So crypto currencies are not new anymore, but this one is new to most of us. (DOGE) coin which started as a joke in 2013 by two computer geeks, and later gained a modest jump after Snoop endorsed the coin earlier this year, has now become the number #4 cryptocurrency reaching .69 a coin on May 4th. DOGE is trading at .60 as of this writing.
The second surge of DOGE coin began in early April after a series of tweets by Tesla CEO, Elon Musk, reanimated the coin's popularity. Elon Musk is scheduled to host SNL where he will mention the coin on May 8, 2021.
Music artist and businessman, Meek Mill, is quoted in a tweet below--apparently the hip-hop mogul has purchased $50,000.00 worth of Dogecoin!
Anytime we can see a rise coming in a publicly traded asset, it can be seen as a golden opportunity for some to earn some quick cash with a well-timed investment. In other words, we see dollar signs.
But...Hold on wait a minute, there is a reason our grandmothers never trusted the markets, and that had more to do with what they didn't know about how making and losing money in the markets work. That is even truer for the newest crypto on the market. Knowing how DOGEcoin works may help you take advantage of the rise without losing your entire investment--or worse--more than your entire investment. That's already enough to make most church mothers clutch their pearls and purses. But there really is a way to safely trade DOGEcoin, and that includes following time-tested investment advice--from your mothers. But FIRST...
The Issue with DOGEcoin
Unlike Bitcoin and Ethereum, the design of Dogecoin allows for an unlimited supply of Dogecoin to circulate. There is a limit on the amount of Bitcoin and Ethereum tokens that can be issued, but this isn't true for Dogecoin. In fact, EVERY time a transaction occurs, the transactors are being paid in Dogecoin, so the coin has to contend with inflation in ways the other cryptos do not.
Another issue with DOGEcoin is its novelty and unpredictability, but this is a moot point in the world of crypto, but new cryptocurrencies are known for their volatility (steep upward and downward trends.
Here is What I Plan to do to Protect my Growth
I AM NOT an investment professional and this ain't your investment advice, and I certainly am NOT responsible for anything you choose to do with your life or your money. Invest at your own risk. Now that I've covered my ass. Here is what I plan to do to protect the money I've made off of DOGEcoin.
1. Approaching and directly following May 8th, I will have my eye on my coins like a watch-DOGE! If you have access to tools like stop losses or trailing stops then USE them. If you don't (None of my wallets/brokers offer this for crypto), or if you don't know how that works...I suggest you don't let your investment fall before rolling some of your DOGEcoin into another well-performing crypto. Ethereum, Litecoin, and Bitcoin have had consistent gains but none of that is indicative of future success. Next...
2. I would never invest more than I could afford to lose in the first place. The uncharted world of crypto is like the traditional markets on steroids right now, but they are notoriously unpredictable.
3. I remember Nana saying, "Don't put all your eggs in one basket..." so I plan to spread my money around in order to mitigate some of the losses and take full advantage of any gains. I also remember Ma saying,
4. "Be patient." Everyone wants fast money, but one thing all the markets tell us is that...the index of a diversified group of well monitored investments grows over time. That has been true of all our favorite stocks, indices, cryptos, and the like. Will I sell some DOGEcoin?--maybe, but I'll keep some because time has shown me the real money in the middle class goes to the HODL ers :). I will always hold a little DOGE -- because I simply believe it will make an iconic rise like it's endorsers. BUT...
5. I'm gonna do me--you do you boo! When you read articles like this one before you believe anything you read--consider the source. Every "big time" and so called, "stock guru" or a member of traditional money media has been throwing shade at your crypto investment--understand that they bought some DOGEcoin too!
No one--not even the old money crowd of "experts" can resist the allure of a foreseeable gain. They used to say Bitcoin would never grow--they look silly now. However, they--unlike us--know what they are doing. They know how to properly time their investments in order to maximize their gains. We do not. So invest--knowing that you are an amateur. If you made a modest investment I say HODL if you can afford to do so. The future of DOGE is bright. Maybe they will improve the issue of inflation--that would be key. But either way, if you are in over your head, you may want to invest at a level that suits your tolerance for risk and loss.
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