Some points to newcomers after reading some frightening comments over in r/dogecoin:·If you don't hold the keys to the crypto, you don't own the crypto. If you can't even withdraw the crypto, you definitely don't own the crypto. RH doesn't sell crypto, period. They sell supposed unwithdrawable custodian rights to crypto, and we are hopefully now all aware that RH is full of crap.·Setting price targets like that of Bitcoin (30k or whatever) is completely nonsensical. Bitcoin has 18M coins out of 21M total possible mined coins. Dogecoin has 128B coins right now, thats 7100x as many. DOGE also doesnt haven't a hard cap due to regularly halving rewards, so its not deflationary in the way BTC is. It would need a market cap of $4Quadrillion to hit Bitcoin levels. In other words, bigger than all equity markets combined afaik. Dollar cost average (DCA) sells on the way up unless you want to drop off the cliff of euphoria into a 50-90% loss like Jan 2018 for a lot of people here. Its already x8 in a week. Bull runs rarely take coins more than x20 or so in a single major rally, and rallies are normally spaced a couple of years or so apart.·Don't chase rallies. Buying significant positions after a 800% rally is a good way to be left holding bags. You should be DCAing buys, not throwing all of your savings at it at once. Its also pretty stupid to be all-in on a 9B mcap coin. That's high risk gambling if you're dropping most of your assets into it. It will legitimately most likely throw you into a year or two long depression if you lose half of your savings on Fing Dogecoin.·Crypto should not be a significant part of your investments. If you're throwing most of your assets in this, and especially at one coin at the end of a major rally, you're not only placing yourself at an insane amount of risk, but you put steady growth of the asset at risk when you inevitably panic sell once the momentum runs out or a big seller enters the market. Everyone in crypto has done this to some degree. Its easy to say diamond hands all you want, and convince a thousand other sardines to buy in, and then have a whale decide they want to sell $200M worth over the next month who doesnt give a shit how it effects you. People have their own motives, and most whales probably aren't on Reddit. The people posting six figure holdings aren't remotely close to whale territory. There's 15 addresses with more than 1 Billion DOGE, and more than 100 with over 100 Million DOGE. Those people could potentially wipe out a rally solo.·Diversify your bonds. Have other investment vehicles, AND other coins. My favorite analogy is that of a castle. You want to build your castle with stable assets, this is your emergency cash fund, index/mutual funds, maybe some large cap stocks, real estate, bonds. That should comprise at least 50%, ideally 80-90%, of your assets. Speculative investments are the raiding party that you send out to loot shit once the castle is built. That's riskier stocks, options, cryptocurrency, etc. Yes, its possible to get lucky if you're solely doing speculative gambling, but its fucking reckless and stupid, and for every DeepFuckingValue, theres 20 people posting loss porn about how they took out a loan for a crypto/options play and got destroyed. It's rolling around with a small army with no defensive position. Really easy to get annihilated by shifting tides in the market, particularly when its all in ONE position.·Time in the market > timing the market. Quit trying to get rich in 3 weeks, or you'll end up constantly desperate for get rich quick schemes because you never bothered to build a stable base. Having a large emergency fund, and a significant amount of assets because you played it safe is a peace of mind that you cannot know until you have it. Don't throw away the possibility of that in a few years because you wanted to YOLO into Doge and be rich next month.·The diamond hand thing is really...unconvincing, in case you're wondering. If you're trying that hard to convince yourself and others that you can hang on, you won't. Because anyone who's trying to convince themselves of it is clearly not used to having investments go +100-2000%, especially at the speed that crypto does it, so you won't have any instinct for when to take profits. Greed will set in, and you'll convince yourself that it can survive any correction, and you'll still be waiting for the quick recovery once it drops 60-80% and sits there for 2 years. People who do well in this market have limited exposure, and thus can basically forget about their coins for months or years, because they have other investments and secure finances whether crypto does anything or goes to 0. Euphoria and blind optimism doesn't keep someone holding until something goes x100+. Indifference, apathy, and patience are the more frequent catalysts, because you arent checking Blockfolio every 20 minutes and goading yourself into a panic sell when it corrects hard or crashes. Living in an emotional state thats constantly tied to whether the market is red or green blows. Most of us in crypto experienced at least a little of that in our first year or so. In a away, its exciting because the risk doesn't let you focus on anything else, but its a horrific way to live. The mania eventually gives way into broke disillusionment if you don't have at least a partial exit strategy.Good luck and be safe. I'm sure this sub would really prefer not having to sticky the suicide hotline number again
Submitted January 29, 2021 at 12:29PM
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