In this Cardano trading guide, we make a market analysis of one of the less popular coins in the industry. We investigate just how represented the coin really is in terms of its platforms, regions supported and tools available. We compare the crypto with its counterparts, listing out functions that you can use while shorting Cardano. If you are interested in other currencies you can read Bitcoin trading or Litecoin trading, for instance.
Available Trading Tools
Cardano can be seen as the least supported cryptocurrency in many terms, including APIs, bots, and platforms. The sheer number bitcoin and Ethereum enjoy is vastly greater than what ADA coin currently has.
Cardano’s GitHub space is where developers of the coin proposed open space scripts to be developed by interested parties. The name of the API is Cardano SL CLI with code also found in the Cardano’s website as well. It provides wallet fund transfer services, as well as protection from unauthorized entrants.
You can check out the code in a snapshot below. GitHub holds files which you can use to make your own API if you possess programming skills.
Daedalus is a wallet platform developed by ADA’s creators, which specialized in ADA transactions only. It offers API tools as well as a secure platform to hold your coins since it is a desktop-based wallet. Keys are private while the wallet is the only one that fully supports ADA coin and its trading.
Trading View, apart from many other cryptocurrencies, supports ADA. The platform allows users to create their own charts, used for trading analysis. The sheer number of indicators and tools available for chart design make this a useful tool to have.
Cardano has the same support and is only limited to a number of platforms. This is due to the small number of trading centers supporting the coins. Trading View takes their data and converts it into a presentable chart for your use.
Check out our complete guide to Crypto trading tools.
When it comes to softwares that support Cardano, the coin has a really small number of choices for its traders. Even famous platforms like Haasbot do not offer their support for the coin, putting it in the downslope position when compared to other, more popular cryptos.
CryptoTrader offers a space for developers and traders alike to post their bots and strategies for other to use. Most of these products come with a price, expressed n in cryptocurrencies. ADA bots and APIs might be found from time to time, though its market is relatively small. Thus, most of the time, its appearance is rare in this marketplace.
There is a very small number of trading platforms that offer ADA for their clients. Currently, only a few engage in ADA transactions, them being Binance, Bittrex, and BitMex, all of which are crypto-to-crypto only oriented.
Binance is a somewhat a new player in the market that specializes in crypto trade and exchange services. The platform does not accept fiat payments nor currencies, leaving traders to pair up their coins with other cryptos. ADA’s support resides in the trading pairs ADA/BNB, ADA/BTC, ADA/ETH, and ADA/USDT. Binance offers to regulate trading services, them being Limit, market, and Stop-Limit markets.
Should you wish to learn more about the platform and its trading potential, you can check out our Binance review.
Bittrex is another crypto-to-crypto marketplace that accepts a large number of cryptocurrencies, ADA included. The platform offers several trading pairs for Cardano traders, them being ADA/BTC, ADA/ETH, and ADA/USDT. The platform offers only few trading functions for you to use, them being Limit and Conditional markets.
More importantly, the daily value of ADA trade stands at the value of 180 BTCs. It is quite small compare dot more popular coins like Ethereum and Litecoin.
BitMex supports Cardano with its futures contracts and margin trading platform. You have several functions available, them being Limit, Market, and Stop Markets. The leveraging functions work for up to 20x, while pairing is done with bitcoin. Verification is not needed to trade at this marketplace, much like with other choices in the market for ADA. To know more about the platform, simply go to BitMEX review for our in-depth guide to it.
Currently, through BitMex, Cardano enjoys support for both futures and swap contracts. The futures allow traders to purchase the ADA coin at a predetermined price at a specified time in the future. This development is crucial for the coin to grow, adding to its stability. Swaps are allowed in other exchanges as well due to crypto-to-crypto pairings.
Thus, Cardano definitely holds an upper hand over Ripple, NEO, and IOTA. These coins do not possess a support for future contracting. For further reading about this topic you should read our article, Crypto trading instruments.
Regulative bodies view Cardano as a part of the industry, rather than a separate item of interest. Thus, much the same rules apply for ADA as they do for bitcoin and other altcoins.
Trading in the US, Canada
In both US and Canada, cryptocurrencies fall under full regulation. This would mean that all profits you made from the crypto trade would land you within tax jurisdiction. Traders are subject to income and capital gains taxes. Evaluation of the income is done on the basis of market value within the day the transaction took place.
Trading in India and China
There are also counties like India and China who banned their banks to have anything with cryptocurrencies. In these countries, there are no taxes but you can only engage in crypto-to-crypto trade.
Trading in South Africa and the UK
Regions like South Africa and UK are yet to publish their official views on the digital coins. It these countries, you are permitted to work with ADA and other coins however you want. On the other hand, you are not protected from hacking attempts and other issues.
When shorting ADA, although it has a lack of support, you do have all four strategies available to you. These strategies include margin trading, futures/swaps contracts, binary options, and prediction markets. BitMex, in particular, offers these strategies, though Binance and Bittrex also supplement the ADA market.
In this Cardano trading guide, we investigated current market standing of the coin in terms of available tools, strategies, and platforms. The results suggest that ADA is one of the weaker coins in the market since there are only few trading platforms available.
The same can be said for APIs, softwares, and bots, as not many platforms include the coin within its service.