“Dad, I bought some crypto today.” That was my 19-year-old son on June 22. At the time he bought Dogecoin (CCC:DOGE-USD) and he was asking if he should also buy Cardano (CCC:ADA-USD). By this time yesterday he had doubled his money. Before this, he had never invested in any equities. He is blue collar through and through and spends his time building race trucks. Yet there he is expanding his horizons and at the forefront of fintech.
Source: RuskaDesign / Shutterstock.com
This introductory paragraph is not to boast about his acumen for investing. It is to help crypto skeptics shed their notions. The opportunity is so great that it attracted the attention of a non-investor teen. He was smart enough to recognize it and brave enough to jump in. The game’s afoot for him with a lifetime of opportunity. Amazingly, he came to me on July 20 to reload. That was another 120% rally point.
Eventually the whole world should be exclusively transacting electronically. Those who do it now are opting to start early. Trading and investing in crypto coins now helps avoid the eventual shock. Bitcoin (CCC:BTC-USD) is the first mover and still carries advantages. The next three for me are Ethereum (CCC:ETH-USD), Cardano, and Doge.
Buy the Next Dip in Cardano
I, too, bought the crypto dip on June 22. On this massive rally I cashed the trades in. I never resist booking a double in such a short period of time. My intention is to rinse and repeat at the next opportunity. I am confident that I won’t nail the timing perfectly. I am also sure that I did well on this stent. Missing out on some upside is fine by me if it happens.
When something is this new I assume I’m going to make mistakes. Therefore I trade with small amounts to learn on the fly. Most investors just don’t know where to start. Even just setting up an account can be daunting. Luckily, competition in that field has grown, and platforms are in a courting mood.
After the initial setup is out of the way, everything else is very intuitive. It took me years to feel confident trading equities. I anticipate that it will take me years to get there with crypto too. Meanwhile the profits in Cardano are real enough to make the journey fun.
Cardano Is Here to Stay
ADA and other crypto coins serve a legitimate purpose. Just like gold, they store and grow wealth. They are not currencies unless you choose to make them. And for that purpose, Cardano makes for an easier transaction than with actual gold. I don’t have to find a dealer, and I don’t have to convert the cash into electronic funds. I can liquidate and pay with my funds in currency at the point of sale in seconds.
If you still don’t see it, then how about looking at the performance angle. The return on the investment for those who braved crypto a decade ago are humongous. Nothing else even comes close to how well investors in Bitcoin did in 10 years. Shorter term headline hogs like Doge are proving it again.
But the speed with which they are doing it adds to investor skepticism. The wins can be so fast that they sound too good to be true. There’s only one way to find out, and that’s to try it out. Once the money hit my bank, it didn’t matter whether the coin was real or fake. The ultimate profits are most definitely real. Investors should feel good about succeeding in those ventures.
Crypto Moves Fast but Not Too Fast
Source: Charts by TradingView
Chasing runaway rallies is rarely a good idea. In this case buying dips was easy and I will repeat it. The proof is in the pudding, right? I wrote about similar opportunities back in May. Those setups yielded 70% profits for those who dared play. Back then I also warned about the volatility. Yep, you still need a helmet and some Dramamine but it’s well worth it. Cardano moves fast, so I anticipate there will be more opportunities. I am on the prowl and with my alerts ready.
Ideally, investors should build a long-term position in crypto. But it is also a fun and important to trade some of it on large gyrations. The June 30% correction was a golden opportunity and it highlighted important levels.
Smart ADA-USD entry points are below $1.60. On the way up, the breakout accelerated once it crossed $1.50 per coin on August 9. That was also a problem level from early July. It would make sense that there will be buyers lurking if it revisits that neckline on the way down.
Patience is key for success, and there are no perfect spots. But to avoid obvious potential mistakes, I don’t chase Cardano to $2.40. That’s likely asking for drama. It was a failing zone mid-May, and until the bulls take it out, I assume it repeats. The horizon for crypto is very long, so there’s no rush to jumping in willy-nilly.
On the date of publication, Nicolas Chahine did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Nicolas Chahine is the managing director of SellSpreads.com.
The post Cardano Can Make You Rich If You Take Advantage of It appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.