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As the price of Dogecoin skyrocketed last week with an 83% increase, reaching $0.282 and peaking today at $0.3034, prominent DOGE community leader Mishaboar issued a set of essential guidelines not only for newcomers but also for veterans of the crypto market.
In his first recommendation, Mishaboar advises Dogecoin and cryptocurrency investors to only invest what they can afford to lose or keep tied up in a potentially depreciating asset. While Dogecoin is a more established meme coin than newer, highly speculative ones, it remains insufficiently chaotic in its price action, requiring careful risk adjustment.
Second, Mishaboar stresses the importance of staying away from leverage and derivatives, which he warns are unsuitable for most retail investors. The meme coin itself is already seen as a leveraged bet on Bitcoin, and using derivatives with it can lead to more substantial losses, especially on a market subject to manipulation by exchanges, market makers and cartels.
Dear #Dogecoin,
— Mishaboar (@mishaboar) November 10, 2024
Many newbies are buying Dogecoin (and crypto) for the first time. These are the most important pieces of advice I have given over the years. 🧵
1. Put into Dogecoin (and any crypto, including BTC) only an amount you can afford to lose
...or to have locked in a… pic.twitter.com/38BdSrGeGO
The DOGE enthusiast also warned against seeking additional returns through APY programs, suggesting that these involve unnecessary risk and may lend assets for purposes against the investor's interest.
In a third piece of advice, Mishaboar underscored the value of self-custody for DOGE, as holding cryptocurrency on exchanges, they warn, equates to owning "i-owe-you" vehicles rather than real crypto, with assets at risk of total loss should an exchange face insolvency.
Finally, Mishaboar advises against concentrating all crypto in one place. The community leader reminded holders that past industry leaders like FTX were once considered highly secure but ultimately collapsed. That is why investors are encouraged to diversify their holdings across multiple platforms and self-custodial wallets to eliminate the risk of potential account freezes and bankruptcies.