What is ADA coin and how to start investing?

Introduction

In the cryptocurrency market, Cardano (ADA) stands out with its innovative technological architecture and wide range of application scenarios. As a representative of the third generation of blockchains, the price trend of ADA is of great interest to investors. This article will delve into Cardano's core technology, investment strategies, and how to earn passive income through staking, helping you gain a comprehensive understanding of this promising crypto asset.

Understanding Cardano: The Innovative Technology and Application Scenarios of ADA

Cardano (codename: ADA) is a high-profile cryptocurrency founded in 2015 by Ethereum co-founder Charles Hoskinson. As a representative of the third generation of blockchain platforms, the price of the ADA coin has experienced many ups and downs since its launch in September 2017. As of May 2025, ADA is firmly ranked 9th in the global cryptocurrency market capitalization ranking, with a total market capitalization of $23,369,279,621.71 and a market share of 0.80%.

The core of Cardano's blockchain technology lies in its proof-of-stake (PoS) consensus mechanism, which not only improves the network's energy efficiency but also achieves a transaction speed of about 250 transactions per second. Compared to Bitcoin and Ethereum, Cardano has significant advantages in scalability, interoperability, and sustainability.

Cardano's development plan is divided into five phases: Byron (infrastructure), Shelley (decentralization), Goguen (smart [contract] ()), Basho (scalability), and Voltaire (governance). Currently, Cardano has completed several important milestones, including the introduction of proof of stake and support for smart contract functionality.

In terms of application scenarios, Cardano is committed to solving practical problems in fields such as finance, education, and healthcare. For example, its projects in Africa aim to provide local residents with digital identities and microfinance services, demonstrating the practical value of blockchain technology.

How to Buy and Store ADA: A Beginner's Trading Guide and Wallet Selection

For beginners looking to invest in ADA, understanding how to buy and securely store it is key. First, investors can purchase ADA through mainstream cryptocurrency exchanges. Currently, the 24-hour trading volume of ADA is $638,742,805.96, with 1512 trading pairs, indicating its high liquidity.

When choosing a trading platform, security, fee structure, and user experience are important factors to consider. Some well-known exchanges offer ADA trading services, and investors can choose based on their own needs.

After purchasing ADA, it is equally important to choose a suitable wallet for storage. Recommended ADA wallets include:

1. Daedalus: Official full node wallet that provides a complete copy of the blockchain.
2. Yoroi: A lightweight wallet suitable for everyday use.
3. Ledger Nano S/X: Hardware wallet, provides offline storage, highest security.

For beginners, the Yoroi wallet may be a more ideal choice as it is easy to use and supports staking features.

Conclusion

Cardano, with its innovative proof-of-stake mechanism and phased development strategy, occupies an important position in the cryptocurrency market. Its comprehensive ecosystem not only supports smart contracts but also aims to solve real-world problems. By choosing the right wallet and staking strategy, investors can safely hold ADA and earn passive income, fully participating in this ever-evolving blockchain network.

Risk Warning: The cryptocurrency market is highly volatile, and changes in regulatory policies may impact the development progress of ADA. Delays in technical upgrades or network security issues may also lead to investment losses.