Dogecoin has increased by more than 100 times in a year, can you still buy it?
When many people talk about the skyrocketing of Dogecoin, I guess the ultimate purpose of talking is not to analyze why Dogecoin has skyrocketed but to wonder how long this rally will last and whether it is worth buying now.
why?
why?
Because from a technical point of view, Dogecoin is nothing new, and it did not perform very well in the last few rounds of bull markets. At best, it is an old currency with a certain number of diehard fans. Then its previous and current surge is undoubtedly mainly due to Musk's call list.
How long and how strong the power of this kind of shouting can last, I guess many friends know it well, it is unsustainable. But why is there such a FOMO sentiment? I think the important reason is that there is still a kind of fluke mentality in the heart-everyone knows that this is a bubble, but no one knows when the bubble will burst, so they just dance with the bubble.
When investors have this kind of mentality, it is actually a gambling mentality----thinking that they will not be the last to take the order, and that there must be someone who is stupider than themselves and can take their own offer.
I always emphasize in my articles that in the investment market, if you want to survive for a long time and make long-term profits, a stable and rational attitude is fundamental. If you have the above mentality, even if you are lucky enough to make a profit in this Dogecoin gambling, it is very likely that you will use your strength to lose the money you earned this time in some other pit in the future.
The ultimate loser is yourself.
Open the Dogecoin trend chart on coinmarketcap.com, we will find that the skyrocketing price of Dogecoin probably started around December 12 last year. At that time, the price of Dogecoin was about 0.003 US dollars. Now, as of writing, the price of Dogecoin has risen to $0.337. It rose a full 100 times in 4 months.
If we only look at the increase, we will be very shocked, and then regret: why didn't we buy it in the first place? At this time, we might as well pull the timeline back to December 12 of last year, recall the market conditions at that time, and then ask ourselves from the bottom of our hearts, why should I buy Dogecoin on that day?
At that time, if you want to seek stability, you can invest in Bitcoin and Ethereum. If you want to gain high risk and high return, there is DeFi and even NFT. In this way, there are dozens of coins for us to choose from. Why do we take a fancy to this old coin that no one has paid attention to for "a hundred years"?
If no reason can be found, it can only be said that the subsequent skyrocketing price of Dogecoin is an accidental factor. Since it is accidental, then we don't need to be too obsessed with such things, because it is God's will, not man-made.
If someone really has the inspiration to predict that Dogecoin will be favored by Musk later, and that old trees will sprout new shoots, then this shows another point I often mention: it is difficult for investors to earn money beyond their knowledge. After all, there are only a handful of people who can have this kind of inspiration, so it is impossible for most investors to earn this kind of money. Since this kind of opportunity does not belong to the public, then we should treat its skyrocketing with a peaceful mind, and do not need to produce the current Such a FOMO mentality.
If we carefully observe the trend chart of Dogecoin, we will find that it reached the highest peak of $0.07 on February 10 this year, and then started a sharp decline, falling to the lowest point of $0.045 on February 24, and then In the next month, which lasted until March 27, it has been hovering between $0.04 and $0.05.
When we look back at this trend now, we can also ask ourselves: If we bought before this slump and encountered this slump, would we regret that we should not follow the trend to speculate, or do we firmly believe that Dogecoin will definitely have a future? A bright future so you can hold it with confidence?
I believe that the vast majority of investors are the former - they can't stand the torture of the sharp drop and leave the market.
Of course, there is another possibility to buy during this plunge. In this regard, we might as well ask ourselves, during that period of time, Bitcoin, Ethereum, and many DeFi star coins plummeted. Why didn’t we buy those varieties, but Dogecoin?
Through such replays, if we ask ourselves more questions like the above, we will find that for many investors, many so-called "opportunities" are more luck than opportunities. If it's luck, it's not what we're chasing, so let's just take it as entertainment news in the market, and there's no need to follow the trend.
