One Reason the Dogecoin Millionaire is No Longer a Millionaire
This is what you need to do to avoid the same thing happening to you.
Recently, a lot of attention was made about the Dogecoin Millionaire who made a risky investment this year. As soon as he invested, he literally became a millionaire on paper.
Just as soon as he made a million with Dogecoin, he lost it all in a few months. The hype for Dogecoin died just as fast as the crypto market took a break recently.
Glauber Contessoto was highlighted on CNBC Make It and other news sites. He said he is not worried and will continue to HODL Dogecoin for years until it reaches $10 million.
“Up until yesterday, I had been a millionaire,” Contessoto, 33, says. “If bitcoin and Ethereum weren’t also [hit], I’d be worried.”
Glauber said he doesn’t need the money but anything in cryptocurrencies is risky. Especially for a cryptocurrency like Dogecoin. Today Dogecoin is worth something, but tomorrow could be a different story. The market changes so fast and Dogecoin could become obsolete as another cryptocurrency could come in and replace Dogecoin.
The key point is not to get too greedy.
If you make a million or so with Dogecoin or another cryptocurrency, these are the two things you should do
Have an exit strategy. Glauber has an exit strategy but to me, it could be years before he sees the return he wants. His exit plan is to sell 10% when Dogecoin is valued at $10 million.
At one point this year, Glauber had over $2 million in Dogecoin. Honestly, with $2 million, he could do a lot with that money. Even if he sold and his earnings were taxed, he would probably have close to $1 million.
Whether he has $2 million or $10 million, ask yourself, what would you do with the money?
Earn passive income. You could retire and do many other things. Even reinvesting the money in another cryptocurrency to earn money from yield farming or a lending platform would earn Glauber money as the cryptocurrency sits in his account.
Sell half and diversify. Another option the former Dogecoin millionaire could do is he could have sold some at the peak and then diversity his assets. He could have put some of his money into another cryptocurrency.
Having all of his eggs in one cryptocurrency is similar to don’t have all your eggs in one basket. Today there are some people who are Bitcoin or Ethereum maximalists, but these cryptocurrencies have a little more value than Dogecoin does.
Dogecoin can be a risky bet for anyone/ Glauber made a risky move investing over $250,000 in February. He relied heavily on the Redditt traders and watching Elon Musk’s Dogecoin tweets.
Personally, I would be cautious investing that much money, especially in one cryptocurrency.
There is a point when greed overtakes a person’s emotions.
If you had $10 million, what would you really do with it?
Dogecoin is a risky investment. At some point, Glauber should sell and diversify his holdings. Having all of his eggs in one basket is risky. This could do well for him and it could go terribly wrong if the market changes.
The cryptocurrency market changes every day. This is an immature market and still evolving.
Glauber made a good move and I hope everything works out for him.
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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.
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