Cardano

Again, there’s little history to inform how Cardano performs during a recession. But let’s look back in time to the years 2020 and 2021 while the world was grappling with the global economic crisis from the coronavirus pandemic. Cardano had its most exciting upturn between March 2020 and September 2021, when it rose from around $0.24 to its all-time high of $3.10.

According to the IRS, crypto is a digital asset. Therefore, capital gains rules apply when buying and selling it. Most people pay 15% or 20% capital gains tax when an asset is held for over a year (it’s based on your income threshold and filing status). When you hold crypto for less than one year before selling it for a profit, you’ll get taxed at your regular income tax rate. The IRS doesn’t consider buying a small amount of crypto on a centralized exchange like Coinbase a taxable event. However, when you start trading cryptos for other cryptos or cashing out crypto for fiat money (such as U.S. dollars), there are additional tax considerations.

Cardano’s currency, ADA, is technically a utility token, even though it can also store value and be used as a form of exchange too. Utility tokens get their value from the project they support, because one day they will presumably be used to access services and transact on that project’s specific blockchain. People buy ADA because they believe in Cardano—not because ADA itself has a ton of built-in value like Bitcoin, for example, which is intentionally scarce and will stop minting at 21 million to prevent inflation.