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How I made $762 overnight meme-investing in Dogecoin! (and will this make you rich?)

The short answer is no.


Yep.


Sorry to burst your bubble.


"But Erdem, you made money so why can't we?"


You can, but for most people (read: 99%) they will not make serious, life changing, earth-shattering amounts of money.


And even if they do, some people do not have a sound exit strategy, or even exit at all.


I'm sure it comes as no secret to most of you that trading cryptocurrency is the latest in-thing.


Every person out there, from their extended grand uncle to their mom, has probably tossed in some money at this point.


I’m not even kidding about this. My mom recently asked me if I was willing to help her invest into Dogecoin and I had to break the news to her that the hype train is kind of over (for now).

Never thought I’d be having this conversation with my mom. She's damn cute I swear.


History is repeating itself

This is quite reminiscent of the 1848-1855 gold rush of California, where everyone’s mother, grand uncle and adopted nephew were rushing out to the river banks of California to pan for gold and strike it rich.


Unsurprisingly, not only did most people fail at it, they managed to pull off the Californian Genocide to top things off, because Native Americans were getting in the way of them getting their gold by… well… existing on the land the gold was under.


So what America ended up with was a Gold oligopoly bringing massive wealth to few, a whole bunch of broke locals and immigrants with empty gold pans, and an even larger bunch of dead Native Americans.


Thankfully, this time when it comes to crypto, there is no genocide. Except maybe the self-inflicted financial one that happens to people who buy in late, straight into a 50% nosedive in value with no prospects of recovery.


This is important to note because people buy into this frenzy believing that it is extremely easy to make tons of money because of all the storybook 100x returns others have been making, forgetting that there are thousands more who have lost money, life savings, or who have gone bankrupt that you don't hear about.


Why?


Because it’s much, much better for your ego to post your wins online than to actually say “Hey guys, I lost everything because I bought in like an idiot without actually knowing what I was doing”.


That’s just the bottom line in life.


There’s a reason why everything in the news is always about the ‘top 10 crypto traders of 2021’, ‘hottest celebrity gossip’, or ‘most hated people in X industry’. Because the extremities (top or bottom 1%) are what gets eyeballs.


And eyeballs = views = people buying into their marketing = sales = money.


So understanding this, I went in fully prepared to lose everything I put in.


But what gave me the confidence to enter?


It was because of the existence of forums like r/WallStreetBets. Its members there collectively refer to themselves as 'degenerates' - and feel PROUD of it. This community, and many other similar variants, pride themselves on collectively agreeing with each other via the internet to engage in pump-and-dump schemes as a way to shove the finger in the face of the establishment and make a quick buck in the process.

Having seen the GameStop and AMC internet fuelled pump-and-dump, I decided to see if I could make a quick buck out of it with some friends by believing in the worst of humanity - disenfranchised, cynical netizens investing without using their brains.


As the wise, famous competitive DotA player Fnatic.N0tail once said: "When your team goes full retard, you must go full retard too. You cannot go half-retard".


Because if there’s one thing people are consistent at, it is being greedy for quick, short term gains. And they will be consistent enough as long as the person next to them stays consistent.


That right there became my hypothesis as to why this crazy idea would actually work.


ENTER THE DOGEFATHER, ELON MUSK


So if you have spent even some time trawling the internet, you would have seen the likes of Mark Cuban, Elon Musk, and other prominent figures with enough money to last them several hundred lifetimes supporting cryptocurrency.


Elon Musk in particular, has the uncanny ability to affect the financial markets with a simple tweet:

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https://www.sec.gov/news/press-release/2018-226

Pump and Dump game on point *chef’s kiss*


He started small, first with his own stocks by saying he thinks Tesla is too highly priced, causing it to tank (lol), getting fined by the SEC for attempting to pump up his stock price and having to step down as chairman, and just having a severe deficit in the f*cks-to-give department when all is said and done.


Internet folk, looking for an easy way out, a quickie to achieve their financial goals and dreams against the oppressive, centralized financial systems around the world, decided to hail Elon as the Dogefather after he publicly tweeted his support for it.


Then he went on to tweet about him going on Saturday Night Live on 8th of May to talk about Dogecoin, which sent prices surging as the fateful night neared.


