Today, the value of the crypto market stands at $2.04 trillion. Investors who were early adopters were able to make lucrative returns that have created a rush to get into crypto. The statement proves especially true when it comes to Bitcoin.
By market value, Bitcoin is the largest cryptocurrency and it’s regarded as the top contender in the crypto space. Yet, as the crypto market expands, more cryptocurrencies have caught the attention of investors.
Take Cardano, for instance. While still in its infancy, many investors are interested in its potential. When researching new coins to invest in, many people compare other cryptocurrencies like Cardano to Bitcoin. A frequent conversation on investing insight platforms and Redditt forums is what’s the difference between Bitcoin vs. Cardano.
If you are looking to learn more about Bitcoin vs. Cardano, here’s everything you need to know.
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What Is Bitcoin?
The way Bitcoin works is by decentralization. Its purpose was to give users a way to avoid doing transactions through a central bank. Instead, Bitcoin users would run many nodes that could confirm global transactions and would be linked to the blockchain network.
Since the blockchain network is always on, users could make transfers of any size. This allows people to move funds without the issues of physical barriers or exchanges. What makes Bitcoin such a huge player in the crypto market is only 21 million tokens exist for mining which has made the value what it is today based on demand.
What Is Cardano?
Cardano features a two-layer approach. The first layer includes the use of the ADA token as a cryptocurrency. This is one of the similarities it has to Bitcoin.
Yet, the second layer gives users the chance to trade their assets through smart contracts.
These trades happen on decentralized apps also known as dApps. Cardano and cryptocurrency made like it give users control over the way they handle different payments and assets. The use of the smart contract system ensures that users will execute their agreements only when the correct terms of the contract are satisfied.
Bitcoin vs. Cardano
The biggest difference when it comes to Bitcoin vs Cardano is how they use the blockchain technology that they are built on. Proof-of-work currency like Bitcoin is used by investors for money transfers and spending. Proof-of-stake units like Cardano are used for smart contracts and dApps.
Carando also works on a two-layer structure which differs from Bitcoin. Each of these cryptocurrencies also involves a specific mining process. Since Bitcoin is more recognized in the crypto space, the demand for it is higher than Cardano as well.
Which Coin Should You Invest In?
As an early investor depending on your level of risk it may be a good idea to invest in both coins. Bitcoin has been around for many years, so investors have more historical data to make informed predictions about future earning potential.
It is important to note that the price of entry for Bitcoin may be too expensive for new investors. On the other hand, Cardano is inexpensive and it is predicted to make investors a notable return in the future.
However, you should never invest more than you can afford to lose as the crypto market is very volatile. Byte Federal has a lot of information to help new and experienced investors with cryptocurrency.
Ready to Start Investing in Cryptocurrency?
Now that you have a clear understanding of the difference between Bitcoin vs. Cardano, you can feel confident in choosing these two cryptocurrencies as investment options. As always the best thing you can do for your investment portfolio is to research your options and diversify.
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