Dogecoin (Crypto: DOGE) It is the undisputed king of meme currencies, with a market value of about $56 billion. The coin has been on a massive rise since late last year, rising 355%, and with the Trump administration signaling a serious pro-crypto tilt, it’s no surprise that investors are interested in making big gains by buying.
Is it possible to make a decent amount of $10,000 by timely investing in this meme, even if your starting capital is small? Yes, it is, but only if you invest deliberately rather than reactively, and only if you avoid three key mistakes that are very easy to make if you don’t plan ahead. Let’s review each so you get the best possible odds.
The first mistake you should avoid when investing in Dogecoin is buying or selling it because you heard that someone famous recently bought or sold it. It doesn’t matter whether Elon Musk is talking about his position in the coin again, or whether your favorite investing influencer is saying you should buy it, even if it’s really yours. This is why.
To be a serious investor, you have to develop your own Investment thesis. There is no substitute for doing your own research and developing your own opinion, whether the asset in question is Dogecoin or a stock you expect to hold for 30 years. Studying the opinions of others and hearing their arguments can be part of this research process.
But that’s a far cry from hearing that someone else took an action and then copied it. It is quite possible that the other person was acting out of emotion rather than careful strategy. It is practically certain that they started their investing at a different time, and that they have different financial goals for it.
It is recommended to follow the trend with Dogecoin and other meme currencies. Being a dependent – someone who cannot organize their own management of the investment – is not. Take note: The less you listen to the noise coming from famous or influential investors, the easier it will be to hold your position over the long term.
It’s easy to get caught up in looking at a Dogecoin price chart, or the value of your coin holdings. It’s certainly very volatile, which corresponds to a more emotional investing experience no matter how you slice it.
But making $10,000 with Dogecoin is not an achievable goal in the short term unless you are willing to risk a large amount of capital at a time that may not be ideal. This means that focusing on price on any given day is a mistake, because you will be more susceptible to fear of missing out (FOMO), or worse, simple fear that the price will drop. Fear will cause you to stumble on your investment, or enter into it at the worst possible time.
https://s.yimg.com/ny/api/res/1.2/VP7qDk9ZsjPmwaRw6TTQdQ–/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyMDA7aD04MDA-/https://media.zenfs.com/en/motleyfool.com/fbfb89eaa242eb0f56a8472663cfac61
Source link