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Aushini Das
Mar 27, 2022

Should You Invest in Polkadot or Cardano?

Should You Invest in Polkadot or Cardano?
With the ever-increasing craze in cryptocurrency, it's pretty necessary to be updated with the market. Today we shall talk about two controversial cryptos that have grabbed much attention after the recent rise.

Cardano saw a price hike of 2.79%, which raised its value to $1.01, while Polkadot rose by 0.37%, with a current valuation of  $20.16

Reasons for its Growth 

Both Cardano and Polkadot have their reasons for their recent growth. Cardano has been experiencing this high valuation due to the changing market sentiments towards blockchain. It is also considered a greener choice than any other blockchain, thus explaining the recent hike. 

On the other hand, Polkadot saw tremendous growth due to its protocol flexibility. Polkadot is famous for its fast transfers and quick interaction with other blockchain networks. Many times it is also considered faster and much more efficient than Ethereum.

Why Should You Consider Cardano?

Most experts highly debate that Cardano for long can be called the future Ethereum. It is also referred to as the Ethereum of Japan. The reason behind it is that Cardano is more than just a simple currency that can be traded in the market. It is a blockchain on which other cryptos can also be traded. In the future, it can also be used as an alternative to Ethereum. 

The developer of Cardano, Charles Hoskinson, designed it as a competitor to Ethereum. It has a lot of capacity to grow in the future due to its popularity and effectiveness, and that's one reason you should consider investing in them.

Why Should You Consider Polkadot? 

Polka Dot is also known as an Ethereum Killer and grows day by day. It went straight up from $8 to $20 within a few months. One thing that helps Polkadot stand out is how it helps produce faster transactions at high speed. It can perform in this manner because it can connect multiple blockchain networks. 

Polkadot is less energy-intensive and only requires about 8 watts per year. It is considered to be the least energy-consuming cryptocurrency today.

Which One is a Better Choice? 

Before jumping to any conclusions, it is essential to understand the fundamental difference between Cardano and Polkadot. The differences are as follows- 

  1. Cardano has a larger pool of investors than Polkadot. This means that Cardano has more investors in its pool than Polkadot, thus making it a sound reward system for the investors.
    1. Cardano's supply exchange rate has been higher than Polkadot's, thus making it available for a larger population and low prices.
      1. Cardano uses a two-layer architecture where the data gets stored on the server. In contrast, Polkadot works on a single layer where the data is stored with the client itself. With this type of architecture, only one client can access the system. 
        1. Cardano can be seen as a publicly-traded cryptocurrency with more than 70% more public holdings than Polkadot, thus resulting in a higher influx of money. 
        2. Conclusion 

          Both Cardano and Polkadot are great investment choices. They can be used to diversify one's portfolio in many ways. Cardano can be considered a better investment as it doesn't follow the same single process layer architecture that most cryptocurrencies follow. Also, Cardano is a fully decentralized body, thus making it a safer choice. 

          Should You Invest in Polkadot or Cardano?
          Aushini is a technical writer with over 5 years of experience in the content industry. Her current focus is on blockchain technology and cryptocurrency. With her excellent writing skills, she makes the world of blockchain reachable to everyone. In addition to content writing, she is an aspiring Data Scientist from IIT Madras.

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