There is a lot of excitement surrounding Dogecoin and its recent price increase. As is often the case, however, all good things must come to an end eventually. Below are four things you need to know before making any investments at this time.
WallStreetBets Bans DOGE Discussions
It is not entirely surprising to see the moderators over at WallStreetBets take a dislike toward cryptocurrency-related discussions all of a sudden. Even though this subReddit gained a lot of momentum, they are no longer open to crypto-related talks. This does not just apply to Dogecoin, as conversations regarding Bitcoin and Ethereum aren’t welcome either. The divide between WallstreetBets and the cryptocurrency community deepens, all of which is due to one Bloomberg article.
That said, WallStreetBets was never a good place to have discussions regarding DOGE in the first place. Although some threads had viable information, it is merely speculative in nature without providing any real useful information. Moreover, the trading of Dogecoin has nothing to do with stocks, which is what WallStreetBets is primarily known for. It seems unlikely this will impact the DOGE rally, but it is something to be aware of.
Dogecoin SubReddit Explodes
This metric is anything but surprising when keeping the above information in mind. However, seeing the Dogecoin subReddit grow by over 15,000 subscribers per day for three days straight is rather unusual. Don’t mistake this metric to confirm the DOGE bull trend; however, as the vast majority found in this subReddit will not help users determine whether to invest.
There is still no information on the long-term plan for Dogecoin. As it is now primarily a speculative currency with very few use cases, there is a good chance the current uptrend will come crashing down shortly. For those who fancy good memes and price talk, the subReddit will offer plenty of entertainment. Anything beyond that, however, will require much deeper research through other sources.
Robinhood Still Isn’t Your Friend
Most people will already be aware of this aspect, but Robinhood isn’t your friend when it comes to Dogecoin or other cryptocurrencies. It is impossible to send one’s DOGE balance to a different wallet, as suers only gain exposure to the price difference. No one ever owns the DOGE they buy through Robinhood. That is not a problem for speculators, but those who want to own cryptocurrency best look elsewhere.
Stop Chasing The Top
When bull markets with over 100% gains in a day begin to materialize, rational thought goes out the window pretty fast. Many people saw DOGE jump to $0.285 overnight and decided that was a good time to buy. Unfortunately for them, Dogecoin is now trading nearly 30% lower, as it is one of the most volatile crypto markets in the industry. All of its previous uptrends have resulted in very sharp retraces, and this bull run will be no different.
In the cryptocurrency world, chasing the top is a recipe for disaster. Buying an asset when it has gained 325.6% in the past week is not always a good decision. It is often best to wait for a dip by at least 20% to buy in, although the lack of a long-term game plan for Dogecoin doesn’t offer much confidence for the future.
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