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Four Timeless Investing Principles for Dogecoin
In down markets, having conviction in your investments is a superpower.
Whether dewey-eyed pup or seasoned shibe, investing doesn’t have to be stressful.
Here are four timeless principles for navigating any market with a steady hand and Dogely cool.
I. DCA and Stack
Dollar-cost averaging is the investing strategy of dividing up the total amount of money to be invested, and making periodic purchases regardless of price.
For example, if I had $100 to invest in Dogecoin, I might spend $10 every Monday for 10 weeks.
A big benefit of DCAing is that it offsets volatility.
Rather than try to time the market perfectly, DCAing encourages you buy at every price, both the highs and lows. The overall purchase price becomes the average of your individual buys.
There's no "correct" amount to DCA. Every investor should make their own decisions based on their tolerance for risk—never invest more than you can afford to lose!
Another benefit to DCAing is that it insulates against the emotional rollercoaster of the market.
If you buy one week and then price goes down, you're more likely to view the dip as an opportunity to buy at a cheaper price, rather than a tragedy that your initial investment didn't go up immediately.
Over time, these small individual purchases add up to something bigger.
The goal of the strategy is to build a long-term stack of Dogecoin that allows you to achieve financial freedom, launch a business, or pursue your dreams.
II. Diamond Paws
Dogecoin is severely undervalued.
For this reason, it should be held with diamond paws.
Diamond paws is a variation of a timeless investing strategy to identify undervalued assets and hold them for long periods of time while ignoring price fluctuations.
There are several reasons why you should hold Dogecoin with diamond paws and refuse to sell until it reaches its fair value.
For one thing, Dogecoin is vying to become the Internet's native currency.
Supported by the world's most electrifying entrepreneur, Dogecoin has the potential to be the foundation for a new Internet economy that rewards individual creators rather than tech giants.
Tesla is experimenting with Doge in their merchandise store with an eye toward accepting it for vehicles.
Soon, SpaceX will do the same for its merch store.
Elon has stated that he has no plans to sell his Dogecoin, a sign of his sincere conviction in its future as real money.
Other companies are jumping on the bandwagon.
The more people treat Doge like real money, the more it becomes a self-fulfilling prophecy.
It's not all roses for Doge. Like other populist meme assets, Dogecoin has its enemies.
Without a doubt, big money wants to shake the little guys out of their Dogecoin now, only to sell it back later when the price is higher.
No one knows when Dogecoin will pop, but when it does, it'll break the Internet.
Until that happens, the best strategy is to hold Doge with Diamond Paws.
III. Don't bet the farm
Dogecoin is more than just a currency.
The Doge lifestyle is one of positivity, generosity, and abundance mindset, encapsulated by the maxim, No highs, no lows, only doge.
To maintain a state of Dogely equilibrium, it's important not to over-invest.
Stress is a positivity killer. You know you have too much in crypto if price swings trigger negative emotions.
For this reason, Elon has repeatedly said not to bet the farm on crypto.
It's clear from these two videos that, while he urges caution, Elon believes in cryptocurrency.
In one of them, he's wearing a shirt that says "Crypto." In the other he says that it could become the future currency of Earth.
Crypto's world-changing potential and volatility are two sides of the same coin.
Volatility is the price that investors pay for upside. Without risk, there can be no reward.
A reasonable strategy for crypto investors is to start by putting 1% or less of available capital in cryptocurrencies with strong use-cases like Bitcoin, Ethereum, and Dogecoin. That way, downward price swings don't dramatically effect overall wealth.
Since it came into existence, crypto has been one of the best financial opportunities in the world, but not if it causes stress.
Invest with care and don't bet the farm so you can enjoy the trip to the moon.
IV. Partipate in community
An underrated aspect of investing is that it allows you to join a community of like-minded people who share similar values, interests, and hopes for the future.
Berkshire Hathaway investors have been bonding over the philosophy of Warren Buffett for years. Bitcoin's recent Miami conference is evidence of how tightly-knit investor communities can become.
The Doge community is a fun, inclusive group that exists mainly on the Internet, especially Twitter.
Doge is distinguished from other crypto tribes by its love of memes.
The making and sharing of memes is the glue that binds the community together.
Memes are perhaps the most efficient way to convey information and coordinate collective action.
In the past, long-form works of art like novels or even movies had the ability to change the way people think, but in the era of social media, memes have become the most powerful tool for altering public consciousness.
