I Sold All of My Cardano...For Polkadot

By johnwege | johnwege | 31 Aug 2020

Let me start this off by saying I have been a big fan of Cardano since it was first announced; always thinking that it had a lot of potential in the crypto space.  I was holding ADA during it's all-time high price of around $1.33, and kept holding my bag when it reached it's low of under $0.02.  It has been a period of extreme highs, but also extreme lows as well.  But all the while I continued to remain positive, was really looking forward to Shelley, staking and was excited by the great profit potential that I saw here.  

But I must also confess, that just 2 weeks ago I sold all of my ADA.

Why did I do this? Well let's talk about this more.

There has been a concept that has been stuck in my head for the last few weeks and months.  Especially as I have been more aggressively using Uniswap to invest into and sell pumping DeFi coins to take advantage of the recent surging alcoin market.  If you are interested at all into daily trading this is perhaps the most important philosophy you can have.  

"Don't Be Married To Your Bags."


Now what does this mean? Basically it means to just not become too attached to any one coin of yours.  Go to where the profits are being made.  If you have a coin that you love, but that specific coin has been doing nothing for your portfolio, it could be time to move on.  And if the thought of getting rid of it is too difficult to imagine, it could mean you're too attached to it.

For quite a while I think I have definitely felt this with Cardano.  Don't get me wrong, I have enjoyed the great price rise during the last 3-4 months, but recently I've been feeling that I could better use that asset to allocate to a higher growth one.  I still do believe that Cardano has a lot of potential.  Shelley was just released after all, bringing with it the ability to make a passive income by staking, around 4-5%. 

Then later on this year/next year Goguen will bring smart contracts, and also chain governance will be added as well. Also there is the highly rumored Coinbase listing that also would help to boost the price as well. All-in-all, I wouldn't be shocked if by the end of the year, Cardano could reach a price of around $0.20.   Nearly a 2x from what the current price is.  (Around $0.12)


But two weeks ago, I was seeing a coin that I liked even more, where I could see even great price potential, use case and perhaps a more safe future.  This crypto was of course Polkadot.  The moment that I sold all of my Cardano and bought Polkadot was when DOT reached a low of about $2.74.  I knew this was an incredible buying opportunity that would give me faster/bigger gains than what I was expecting ADA to give me after 5 months.  Since then it has done more than a 2x reaching a high of around $6.75, before slightly pulling back to $6.00. 

But even though Polkadot already has a massive market cap, it still has a lot of potential to go up as well.  Just like ADA, Polkadot has the potential listing on Coinbase in the future, in-fact, currently Polkadot is listed on very few exchanges.  Also the staking rates that DOT currently offers, just blows ADA out of the water in comparison.  Currently offering an annual rate of 12% on Kraken, compared to around 4% with ADA.  That nearly 3x as much.


Finally the last straw that sent me over the edge to sell my ADA and purchase a large bag of DOT was that I feel much more confident in Polkadot's future, than with Cardano's.  I'm a huge fan of the interoperability that DOT is bringing.  In a Hail Mary scenario Polkadot or Cardano could surpass Ethereum in the future.  (I would give the Edge to DOT)  But even if that doesn't happen, and I don't think it will,  Polkadot is built to work with/ and next to Ethereum.  It doesn't need to beat Ethereum to have an amazing and very profitable future.  While Cardano too has great potential, in my opinion, if in the future it doesn't beat out Ethereum, there is a chance it could quickly lose adoption.

So far this decision has really paid off for me, but this is the crypto space and that could change in a hurry.

So what do you think about Cardano and Polkadot?  Which one do you think has the best potential!?

As always, thank you for reading!

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Hello I'm John Follow me on Twitter! https://twitter.com/johnwege


Living day by day, stacking sats and trying to retire early. Follow me on Twitter twitter.com/johnwege

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