Whether crypto has real, fundamental value — in a sense, whether it is real at all — is a question that weighs heavy on investor confidence. It doesn’t help when financial heavy weights like Jamie Dimon make such accusations publicly. They are so influential in the financial world that their comments help cement doubt. This is a disservice, because crypto coins like Cardano (CCC:ADA-USD) present viable investment thesis. Traders who shut them out are missing out on tremendous potential opportunities. This is fact, not conjecture — just consider the returns to date.
Crypto investing is not all about Bitcoin (CCC:BTC-USD), but it is important. It is the flagship coin, and it screams “trade me” out loud. It crushed the returns on all other asset classes for a decade. The opinion of a famous banking figure is immaterial to the profits it delivered. It is weird that investors seeking profits would shut out the champ asset.
The point of investing is finding opportunities with more upside potential than downside risk. Whether the coin is real or not is irrelevant to its worthiness. This implies that only naturally occurring things make for proper assets.
The whole stock market is fake, because people made it up from scratch. The value in gold is fake, because gold doesn’t do much, yet we love it. A copy of the Mona Lisa is fake, yet people pay thousands to own well-made replicas. The Mona Lisa itself is fake because someone painted it. By the same token — pun intended — Bitcoin is the product of a human brain and an asset worth trading. Millions love it and they seek to own it, so supply and demand laws do apply.
Cardano Has a Future
On to today’s opportunity, which is not Bitcoin. Crypto transactions happen across cyber freeways. Currently there are networks like Cardano, Ethereum (CCC:ETH-USD) and Solana (CCC:SOL-USD) that make that happen. The giant in the field is Ethereum. That presents an opportunity. Cardano is one of the challengers to that. Therefore its coin ADA makes for a viable investment opportunity.
This is not a novelty crypto coin like Doge (CCC:DOGE-USD) or Shiba Inu (CCC:SHIB-USD). ADA actually serves a function that makes the crypto world tick. I have used financial technologies for years, and more recently have entered the crypto sphere. Transactions are very efficient and convenient, and I don’t need to call anyone to make them happen.
Because it is a new venture, there are pitfalls there — I recently fell into a pothole myself. The details are not that important, but I learned a $400 lesson and I’m better for it. It wasn’t while trading crypto but rather in the fees from ETH. That just strengthens the argument behind the need for Cardano and Solana, though.
Compelling Levels for Cardano
Trading crypto coins is relatively easy because they remain hostage to memes. One simple way for me is to buy some on crashes. This week ADA presented such an opportunity as it fell below $1.20 per coin. I have traded it before from these levels and collected a handsome reward for it. I’m currently long SOL, which is another viable crypto coin. I am green in that trade for now and am holding. This is my second go-around with SOL, so I have profits in pocket.
The idea of investing in Cardano is to accumulate it over time. Eventually it may carve itself a nice piece off the Ethereum’s lead. Consequently ADA should also gain in value. Most investors are open to the idea of new things, but we tend to be conformists. Therefore we must make an effort to overcome the herd mentality and ignore diehard skeptics. At some point they will realize that they’ve missed the boat.
I suggest you consider facts over an expert opinion. JPMorgan (NYSE:JPM) stock is up 70% in the time since Cardano’s inception, and ADA is up nearly 5,000%. No disrespect to the financial genius, but if we don’t try new things, we will never progress. Luckily the risk in ADA is still small to test out. Making the first trade is daunting, but I overcame the hurdle with some help from friends.
Fintech Includes Crypto
The future is not about paper transactions. Fintech is where it will be, and that will include crypto. Our centralized financial systems are flailing to stay above water. We are amassing mountains of debt with no end in sight. The fact that this week the whole world fretted over a few paragraphs from the U.S. Federal Reserve is ridiculous.
The world needs a backstop process that is independent of government. The old adage that you shouldn’t put all your eggs in one basket is absolutely true. Investors would do well to carve out some assets away from from centralized system financial systems.
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.