Cardano’s value has increased so far in 2021, but what exactly is it?
We explain everything you need to know about ADA cryptocurrency, its price and future predictions.
Cardano, also known as ADA, has appreciated in value over the past few monthsPhoto credit: Getty
But be careful: Buying cryptocurrencies, stocks and shares is a very risky business.
Investing is not a guaranteed way to make money so make sure you know the risks and can afford to lose the money.
Cryptocurrencies are very volatile, so your money can go up and down in no time. You can lose all of your invested money.
Also, some cryptocurrency products and services are very complex. You should only invest in things that you understand.
5 Risks When Investing In Crypto
The Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Some investments that advertise high returns based on crypto assets may not be subject to regulations beyond anti-money laundering requirements.
- Price volatility: The significant price volatility of crypto assets combined with the inherent difficulty of reliably valuing crypto assets puts consumers at high risk of loss.
- Product complexity: The complexity of some crypto-related products and services can make it difficult for consumers to understand the risks. There is no guarantee that crypto assets can be converted back into cash. Converting a crypto asset to cash depends on supply and demand in the market.
- Fees and Charges: Consumers should consider the impact of fees and charges on their investment, which can be higher than with regulated investment products.
- Marketing elements: Companies can exaggerate product returns or underestimate the risks involved.
There is also no guarantee that you will be able to convert crypto attachments back into cash as it may depend on the demand and supply in the market.
Fees and costs can also be higher than with regulated investment products.
Susannah Streeter, Senior Investment and Market Analyst at Hargreaves Lansdown, previously warned: “Every week there seems to be new kids in the city of cryptocurrencies, a playground for traders that seems to have few rules and few regulation.
“There are now thousands of altcoins in circulation, but their valuation has no reliable basis.”
What is Cardano?
Cardano (ADA) is a cryptocurrency that uses blockchain, which makes it difficult to hack.
It was launched in 2017 and created by Charles Hoskinson, one of the eight co-founders of Bitcoin’s rival Ethereum.
Every time someone buys or sells the cryptocurrency, it is permanently registered in the platform’s blockchain.
In contrast to other cryptocurrencies, the blockchain is more transparent for everyone. It is administered by the Cardano Foundation.
The “Altcoin” was developed to ensure that investors can have a say in dealing with the currency.
This means that those who own Cardano have the right to vote on proposed changes to the software, reports Coinmarketcap.
Will Cardano’s Price Go Up?
The price of Cardano is currently at $ 2.05, according to CoinMarketCap, which is an increase of more than 13% in the last 24 hours.
By comparison, it was worth just $ 0.18 in early January of this year.
Cardano hit its high on May 17 when it hit $ 2,3091.
The jump came after reports that its parent company Input Output had partnered with World Mobile Group, a blockchain-based cellular network.
The association will see Cardano expand in African countries such as Tanzania and Ethiopia.
In May, Mark Hipperson, founder of cryptocurrency exchange company Ziglu, said, “Cryptocurrency has seen incredible growth in the past few months, which has attracted the attention of several cryptocurrency enthusiasts.”
Celebrities have also drawn attention to Cardano.
In March, for example, Gene Simmons of the rock band Kiss gave his approval and tweeted that he had bought $ 300,000 (£ 216,223).
What is the ADA prediction?
It’s impossible to say with certainty how much Cardano, also known as ADA, will rise or fall in the future, but many experts have made predictions.
However, it is important to be careful with the predictions as they are nowhere near guaranteed.
For example, CoinPriceForecast estimates that Cardano will hit $ 3 by the end of 2021 and $ 5 by the end of 2024.
Then he expects it to rise even further through 2031, when the value could reach $ 10.
Meanwhile, WalletInvestor has a one-year forecast of $ 3,093 and a five-year forecast of $ 9,774 for Cardano.
How risky is Cardano?
Like any cryptocurrency, Cardano is a high risk investment as it is not regulated.
This means you have no protection if something goes wrong, and the fees and charges can be higher than those of regulated investment products.
Crypto assets are also complex to understand, which makes them dangerous for those who do not know them.
They also come with extremely high risk due to their volatility, which means that they can go up or down. So only invest if you can afford to lose the money.
Streeter said, “Much of the demand for these coins and tokens is coming from traders hoping to take advantage of future price increases rather than using them as a medium of exchange.”
“Profits are often driven by frantic social media chats with influencers struggling to position themselves to boost their favorite coins.
“But like a slot machine, many of the coins in circulation are largely a speculative game of chance and investors should only participate if they have money they can afford to lose.”
Investors need to be careful that they will lose all of their money when investing cash in Bitcoin and other cryptocurrencies.
It comes after some cryptocurrency-related investment products were banned in the UK.
From Safemoon to Litecoin to Bitcoin, we explain the different cryptocurrencies on the market.