major competitive advantage to ADA over both Ethereum and Solana.
- ADA Staking
The Ouroboros Proof-of-Stake protocol fueling the Cardano blockchain is a more energy-efficient alternative to Proof-of-Work systems like Bitcoin and pre-Merge Ethereum. It also has advanced features such as sidechains and the choice of multiple layers for scalability and privacy.
What is more compelling to investors, holders can stake ADA to the protocol and earn passive income on tokens they already own. Opposite to ETH, ADA remains liquid after staking and can be used in different revenue streams to earn even more yield.
Where to Store ADA?
When it comes to Cardano, there are multiple storage options available. Cryptocurrency exchanges remain the easiest yet riskiest place to store any crypto. Non-custodial wallets are out of reach of any centralized authority, hence the best option to safekeep ADA.
Ledger and Trezor are two hardware wallets supporting Cardano that offer unparalleled security due to their private key encryption. These devices are kept offline most of the time, which helps in minimizing the risk of loss due to hacking or other cyber threats.
Software storage is a great choice for those seeking an easy-to-use app to store ADA without risking security. Arctic Wallet is a Web3 multi-currency wallet that helps store hundreds of digital assets and access essential crypto tools within one app. It’s available both on desktop and mobile, set up and ready in three minutes to take crypto with you wherever you go.
Buy, Sell, and Convert Cardano using a Crypto Wallet Only
While the cryptocurrency is supported by all reputable exchanges like Binance, Kraken, or KuCoin, your crypto wallet is a great asset to have on hand if you're in the market for Cardano. The majority of them allow you to easily buy, sell, and swap digital tokens with the utmost security.
You can use your Arctic Wallet App to buy ADA and get it straight to your address without referring to exchanges and going through tedious withdrawal procedures. It is also an option to sell it for a different currency, such as Bitcoin or Ethereum, or exchange ADA directly in the wallet. With these in-built features at your disposal, buying, selling, and transferring crypto has never been easier.
|Arctic, Desktop App|
Understanding Cardano with its complex and beautiful underlying architecture may be useful for keeping up with revolutionary developments in blockchain technology. The blockchain used to be criticized for sticking to a slower development pace than its main competitors, Ethereum and Solana. Yet, it is gaining more usage and recognition for its expansive utility and development prospects that drive its potential to increase in value.
When managing your ADA, it’s essential to take into account the different types of wallets and their features such as functionality or security. All in all, understanding how crypto storage apps work will support you in taking control of your digital assets while making sure your Cardano is safely managed.