Dogecoin (DOGE -5.96%) is the undisputed king of meme coins, with a market capitalization of approximately $56 billion. The coin has seen a meteoric rally since late last year, rising 355%, and, with the Trump administration signaling a serious pro-crypto tilt, it’s no surprise that investors are interested in making big winnings with one purchase.
Is it possible to earn a decent sum of $10,000 with a timely investment in this meme, even if your starting capital is rather small? Yes, that’s true, but only if you invest deliberately rather than reactively, and only if you avoid three key mistakes that are very easy to make if you don’t plan ahead. Let’s go over each one so you have the best possible odds.
1. Doing something because a celebrity or influencer did it
The first mistake to avoid when investing in Dogecoin is buying or selling it because you heard that a famous person recently bought or sold it. It doesn’t matter if Elon Musk talks about his position in the coin again or your favorite investor influencer tells you to buy it, even if it’s really yours. Here’s why.
To be a serious investor, you need to grow your own investment thesis. There is no substitute for doing your own research and developing your own opinion, whether the asset in question is Dogecoin or a stock you plan to hold for 30 years. Studying the opinions of others and hearing their arguments can be part of this research process.
But that’s a far cry from hearing that someone else did it and then copied it. It’s entirely possible that the other person acted out of emotion rather than careful strategy. And it’s virtually guaranteed that they initiated their investment at a different time and had different financial goals.
It is advisable to follow the trend with Dogecoin and other meme coins. Being a follower – someone who can’t organize their own investment management – is not. Be careful: the less noise you listen to from popular investors or influencers, the easier it will be to maintain your position for the long term.
2. Sell or buy due to short-term price action
It’s easy to get carried away looking at the Dogecoin price chart or the value of your coin holdings. It’s certainly quite volatile, which equates to a more emotional investing experience any way you slice it.
But making $10,000 with Dogecoin is not an achievable short-term goal unless you are willing to risk a significant amount of capital at a time that may not be ideal. This means that focusing on the price on any given day is a mistake because you’re more likely to see it. fear of missing out (FOMO)or worse, the simple fear of falling prices. And fear will cause you to fumble your investment, or enter it at the worst possible time.
To avoid making this mistake, simply zoom out. This meme piece proved that it will still be alive in 10 years. There is absolutely no urgency to invest in it today, nor tomorrow, nor even next month.
Add the coin to your watchlist. SO, use patience strategically wait for a period of time when no one talks about it, usually after its price has dropped 80% or more in the preceding months. It’s time to start Dollar Cost Average (DCAing) in your position with enthusiasm.
Ultimately, recovering the coin will increase the value of your investment for you. But this result is only possible if you stop thinking about how its price changes over a short period of time.
3. Let the euphoria get the best of you
When the price of a coin like Dogecoin begins to go parabolic, as it did in late 2024, and will likely do so again at some point, the emotion of euphoria can quickly become overwhelming for holders .
It’s nice to know that your investment is paying off. Nonetheless, euphoria almost always creates an immense temptation to make poor financial decisions, especially with assets that can give the appearance of being in poor health. go to the moon, like Dogecoin.
During periods of euphoria, prices are at their highest and rising at their fastest rate. The most common mistake caused by euphoria is buying more of a coin than is warranted. Buying at higher and higher prices means you are much more likely to see your investment plunge as soon as the price peaks and starts to fall again. So don’t do it.
Additionally, there is no excuse to focus your portfolio on Dogecoin or any other meme coin; you must always maintain your wallet diversification even if one of your investments is exciting.