The answer itself can easily be provided to you by Google Assistant (or any similar software) but we have decided to share the value of hundreds of hours of personal trading experience anyways. See how it serves you in the best way.
How to trade Dogecoin: the trader’s guidebook
- Follow logic and reason, not emotions and intuition;
- Rather minimize the losses than go for max profits;
- Keep educating yourself and stay in touch with your local crypto community.
We all know the power of HODL, right? Day trading is the next level of long-term investments, so master them first before you decide to day trade for living.
How to trade Dogecoin: follow a trading algorithm
To trade any asset effectively, one must come up with a viable strategy.
What does it mean?
Design a strict set of rules to follow at all times, do not just be a “doge believer”. Let us give an example:
* if the price of your asset doubles over time, sell 50% to fix the profit
* if the price falls down to a half of what it used to be, average out the total price per coin for the investment and buy exactly 25% more coins.
* if none of the above happens, keep investing as usual and buy $10 worth of coins monthly.
This is an extremely simplified, crude example; we do not recommend actually using it in your trades. The point is to look through the available trading algorithms on the web (Investopedia, for instance) or to follow your favorite trader on YouTube, and stick to it.
Note that it is about precise percentages and numbers so that you have no temptation to go emotional and make a wrong move.
You probably know that some people lost houses during the downfall of bitcoin. Let’s be honest, it is not Elon Musk who is to blame, it is their own recklessness.
Always have a backup plan.
Although Elon does seem to support Doge, the losses are real, too. Here is a recent story about a Doge millionaire: Glauber Contessoto put in more than $250,000 to reap more than a million back. However, his earnings began to dwindle as the market kept falling down: he lost $167,000 in a single particularly unlucky day. Buying so much Doge surely was a risky endeavor considering that he staked all his savings and borrowed some money on top of that.
Was it wise? Our take on this is that he should have sold some of his Dogecoins (a half to return twice the investment would do) while it was still on the high. But he chose to keep holding all of it.
Where to trade Dogecoin
Being aware of the terms and conditions of various exchanges that trade Dogecoin will enable you to compare the fees and choose the service that best fits your intentions and the style of trading. Obviously, you’d prefer a service with 0.5% transaction fee to a 1.5% one. But how do you discover the better conditions if you never check the Internet for new exchanges?
Where to trade Dogecoin: top online exchanges
Just like diversifying the assets, diversifying the exchanges is important. If all the funds rest on Binance, they are a valuable target to hackers.
Distribute your Doge among a few trusted exchanges and wallets. It’s not convenient to use too many for that matter but sticking to a single one is too dangerous.
Aside from Binance, AnchorUSD and Robinhood are worth your attention for their popularity. It is problematic to buy Dogecoin elsewhere although it is listed on many more exchanges.
By the way, Contessoto used Robinhood for a loan.
Where to trade Dogecoin: Trustee Wallet
The whole point of cryptocurrencies is to remove the middleman in financial transactions, enabling safe peer-to-peer trade across the web; and, just like any currency, Dogecoin is meant to be spent and received for goods, services, charity, or fun.
Trustee Wallet does not only allow you to store Dogecoin but also spend and receive it via QR code links. The ability to exchange Dogecoin for another currency selecting the best offer among our partner exchanges is a sweet bonus to that.
Who trades Dogecoin
It is hard to ignore the Dogecoin market capitalization: ranking #6 among all cryptocurrencies. So quite a number of marketplaces have chosen to accept it as payment.
Who trades Dogecoin: stores that accept the coin
Here is a website that lists 1400+ companies where you can allegedly pay with Dogecoin. It goes without saying, we couldn’t verify the truthfulness of such a claim.
It is better to rely on the sources that look more like genuine Dogecoin network affiliates so here is one. You can find lots of Doge-related merchandise and buy it with dogecoins there.
Who trades Dogecoin: is this community for you
Remember one alarming reason why Dogecoin creators, Billy Markus and Jackson Palmer, left the project? They were appalled by the shift in the community: more and more cynical profit seekers joined while the fraction of easy-going lighthearted community members had been dwindling.
When you join it, you may find it different than it used to be in 2015.
Who supports Dogecoin
The history of the rise and fall of various cryptocurrencies is like a war of ideas and technologies. For example, Cardano (ADA) stands for a technology while Doge rather stands for an idea. It is hard to judge which one will become more influential and valued in time; it all depends on the community for sure.
Who supports Dogecoin and whom Dogecoin supports
One can’t blame celebrities for pumping Doge (or any other crypto). Elon Musk, Snoop Doge, and Gene Simmons were noticed promoting or simply mentioning Dogecoin in their social media, which predictably resulted in the coin’s price surge.
It is important to catch the right moment, make profits and survive the following inevitable dump.
Who supports dogecoin for the right cause
Let us not forget that Dogecoin is still used to support multiple charity projects. It is okay to make money on crypto, and there is a great merit in donating a share of it to support those truly in need.
People may accuse Elon Musk of being a hopeless grifter but when they find themselves at the top they turn out perfectly fit for their own accusations.
Hold on to the light, make profit, be well!