How to save your funds and make money with Dogecoin
So, you want to invest your money in something good?
After the beginning of the world wide crisis due to the Covid epidemic the markets are getting more and more volatile. Interest rates have been on an all-time low for the last couple of years and in most western countries the inflation has been driving the profits of investments towards 0%.
Let’s face it, bank accounts are not at all suitable anymore to even keep your savings at bay. You will actually lose money if you just invest your assets in a bank savings account.
Even the official retirement plans will leave you crippled after sometimes 40+ of hard work, with just 50-60% of your last salary.
So, let’s have a closer look at crypto currencies. Cryptos have been marked as “high risk” and “not real money” with them having “no value behind” them. But, is it really so risky to invest a (small) portion of your investment portfolio in crypto like Dogecoin?
Let’s have a look at the charts of the last 10 years:
As you can see, there are some obvious tendencies.
First of all, the trend is clearly going up. It may not look much but you have to look at the left axis to see how much cryptos actually gained in the last 10 years (or the years since the crypto was first listed respectively). Bitcoin went up from $0.05 in 2011 to a whopping $50k in 2021. That’s 1 million times more!
But yes, we are comparing not only Bitcoin, because, let’s face it, absolutely no one bought Bitcoin back then or could even imagine how much it would be worth in 2021. We will not be one of the web sites saying “If you only…. but now it’s too late”. Let’s see why.
Second of all, the trend of cryptos going up is not only true for Bitcoin. The charts are almost identical. We have to realize that Bitcoin has become THE key currency for all other crypto currencies. Like the US-Dollar and the Euro, most other currencies are following when the Bitcoin is going up or down. Keep that in mind.
Third of all. There have been periodical peaks. Let’s start with 2014 (the time at which The Doge first came into contact with Dogecoin btw.) There has been the first big peak at which Bitcoin quickly rose from about $100 to almost $1000 and Litecoin from $1 to $20. Our beloved Dogecoin rose from 0.0003 to a nice 0.0018 all time high. It didn’t get back to that ATH until 2017.
After that short peak, all cryptos went “back to sleep” so to say. A short bull market was followed by a long bear market (falling prices). Many people thought that cryptos were dead and didn’t come to stay. The next peak was 2017. Again at about the new years turn. Prices exploded and many new people learned about cryptos. And again, the short raise came to an abrupt end. The difference was that the high prices didn’t fall into an bottomless pit, they stayed high and relatively stable. Until 2021, the new peak, in which we saw a peak especially in Dogecoin, which some people see motivated by the Tweets of Elon Musk, who were promoting Dogecoin in February 2021, which lead to a giant leap from about $0.002 to a new ATH of about $0.09.
What do we make of that?
- It is NEVER too late to buy into cryptos! You just need to buy at the right time to make the optimal profit!
- Don’t buy at peaks! That seems to be the most simple and stupid advice but as those peaks are mostly resulting in the general public becoming aware of cryptos AFTER the coins went up to new ATHs it is also the best advice, because as we have seen, after peaks there will always be long phases of bear markets. If you bought at peak you might be stuck with your coins for a long time (speaking of months or years, if that is a long time for you), without being able to cash out without loss
- In a bull market, buy at dips, sell at highs. Again, a very simple advice, but there is always a big up and down going on at peaks. That’s the experts and whales (people with a lot of coins) buying and selling to make short profit.
- You have NOT lost money if you bought at a higher price than it is now. Trust us, the price will go up again. Don’t sell with loss, just keep on holding on to your coins! (Except if they are shitcoins and have been involved in a scam or a bancruptcy like Mt. Gox)
- Don’t, like really NEVER give in to FOMO (fear of missing out). When you woke up to a day of sudden big big rise of your crypto, don’t buy more for any price. There will be a big drop right after and you might be lucky that it rises more but most times you will be stuck with some overvalued cryptos.
- Hold on to your Coins. Again (sigh), that might sound like the dumbest advice, right? People keep on saying, “they have to circulate, you have to spend them to make them more accepted”. Yes, well they do. But take a look again at the charts. A Bitcoin or a Dogecoin now spent would be most certainly worth 10 times more in 1 or 2 years. Why spend $10 in Dogecoin now for sth. when you could get 10 times that item in 1 year for it? (Yes, we know, we are not really promoting our shop with that advice, lol, but we are fully aware that you have come here for sincere advice and the most serious advice we can give you to save money and achieve FIRE is to keep them until you don’t need to work anymore and be able to retire and live from your earnings)
To emphasize our point here. Here’s a chart of what you would have now made in profit if you had invested just $100 in Dogecoin in March 2018 (after the peak)
Sneak peak (pun intended), you would have $1100 now! 11x times your investment in just 3 years!
So, if you think about investing, invest in cryptos. Of course, you should NOT invest any money you need right now or in the short future. No grocery money, no insurances, no maintenance, no child support (you old doge!). Just money you don’t need and can afford to utterly and completely lose! We say lose, although it is almost impossible to lose your money completely with cryptos (stick to the big ones! small, unknown cryptos tend to disappear without warning!). Just don’t sell at dips (absolutely no panic selling!). And, last but not least, in a non-altruistic way since we are called “The Dogehouse”. You should buy Dogecoin! Because it has obviously come to stay!