Is Cardano price going up and what is the ADA prediction?
THE value of Cardano has increased so far in 2021 – but what exactly is it?
We explain everything you need to know about the ADA cryptocurrency, its price and future predictions.
A word of warning though: buying cryptocurrencies as well as stocks and shares is a very risky business.
Investing is not a guaranteed way to make money, so make sure you know the risks and can afford to lose the cash.
Cryptocurrencies are highly volatile, so your cash can go down as well as up in the blink of an eye – you can lose all the money you put in.
Plus, some products and cryptocurrency services are very complex. You should only invest in things you understand.
5 risks of crypto investments
THE Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
There is also no guarantee that you’ll be able to convert cryptoassests back into cash, as it may depend on the demand and supply in the market.
Plus, fees and charges may be higher than with regulated investment products.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, has previously warned: “Every week it seems there are new kids in crypto town, a traders’ playground where there appear to be few rules and little regulation.
“There are now thousands of altcoins in circulation but their valuation has no reliable basis.”
What is Cardano?
Cardano (ADA) is a cryptocurrency that uses blockchain, making it difficult to be hacked.
It was launched in 2017 and set up by Charles Hoskinson, who was one of the eight co-founders of Bitcoin rival, Ethereum.
Every time someone buys or sells the cryptocurrency, it’s permanently recorded on the platform’s blockchain.
Unlike some other cryptocurrencies, the blockchain is more transparent so anyone can see it. It’s managed by the Cardano Foundation.
The “altcoin” has been designed to make sure that investors can have some say in how the currency is run.
It means those who own Cardano have the right to vote on any proposed changes to the software, reports Coinmarketcap.
Is the Cardano price going up?
The price of Cardano is currently sitting at $2.05, up by more than 13% over the past 24 hours, according to CoinMarketCap.
In comparison, it was worth just $0.18 at the start of January this year.
Cardano hit its highest ever level on May 17, when it reached $2.3091.
The jump came after reports that its parent company, Input Output, had partnered with World Mobile Group – a mobile network built on blockchain.
The partnership will see Cardano expand in African countries like Tanzania and Ethiopia.
In May, Mark Hipperson, founder of cryptocurrency exchange firm Ziglu, said: “The cryptocurrency has seen incredible growth in recent months, which has raised the attention of a number of crypto enthusiasts.”
Celebrity backing has also drawn attention to Cardano.
For example, in March, Gene Simmons from rock band Kiss threw his support behind it, tweeting that he’d purchased $300,000 (£216,223) worth.
What is the ADA prediction?
How much Cardano, also known as ADA, will rise or fall in future is impossible to know for sure, but plenty of experts have made predictions.
It’s important to take the predictions with a pinch of salt though, as they’re nowhere near guaranteed.
For example, CoinPriceForecast estimates Cardano will hit $3 by the end of 2021 and $5 by the end of 2024.
It then expects it to rise further by 2031, when the value could hit $10.
Meanwhile, WalletInvestor has a one-year forecast for Cardano of $3.093 and a five-year forecast of $9.774.
How risky is Cardano?
Like any cryptocurrency, Cardano is a high-risk investment because it’s unregulated.
It means you won’t have protection if something goes wrong, plus fees and charges may be higher than regulated investment products.
Cryptoassets are also complex to understand, making them dangerous for those who aren’t in the know.
They’re also extremely high risk due to their volatility, meaning they can go up as well as down, so you should only invest if you can afford to lose the cash.
Ms Streeter said: “Much of the demand for these coins and tokens have come from traders hoping to benefit from future price rises rather than using them as a means of exchange.
“Gains are often being fuelled by frenzied chat across social media with influencers jostling for position to push their favoured coins.
“But like a slot machine, many of the coins being pushed into circulation are very much a speculative bet and investors should only get involved if they have money they can afford to lose.”
Investors should be wary they risk losing all of their money if they put cash in Bitcoin and other cryptocurrencies.
It comes after a ban on some crypto-related investment products in the UK.
From Safemoon and Litecoin to Bitcoin – we explain the different cryptocurrencies on the market.