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Dogecoin (CCC:DOGE-USD) the bulls have been in charge throughout October. They’ve managed to rally over 30% – twice – and they’re still above that 20-cent baseline. This could allow them to finally break out resistance of up to 28 cents per coin. But threats to its success remain.
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This is especially true given what we have learned from Robinhood (NASDAQ:HOOD) earnings. HOOD tumbled on deteriorating metrics. A decline in DOGE trading was one of the main reasons for its poor performance.
It’s something to watch out for as we discuss the future of the DOGE coin.
Ultimately, I think DOGE will remain viable as long as it has fans. My trading habits with him are simple and purely chart based. They have been successful so far so I have no reason to change.
When we discuss cryptocurrencies, we also have to justify their existence to skeptics.
Crypto is here to stay … will Dogecoin last?
If you’ve been reading my articles for a while, you’re probably sick of my arguments for the viability of crypto. Today, I approach things differently. First of all, I would like to convey that investing in crypto is a viable thesis for the future. Second, I will take a look at the opportunity that is specifically located in Dogecoin.
But before I continue, I would like to reveal that I am not your typical crypto cheerleader. I have embraced its existence and believe it will play an important role in shaping future finance. I understand the reluctance of the masses to accept this “fake money” – damn it, I even see it in my family!
Having said that, let’s try to break down some barriers today.
First, DOGE is not a currency and does not need to be. In fact, we would do well to stop labeling the cohort as a cryptocurrency. Trying to find effective ways to price things in cryptocurrencies is incredibly difficult. They move too fast for this to be an effective daily form of tendering.
Second, let’s stop avoiding it because it’s “wrong”. If we use the qualifier that humans created them, then everything we have is also wrong. And here’s the real kicker: Who cares?
I don’t need to know if it’s true or false to take advantage of its value. If I don’t like art, but find a good deal on a painting in demand, I would buy it. I know this is of value to someone; so, I can take advantage of it.
It is the interest of investing in general.
The DOGE thesis is viable
Dogecoin is a crypto, so it absolutely has viable investment potential. Again, our opinions on its reality or its falsity are irrelevant. It’s one thing and there are millions of them who want it, so it will hold its value.
I am convinced that diehard enemies will be wrong in the long run on Bitcoin (CCC:BTC-USD). Collectively, their market capitalization exceeds $ 2.5 trillion. If you accumulate $ 1 million a day, it would take you 2,740 years to have $ 1 trillion.
No one can fake so much wealth.
Let’s bring the conversation back to DOGE. I profess that this is not my favorite from an investment standpoint. I just don’t see the durability of its use case. The caveat here is that I am no expert on the intricacies of the subject. But what I know is enough for me to favor Solana (CCC:SOL-USD) the best and Ethereum (CCC:ETH-USD) second. Doge comes fourth, even after Cardano (CCC:ADA-USD). Solana is the one I would accumulate for the next five years.
I have successfully traded Dogecoin in the past. In fact, I haven’t had a losing trade yet because I buy it when people panic. On really bad days, it makes sense to look for entrees. I made this point in July and it gave an easy double.
Find the right levels to trade
Source: Charts by TradingView
From a level point of view, I put my alerts under 19 cents. Lately, more headline attention is going Shiba inu (CCC:SHIB-USD). Ironically, the cause is the tweets of You’re here (NASDAQ:TSLA) CEO Elon Musk. Last year he put DOGE in the spotlight. Now he takes it back.
I never accumulate DOGE over time myself, but will continue to redeem it.
On the other hand, I find it interesting to collect SOL-USD and maybe ETH-USD. Each appears to offer viable long-term applications in fintech. Keep in mind that this is only a man’s opinion, so I don’t blame anyone who thinks otherwise. Buying Dogecoin for the long term can make sense for the right person.
My main goal today was to break down the psychological barriers that prevent people from accessing crypto. The first step is so simple, but seems huge: just opening an account can be intimidating the first time around. I spent too much time doing too much homework. In the end, I jumped on a platform because of a recommendation from a friend. You can find yours, and I usually fall back on the first three.
Fixed income bonus
In closing, I will give you a nugget of information. I would suggest that you learn about “staking” as well.
This is a term in crypto that equates to old school CD accounts. Since the whole “crypto-sphere” is still so new, coin issuers are rewarding us for our commitment. I can currently receive a 10% reward in a stable room, if I promise to keep it for three months. Granted, these are risky assets with no FDIC insurance like what the bank accounts have given. Nonetheless, I see it as a trade with a 10% collateral short of a bankrupt company.
At the date of publication, Nicolas Chahine had (directly or indirectly) no position on the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.
Nicolas Chahine is the Managing Director of SellSpreads.com.
The article Love it or Hate it, Dogecoin Remains a Viable Investment Vehicle appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.