The crypto market is a highly volatile financial atmosphere. Prices of crypto assets can move in significant percentages in a few hours.
Such rapid price movement presents opportunities for quick profit and can be good news when prices are moving up rapidly. At the same time, it is terrible news when the price crashes suddenly.
Bettors who make good money from top Dogecoin gambling sites available online never want to lose their winnings again due to any reasons, not even market volatility. Hence, they must take precautions to keep their Dogecoin winnings safe, especially when the market dumps rapidly.
This guide briefly explains how to keep winnings safe from market volatility after making money from Dogecoin betting. Before then, let us examine Dogecoin and why it is a highly volatile cryptocurrency.
Understanding the Dogecoin Phenomenon
Dogecoin, often called the “people’s cryptocurrency,” emerged in 2013 with a playful and approachable vibe. Featuring the famous Shiba Inu dog from the “Doge” meme as its logo, it quickly gained a following. Unlike more serious cryptocurrencies like Bitcoin, Dogecoin embodies a sense of community and humor, making it a unique and engaging digital asset.
What causes Dogecoin’s Volatility
Despite its charm, it’s essential to acknowledge that Dogecoin, like most cryptocurrencies, faces market volatility. Prices can move quickly, influenced by unexpected events and market sentiment.
Also, Dogecoin is a highly unpredictable digital asset. Market sentiment plays a pivotal role in Dogecoin’s price swings. Positive news and social media hype can trigger rapid price surges, while negative emotions or unfavorable media attention can lead to steep declines. The strong Dogecoin community amplifies these effects.
Speculation is another driving force. Traders and investors often buy and sell based on price movements, amplifying volatility. Dogecoin’s speculative nature becomes particularly evident during events like Elon Musk’s tweets about the coin.
Unlike traditional assets, Dogecoin lacks intrinsic value. Its price hinges on supply and demand dynamics, making it vulnerable to significant fluctuations.
In a less regulated and relatively more minor market than traditional assets, cryptocurrencies, including Dogecoin, are susceptible to manipulation. Market manipulation can create artificial price movements.
Smart Strategies to Protect Your Dogecoin Winnings
Securing your Dogecoin winnings is a prudent move in a market characterized by rapid price swings. As stated above, Dogecoin’s price can be unpredictable, so it’s crucial to employ innovative strategies to protect your winnings.
Invest in a basket of assets
Spreading your winnings from Dogecoin gambling into other crypto assets is a wise step to protecting your money from sudden price movements. To do this, you can invest in multiple large-cap coins like Bitcoin, Ethereum, or Binance Coin (BNB) to reduce the impact of market fluctuations on your portfolio.
Staying informed is your second armor in the crypto world. Remember to keep up with relevant Dogecoin news and the general crypto news. Certain news updates may point to a market crash. If you stay informed, you will know when to sell your Dogecoin winnings before their value begins to decline.
Staking
Also, exploring staking opportunities is a smart move. Specific platforms allow you to stake your Dogecoin and earn rewards (a passive income stream) while your assets remain invested. By staking Dogecoin, the amount you own will increase over time. The increase protects your winnings in times of volatility as you will have more Dogecoin than you won, and a reduction in the price of Dogecoin won’t cause a considerable loss.
Go for stablecoins
Yes. The easiest way to avoid volatility altogether is to sell your Dogecoin winnings right away. This option is suitable for bettors who have zero risk tolerance. Selling your Dogecoin to USDT or other stablecoins is an easy way out because stablecoins have a fixed price of $1, which does not change, no matter the crypto market conditions.
Avoid emotional triggers
If selling immediately is not your thing, then patience is a virtue you will need in the crypto market. Volatile price movements may cause you to make impulsive decisions. Thus, you need to maintain a level of calmness and avoid reacting to the frequent ups and downs in your Dogecoin winnings.
Furthermore, simulating how your portfolio would perform under various market scenarios is an intelligent practice, as this will help you identify potential weaknesses in your strategy.
The price of Dogecoin is always moving, and this may trigger emotional decisions like Fear of Missing Out (FOMO) or Fear, Uncertainty, and Doubt (FUD). To counter these emotional reactions, base your choices on research and analysis, allowing a rational approach to guide your investment in Dogecoin winnings.
Create an exit plan
Developing an exit strategy is another fundamental aspect of securing your winnings. Start by determining the conditions under which you would consider selling a portion or all of your Dogecoin holdings. An exit plan ensures you can make rational decisions during volatile market conditions.
An intelligent way to set an effective exit strategy is to place a limit order on a crypto exchange. First, determine a price you feel will hurt your Dogecoin winnings. Then, send the Dogecoin to a centralized exchange like Binance and set a limit order to sell your assets at this price.
You need to set a limit order to get carried away or be available when the price of Dogecoin is crashing rapidly. Thus, allowing centralized exchanges to do the job is brilliant.
Avoid investment scams
Lastly, a healthy dose of skepticism is advisable. Be cautious of investment schemes promising guaranteed returns. The crypto space is not without its share of fraudulent schemes, and exercising skepticism will help to keep your winnings safe from potential scams.
For those who have accumulated substantial Dogecoin winnings, consulting a financial advisor specializing in digital assets is a prudent step. Such advisors can offer personalized guidance tailored to your financial situation and objectives, ensuring your winnings are protected and even poised for further growth.
Conclusion
Safeguarding your Dogecoin winnings in a volatile crypto market demands informed decision-making, a long-term outlook, or immediate action. While Dogecoin’s charismatic community and unique appeal make it an attractive asset, it’s essential to manage your Dogecoin winnings with caution and diligence.
By following practical strategies as suggested in this guide, you can navigate the ups and downs of the crypto world without losing what you have made from prudent betting predictions.