How To Stop Your Best Friend From Buying Dogecoin?

Yerevan (CoinChapter.com) – Buy loads of Dogecoin and get rich in a week! If that idea sounds even remotely like a plan to you, or any of your friends, you should probably read on to have some more information on this famous meme-coin before you make a move. And yes, Elon Musk tweets about it all the time, but he’s not responsible for your money.

Dude, There’s Nothing That Explains The Dogecoin Rally

Dogecoin (DOGE) had a blast last week, when it soared 542% in 3 days, from April 13 to 16. It is currently dropping in value, and it’s at 0.28 on Thursday. And while it’s admittedly fun to watch what happens to the goofiest crypto each day, it’s not that fun when your money’s on the line.

All the spikes in DOGE price are usually due to the hype created on social media. Despite the impressive market cap of $36.7 billion, Dogecoin stays afloat mainly thanks to its avid supporters online. After the latest craze of DogeDay (04.20) died down, so did the price. Some experts even believe DOGE will not exist much longer after the crypto-bubble bursts.

Dogecoin price descends after DogeDay. Source: [DOGEUSD] on TradingView.com

Ever Heard of Pump and Dump?

Pump and Dump is a scheme as old as the trade itself. The objective is to create a hype around a product, exaggerate its value, and then sell it for a significantly higher price than it cost you in the first place. Ringing any bells? And though Pump and Dump is illegal if the exaggeration involves fraudulent price manipulations, the regulations concerning cryptocurrencies are not yet clear and effective.

Nevertheless, Dogecoin has some rich and famous proponents. The two most notable are Tesla’s CEO Elon Musk, and the owner of NBA’s Dallas Mavericks MarK Cuban. They fuel the fire tweeting about the meme-coin, which turns the doge into a bull every time.

Just Buy Bitcoin, Idiot!

Here’s some good advice for that friend you have, who wants to go Doge. It’s much safer to buy Bitcoin! The token price is currently correcting around $54,500, which might indicate that the hype around the alternative coins is still effectively drawing traders’ attention from the big guns, such as Bitcoin. But the flagship cryptocurrency still has lower volatility and makes a safer long-term investment.

Bitcoin corrects around $54,500. Source: [BTCUSD] on TradingView.com

Although bidding on the dark horse is quite exciting, it also adds extra risk to the investment. Bidding on the strong case, on the other hand, might be less dramatic, but the chances of your friend buying the next round at a bar increase drastically.