Elon won’t leave dogecoin alone and this is why you should buy it.
Please read the complete idea as it is written on point, without fluff. It may not be for everyone, but you will definitely get some perspectives. This is not financial advice but pure speculation on how to make money on this love affair: ElonxDoge!
Why He Does What He Does?
Elon Musk has been a supporter of cryptocurrency for long, in particular; Dogecoin. His love with Twitter, memes, and being sarcastic shows a different side of him to what he does as an entrepreneur.
Many believe Elon wants to make money off Doge, therefore he manipulates the price of it and does what the whales do. But we believe that is not his goal. It is only his fun side as he loves this game. That is why he picked a joke coin, and not a revolutionary, genius tokenomics system. That would defeat the purpose!
Should You Buy Because of it?
The more important question for us is if we can make any money on Elon’s shenanigans.
While some get excited on the blips and spikes of the price as soon as blogs and news websites light up with Elon’s flirty moves, there is a long term game to make money.
Doge is no different than other cryptocurrencies. It will be volatile and will follow the cryptomarket’s protagonist, Bitcoin. However, every coin has their own music to which they dance to, and the artists sometimes may not be relevant.
With Dogecoin, it is the similar case as this decentralized nature of the new revolution can have any vocalist who comes in and sets the tone.
Does it mean you should buy it if Doge dances to Elon’s beat?
Yes, but with a specific strategy followed by the whales. You are not a whale but you can cash in by trading like how institutional investors trade stocks.
Buy, HODL & Dump
You do not have to put your life savings into crypto but a small amount which would let you sleep when things are not well between the two.
If the price of dogecoin is a quarter and you invest $20, you will make $80 if the price goes to a dollar. The price going to a dollar is news for Doge today. You must be wondering that won’t do much for you.
However, with HODLers (patient investors who hold on for dear life), will benefit through it.
Buy, HODL, & Dump
For smart traders, Doge is perfect. They know the value would spike from time to time, and it has to come back down for correction. Correction would mean the price would trickle down to the price that initiated the spike.
When the spike happens you sell. Though the question is how far the spike would go?
That is something you do when you know you have made enough to sell or you wait. Another way is adding a trailing stop loss. As the price goes up, the trailing stop loss would follow the price up. As the price comes down, it hits the stop loss and you sell for a profit.
This may not be the strategy mentioned above. But a part of it. The key is having patience by adding a stop loss or selling the coin when you know it has reached a tipping point.
If the price doesn’t have the new highs (the price touches the price level for the first time ever), then you can look back at the previous levels where the price has fluctuated before. Those will be the new resistance levels.
When to Dump?
When it hits the previous support or resistance levels, or you think you have made enough from this spike. Remember, the price will come down to its original level from the spike. So you get another go at it.
Should You Follow Elon Only for Doge?
You can follow his twitter account and turn on notifications. When he tweets something that relates to Doge or even not, you know and you are ready to follow the spike for the rest of the day.
Only following Elon’s tweets may not be the only thing which impacts Dogecoin’s price, as there are other news which would drive the whole crypto market and i.e Bitcoin.
Does it Apply to All Cryptos?
It always can but with Dogecoin you have Elon who can give you more opportunity to cash in on the volatility.
Read the article again and match the price spike with Elon’s tweets.
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