In the past several months, retail stock investors have been trading their monkeys for Shiba Inu puppies as Dogecoin has climbed to an all-time high of more than 43 cents. With many theoretical predictions for Dogecoin’s price already in the rearview mirror, it’s unclear what the future holds. More importantly, many people don’t know what to do with this commemorative coin. Now the question is When Should I Sell Dogecoin?
When Should I Sell Dogecoin?
Many retail investors have made pennies on the dollar from Dogecoin’s price increase.
- If you had invested $1,000 in Dogecoin this time last year, your shares would now be worth over $230,000.
- If you had invested your first reward check of $1,200, that share would have been worth over $150,000.
That’s why there are three essential tips for knowing when to trade your Dogecoin.
When DOGE exceeds your target?
One tip for determining when to sell Dogecoin is to ask you to estimate the ideal target price for your DOGE. This is an essential practice for experienced investors; however, novices also need to learn. When you first purchased Dogecoin, what price did you expect it to reach?
The recent rally may have exceeded their expectations for most investors, and now may be the time to sell and take profits. However, the price predictions of many experts now seem irrelevant. Before its price rise, many experts expected Dogecoin’s price to reach 14 cents by the end of 2021. Just that purpose is behind the rearview mirror now, even if DOGE has cooled down so far.
Expectations for others remain high, and that’s fine. Some investors see a target price of $1 or more for Dogecoin, which means its rally, is just a step along the way. The math changes quickly for the lucky 1.0% of the Dogecoin portfolio holding more than $40,000 in DOGE, or 0.14% of DOGE holding more than $400,000 in DOGE.
For these people, even a 20% drop in Dogecoin would mean a severe loss. They should consider taking some profits to maintain their profits, even if they want to speculate on further gains.” That said, when considering when to sell Dogecoin, you should evaluate your risk tolerance and your growth goals.
When to find a better Altcoin?
One of the reasons investors may decide to sell Dogecoin is that several other altcoins have gained favor recently; it’s due to the surging global popularity of Bitcoin and the direct listing on Coinbase.
Both are driving cryptocurrencies into the mainstream and helping to garner support for cryptocurrencies from prominent institutional players.
Many investors are now looking for the next cryptocurrency to explode in 2021. These high-potential names may include companies tied to Coinbase, such as new products on the Coinbase trading platform.
Other cryptocurrency exchanges under the spotlight include BinanceCoin and Uniswap, gaining attention for their status as alternatives to Coinbase.
Finally, there is an excellent opportunity for investors looking for cryptocurrencies related to the theme. Some industry insiders see privacy tokens as a critical area of profitability due to the growing consumer demand for privacy and security. This makes tokens such as Zcash a better investment at the moment.
As with the first tip, consider why you want to invest in Dogecoin and what you want to achieve. This could be a wise choice if you like to profit and invest your money in these popular altcoins.
When something changes
The final tip for deciding when to sell Dogecoin has to do with its fundamentals.
First, many investors don’t invest in Dogecoin for purely traditional reasons.
The support and strength of the community make DOGE an attractive educational option. If community supports wanes or changes, you may want to make money.
However, there is a different suggestion. Dogecoin managers could make some fundamental changes to improve the “bullish” case, including justifying the prediction that dogecoin prices will exceed $10.
Unlike Bitcoin, which benefits from scarcity, new DOGE tokens are created every day.
It means that it may not have the same exponential growth potential as bitcoin as supply increases.
This could change if the developers work out their inflation mechanisms.
If you don’t see a direction for Dogecoin in something like this, it could be a reason to sell.
The wise decision of when to sell Dogecoin is a very personal one. However, you have to make sure you know what you want to get, and therefore keep an eye on the price of Dogecoin. This can prevent you from losses and generate excellent income for you.
If you are lucky, Dogecoin may still be on its way to the moon.
The most important thing will always be that you achieve your objectives, as long as you can ensure that there will be no losses.
Our main advice is that you should study the market well before investing and set long-term goals.
I am Lavinia by name and a financial expert with a degree in finance from the University of Chicago. In my blog, I help people to educate by making wise choices regarding personal investment, basic banking, credit and debit card, business education, real estate, insurance, expenditures, etc.