Cardano is a third-generation blockchain platform
What is Cardano?
The development of the platform began in 2015, the use of the platform began in 2017. The platform developer is Charles Hoskinson, who is also one of the founders of Ethereum and BitShares.
Cryptocurrency Cardano started with a capitalization of $600 million. By the end of 2017, it had a market capitalization of $10 billion, in 2018 it was already $33 billion. As of mid-2022, its capitalization is about $17.5 billion.
Cardano cryptocurrency has its own blockchain called the Cardano Settlement Layer (CSL). CSL is a distributed transaction ledger layer to support transactions with cryptocurrency wallets. The second Cardano Computation Layer (CCL) supports smart contracts and decentralized applications. This layered structure allows developers to updаte the protocol easely.
In different countries, financial regulators often have a negative attitude towards the use of anonymous cryptocurrencies in the traditional financial systеm. To face this phenomenon, the Cardano platform can optionally inсlude cryptographically protected metadata in the blockchain, allowing it to interact with external regulators, while maintaining the privacy of cryptocurrency owners to a sufficient extent.
Mining Cardano
Mining Cardano, unlike most other cryptocurrencies, is impossible.
Usually, cryptocurrency mining works on the principle of Proof of Work. In this case, you keep the network up and running by helping with transactions and maintaining records. For this you are rewarded.
Cardano uses a different principle called Proof of Stake. You can download a dedicated crypto wallet like Daedalus. Putting Cardano on such a wallet and holding it there, you will receive additional Cardano for it, for keeping them there. Thus, you can try to make money using the compound interest effect. Received on your Cardano wallet will bring you new coins and these new coins will bring you more additional coins. In theory, after a long time, a very large amount of this cryptocurrency will accumulate in your wallet.
How to buy Cardano?
It is best to buy Cardano through trusted services. It can be a crypto-exchange or an exchanger, such as Leoexchanger! Here you can see the current exchange rate and choose a convenient exchange method.
How to work with Cardano?
The main areas of use of Cardano:
Pay for goods and services. Every year more and more goods can be bought with cryptocurrencies. As of 2022, almost everything can be bought with cryptocurrencies, from small goods to cars and real estate.
Trading. One of the options is to try to constantly buy and sell Cardano, making money on price changes.
Long-term investment. If trading is not for you, just buy Cardano and keep it for a long time. There are many chances that it will rise in price and it will be possible to sell it profitably.
How to store Cardano?
There are two main ways to store Cardano – on an exchange and in a crypto wallet.
- Exchange. If you bought Cardano on an exchange, for example at WhiteBit, you can leave it there on your account. This is the easiest way as it does not require any additional software. But there is also a minus – physically, your Cardano is not with you. If you lose access to your account on the exchange, you lose access to your Cardano.
- Crypto wallet. After you buy cryptocurrency, you can transfer it to your crypto wallet and leave it there. There are many parameters by which crypto wallets can be classified. The main one is a hot/cold wallet. A hot wallet has a permanent connection to the network, while a cold one does not. Also, they are divided by location – browser, online, desktop, mobile, hardware. How to choose a wallet that is comfortable for you? Read the reviews of other users and decide which one is the most convenient for you.
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