Let’s Put Aside Questions of Dogecoin Legitimacy and Focus On Its Potential

“To da moon” is what I often see in discussions of Dogecoin (CCC:DOGE-USD) stock. This makes me cringe because I am a fundamental investor at heart. Seeing hoots and hollers like this is akin to nails on a chalkboard. In fairness you should know that I am a proponent of the rise of crypto. I just like to do it the old fashioned way, over time.

A close-up shot of a Dogecoin (DOGE) concept token.
Source: Shutterstock

Late April, DOGE rallied more than 300% in two weeks. That’s not the kind of moves that I like to chase. Luckily, I am also a strong chartist, so I can navigate my way around its action to avoid problems. Just like buying it over 70 cents was wrong, shorting it down here is a bad move, too.

Anyone who wished they owned it mid May should consider nibbling here. Why only a nibble? For that answer we should step back and reset the scene.

It seems like millions claim to be experts on cryptocurrency, but hardly any truly are. This phenomenon is still developing and is in its infancy stage. Proof of that is how volatile prices for Bitcoin (CCC:BTC-USD), Dogecoin are. If we were experts on them then we wouldn’t be so uncertain about their prices. Therefore, being humble is a key to success so add to positions in bits.

DOGE Is Not a Currency

Almost every discussion I’ve observed about cryptocurrency ends up with loud voices. For some reason it is an emotional topic. We can eliminate most conflicts if we just drop the “currency” part of the name. This could be the root of the problem for someone new to crypto.

Dogecoin (DOGE) Stock Chart Showing Rank
Source: Charts by Crypto.com

DOGE and the rest are far from being practical currencies. They may never be and they don’t have to, either. Gold isn’t, yet we accept and hold it dear. You don’t hear experts reject gold investment because it’s not practical cash. Everyone on the planet would love to have some.

The purposes that cryptocurrency serve go beyond legal tender. They are moving us forward in the progression of digital assets. Whether we like it or not, this is our future.

Cash as we know it is dying and we have to evolve into something electronic. Crypto coins like DOGE are blazing the trails. Not all will survive, so pick a basket that sound reasonable. I like only dealing with the top 10 and Dogecoin is one of those. It rank’s sixth on my crypto.com app today (see chart).

Fake or Not, Cryptocurrency Has Value

Investors should overcome the argument of cryptocurrencies being fake. There are enough people who want them and they are rare, so they will grow in valuable. Gold started out as a yellow rock in the ground. Someone picked it up and convinced the rest that it’s worth something. The way to invest in Dogecoin is the same as they did for gold. Accumulate it over time and they will do well with it.

There are other functions and benefits of pursuing cryptocurrency. The world needs assets that are not directly at reach of central banks. Some say to shelter it from inflation or outright hide the wealth. I prefer the technological push benefits to these last two.

One almost sounds illegal and I am not about that. The second I don’t think is true. Central banks actions will always have an effect on such assets. Case in point what happened last week. In the wake of the Fed event, BTC lost $2,200 in mere hours. The damage is double if you go back just one more day. Similarly DOGE also lost a bunch since Tuesday.

Let’s wrap this up by drawing an easy conclusion today: Dogecoin is a BUY especially on dip and in small increments. It is important to space those purchases out far enough in time or levels.

On the date of publication, Nicolas Chahine did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Nicolas Chahine is the managing director of SellSpreads.com.

Article printed from InvestorPlace Media, https://investorplace.com/2021/06/doge-is-a-legitimate-asset-that-deserves-respect-not-scrutiny/.

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