Expert’s Tips For Investing in Bitcoin (BTC), Dogecoin (DOGE), and Pepe Coin (PEPE)
Bitcoin (BTC), Dogecoin (DOGE), and Pepe Coin (PEPE) are all experiencing their own share of volatility, and investing in these digital currencies requires a strategic approach.
Understanding Market Volatility
Meme tokens like DOGE and PEPE have experienced extreme price fluctuations over the years. Dogecoin, for instance, reached its highest price of $0.682 per coin in May 2021 but has since fallen, with a current market cap of $10,137,034,921. PEPE, on the other hand, saw a 560% surge in just two weeks before plummeting 50% after Binance announced its listing. It is currently down by 18% in the past twenty-four hours as of the time this article was being written.
In light of these fluctuations, it’s essential for investors to understand and anticipate market volatility before committing to any investments.
Diversification and Active Management
At the Bloomberg Wealth Asia Summit 2023, Venn Link CEO Cici Lu highlighted the importance of diversification and active management when investing in cryptocurrencies.
She advised that investors should spread their investments across different crypto assets to mitigate potential losses. Moreover, actively monitoring and adjusting investment portfolios in response to market changes can help maximize returns and minimize risk.
Market Situation Analysis
Currently, both Bitcoin and Ethereum are in the red, with BTC trading at $27,604 and Ether at $1,843. In this scenario, investors should consider diversifying their portfolios by including other cryptocurrencies and assets to offset potential losses.
Long-Term Approach
Cryptocurrency investments are often subject to short-term volatility. However, a long-term approach can help investors weather these fluctuations and potentially yield higher returns. By focusing on long-term growth potential rather than short-term gains, investors can minimize the impact of market volatility.
Avoid FOMO (Fear of Missing Out)
Investing in cryptocurrencies based on hype and FOMO can lead to losses, as seen with the rapid rise and fall of meme coins like DOGE and PEPE. Instead, investors should focus on making rational decisions based on market analysis and research.
