Dogecoin’s price has surged by 83% recently, climbing to $0.282 and hitting a peak of $0.3034. In light of this increase, Mishaboar, a key figure in the Dogecoin community, has shared four crucial tips to help both new and experienced investors navigate this unpredictable market.
Mishaboar’s first recommendation emphasizes caution. He urges investors to only put in money they can afford to lose or have tied up in a depreciating asset. Although Dogecoin is more established than newer meme coins, its price still fluctuates unpredictably. Mishaboar suggests a conservative approach and warns investors to adjust their risks accordingly.
Avoid Leverage and Derivatives
Mishaboar’s second point stresses steering clear of leverage and derivative trading, as he believes these tools are unsuitable for most retail investors.
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With Dogecoin itself essentially a leveraged bet on Bitcoin, additional leverage through derivatives could lead to even larger losses. Mishaboar also warns of potential manipulation by exchanges, market makers, and market cartels, which can amplify losses for leveraged positions.
Be Wary of APY Programs
The third recommendation from Mishaboar advises caution around Annual Percentage Yield (APY) programs, which promise returns for holding or lending crypto assets. Mishaboar warns these programs carry unnecessary risks, as they may involve lending assets for uses that could oppose investors’ interests.
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Mishaboar advocates for self-custody, advising investors to hold their Dogecoin in private wallets instead of leaving them on exchanges. According to Mishaboar, holding crypto on exchanges is like holding “I-owe-you” slips rather than actual assets, with a risk of total loss if the exchange goes bankrupt.
Diversify to Protect Against Platform Risk
Mishaboar’s final piece of advice is to spread holdings across various platforms and self-custodial wallets, rather than relying on a single place for storage. He reminds investors that past industry giants like FTX, once deemed secure, eventually collapsed.
By diversifying assets across multiple platforms, investors can minimize exposure to account freezes, platform failures, or bankruptcies. These recommendations from Mishaboar provide a roadmap for Dogecoin investors looking to reduce risk in a rapidly evolving crypto market.
