Related Articles

Should You Short Or Buy More ADA?

BitForex Editor
Apr 23, 2021

You can decide to short or buy more ADA based on the price predictions of the ADA token and its performance in the crypto market.

Investing in different types of cryptocurrencies whether for the long or short term is always a good idea. With more coins becoming bullish as the days go by, it's a great strategy for making passive income. Although most people recognize the value in buying popular cryptocurrencies such as BTC and ETH, not all of them are profitable for different investment plans.

In this article, we would be giving you an insight into the best strategy on how to invest in Cardano (ADA). Whether it's more profitable to short sell or buy more ADA. But first, let's take a look at what exactly this coin is.

What is ADA?

Cardano, which is denoted as ADA is a popular project that features an open-source (decentralized) file designed to enable the smooth execution of multiple smart contracts. It is a blockchain network that you can trade different types of cryptocurrencies on. Cardano has become increasingly popular because of its future price projections and just how valuable it is. However, there are quite a few people that are not certain if they should buy or short sell ADA.

There are two different investment strategies that most investors usually adopt when they think of investing in ADA. And these strategies usually affect how to purchase ADA tokens. The two different investment strategies are;

1.Purchase and keep ADA for some time: investors that fall into this category usually trust that the price points will likely increase. Hence, they buy ADA tokens and store them for a duration of time in hopes of getting a high profit. For this category, you can buy ADA via a digital currency exchange.

2.Buy for quick gains: investors who fall within this category usually take advantage of the price instabilities to make a quick profit. It's more profitable for you to get a crypto merchant that allows you to invest in different financial instruments of ADA such as Contracts for Difference (CDs). These financial instruments are sold quickly.

Here's Why Cardano Has Been Successful

The Cardano network has been very competitive in the crypto space since its inception. Although this token is relatively new, it has achieved a huge amount of accomplishment in a short time. This has led to more people looking to invest.

The following points are the major reasons why the Cardano (ADA) token has taken off with a bang;

Digitally Robust Community

One of the major reasons why the ADA token is doing so well is because of the team of experts behind its production. With some of the best developers and backers available, the user experience is impeccable. Also, they collaborated with multiple platforms such as Twitter, Cardano forum, Medium, YouTube, GitHub, etc.

The Expert Leadership

Another significant reason for the incredible strides by Cardano is the team of experts leading the project. Currently, Frederick Gregaard is the CEO of the foundation and so many other incredible personalities.

Ascending Price Growth

The next valid reason why the ADA token has slowly become a force to reckon with is its consistent price growth. Even though the crypto market is entirely unpredictable, the ADA token has become one of the few exceptional cases. However, this doesn't suggestthat there isn't some unpredictability for day-to-day traders to make some profit.

However, the instability isn't so detrimental compared to other tokens on the crypto market.

Shorting VS Buying ADA

If you're wondering what shorting a cryptocurrency is, it simply means borrowing a specific cryptocurrency at its current price and selling it when the value is lower. This method of trading is usually profitable to investors who prefer to leverage daily price shifts to make profits. If you prefer to short ADA, then you have to be very vigilant, so that you can be aware of the price shifts.

However, if you would prefer to purchase more ADA tokens for storing over some time, it's important to consider the price predictions. But first a breakdown of how the coin has been in the market.

The ADA tokens were first sold in September 2015 at below $1, after which another five rounds were sold in January 2017. Consequently, the price of an ADA token rose to $1.31 in 2018 during the cryptocurrency rally. In April of 2018, the price dropped lower than expected to less than $0.15. This drop caused a lot of controversies, but it went down even lower to $0.04 by the end of 2018.

In 2019, the ADA token doubled in price and became stable at $0.10 all through the year. Surprisingly, in the summer of 2020, the price of the token doubled to  $0.19.

Recently, ADA hit a new price record of $1.49 on February 27, 2021. Since then, the price has been rising upwards. Although it slipped back to between $1.20-1.30 in March.

Here's What The Experts Are Saying

Predictions for ADA tokens by many cryptocurrency experts remain bullish. Here are a few;

1.According to Wallet Investor, ADA will increase to at least $1.88 by the end of 2022. It will also get to the $2 level in 2023 and possibly $2.94 by December 2025.

2.Wallet Investor, on the other hand, predicts the price of ADA will likely reduce to around $1.16 soon, and hit $1.52 by the end of 2021.

3.Coinswitch.co believes ADA will definitely reach an average price of $2.16 by 2023.

4.Digital Coin predicts that ADA will only reach an average of $1.84 in 2021 and rise to $2.28 by 2022. Also, the price point will likely be $2.55  and $3.68 in 2023 and 2025 consecutively. But at least $5.53 by 2028.

Based on the price predictions and the way ADA coins have been performing in the cryptocurrency market, it is probably wise to buy more ADA. Although there might be a few price instabilities you can work with if you decide to short, buying is more profitable long term.

About BitForex:

BitForex is an exchange service platform that can be classified as one of the Top 20 cryptocurrency exchange services. It is focused on providing millions of users with a digital currency trading and investment tool that is not only safe but also professional and convenient. BitForex has a high customer-oriented culture and state-of-the-art financial technology.

BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts,  derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.

More details:

BitForex / Social Trading / CAPP TownEazySwap

Scan to download for iOS or Android