The biggest meme coin in 2021 was Dogecoin, whose price increased by over 216% in just January. It proceeded to increase after that. As investors flocked to buy Dogecoin, many of whom were motivated by Tesla CEO Elon Musk, the cryptocurrency continued to rise, reaching its all-time high in April.
Many investors have questioned if they should sell their Dogecoin as the value of the cryptocurrency has gone up and down. To help investors in making their choice, this list was created.
- Profit Goals
To various people, a respectable profit will mean different things. If a person has doubled, tripled, or quadrupled their initial investment, that serves as an excellent yardstick for determining when to sell Dogecoin. Given Dogecoin’s volatility, selling about half of an investor’s holdings could make sense if they’ve already earned a significant profit.
When investors cash out, they’ll receive a sizable return on their initial investment in addition to enough cash to pay capital gain taxes. Their remaining Dogecoin holdings are also all pure profit. Therefore, even if Dogecoin’s value decreases, investors won’t lose any of their initial investment.
- Survive in the Bear Market
All cryptocurrencies are very risky investments that fluctuate dramatically. Dogecoin’s novelty helped it go viral, but the coin’s real-world usefulness is untested.
Without thinking about its fundamentals, people regularly purchase Dogecoin in the expectation that they will later sell it to another investor for a profit. Sadly, these speculative actions make it challenging for the coin to function as a trustworthy store of value.
In contrast, Bitcoin has built up societal trust over time and benefits from being the first to market. Dogecoin is not programmable, unlike Ethereum and Cardano, so users cannot create decentralized applications on its network.
- Dogecoin Is Not Useful in the Real World
There aren’t many uses for Dogecoin in the real world, even though some of its early investors have made considerable profits. Dogecoin was created as a payment network by its founders. The token hasn’t, however, been widely used for this purpose.
According to the internet business directory Cryptwerk, just a small number of thousand merchants already accept Dogecoin. That’s a rather modest number when someone considers the millions of small businesses there are in the United States alone.
Bitcoin is unique due to its limited supply of 21 million coins. Similar to how Bitcoin set a hard cap on the number of coins that might be generated, many alternative coins have done the same.
The endless supply of Dogecoin, on the other hand, makes it inflationary and useless as a long-term store of value. In essence, the value of a Dogecoin decreases with the number of coins in circulation.
Should I Sell My Dogecoin?
Depending on the investor’s specific situation, they should decide when to sell their Dogecoin. The meme coin can be sold for a variety of reasons, but there are also a number of reasons investors might want to keep it. Dogecoin and cryptocurrencies, in general, are very volatile, so it’s advisable that investors only invest money they can afford to lose and do as much research as they can before investing anything at all.
Find a Few Exchanges Where You Can Sell Your Dogecoin
The exchange where investors buy Dogecoin often also allows selling. They can trade cryptocurrencies more easily and affordably in certain conditions.
However, occasionally, investors might need to switch between various exchanges for either function depending on the currencies that the exchange supports for both purchasing and selling.
Some of the best places to sell Dogecoin are listed below:
Don’t Think That You Can Catch the Very Bottom of the Market
Stocks and cryptocurrency are both down today as the market searches for clarity on inflation, which will affect the Fed’s plan to raise interest rates. Unfortunately, unless there is more proof that inflation has peaked and begun to decrease, it’s a bit of a wait-and-see game right now.
Dogecoins can exist indefinitely, but there will eventually be a practical limit. The coin’s predictable growth makes it easier to use as currency to purchase goods and services. As a result, the possibility of widespread adoption in the future might make Dogecoin worthwhile to hold onto.