Basic information and history of Cardano
Its rather different than other crypto currency projects because it is bulit around peer reviewed papers. As others cryptocurrencies do that write the white paper and than in next step apply the code straight forward,but the case with Cardano is different. Cardano did that it gives the power of opinion to the expert in this field ask them to give suggestions and also then they are agree with what the outcome is. Cardano claims to be the third generation of crypto currencies.
As all we know that first generation was bitcoin that was essentially digital gold. It's used to transfer money and store virtual money but is plagued with scalability issues. The second generation started with Ethereum and brought a smart contract. The third generation however wants to take the previous two generation and improve upon them. Cardano is being developed in two layers. This layered artitecture is one of the key features that makes cardano unique. The first layer is the cardano settlement layer which acts as a balance ledger and runs the transfer of ADA tokens.
The other separate layer is the cardano Computational layer which contains the information on why transactions occurs,this actually the layer that runs the Cardano smart chain contracts. Cardano supporters side chain based on new protocol called the KMZ side chain. The KMZ side chain protocol allows funds to move securely from the computational layer to any blockchain that uses the same protocol.
In order to see the recent information about any coin you can visit Coin Market cap. The coin market cap of Cardano can be seen from here. In this there is a lot of information is given including recent price, ranking , volume of Cardano etc.
The given below are the exchanges where Cardano is listed and can be used to trade. This includes the most famous crypto exchange binnance, and also ku coin, coinbase etc.
Here are the prices of almost last 15 days that can be seen from price of Cardano here.
Why I am optimistic about the Cardano
Cardano has the bright future because it continues to solve the problem of the peoples. When the issues of the peoples are solved they move more towards Cardano Blockchain and its captain will increase and also the price will also make high. Cardano wants to solve three pain points of current generation that includes scalability, Interoperability and last one is sustainability.
First of all scalability which itself consists of three problems that has to be solved. That are transaction per second, network bandwidth and storage. Out of all three the transaction per second is the most obvious one. In order for a cryptocurrency to become a global payments system you need to be able to handle a lot of transaction per second. Cardano ouroboros system solves this by adopting the proof of work consensus.
Cardano is more efficient and it does not let everyone to mine new block instead the network elects a few nodes to mine that next block. The next problem that was solved by the Cardano is network bandwidth. Cardano did this by splitting up the network into sub network using a technique called Recursive inter network architecture. With the help of Cardano network we can exchange assets across multiple exchange without intermediate.
Cardano team is Almost over 300 people those work full time on project to make it more and more progressive. Another reason is that instead of putting people away Cardano is building things in a way that is very inclusive. They bulit ERC 20 converter, which is a piece of code that allows other projects to run on Cardano blockchain. Cardano also offers a better staking experience and also has incredible community. So due to all these reasons I am so much optimistic that Cardano will go even further up.
Technical analysis using different indicators
In the history of crypto or stock market the one thing that investor most like is technical analysis. By knowing the technical analysis investor consider it the most easiest way of making profit. So as we know that Crypto market is highly fluctuating market so we should have proper knowledge of Technical indicators and also strategies. We can examine the future trend of the markets by knowing the past trends. Because it is assume that friends always repeat itself. So here we will use different kinds of indicator as in combination with each other in order to understand the market trends.
Parabolic SAR
Parabolic SAR is the most interesting and effective indicator which can be used to understand about the trend reversal. Parabolic SAR gives us information when the trend will make reverse position. This is free indicator that is provided to trader by the broker. Parabolic SAR is a price and time based indicator in crypto trading market.
Parabolic SAR was developed by Walls wilder jr. This indicator can be used as great visualization of trend strength. The distance between the dots widens as the trend become powerful and when trend become less powerful dots become closer. This is also a good choice of indicator for active trader.
- when the dots switch from the top side which is a bearish market condition to a dots on the bottom scenario that is a bullish market condition the transition that is happening in this phase this is buy signal. Because dots are below the price chart and after that market will goes from seller to buyer.
