As a seasoned researcher who has witnessed the tumultuous rise and fall of countless cryptocurrencies, I find myself in agreement with Mishaboar’s guidance to the Dogecoin community. Having seen the fortunes of many retail investors rise and plummet with the market, his advice is not only timely but crucial.
Last week saw an extraordinary surge in Dogecoin‘s price, with an impressive 83% rise that took it to $0.282 and peaked at $0.3034 today. In response, influential figure within the Dogecoin community, Mishaboar, shared some crucial advice not just for newbies but also experienced crypto market participants.
In his initial advice, Mishaboar cautions individuals investing in Dogecoin and cryptocurrencies to only put in money they’re prepared to part with or that they can afford to have locked up in a volatile asset that could decrease in value. Although Dogecoin is more established as a meme coin compared to newer, highly speculative ones, it still exhibits unpredictable price fluctuations that necessitate cautious risk management.
2. Mishaboar emphasizes the need for investors to avoid using leverage and derivative products, as he deems them risky and often inappropriate for the average retail investor. Notably, the meme coin under discussion is viewed as a highly leveraged wager on Bitcoin, and utilizing derivatives with it could result in significant losses, particularly in markets vulnerable to manipulation by exchanges, market makers, or cartels.
To the Dogecoin community:
— Mishaboar (@mishaboar) November 10, 2024
A Dogecoin supporter advised against using Annual Percentage Yield (APY) programs as they can carry extra risks and potentially use your assets in ways that don’t align with your investment goals.
Mishaboar emphasized in their third tip the importance of self-custody for DOGE. They suggested that keeping your cryptocurrency on exchanges is similar to possessing “I owe you” items instead of actual crypto, and if an exchange encounters financial difficulties, the assets could be at risk of complete loss.
As a crypto investor, I’ve learned from past experiences that it’s crucial not to keep all my eggs in one basket. Just like how FTX, once considered secure, unexpectedly crumbled, no platform is entirely immune to risks. To minimize the potential dangers of account freezes and bankruptcies, I recommend spreading out investments across various platforms and utilizing self-custodial wallets. This diversification strategy can help safeguard my investment portfolio.
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2024-11-11 12:09