How our Cardano calculator works
As the ADA, or Cardano, is becoming a go-to cryptocurrency, it has been added to our calculator. Our Cardano calculator will allow you to gauge the value of Cardano at any given point. Equally, in reverse, you will be able to work out how many Cardano you will get for the amount of money you wish to pay.
The mathematics for converting Cardano to a fiat currency is made slightly more complicated, as most exchange sites will not allow you to move between ADA and a fiat currency directly. A fiat currency being a traditional world currency that is governed by a country or by a central bank, such as dollars, pound and Euro. This means you will be expected to convert from Cardano to Bitcoin, Ethereum or Litecoin, then from this other digital currency to cash. This means that the conversion will need to take into account movement to Bitcoin, Litecoin or Ethereum before movement to Cardano. It also means that you will need to take account of transaction fees, which may not be included in the price quoted by the Cardano calculator.
To calculate your value of your Cardano then you would take the amount purchased and multiply it by the price paid. Then, the calculation is reversed, should you wish to convert from Cardano to another currency.If you were exchanging for USD, then the formula would be:
value in USD = exchange rate x amount of Cardana.
The value of our Cardano calculator is not in the complexity of the calculation but the ease with which up-to-date information is drawn into the Cardano convertor. The price suggested is in real-time, meaning it has drawn data from exchanges about the current price of Cardano in relation to fiat currency.
What does converting Cardano mean?
For the most part, converting Cardono basically means buying and selling the ADA tokens. This means you are likely to go to an exchange site and buy and sell digital assets on this website. As most exchanges do not connect directly between ADA and fiat currency, you will likely have to convert to Bitcoin, Ethereum or Litecoin first before getting your tokens – or your cash – depending on the direction of travel of your funds.
Cardano is also used to run smart contracts. This means that the tokens are often used as payment for transactions rather than as a means storing digital assets. However, as the value of Cardano is in the layered mechanism that allows development applications – you may buy and sell Cardano as a means of making a profit.
How can you convert your Cardano?
Once you have been to the Cardano calculator, your next step is likely to be an exchange site. Exchange sites are meeting places for buyers and sellers. All exchanges will require you to hold a wallet to hold your ADA – Daedalus in the wallet developed to do just that. You will also be expected to attach a bank account or debit/ credit card to your exchange account. However, it is unlikely that you will trade directly between your bank account and Cardano – instead you will use another cryptocurrency as a bridge.
When choosing your exchange site, you need to research the reliability, trustworthiness and liquidity of the website. There have been occasions in the past when sites have been taken down by security breaches and hacking. People have had their digital assets stolen from their wallets. Since this has become a notable issue there has been a cold-war level paranoia in the storage and transaction of digital currency. Some users store their digital currency in the form of paper wallets – which is essentially a place they write down the code for the coin and keep it stored away from the computer.
It might not be necessary to apply this level of security to your digital currency, but you do need to be aware of cold storage. Cold storage is the storing of cryptocurrency offline – and therefore out of the reach of potential hackers. Most exchange sites will keep up to 95% of digital assets in cold storage, to protect the efficacy of the site. Some other sites will offer insurance, to guarantee that your money is safe no matter what.
The issue with cold storage is that these assets are not immediately available for transaction. However, as there are billions of tokens in circulation – having just 5% available for conversion is still a major amount of currency. This means liquidity is only ever going to be an issue for the super-rich.
A final issue is regulation. One of the benefits of Cardano is that it embraces the relationship with regulation. This means that they are actively working to produce a currency that is regulator-friendly – unlike other altcoins that feel that the point is to avoid regulation. However, you should always go to exchange sites that are overseen by a financial body – for the sake of trust and confidence. Most US based sites will be regulated by a state-level financial body that ensures good practice.
There is also the option to use a Cardano converter to exchange your money instantly into your currency of choice. This essentially uses an exchange site in disguise. It is just the conversion is complete in only a few clicks!
When should you convert your Cardano?
Cardano’s value is as a developer’s mechanism rather than as a digital currency as such. This means that some ADA are being used as payment for transactions.
However, the price of Cardano is more likely to be impacted by its industrial value – rather than its market cap. This means that people investing in ADA are likely doing it believing that use will increase due to the quality of the technology. As these are not stocks or bonds, you will not get payment for your holdings other than when you sell. This is why it is important to use a Cardano calculator to keep a close eye on the price of your tokens.