Big Plans For Cardano and Dogecoin
After a long steep fall of Bitcoin, Dogecoin, Ethereum and all cryptos alike back in May, cryptocurrencies are making a larger faster comeback than expected. This month has been especially good for cryptocurrencies. With Cardano coming out with their smart contracts in September, the price has soared possibly the most and has even reached an all time high. In layman’s terms, these smart contracts are small pieces of code that exist on the blockchain. I am not a Cardano owner as of right now, but I really wish I was. It has seen a rise of 140% this month, as of the time I am currently writing this. I am not the type of person to make a price prediction, but I wholeheartedly believe that Cardano may reach $4 by the end of the year. This week alone Cardano has shot up 29%, and 10% today alone. Like I said in my previous article, the Crypto market moves in unison, so when one crypto changes the game, it could benefit the entire market.
The top dog, as I like to refer to Bitcoin, has remained stable this week while Dogecoin and Ethereum have struggled to see profit but have still remained about 31 cents and $3200. In my opinion, I think this means the crypto market has reached stability. I have sold my Alchemy Pay, and continue to hold my Tezos, and I am currently waiting for the right time to reinvest. I try my best to not have FOMO, but I am currently super confident in the crypto market so I think that this is a great time for Diamond Hand Hodlers. Especially with Elon Musk's plan to send a rocket with a Doge on it to the moon in the first quarter of 2022. While this was seen as a joke at first, if this becomes a reality, Dogecoin can become a crypto juggernaut. Especially since Dogecoin has nearly doubled after hitting a recent low of $17 cents without Elon's tweet, Elon Musk's involvement in Dogecoin has dissipated possibly due to his belief that it can thrive on its own. But this might be his biggest and best idea yet. Since tweets can only do so much, and they have done more than we expected, putting a Dogecoin rocket on the moon can possibly be the time it reaches a dollar.
Most Cryptos are severely undervalued right now and vice versa
I am convinced that a lot of altcoins may be undervalued a lot, which is why we have seen such a great few weeks for the entire crypto market. While we all know that at the start of the year Dogecoin was worth barely even a cent, the recent bullish period we have seen shows that we would be lucky to ever buy Dogecoin at that good of a discount ever again. To paraphrase the great Elon Musk, I wouldn’t want to put my entire life savings into the crypto market right now. Since the nft game Axie Infinity has rose to fame in the recent weeks, the price of the token has gone from $28 to $77. In the near-future when there are a larger amount of Axie Infinity players, I believe the price may soar even more, but obviously when something reaches its peak, the drop always hits harder. Internet Computer is a prime example, the price was at $750 in it’s peak in May, and just recently nearly went to single digits. Reaching as low as $21.
All things considered, just because something reaches its peak doesn’t always mean that it’s done. It just shows the price that it could/should be worth. IoTex has seen a rise of over 500% recently from 1 cent to 15 cents, and then dropped back down to 8 cents. This means that IoTex is not overpriced or underpriced, but it has just reached a median. The one that caught my eye the most is Clover Finance. Clover Finance cost around $42 a year ago, and right now the price is at $1.50. This is a good and a bad sign. The reason why it is good is because it is criminally undervalued, even after seeing it’s bullish phase this month increasing 25%. The reason why it is bad is because this means it has a terrible record of losing people money. I use this crypto as an example because it shows that all cryptos are different. Which is why it is very important to do your research before jumping into something you’re not sure about. I recently just put a small investment into Clover finance because I have a feeling that now it’s on Coinbase it should make a recovery. But I do plan on Dollar-Cost-Averaging.
Dollar-Cost-Averaging is the name of the game, and could save your life.
While we have all been in the situation of believing that our money will triple if we go all in, it never quite turns out that way. Which is why it is safest in a bullish market to Dollar Cost Average (DCA) your investments. If you don’t already know dollar cost averaging is when you continue to make small investments as a form of loss prevention. This can come in handy in a bullish period, which is referred to as a momentum buy. This is where you continue to reinvest while a crypto is going up to induce your returns. DCA can also help you at a time right now, just in case the market becomes bearish. If and when the prices reduce, it is more of a discount that you are getting on your investment.
Keep in mind that I am not a financial advisor, and I cannot see the future, but I do study finance. And what I learned from stocks and cryptocurrencies, is that a time right now is very risky to invest in. FOMO hits the hardest at these times, which is why if you want to invest right now I would seriously consider dollar cost averaging. The cool thing about Coinbase is that they allow you to sign up for Dollar Cost Averaging. As a young investor I have been through my share of “YOLO” investing, where I have come out victorious, but also have considered quitting at times. Whether or not the market is doing well it is best to keep in mind, smart investors always come out on top. I never like to keep all my eggs in one basket, but if I do, I use dollar cost averaging.
