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Ever since the release of Bitcoin, there have been many debates regarding what cryptocurrencies should represent or be.
The arguments became even more complex as more platforms like Ripple or Ethereum came out, and many other coins have been born from that point on.
Cardano parts from this history, setting out to mark a next step in the evolution of smart contracts and blockchain platforms in general.
Said to be one of the most promising cryptocurrencies right now, it’s starting to look like a good option for investment.
Why You Should Trade Cardano
As mentioned in the previous paragraph, Cardano has been promoted as one of the best investments in the year, often grouped with the likes of Ripple and NEO.
While this is great news for long-term investors who want to capitalize on crypto fundamentals (as strong fundamentals can drive a large influx of buyers), it also translates directly into more liquidity for shorter-termed traders.
Additionally, its scalability protects it from the issues related to an enormous number of transactions per second, which has been known to annoy traders worldwide.
How to Trade Cardano
My favorite chart for trading Cardano is the 1-hour chart or higher since it helps filter out the stutter in lower time frames, a frustrating part about trading altcoins.
Here, it’s easy to see that most of the random stuttering is left out of the graph thanks to the larger time frame. But still, you can see that there are some hours that aren´t much active - so even higher timeframes can be better for trading Cardano. But of course, with time and more liquidity, this can change in the future and lower time-frames can become increasingly suitable as well.
I often use the MACD indicator to help me visualize the Cardano moves better - as in case of not much activity, usually there aren´t many Price Action Patterns.
Now, let’s breakdown the above chart and the trading opportunities that were provided here:
The most important idea to take from this trade is the use of a Pending Stop-Entry order.
When you’re trading altcoins, especially new altcoins like ADA (Cardano), you must do everything possible to ensure that the trade conditions are as close to ideal as possible.
Pending Stop and Limit orders are very helpful for that. Some traders find pending stop entries to be much more reliable since when a stop entry is filled, it confirms the breakout of a given price level which often results in price continuation in that direction.
Even though many traders usually use stop orders for limiting losses (Stop Loss Orders) and enter at the market price, I’ve found that pending orders are also excellent at entries as well and help to ensure more profitable trades!
Of course, if a pending order isn´t filled for some time, it´s usually the best to cancel it and wait for the next trading opportunity.
