ADA/USDT Buy -Crypto Academy / S6T3- Team Trading Contest Post for Frontline
Hello steemians, I would love to join Prof. @shemul21 to welcome each and everyone of us to week one of the crypto academy trading competition. Today, I will be trading ADA/USDT pairs on spots trading to make some good profits. If you reach the requirements, you could join me to do same by reading up the competition rules on this link.
Introduction to ADA
ADA is the native token of the Cardano blockchain. Cardona itself is a smart contract blockchain where dapps and tokens can be create. Being that ADA is the official currency used on this platform, this gives the token a great usecase. All transaction fees and staking operations will be done using the ADA token.
Cardano was founded by a co-founder of the ethereum blockchain who saw the shortcomings of the blockchain and decided to create something better which would be more scalable and cost effective for its users. Ethereum processes 14 transactions per second but cardano was able to beat that by taking up its network speed to 257 transactions per second with an average transaction fee of $0.0003. This was achieved using the Proof of Stake Consensus mechanism.
The programming language which can be used by developers on the platform is Haskell. Although, cardano has an EVM (Ethereum Virtual Machine), which allows developers to transfer their projects and tokens easily from the Ethereum platform to the Cardano platform.
ADA is ranked 7th with a market cap of $36,811,332,891 and a circulating supply of 33.71 billion ADA. It’s current price is $1.09 and if we look at the above image, in the last year, XRP has attained a high of $3.10 and a low of $0.7528.
Since ADA is among the top ten coins in the world, it will be traded on a lot of exchanges.
- Binance
- Bitfinex
- Kucoin
- Gate.io
- Huobi etc.
- OkeX
- Coinbase
- Kraken etc.
I've heard about the cardano project a lot and never really got interested in it, maybe because of its high supply but today, I was watching the charts and I saw a wedge pattern. So I decided to enter the market at a break out.
From my analysis chart above, I used the falling wedge price action technique and the RSI indicator on a 5 mins chart.
A falling wedge pattern usually signifies the build up of a bullish trend in the market. The more price hits the support and resistance levels of the wedge, it affirms a strong bullish breakout. Looking at the chart above, the price touched the wedge up to six times and on the sixth, it broke into an uptrend. I made my buy trade at this breakout level.
- First, I made a buy trade at the market price on spot trading ADA/USDT.
- I changed the trade type to an OCO trade in order to include my take profit price and stop loss. We should all note that, when using the OCO feature, for buy trades, you trade on the sell side and for sell trades, you trade on the buy side.
On the trade,
Entry: $0.972
Take profit: $0.99
Stop loss: $0.96
If you look at the chart above, price broke the resistance level and hit my take profit level. So I made some profits after all. You can see the Binance order receipts to see my confirmation that the trade got filled.
Although, cardano is a good project, I don't really see the long term significance of the coin.
It has better rivals: Cardano doesn't really have any spectacular property. A blockchain has 3 characteristics, security, decentralization and scalability. If a developer wants security and decentalization, Ethereum is better at this and if a developer needs speed on his project, he can use the solana blockchain. This makes cardano vulnerable, it doesn't have any special feature.
There is still an upgrade on the Ethereum platform to Ethereum 2.0 which will make it more scalable and when this happens cardano will no longer be a match with Ethereum. This makes me unsure of the future of cardano.
I may be wrong but these are just my observations.
Today, I made a buy trade on ADA/USDT trading pairs and I made some profits after all. I so much thank all the Profs for teaching me all I know
CC: @shemul21