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● Crypto is constantly under fire from public opinion.
● More people should learn more about it, as money will be digital in the future.
● Start investing in crypto like Cardano (ADA-USD) now.
There is a constant debate over the legitimacy of cryptocurrency. Bitcoin (BTC-USD) hogs the headlines, but there are rising stars like Cardano (ADA-USD). The world of crypto seems complex and difficult because many parts of it are new. The learning curve is steep but it is imperative that more of us start learning. Investing in ADA is a simple step to dip your proverbial toe in the waters.
I’ve debated the “fake” argument to death in many other write ups. The fact that crypto is synthetic doesn’t make it worthless. Cryptos have performed leaps and bounds better than all other asset classes. Charlie Munger from Berkshire (NYSE:BRK-A, NYSE:BRK-B) is in the business of investing. Yet he voluntarily opts out of the best vehicle for that.
Voluntary ignorance creates apprehension, which in turn will set people back a step. The world is digitizing every aspect of life, and money won’t be the exception. I have no doubt that we will have electronic money in the future. Cash will eventually go away and these cryptocurrencies are creating what will come next.
Cardano Is Down But Not Out
Source: Charts by TradingView
The currency markets have been in a tizzy from the central bank policy shifts. Cardano and other crypto coins are suffering side effects from that. Risk on Wall Street is also in a temporary retreat, which adds to the downside pressure. From the highs, ADA is down more than 73%. But this has happened before and it can quickly recover.
While technically there isn’t strong support near by, I would be looking for entry opportunities. Bitcoin is the chief coin in charge and it is in its own technical fight. Once it lost $46,000, it triggered a bearish target that could send it to $20,000. When that happens it would be part of normal price action in an abnormal rally. ADA and all other crypto will follow the leader in rallies and corrections.
Cardano Dips Are Buying Opportunities
The breakout from 2020 sent Cardano up 2,000%, so it’s only normal to retest it for footing. Most often buyers will use that to reload another rally and set new highs. Therefore, investors should be constantly seeking buying opportunities. However, it is important to use old tricks with a modern twist. For decades, experts convinced us that buying small pieces of gold over time is smart. It is the same with crypto, but I would add the use of modern tools.
Since trading has become so electronic, we can rely on self-fulfilling prophecies. To predict those, we simply have to use a few technical tools and methods. Using the information in Bitcoin chart, I would be a buyer of Cardano here, but not all in. Investors should be humble to leave room to add at lower prices. If BTC reverts to its $20,000 breakout level, then I bet ADA would also fall below 40 cents.
ADA Serves a Real Purpose
Unlike novelty coins, Cardano has an important use case. Currently most crypto transactions happen on the Ethereum (ETH-USD) network. Cardano is a rising challenger to that, so it has a chance at glory. The sector is large enough that it can support more than one process. Investors would do well to start learning now while most are at even keels. Catching up later will be more difficult, because things usually get more complicated with time.
On the date of publication, Nicolas Chahine held ETH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
