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Cardano: Crypto Investors and Risk Management

Cardano: Crypto Investors and Risk Management

One of the key differences between investors and other regular individuals is their risk management. Most individuals are too careful and do not take the risk at all, even if it’s a calculated risk with little probability of collapsing. Now, that’s the difference between crypto investors and those that still perceive cryptocurrency as a scam or, as they will prefer to call it, “a Ponzi scheme.” Over time, the cryptocurrency community has learned to adapt and tap into the advancement in technology. However, some individuals have refused to see reasons that soon the financial sector of every economy will have no other choice than to adopt cryptocurrency. The reason why this is feasible is that technology is making digitalization possible in all works of life, and that includes the financial sector.

Most financial institutions kick against cryptocurrency exchange and distribution, while some workers in these giant firms invest secretly. Risk management is very important, especially in the crypto space, because the community is very volatile. Several factors influence the price of these coins, and depending on the magnitude and fundamental framework of a coin; they may behave differently in the face of different price fluctuations. While some coins might go down during a massive sell-off, some might tweak for a little correction and bounce back. So, as an investor or upcoming investor, you must understand the importance of risk management.

Why Is Cardano a Good Investment?

There are several reasons why Cardano has been tagged as one of the few promising altcoins to invest in. Several politicians and investors have had their investments on the Cardano network for months and are actively involved in the growth. As a newbie or an individual, here are some of the reasons why you should invest in Cardano now.

It’s Pocket-Friendly

Most investors at the moment are those that despised Bitcoin in 2009, terming it as a scam. Ten years later, Bitcoin appears to be the biggest and the number one crypto asset in the world. Currently, Bitcoin is about $30,000, with an all-time high of over $60,000. However, Bitcoin started at less than $1 and grew over the years. These investors, over time, have recently been confused that cryptocurrency isn’t what they termed it to be. Rather, it’s now somewhat too late with the birth of altcoins like Cardano. Alternative coins were primarily developed to assist Bitcoin whenever transactions stop going through. Since Cardano is still very pocket-friendly, it’s easier and better to accumulate as many as possible. Seize the opportunity now and be sure to reap the benefits of your investment in the near future.

Cardano Has a Solid Fundamental Structure

Cardano is a third-generation cryptocurrency. Unlike Bitcoin and Ethereum that are first and second-generation cryptos, respectively. Being a third-generation cryptocurrency, Cardano can run smart contract applications smoothly. This is because the Cardano network was born out of the Ethereum network’s shortcomings. Hence, Cardano is a more advanced Ethereum making it the right investment you can dream of having. As an investor or an individual with an investment mentality, you’d understand that, unlike Bitcoin that uses the PoW, Cardano uses the PoS consensus to run its transaction, making it super-fast. Cardano isn’t selective with smart contracts, unlike Ethereum that might have issues with high network fees.

It’s Eco-Friendly

Another reason why you should invest in Cardano, like most investors and politicians, is because Cardano is eco-friendly. The PoS consensus helps Cardano to make use of very little energy for transaction efficiencies. This makes Cardano one of the few green coins in the cryptocurrency community that users can mine or transact with using only a small amount of energy. Since it’s very cheap and is one of the largest crypto assets by market cap, its adoption will in no time exceed investors’ capacity.

Predictions from Reputable Crypto Analysts

There have been various predictions regarding the growth of Cardano over the years. Cardano has such a bright future, according to the long-term predictions. The price of Cardano is expected to go as high as $5 by 2025. While this isn’t certain, the probability of Cardano making the $5 mark by 2025 is very high as Cardano’s growth over the years has been slow, but it has also been steady. It managed to retain its position in the top ten cryptocurrencies even when its price is below $5. The Cardano network has recently announced its first smart contract deployment, and the price of Cardano is expected to spike once it’s fully functional. It’s the right time to buy as many Cardano as possible before we set for the moon.

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by Brian Perry // Brian Perry is a contributor to Businessing Magazine.

Opinions expressed by contributors are their own.