While cryptocurrency might seem like an all glorious investment wherein people can make tons of money and even multiply their investments, the truth is, like any other investment or stocks, there still exists risk. While cryptocurrency is known to fluctuate often, it looks like someone might have just received the bitter end of the stick.
Investng in Cryptocurrency
While dogecoin has been talked about a lot, it is still possible to lose a lot of money when making the wrong moves. When investing or trading, there are only three possible options. This is to buy, sell, and hold. In cryptocurrency language, hold is sometimes spelled "HODL!"
The thing about investing or trading is that it all stems from the basic principle of sales which is to buy low and sell high. The thing is some people end up doing the opposite instead of holding and waiting for a decent price, ifever it will appear. Some people are left with losses since they make the wrong move and buy at a high prace and sell at a low price.
As of the moment, cryptocurrency is still considered a high-risk investment which means that people should be able to stomach if ever things don't go according to planned. The higher the risk, the higher the toleration the investor or trader must have. This means they need to be both completely aware of what they are doing and ready for potential losses they might occur.
According to a certain tweet by AdaChef detailed the progression from a crypto newbie to a crypto OG. Basically, it starts by buying $DOGE thinking about going "to the moon" with Elon Musk. The second step is losing all their money on $DOGE but then decided to trade $ETH and once again, lost due to high fees. The tweet then ends with "read about $ADA but no more money to buy it."
Is Investing in Dogecoin Safe?
As of the moment, Altcoins are becoming extremely popular. Ethereum is slowly moving away from Altcoin to a main cryptocoin. The difference between dogecoin and Cardano or $ADA is that $DOGE was literally a meme stock. A meme stock means it was created as a sort of parody of cryptocurrency in general. People, however, were able to gain massive profits from investing in $DOGE.
Unlike Dogecoin, Cardano has a website that details what the cryptocurrency is about, how they manage, and what are their goals for the future. While this might not look like much, the legitimacy of $ADA shows that it is a particular cryptocurrency that is both serious and potentially reliable.
With all the hype following dogecoin, however, and Elon Musk's movements being closely tied with the prices of $DOGE. This can be seen when he joked about the cryptocurrency with his mother on SNL then the prices of the dogecoin suddenly dropped and others that bought at peaks panicked and decided to cut losses.
Crypto newbie progression to Crypto OG— AdaChef (@teopasss) May 9, 2021
Day 1.I bought $Doge- to the moon with Elon.
Day 10.I lost my money on Doge but i read about $Eth and now I own some.
Day 20. I lost most of my $Eth while trading,due to high fees.
Day 50. Read about $Ada but no more money to buy it. 😖
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Written by Urian B.