The past decade has seen a strong sense of urgency about environmental issues. This growing concern echoes worldwide, and many are looking for ways that they can personally contribute to a solution. Cardano is a blockchain that is hoping to harness this concern by creating an eco-friendly blockchain. While the project became extremely popular during the bull market, many are wondering: is now a good time to buy Cardano in this bear market?
Is Now a Good Time to Buy Cardano (ADA)?
Cardano is down over 85% from its all-time high of $3.10, which was set in September 2021. It is also down nearly 70% year to date (YTD). While these price slides may seem drastic, the entire crypto market has suffered for the first half of 2022, and ADA may have been brought down with it.
Two main factors will determine if now is a good time to buy Cardano:
The first involves the markets. Cardano has followed the larger crypto market for most of 2022. If the market were to rebound, then Cardano could as well. Conversely, if the market continues to slide, then Cardano could go with it.
The other factor revolves around Cardano. If the project were to release new technology or features to increase the usability r user base, then the token could appreciate. Conversely, the blockchain could experience difficulties that could bring the price down even more.
Overall, it is important to keep an eye on the overall crypto market, as well as any developments from the Cardano team.
How Long Will the Crypto Bear Market Last?
Analysis from the Nasdaq exchange predicts that a bear market could last one to two years in total, which means investors could be in store for another 18 months of downturns.
If a bear market is to last that long, then it is important to be aware of investing strategies that can help reduce losses. Dollar cost averaging is a great strategy that many investors use to mitigate risk. This strategy involves buying a set amount of a token on a fixed timeline (for example, buy ten ADA once a month). This process gives investors exposure to various price levels that the token experiences.
Another investing strategy is setting stop losses. This strategy automatically sells your tokens if they reach a certain price. This strategy can take the emotion out of investing and allow you to create a concrete plan for your investments.
Will Cardano (ADA) Ever Reach All-Time Highs?
ADA currently has a market cap of around $14 billion. This level sharply contrasts with the market cap in September 2021 of roughly $90 billion. For ADA to reach new all-time highs, the price would have to increase by over seven times its current price.
Obviously, a seven times change in price is no small feat. For this to happen, ADA would require a long period of time, drastic changes to the crypto markets, new use cases or dramatic technological innovation.
Is Cardano (ADA) a Good Long-Term Investment?
Cardano offers a complete blockchain to its users. It hopes to solve the blockchain trilemma problem by providing scalability, decentralization and security. It uses a unique proof-of-stake (PoS) consensus to aid in scalability, provide incentives for decentralization and utilize new technology to bolster security. Additionally, Cardano seeks to set itself apart through environmentalism and contributing to the greater social good.
For example, one area that Cardano is hoping to help with is agriculture. It aims to provide supply chain info for farmers so they can verify and track their relationships with others.
It also partnered with the Ethiopian Ministry of Education, looking to store tamper-proof records of education for 5 million children. These records remain with students on the blockchain and allow them to prove the extent of their education.
Overall, Cardano’s success is largely dependent on the number of users and investors it can attract. If more people begin to support the cause, then the project could become an even larger player in the blockchain space.
How to Buy Cardano (ADA)
Cardano has been around for several years, so it is available on a variety of different crypto trading platforms. Among the best are Crypto.com, eToro, and Binance.US. These platforms are well known for their security, low fees and ease of use.
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
How to Store Cardano (ADA) Safely
While it may be easy to store your ADA on a crypto trading platform, these platforms have been hacked in the past, and some investors have lost their investments.
A solution to this is a crypto wallet. These tools give users full control and responsibility for their funds. You can set up software and hardware wallets, although hardware wallets are often regarded as the safer option.
Hardware wallets are physical devices that store the private codes needed to send crypto. If the physical device is not present to confirm transactions, then crypto cannot be sent.
Ledger is a leading brand of hardware wallet known for its safety and usability. It currently offers Nano S and Nano X models. The Nano S offers basic features while the Nano X is designed for easier use with bluetooth connectivity and a larger screen.
How Does Cardano (ADA) Fit in the Bigger Picture?
ADA is a governance token that allows users to participate in the PoS consensus mechanism. It faces strong competition from major blockchains such as Ethereum and Solana.
However, the chain hopes to attract users through increased decentralization and focus on social impact. The overall success of Cardano is largely dependent on the ability of the chain to attract new users and create social change.
So, Is Now a Good Time to Buy Cardano (ADA)?
Cardano has the ability to become a force in the blockchain world. However, its future relies on the ability of the chain to create new use cases and prove that it can create positive change. If it is able to do this effectively, then there could be room for ADA to jump in price.
Frequently Asked Questions
Is now a good time to buy Cardano (ADA)
ADA’s price is largely reliant on the number of users and use cases for the chain. If you think that both of these factors will prove to be positive for Cardano, then now may be a good time to buy.
Can Cardano (ADA) reach new all-time highs?
ADA is far off previous all-time highs, but a powerful change in market sentiment could bring about new all-time highs.
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About Caden Pok
Caden has been involved with crypto since 2018, when he began investing, trading, and mining tokens. He took part in undergraduate research studying cryptoeconomics at the University of Michigan, where he will graduate Phi Beta Kappa with a bachelor’s in economics in 2025. He is experienced with DeFi technology and multiple blockchains, currently investing in Ethereum and Bitcoin.