- while in other case the scenario is different from our buy trade. Here when dots are reversing from lower side to upper side and at least three to four dots are on the upper side, this will be the sell signal. Because now dots are present on the upper side of price chart and now market will move from buyer to seller.
Exponential Moving Average indicator
Here in case of exponential moving average indicator I will use the cross over strategy. Jere in cross over strategy there will be two Exponential moving average indicators will be selected. One is of less days average indicator which moves faster while other is more days average which will move slower. Than after that the cross over of both the indicator will explain weather there will be the bullish trend in the market or bearish trend in the market.
- When the long days exponential moving average indicator cross the shorter days and moves up from the shorter days EMA than it will be the bearish signal and market will goes down.
- When the shorter days EMA cross the long days and than moves up from the long days than it will be the bullish signal and market will be in upward direction
Triple exponential moving average indicator
When we are talking about triple exponential moving average indicator it means that we are more interested in recent price changes of the Crypto market. TEMA also have another advantage is that it is not a lagging indicator as simple moving average indicator which is lagging indicator. Triple exponential moving average indicator is indicated by a single line and it is combination of three kinds of indicator including two Exponential moving averages. The trend can be determined by following way
- If the line of TEMA indicator is just below the price candle this actually means that there will be bullish trend in the Crypto market. Here we will go for buy long position.
- If the triple exponential moving average indicator line is above amd price movement trend is below then it will be bearish signal and here we will go for sell short position.
Real future trading on binnance
Now I will go for realizing weather I should go for real future trade in binnance exchange by analyzing different indicator and strategies.
- First of all I analyze the market by using Exponential Moving Average indicator by cross over strategy. Here I use one indicator of 9 days which is short and moves faster while other is 21 days average indicator which os longer and moves slower. Here we can clearly see that 9 days moving average indicator is above from the 21 days EMA indicator which indicates that market will go up and there is bullish trend. So here I have to enter as buy long.
- After that I applied another indicator you can see in below that is parabolic SAR and we know that if the dots in parabolic SAR are below the price chart this indicate that we should enter the market as buy long
- After that I analyze the market with another indicator which is triple exponential moving average indicator. The reason of using this indicator is that it is useful for scalping trading so here line of TEMA is almost equal or slightly low from price movement candle which indicates that we should enter the market as buy long.
So after realizing the market with all these three indicator. I did my trade in future wallet of Binnance.
My point of view about my trade and recommendation to others
As I told you above that I always prefer to do scalp trading. Trading for short period of time and when get reasonable profit I exit my trade. Here I will also do the same. After some time as I got reasonable profit and when trend start reverse I will exit my trade and will claim my profit. The basic reason behind is that in future trading due to high fee of keeping the assets that is why I did not go for long time trading in future wallet.
As far as recommending to others It is the need to have knowledge about the technical analysis that includes indicator and other strategies. Everyone who wants to trading with proper profit must have proper knowledge of indicator. From the past history pf trading the investor always believe in one thing that is technical analysis. As far as keeping the ADA for long term can also prove good because it is progressing with the passage of time but this should only be done in spot wallet not in future wallet.
Additional information about Cardano
Some interesting information about the ADA coin can be obtained from the reading different article related to Cardano network and also can be obtained from social media accounts.
Here is article about why Cardano rise in 2022
Conclusion
This was overall about today trade in which I select ADA/usdt pair which is at ranked 8 in cryptocurrency. At first I give brief introduction about the Cardano network and about ADA coin. I also gives basic introduction of the binnance exchange that I used for trading. After that there was a bit article on why I am so much optimistic in chosing the Cardano for today trade. After that the most important and backbone of the trading that is technical analysis by using different indicator and strategies.
Than I did my trade by analyzing the whole market and than did my trade in future wallet of the binnance exchange and go for buy long trade according to the situation. Than I told about concept about holding or selling of trading assets. And in the last I give brief information about the social media accounts of ADA coin.
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