BigONE Strategy: Things You Need To Know Before Buying Dogecoin
If you are thinking about investing in Dogecoin, the popular meme token, you should first ask yourself a few questions. Few coins have a larger following than Dogecoin. Dogecoin’s price climbed by 12,000% between January and May 2021. And despite a drop of more than 50% since May, it is still one of the few cryptocurrencies that has become a household name. Price volatility and the popularity of Dogecoin may encourage you to take part. However, because this type of cryptocurrency is not a typical investment, we urge you to consider a few aspects before purchasing.
Why do you think Dogecoin is worth buying?
The success of Dogecoin has attracted many new buyers. Many people are intrigued because they do not want to miss out on future price hikes, or because they have heard about this hot new money-making possibility. None of these are compelling reasons to purchase Dogecoin. Past performance does not predict future results. Prices have risen in the past, but this does not guarantee that they will do so again.
There is a common acronym, DYOR, in the crypto community, which stands for “do your own research”. If you want to buy Dogecoin, BigONE advises you to first do the research. After all, it was created as a joke, and technically it’s no different to many similar cryptocurrencies. Of course, its popularity drives the price, but BigONE believes that popularity alone does not provide for good long-term investment returns.
Have you thought about other cryptocurrencies?
In the cryptocurrency market, there are numerous intriguing tokens and initiatives. If Dogecoin has sparked your curiosity in cryptocurrencies, have a look at what else is available. Bitcoin (BTC) is the most valuable cryptocurrency in terms of market capitalization. Because of its scarcity, some people believe it can store digital value and so thrive as an investment. Ethereum (ETH) is also incredibly popular because of the Ethereum blockchain and the smart contracts it provides. Cardano, which emphasizes sustainability, will appeal to those who appreciate environmentally friendly cryptocurrencies. Cryptocurrencies, such as these, have distinct advantages that set them apart. However, Dogecoin does not right now, which may limit its growth potential, unless its use in payments takes off.
What is your investment plan?
The price of cryptocurrency changes with market fluctuations, which is why we always emphasize the importance of making reasonable investments based on a plan. Otherwise, you may find yourself unable to decide whether to sell when the price rises or falls. Your investment plan should guide your decision whether to sell some or all of Dogecoin. For example, suppose you buy Dogecoin at $0.34. If the price drops to $0.20 or less (a decrease of more than 40%), or it rises to $0.55 or higher (a more than 60% increase), you would consider selling. Another popular option is to withdraw the initial investment if the price doubles and leave the profit to continue investing.
You can also use timetables instead of prices to guide your investment plan. For example, some buyers aim to hold Dogecoin for three months, one year or longer, which is an excellent way to avoid too much worry about short-term price fluctuations.
How will you buy Dogecoin?
If you are sure to buy Dogecoin, then you need to know how to buy it. Since Dogecoin used to be much smaller and controversial, some major cryptocurrency exchanges do not offer it for sale. However, you can buy Dogecoin through the BigONE cryptocurrency exchange. Not only is BigONE one of the most popular cryptocurrency exchanges, but it is also safe and suitable for beginners. If you are new to cryptocurrency and do not have an account on any exchange, BigONE may be the easiest and most effective option.
Buying Dogecoin for investment purposes should not be a light-hearted decision. However, the wave of hype may be over. If you expect significant gains, it is best to lower these expectations. Take some time to study the above questions carefully to decide whether you will buy Dogecoin, what your investment plan is, and how you will buy it. If you choose to buy Dogecoin, BigONE recommends that you only invest as much as you can afford to lose, to ensure your investment strategy does not impact negatively on the rest of your life.
About BigONE
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.
