Why did you miss the DOGE opportunity?

Well, the Cryptocurrency market is still evolving and is known for its unpredictable and mysterious nature. Amid the hype and market frenzy of Cryptocurrencies where new coins from Safemoon to ElonGate are being launched every other day, one such currency which recently rose into the limelight is the infamous ‘meme coin’ known as Dogecoin!

It’s ironic that the crypto that was launched as a meme but with the huge gains it recently witnessed it has become anything BUT a meme. So what is Dogecoin & Cryptocurrencies in general? Are they just for fun? Or do they fall in the category of ‘Value-Investing’? 

Some consider it to be a goldmine while others regard it as nothing more than a bubble, which will burst & destroy the people that hitch their wagon to it.

The latter is believed mostly by people of the older generation. Things such as ‘virtual money’ and other similar bold investments are hard for them to grasp and understand sometimes. Most of us have uncles, parents and/or even grandparents that are very skeptical about these types of investments. 

A prime example is Warren Buffet who in 2020 told CNBC that: “I don’t have any Bitcoin. I don’t own any cryptocurrency, I never will.”

It’s hard for them to fathom something with no tangible existence having such high values. They understand stocks & the stock market, as they have ‘real-life’ firms behind them. But Crypto? They often say it’s nothing but a scam.

The primary reason behind this un-trusting skepticism is their experience. Throughout their lives they’ve grown up witnessing & experiencing investment opportunities that at first seemed very promising, had a lot of hype, and similar to Cryptocurrencies provided un-realistic returns. Albeit, some people made fortunes, however, most their friends and acquaintances that invested in them ended up in huge losses. 

To help you understand their psychology behind this, let me tell you about the time when internet was first invented and its stocks came into the market. Known as the dot-com bubble, it was the late 1990’s when similar to Cryptocurrencies there was a lot of hype regarding ‘internet stocks’. Loads of people invested into these stocks and believed it would make them rich. However, during 1999-2000, the bubble burst and the entire stock market crashed and many people lost all their life savings.

Events such as these are hard to forget and move on from. However, these are their experiences and their thoughts. So what about you? What should you do?

We recommend following the teachings of the great investor Benjamin Graham & not his student; Warren Buffet. As during the dot-com era, the housing crash of 2008 and other devastating events, intelligent investors always came out on top. Capitalized the opportunity and got out before it got too late. 

A prime example is Michael Burry who religiously follows the teachings of Benjamin Graham and benefited both from the housing crash & Tesla’s over-inflated stocks before they declined in value. Mr. Graham believed an intelligent investor invests wherever there is unrecognized value to be found. Whether that turns out to be any cryptocurrency, a bond-market or a new start-up that is up to you to find!

Value-investing is simply finding discrepancies between price & value. When that happens an opportunity arises and what we’re trying to convey to you is even if an investment doesn’t fall into the rigid category of traditional ‘good investments’, that shouldn’t stop you from pursuing it! Just look at the huge gains people reaped from Doge coin, shorting Tesla & various other unorthodox investments. A world of opportunity awaits you!

To do that efficiently you must have an exit-strategy and a plan. As when an under-valued investment is discovered, people invest heavily in it and then it doesn’t take long before that same thing is over-valued. So you must conquer your emotions of fear and more importantly greed! Once you’ve made a substantial profit, get out before the stock, crypto or any kind of investment you’ve made comes tumbling down.

To conclude, despite how it must have come off, the purpose of this article isn’t to advocate in favor of Dogecoin or speculative investments. It is to guide you to keep yourself open to opportunities such as Dogecoin. Don’t confine yourself to old timers’ ideas for investing. Seek value and opportunities wherever they can be found.

A vital point to keep in mind is ALWAYS do your own research, due diligence & calculations before you invest your money, it should be kept in mind that these investments are essentially similar to other high-risk, high-reward investments. A good rule of thumb is to only invest the amount you can afford to lose as that gives you the capacity to wait out the periods of bear markets and eventually come out on top!

Good luck and don’t screw it up.

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