Ada (ADA) Coin Complete Guide - Investment Strategies for Beginners
Introducing Ada (ADA) Coin
Ada is a cryptocurrency used on the blockchain platform Cardano. Cardano was founded in 2015, and Ada is the platform's native token, used to support smart contracts and decentralized applications. Ada enables secure and efficient transactions through blockchain technology.
Why is Ada special?
Ada is called a '3rd generation blockchain' and was created to overcome the limitations of existing Bitcoin and Ethereum. In particular, it was designed based on three core values: scalability, interoperability, and sustainability. It is a practical approach to solving real-world problems.
History of Ada
Ada was developed by a blockchain expert named Charles Hoskinson. He is one of the co-founders of Ethereum and has contributed greatly to the development of blockchain technology. Ada was first sold to the public through an ICO (Initial Coin Offering) in September 2017 and has grown rapidly since then. In particular, it gained more attention in 2021 when smart contract functions were added.
The Cardano development team has taken a systematic approach based on academic research. Each update undergoes peer review and is known for solidifying its theoretical foundation. This careful approach may make the development speed seem slower than other projects, but it is evaluated as having secured stability and reliability.
How Ada Works
Ada uses a unique consensus algorithm called 'Ouroboros'. This algorithm helps build an energy-efficient and highly secure blockchain network. Ouroboros uses a Proof of Stake method, allowing users to stake their Ada to increase the security of the network. This increases transaction processing speed and reduces energy consumption.
Staking participants can receive additional Ada as a reward for contributing to network security. Currently, you can receive about 4-6% annual staking rewards, which provides an attractive income-generating opportunity for Ada holders. Above all, the fact that the coins are not locked while staking, so they can be traded at any time, is a big advantage.
Where to Use Ada
Ada can be used for a variety of purposes. The most basic use case is as a means of storing value, and it can be exchanged for other cryptocurrencies on exchanges. It is also used in smart contracts and decentralized applications developed on the Cardano platform. For example, it can be used in various fields such as financial services, games, and supply chain management.
A particularly notable use case is in the identity verification system and education sector in Africa. In cooperation with the Ethiopian government, we are working on a project to store the academic records of 5 million students on the blockchain. This is Ada's major differentiating factor in solving real-world social problems.
Ada Exchange
Ada can be traded on several exchanges. Representative exchanges include Binance, Coinbase, and Upbit. Each exchange has different transaction fees and supported functions, so it is important to choose an exchange that suits you. After purchasing Ada from an exchange, it is recommended to store it in a safe wallet.
You can trade Ada on domestic exchanges such as Upbit, Bithumb, and Coinone. Overseas exchanges offer a wider variety of trading pairs and higher liquidity, but you need to consider language barriers and regulatory risks. If you are a beginner, we recommend starting with a domestic exchange.
Ada Community
Ada's community is very active. Developers and investors from all over the world gather to share information and opinions about the project. You can check various news and updates through the official forum and social media. Participation in the community is a great help in the development of Ada, so if you are interested, please join us!
The Cardano community in particular is famous for its technical discussions and constructive feedback. There is active communication on various platforms such as Telegram, Discord, and Reddit, and the Cardano Summit, which is held regularly, is a representative event where the global community gathers. The Korean community is also becoming more active, so if you are interested, please participate.
Ada Wallet
You need a wallet to safely store Ada. There are 'Daedalus' and 'Yoroi' as Ada-specific wallets. Daedalus is a desktop wallet that allows you to download and use the entire blockchain. On the other hand, Yoroi is a lightweight wallet that can be easily used on a web browser. It is important to compare the features of each wallet and choose the wallet that suits you.
Wallet Selection Guide
Daedalus: It is a full node wallet that provides the best security, but it takes a long time to synchronize initially and requires a lot of storage space.
Yoroi: It is a lightweight wallet that is fast and easy to use, and it also supports mobile apps. It is recommended for general users.
Hardware Wallet: Hardware wallets such as Ledger and Trezor also support Ada, and if you want the highest level of security, consider this.
Things to Consider When Investing in Ada
There are a few things to keep in mind when investing in Ada. First, you should invest carefully because the market is very volatile. Second, it is always good to check the latest information and refer to the opinions of the community. Lastly, it is important to set the investment amount within the range that you can afford.
There are additional things to consider. The price of Ada can be affected by the flow of the entire cryptocurrency market, and regulatory changes and technical issues can also affect the price. Therefore, it is good to diversify the risk through diversified investments, and approach it from a long-term perspective rather than being swayed by short-term price fluctuations.
Also, before investing in Ada, be sure to check the roadmap and development progress of the Cardano project. You can understand the progress of the project through the monthly reports and technical updates that are released regularly. This information can be an important basis for investment decisions.
Conclusion
That's all for learning about the Ada (ADA) coin. I hope you have a deeper understanding of virtual currency. Ada is receiving a lot of attention because it is not a simple speculation target, but a project that aims to solve real-world problems. However, all investments carry risks, so sufficient research and careful judgment are required.
The cryptocurrency market is changing rapidly, so continuous learning and information gathering are important. If you have any questions, please leave a comment at any time! Let's study and grow together. 😊