As the next crypto bull market approaches, a top investment expert has submitted 10 valid reasons why investors should consider adding the Cardano blockchain native token — ADA — to their holdings.
Pieter Nierop, an associate of the Cardano Fans staking pool, recently took to Twitter to explain why ADA should be embraced by every crypto investor. His highly informative thread seeks to draw more investors to Cardano as he projects ADA to be a highly promising asset.
ADA Strong Fundamentals
First, Nierop noted that the Charles Hoskinson-founded Cardano project is a third-generation blockchain designed to be more sustainable, scalable, and interoperable when compared to the Bitcoin and Ethereum blockchains.
Second, he stressed that the proof-of-stake (PoS) network is the first blockchain to be built through evidence-based methods and peer-reviewed research. Notably, the project’s development team comprises longstanding blockchain-related academics and engineers.
Third, Nierop highlighted Cardano’s secure, less energy-intensive and highly scalable consensus algorithm dubbed Ouroboros. Accordingly, the top expert noted that Cardano is among the few blockchains that enable developers to create decentralized applications (DApps) as it has smart contract functionalities.
The Cardano Fans Staking Pool associate further pointed out the project’s large community of active members. According to him, community is the bedrock of every successful crypto project.
With over 63% of ADA’s supply staked across thousands of stake pools, Nierop categorized Cardano among the world’s most decentralized ecosystems. To further project ADA, the top expert indicated that Cardano’s use cases transcend various sectors in the real world.
Accordingly, he spotlighted Cardano’s recent partnership with the Ethiopian government to use its groundbreaking technology in the education sector.
Another key feature cited by Nierop that makes ADA a good investment option is the environmental-friendliness of the blockchain. Notably, Cardano employs the proof-of-stake (PoS) consensus algorithm which supports crypto staking.
Unlike crypto mining, which requires the use of powerful computers to solve complex puzzles to validate transactions on a crypto network, crypto staking requires zero energy.
Additionally, Nierop submitted that “Cardano is designed to allow for soft forks and upgrades, making it adaptable to changing regulatory environments.” In other words, he implied that it is important to invest in regulatory-compliant crypto assets.
Do Your Own Research
Despite noting that “Cardano’s strong fundamentals and potential for growth could lead to high returns for investors,” Nierop urged market participants to carry out proper research before investing in ADA.
On the whole, crypto trading is a highly risky venture following the unending fluctuations in cryptocurrency prices. Therefore, understanding crypto market cycles, continuous learning and proper risk management are crucial for profitably navigating the world of cryptocurrencies.