As Dogecoin's price surged 83% last week to reach $0.282, peaking today at $0.3034, notable DOGE community leader Mishaboar has released a series of important guidelines aimed not only at newcomers but also at veterans of the cryptocurrency market.
In his first recommendation, Mishaboar suggests that Dogecoin and cryptocurrency investors should only invest amounts they can afford to lose or hold assets that may depreciate. While Dogecoin is a more mature meme coin compared to emerging, highly speculative meme coins, its price movements remain erratic enough to require cautious risk adjustment.
Secondly, Mishaboar stresses the importance of steering clear of leverage and derivatives, warning that these are unsuitable for most retail investors. Meme coins themselves are already viewed as leveraged bets against Bitcoin, and using derivatives could lead to greater losses, especially in markets manipulated by exchanges, market makers, and cartels.
DOGE enthusiasts also warn against seeking additional returns through APY programs, believing this entails unnecessary risks and may involve lending out assets for purposes contrary to investors' interests.
In the third recommendation, Mishaboar emphasizes the value of self-custody of DOGE, warning that holding cryptocurrencies on exchanges is akin to possessing a tool that says 'I owe you' rather than true cryptocurrencies, as assets face the risk of total loss if the exchange goes bankrupt.
Finally, Mishaboar advises against concentrating all cryptocurrencies in one place. The community leader reminds holders that past industry leaders like FTX were once considered highly secure, yet ultimately collapsed. This is why investors are encouraged to diversify holdings across multiple platforms and self-custody wallets to mitigate the risks of potential account freezes and bankruptcies.