How You Can Buy Dogecoin Like a Professional Trader
After Elon Musk’s appearance in Saturday Night Life, you may be wondering what his mom was talking about when she mentioned Dogecoin. Dogecoin is the most talked about cryptocurrency right now. Many people who have never invested in cryptocurrencies before think they know what they are doing. Be careful following their advice.
The Dogecoin mania is just as bad as the GameStop traders not too long ago. There is no relation between the two. But if you look closely, you’ll see that both groups of people want to make money and fast.
What is Dogecoin?
Dogecoin is a meme cryptocurrency based on the native Japanese Shibu Inu dog. The creators of Dogecoin created the cryptocurrency as a joke and as the exact opposite of the first cryptocurrency Bitcoin. Billy Markus and Jackson Palmer never imagined the cryptocurrency would take off as it has.
Some investors are hoping the Dogecoin reaches one dollar.
Billionaire Elon Musk has become a fan of the cryptocurrency. He routinely comments and tweets about Dogecoin which gives the price an increase. On Saturday night when Elon was on Saturday Night Live, the price decreased as soon as he mentioned the cryptocurrency.
How you can buy Dogecoin without losing your entire savings
Some people have invested a good amount of money on Dogecoin. When they invested, they bought Dogecoin when the price was much lower. Buying Dogecoin now would not see as big of a return as if you invested when Dogecoin was trading for pennies.
Dogecoin millionaire. Glauber Contessoto invested $180,000 when Dogecoin was about 4.5 cents on February 5. By April 15, Glauber was a Dogecoin millionaire.
Investing early was smart but also risky. Glauber could have easily lost his entire investment if Dogecoin went down instead of up.
Glauber sold all of his stock in Tesla and Uber and also borrowed money on margin with Robinhood. This was a big gamble for anyone to make. Glauber was positive the price of Dogecoin was going to rise.
Dogecoin supply. Dogecoin does not have a limited supply as Bitcoin does. The creators wanted Dogecoin to tip others. At the current rate, 10,000 new Dogecoins can be created every minute. Over a year, this comes out to 5.2 billion Dogecoins can be created.
Your exit strategy
A total of 10 Dogecoin investors own 44% of the entire Dogecoin market. If one of the investors sold their holdings, the price of Dogecoin would drop immediately.
There is a lot of danger for small-time investors to buy Dogecoin hoping the price continues to rise.
If you have a long time to invest in Dogecoin and you’re not afraid to lose your investment, be aware the Dogecoin price could drop any day. You need to be patient and have a plan. Know your end state with your Dogecoin.
This could be selling your Dogecoin investment at $0.80 or $1.00. These are just hypothetical examples. If you don’t have a goal for your Dogecoin, you could easily lose a lot of your money.
Then once you have sold your Dogecoin, be ready to pay your taxes, especially if you live in the United States. Any gains you made with your cryptocurrency trade could be a taxable transaction.
Tom Handy is a top writer on Medium, former Quora writer, and father of two kids. He retired from the Army and sits on several non-profit boards. You can find him on Twitter @tomhandy1 and Life is Like a Game.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.