Dogecoin (Crypto: DOGE) With a market cap of around $56 billion, Meme is the undisputed king of coins. The coin has been on a roaring rally since late last year, rising 355%, and, with the Trump administration signaling a serious pro-crypto tilt, it’s no wonder investors are interested in making a big profit with a purchase. keep
Is it possible to make a decent amount of $10,000 with timely investment in this meme, even if your initial capital is on the small side? Yes, it is — but only if you invest intentionally rather than reactively, and only if you avoid three key mistakes that are all too easy to make if you don’t plan ahead. Let’s go over each one so you have the best odds.
The first mistake to avoid investing in Dogecoin is buying or selling it because you heard that a famous person recently bought or sold it. It doesn’t matter if Elon Musk is talking about his position in the coin again, or if your favorite investor asks to buy it, even if it’s truly yours. Here’s why
To become a serious investor, you need 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 hope to hold for 30 years. Studying other people’s ideas and listening to their arguments can be a part of that research process.
But it’s a far cry from hearing that someone else took action and then copied them. It is entirely possible that the other person was acting out of emotion rather than careful strategy. And it’s practically guaranteed that they started their investment at a different time, and that they had different financial goals for it.
It is advisable to follow the trend with Dogecoin and other meme coins. Being a follower — someone who can’t manage the investment themselves — is not. Note: The less you listen to the noise of popular investors or influencers, the easier it will be to hold your position for the long term.
It’s easy to get carried away by looking at Dogecoin’s price chart, or the value of your holdings of the coin. It’s definitely quite volatile, which equates to a more emotionally invested experience no matter how you slice it.
But earning $10,000 with Dogecoin is not a goal that can be achieved in a short period of time unless you are willing to risk a large amount of capital at one time which may not be ideal. This means that focusing on price on any given day is a mistake, as you will be more likely to experience fear of missing out (FOMO), or worse, fear of the price falling. And fear will lead you to screw up your investment, or enter it at the worst possible time.
To avoid making this mistake, simply zoom out. This meme coin has proven that it will be alive even 10 years from now. There is absolutely no rush to invest in it today, tomorrow or next month.
Add the coin to your watch list. then, Use patience strategically To wait for a period when no one is talking about it, especially after its price dropped by 80% or more during the last months. It’s time to start dollar-cost averaging (DCAing) in earnest in your position.
Ultimately, the recovery of the coin will increase the value of your investment to you. But this result is only possible if you stop to think about what it’s worth in the short term.
When the price of a meme coin like Dogecoin starts to go parabolic, as it did as late as 2024, and which it will probably do again at some point, the sense of excitement can become increasingly powerful for holders.
It’s good to feel good that your investment is working. Still, prosperity almost always creates a huge temptation to make bad financial decisions, especially with assets that can feel like they’re going to the moon, like Dogecoin.
During times of prosperity, prices are at their highest, and rise at their fastest pace. The most common mistake driven by prosperity is buying more coins than warranted. Buying at higher and higher price points means that you are more likely to see your investment go underwater as soon as the price peaks and starts falling again. So don’t do it.
Furthermore, there is no excuse for concentrating your portfolio in Dogecoin or any other meme coin; You still need to maintain the diversification of your portfolio even if you have an interesting investment.
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Alex Carchidi No positions in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Motley Fool has a Disclosure Policy.
