Why I love dogs: Getting rich from $200, my year in crypto (Week 21/52)

January was all about the Dogecoin for me, and yet more crazy cryptocurrency price rockets.

Having seen my initial $200 grow to almost $650 and an additional $80increase to $135 — some $505 profit in total — I decided it was time to invest some more.

I went for the classic beginner’s choice and meme favourite: the cute Shiba Inu dog of Dogecoin.

On January 12, 2021, I bought a mammoth 7,884 Dogecoin on Binance at 0.0086, costing me $66.

Then Dogecoin exploded.

As with all these flash crypto price changes, I didn’t see its 0.075 peak but did see it once it had settled down to around 0.035 a coin. My stash is now worth about $275 — almost four times what I’d paid, less than two weeks after buying.

That takes me to around $710 profit in four months without knowing what I’m doing. It’s important to note I’ve not actually withdrawn any of these funds and it could all collapse, so I’m not really counting it as money.

I could buy myself a new digital radio tuner, though.

Why Dogecoin?

Apparently, it was all down to Tesla CEO Eoin Musk tweeting a Dogecoin meme, and the WallStreetBets Chairman tweeting: “Has Dogecoin ever been to a dollar?” to more than 724,000 followers.

Something that can rise so quickly can fall just as fast, and I’m expecting it to drop. As already proven, I really don’t know how to predict these spikes, and I’m awaiting the falls.

Wise traders would probably be selling my portfolio just now, taking the money, and looking for another investment, crypto or otherwise. I’m going to HODL (Hold On For Dear Life) because the rollercoaster ride fascinates me and I’m still learning.

What is Dogecoin?

Shiba Uni Dogecoin meme
Dogecoin meme

Dogecoin can buy goods and services online, or traded for other currencies. Both other cryptocurrencies and traditional currency like US dollars. Many people use it to ‘tip’ people who share great content, similar to the way the Brave browser and its BAT works.

Dogecoin (DOGE) borrows from the “Doge” Internet meme and features a Shiba Inu on its logo. The doge meme’s light-hearted appeal aims to make it more appealing to the broader world.

Background

As you know, I want to see if a crypto novice like me can earn more money via my $200 invested in crypto trading than the 0.1% (20 cents) interest I could make from my bank in a year.

My methods are not strictly scientific; I am learning as I go along and using small amounts I can afford to lose.

Disclaimer: I am a crypto investment novice, and this blog offers no advice. Mistakes I make will be my own. Be very careful with your money — crypto is a risky investment — and never part with your cash if you are unsure or feel coerced.

Follow me on Medium.com

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