This new position should represent approximately no more than 10% of your crypto portfolio.
Cardano is a revolutionary third-generation cryptocurrency project. Development began in 2015. And it has attracted some of the world's top talent in cryptography, information security and software development.
Cardano is a smart contract platform with a native cryptocurrency (ADA). And it's similar in many ways to ethereum . Cardano allows for the creation of "smart contracts" for an extremely broad range of applications. In essence, these smart contracts transfer value based on software protocols. Example applications include insurance, property transfers and financial transactions of all kinds. The possibilities are nearly endless (which is why many compare the potential of blockchain technology with that of the internet).
From the start, cardano has been built using insights and lessons learned from previous generations of crypto projects. It aims to fix problems that have frustrated other projects, and it's doing so in a very efficient manner.
Cardano's goal is simple. It wants to build a robust blockchain platform capable of hosting "distributed applications" and processing hundreds of thousands of transactions per second.
Cardano has been built with enterprise (big company) blockchain applications in mind. It is designed to address regulatory and compliance concerns. Audits and immutability are critical design components. Transactions are more private than bitcoin or ethereum , but can be fully audited for accounting purposes. That makes it ideal for most corporate entities.
Cardano tokens allow participants to use the network. Cardano is the fuel that powers smart contracts and allows for the transfer of value on the cardano network. It's similar to how ether (ETH) functions on the ethereum network. Cardano is also becoming a useful cryptocurrency in its own right, much as ether has done but it doesn’t have the absolute drag of an 80% ICO failure built on it that has demolished ETH this year.
The comparisons to ethereum are numerous, and there's a good reason for that. Cardano's founder and chief architect, Charles Hoskinson, was also one of the original founders of ethereum . He left to start cardano and has set out to fix what he sees as ethereum's shortcomings (more about this under the "team" subhead below).
Cardano is designed to be far more scalable and "green" than coins like bitcoin and ethereum . Many observers see the "energy-hogging" nature of these older coins to be problematic.
Cardano sees its eco-friendly footprint as a competitive advantage.
And unlike a large number of competing crypto platforms, cardano is not tied to the ethereum network. Cardano has its own separate blockchain with a completely different codebase.
I believe cardano has the team, technology and vision to accomplish these ambitious goals. It is one of the few projects that can compete with, and possibly overtake, ethereum . Don't get me wrong, I still like ethereum , but by owning cardano we are hedging our bets on the incredible potential of smart contract platforms.
For more of an overview on what cardano is trying to accomplish, I recommend watching this video.
In the video, Hoskinson explains how cardano is building a network based on lessons learned from previous cryptocurrencies, and why it believes its approach is superior.
I. An Impressive Team
As noted earlier, Hoskinson isn't just cardano's founder. He was one of ethereum's founders. He's also ethereum's former CEO and chief technology officer. Hoskinson also collaborated with EOS' Dan Larimer on BitShares. He's a widely respected leader in the cryptocurrency world and is considered one of crypto's most talented programmers.
He's been around since the earliest days of the cryptocurrency movement. And he's channeling everything he's learned into cardano.
Hoskinson has attracted an incredibly talented and competent team. Some of the world's leading experts in cryptography, computer science and engineering are working on cardano. There are many pioneers of computing languages in there, as well as academic technology experts who are trained to peer-review code. In one interview I watched, Hoskinson says he rarely hires people from within the cryptocurrency space. He says they're overpaid and not skilled enough. That’s a bold statement and position to take. Cardano recruits the best of academia and business.
Many of cardano's core developers are employed by IOHK (Input Output Hong Kong), the blockchain development firm leading the cardano project. You can see a list of them here:
I realize the structure of cardano is a bit strange, and I'll explain it more below under "governance."
Cardano is based in Hong Kong and has a large international presence. It has active communities in both the East and the West - a rare feat for any coin.
I’m certain you have no doubt heard of Cardano before, I have not made a formal recommendation for it before though and if you bought in on any other day since it’s release, you’ve lost on it. Our timing is exceptional today.
Since its listing on Bittrex in 2017, cardano has quickly become one of the top projects in cryptocurrency.
During the height of 2017's crypto bull run, cardano briefly reached a high price of $1.28 per token. Today it trades at around $0.0425 and has come down to a much more reasonable valuation. While timing is difficult in crypto, it is important to realize that we are getting almost a 97% discount from cardano's all-time high. All things considered, I believe this is an excellent entry point.
III. Big Money Likes Cardano:
Overall, I believe cardano is extremely attractive to institutional investors. These are large financial firms that are just starting to enter the market.
We're at the beginning of an institutional boom in crypto, and I think cardano is an excellent way to take advantage of it (along with bitcoin , ethereum and litecoin, which I believe will all be popular as these financial juggernauts enter the crypto markets over the coming months).
Cardano has held up relatively well in the market's recent downturn (ignoring the brief high during the height of the last mania). It maintains an impressive $1. billion market capitalization today, and this speaks to the quality of its core holders.
Side note: All the signs of this coming institutional boom are there. Qualified custody of crypto is being built out now. ETFs are likely coming soon. Cryptocurrency exchanges are working on getting their broker/dealer licenses. It's all to smooth the way for institutional money to enter the market.
I believe that once a single huge firm moves heavily into crypto, the rest will rush in. We're on the cusp of it right now.
For the most part, institutional money is very patient. They're long-term investors. When they come into crypto, I believe they will buy and hold. This would be amazing for the price action of high-quality coins like cardano.
Cardano has one of the most well-designed governance systems I've seen in the crypto world. It has learned from the mistakes of past projects. This is a big part of why we call it a third-generation cryptocurrency.
Cardano has been built to have robust community involvement, and that includes (soon) voting for delegates in the staking process (deciding who gets to create the next "block" and how to split up the proceeds, essentially).
It's designed to incentivize good behavior and efficient transaction processing. There will be a treasury automatically funded to pay developers, which fixes one of the primary stumbling blocks in many projects.
So far, members of the core cardano team have shown themselves to be flexible and not stuck on any particular path. They've changed course based on new developments in the crypto world and community feedback. Most importantly, they never stop making progress.
This is a team I trust to guide the community until the decentralized governance system is fully up and running.
CALL TO ACTION:
I recommend buying on Bittrex.com. If you don't have an account yet and are new to crypto, sign up for one today.
Once you have your Bittrex account open and funded, click on the "markets" link in the upper-right-hand corner. Now, under "bitcoin markets," search for the ticker symbol ADA. Click on the BTC-ADA link (this is the trading pair of bitcoin and cardano), and it will bring you to the buy page.
If you scroll down past the charts, in the middle of the page, you will see the buy/sell trading box. Each cardano trades for around $0.425 today, so keep that in mind when placing your order.
Under "bid price," select "ask," and that will automatically target the lowest price offered currently. You can enter a limit order if you are familiar with them.
Enter your buy. Bittrex may ask you to confirm the trade with a new two-factor authentication code ( Google Authenticator or text message).
Cardano also trades on Binance, Upbit and Huobi. You can see a full list of all the exchanges it trades on via coinmarketcap .com
Like all cryptocurrencies, this one is risky and volatile. Only invest money you can afford to lose.
That said, I believe cardano is in an excellent position and consider it a "blue chip" cryptocurrency. You should expect to hold for years, through volatile ups and downs and at today’s price the odds are in your favor. There aren’t too many scenarios I can see where you don’t profit on ADA while being a patient investor!
Stay ahead of the masses,
Founder, Crypto Wealth Coach
Owner, Modern Wealth Management
Founder, Trading Resource Artificial Intelligence Network (T.R.A.I.N.)