Dogecoin (Crypto: Doge) It is the king of meme coins with a market cap of around $56 billion. The coin is up 355% since the end of last year, and with the Trump administration signaling a heavy pro-crypto bent, it’s no surprise that investors are interested in capitalizing on their purchases.
Even if your starting capital is on the small side, is it possible to make a nice sum of $10,000 by investing in this meme at the time? Yes, it is – but only if you invest instead of reacting deliberately, and only if you avoid three key mistakes that are very easy to make if you don’t think ahead. Let’s take a look at each one so you have the best chance possible.
The first mistake to avoid when investing in Dogecoin is buying or selling because you heard that a famous person recently bought or sold it. It doesn’t matter if Elon Musk talks about his place in the coin again or if your favorite investor says buy it, even if it’s yours truly. Here’s why.
To be a serious investor you need to develop yourself Investment thesis. Whether the asset in question is Dogecoin or a stock you expect to hold for 30 years, there is no substitute for doing your own research and developing your own opinion. Studying the opinions of others and hearing their arguments can be part of that research process.
But this is far from hearing someone else take action and copy it. The other person may be motivated by emotion rather than careful strategy. And it is practically proven that they started their investments at different times and had different financial goals.
It is recommended to follow the trend with Dogecoin and other meme coins. Being a trailblazer — unable to organize his own investment management — is not. Take note: the more you listen to voices from famous investors or influencers, the easier it will be to hold your position for a long time.
It is easy to get carried away by looking at the price chart of Dogecoin or the holding price of the coin. It’s definitely more flexible, which corresponds to a more emotional investment experience if you cut it though.
But earning $10,000 in Dogecoin is not an attainable goal in the short term unless you are willing to risk a large amount of capital that may not be ideal. That said, it’s a mistake to focus on price on any given day, as you may experience fear of missing out (FOMO) or, worse, a simple price drop. And fear makes you cheat your investment or get in at the worst possible time.
To avoid making this mistake, simply zoom out. This meme proves that the coin will still be alive 10 years from now. He is never in a rush to invest today, tomorrow, or even next month.
Add Coin to your watchlist. and then, Use patience wisely Waiting for a time when no one is talking about it, especially after the price has fallen by 80% or more in the previous months. It’s time to start dollar-cost averaging (DCAing) your niche.
Eventually, the recovery of the coin will increase the value of your investment. But this result can only be achieved if you stop thinking about what the price will do in any short period of time.
As the price of a meme coin like Dogecoin begins to go parabolic, as it has in late 2024 and will likely do again at some point, euphoria can quickly wear off for bearers.
It’s good when you feel good that your investment is working. However, excitement always poses a great challenge to make poor financial decisions, especially with assets like Dogecoin that may seem like they’re going to the moon.
Prices are at their peak during the festive season, and they increase rapidly. The most common mistake led by excitement is buying more coins than they are proven. Buying at higher and higher price points means you are more likely to see your investment go under the water as soon as the price peaks and starts to decline again. So don’t do it.
Plus, there’s no reason to concentrate your portfolio into Dogecoin or any other token coin. Even if one of your investments is interesting, you still need to diversify your portfolio.
Have you ever felt like you missed the boat by buying the most successful stocks? Then you want to hear this.
Occasionally, our team of expert analysts a “Double down” inventory Advice for companies who think they’re about to pop up. If you’re worried you’ve missed an investment opportunity, now is the time to buy before it’s too late. And the numbers speak for themselves-
Nivea:If you invest $1,000 when we double in 2009,You will have $357,084!*
Apple: If you invest $1,000 when we double in 2008, You will have $43,554!*
Netflix: If you invest $1,000 when we double in 2004, You will have $462,766!*
Right now, we’re giving out “Double Down” alerts for three amazing companies, and there may not be another chance anytime soon.
Alex Carchidi It has no place in the said shares. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has Disclosure Policy.