In recent years, Internet memes has supercharged the normal pace of cultural evolution, giving meme-makers unprecedented power over public discourse, both for better and for worse.
As Elon famously said, "Who controls the memes, controls the universe."
The Doge community is also distinguished by its spirit of generosity and giving.
An ethical pillar of the community is to Do Only Good Everyday, which encourages people to look for opportunities to make the world better.
Special things can happen when a small group of like-minded people get together with a vision for a better world.
Dogecoin represents hope to fix money by making it more technologically advanced, but also more fun.
Love dogs, memes, and money?
We're happy to have you.
Together, we're going to the moon!
Dogecoin a speculative digital asset. When investing, it pays to have a plan.
Dollar Cost Averaging is one of the safest ways to get exposure to cryptocurrencies while managing downside risk.
Dogecoin is the future of money. It makes sense to plan in years and decades rather than days and months, and hold with diamond paws.
It's also smart to limit risk by allocating a small percentage of disposable capital to crypto. Don't bet the farm!
Owning Dogecoin is an entry into a community whose goal is to improve life for humanity.
Many folks find that the best part of Dogecoin has nothing to do with profits, but is rather the friends they make and good deeds they do along the way.
Crypto—and particularly Dogecoin—is risky. But then again, it's ALL risky!
Dogey Treats: News Bites
Elon swore responsibility "for the highest good for consciousness, while always re-examining what the highest good is." He tweeted, "Tomorrow will be the first sunrise of the rest of ur life - make it what u want" and "And remember that happiness is a choice." He liked a related Risky tweet about the study of happiness.
Starlink was approved by Nigeria, Mozambique, and The Philippines. Nigeria and Mozambique are the first two African countries with Starlink regulatory approval. SpaceX launched the world's first "crypto satellite."
Ryan McEntush wrote a deep dive into the looming crisis of population collapse. Elon again raised the alarm about collapse, saying that South Korea will be "~6% of its current population in three generations" if birth rates don't increase.
Elon posted a picture of The Watchmen's Doctor Manhattan on Mars, a follow-up to a similar November 2021 picture in which Doctor Manhattan is turned away from the viewer. Another notable meme featured a Dogefather-looking Elon releasing the Twitter bird from a cage.
Breitbart reported that Bill Gates has been pouring millions of dollars into organizations who attacked Elon for his free-speech Twitter campaign. Elon called it "a dick move!" and revealed that Gates would now need between $1.5 billion and $2 billion to close his short position against Tesla.
SpaceX President Gwynne Shotwell said she believed recent sexual misconduct allegations against Elon were "false."
The French military admitted it creates fake accounts on Twitter and Facebook to spread disinformation. Elon said the admission was "interesting."
Elon ran a poll asking Twitter users who they distrusted more: billionaires or politicians, with 75% of over three million voters choosing politicians. Then, he challenged AOC to do the same poll with her followers. A follow-up poll by David Weissman found that over 80% of 375,000 participants trusted Elon more than AOC. On Monday, he further clarified his move away from the political left.
In the wake of the Uvalde school shooting, Elon tweeted that "Assault rifles should at minimum require a special permit, where the recipient is extremely well vetted imo." He also questioned why the media gives shooters the attention they desire. At the same time, he told CNBC that he strongly believes in the second amendment as a safeguard against government tyranny.
JPMorgan said cryptocurrencies are now its preferred alternative asset.
Russia continues to move closer to using crypto for international payments.
Mastecard's VP of new product development said he thought crypto adoption would happen "sooner rather than later."
Michi Lumin tweeted an update about the Doge-Ethereum bridge.
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Disclaimer: This is not financial advice and I am not a financial advisor. The article above references an opinion for entertainment purposes only and it is not investment advice. Always assume that the author of the article is actively trading and that the opinions expressed may be biased towards the author’s holdings. Do your own research and consult with a licensed financial adviser before making any investment decision. Do not treat any opinion expressed in this newsletter as a specific inducement to make a particular investment. Content, news, research, tools, and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or cryptocurrency or to engage in any particular investment strategy. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, cryptocurrency, or financial product does not guarantee future results or returns. Dogecoin is a speculative and highly volatile asset susceptible to pump-and-dump schemes.
At the time of publication, Dogecoin is around $0.08 per coin.