I got in about a couple weeks in advance at 30 cents the moment I heard the news, so I was nicely tucked away under a layer of profit by the time D-Day arrived, both by luck and belief in this batsh*t crazy tech billionaire.


And now, Elon is actually funding a rocketship to the moon called DOGE-1, funded entirely by DOGECOIN. So yeah, this is where we are at folks. Happy 2021 to you too.

https://www.cnbc.com/2021/05/09/spacex-accepts-dogecoin-payment-for-doge-1-mission-to-the-moon.html


How to successfully invest in a meme coin/stock (historical success rate 1/1)

I find it important to highlight that the following is not to be taken as formal financial advice, but merely a reference experience as someone who ventured into unchartered territory to get a feel of the crypto space for myself. Despite this, some people are going to be tempted to try it out anyway AT THEIR OWN RISK so… reluctantly… here is the secret formula:


- Buy in the moment the Dogefather, Elon Musk, hypes up Dogecoin, or whichever cryptocurrency he is currently advocating. Doesn’t just have to be Elon Musk. Can be any other prominent figure too.


- Make sure you buy in ASAP, so that you are in at least a week or two before the news comes around (in this case, Saturday Night Live on the 8th of May). This way you have a healthy level of profits to cushion the price tanking after the hype is over because there is 0 fundamental basis to support such an investment or price. Of course, it is also important to note that your investment could tank right through any layer of profit right to zero.


- Keep track of Reddit forums and laugh at everyone thinking it will actually hit $1 (laughing at myself too because I thought it actually would with all the hype)


- Reduce all hopes drastically, and prepare to sell off the moment the coin hits 70% of it’s projected price (in this case it went up to 74 cents before tanking during the SNL debut). It is crucial you prepare to make a move at 30% below the projected price because having faith in humanity is not an option here. When push comes to shove, diamond hands always become paper hands.


- ONE day before the news, if the coin actually manages to hit the 70% mark, SELL IT OFF IMMEDIATELY.


- [OPTIONAL] Proceed to go to Reddit and tell everyone else in the comments thread to HODL (hold on for dear life) the coin and "believe it can hit $1" so that you can laugh at them when they lose their hard-earned money because they bought in late.


- Right as the news hits, start selling short whilst setting appropriate stop-loss and take-profit levels (depends on 1. The amount you are comfortable psychologically when it comes to profiting/losing, and 2. How much you think it will actually drop)


- #PROFIT


- Look for the next meme investment


HOWEVER...


All this is in retrospect, because hindsight is always 20/20. What I actually did was hold onto the coin all the way past US$0.73, and only sold it off after it tanked to US$0.5, capturing a 66% profit instead of a 133% profit *cries in woof*


So that is all nice and fun, but is that really how anyone who made millions off the current crypto bull run really did it?


Perhaps there were a few who managed to successfully jump onto hype train after hype train and make their way up.


But overwhelmingly the majority of people who actually made a crap ton of money off this crypto hype train were people who already had millions and were successful to begin with. This is because they had the mental and financial abundance to set aside MILLIONS without giving too much of a crap what happens to it.


Most people who invest into highly volatile instruments like crypto usually get worried and stressed over their investment returns. This is because they are staking their money in the markets with a scarcity mindset. To them it may be a significant amount of money, but in the grand scheme of things (read: USD$2 Trillion Market Cap) it isn’t enough.


It is easy to become an addict when the entire structure resembles betting in a casino. After all, it’s all about the next big thing, how to get in early, FOMO, and going all in.


In a broader sense, it mimics life because most people don’t ever go all in on one thing and see it through to the very end. They usually get hyped up, begin something, then fall out halfway through when the pressure gets too much to handle.


It’s not to say that you can’t make serious money through crypto. I know friends who have made a tremendous amount of money so far. But they spent the past few YEARS studying fundamentals of the coins, spotting alt coins, doing rigorous technical analysis, spending most days infront of screens, charts and complex indicators whilst everyone was out partying, having fun and having a life.


If you are prepared to make that kind of commitment, then all the power to you. I wish you the very best of luck.


But if this article has made you change your mind about crypto as your ticket to finally making money quickly WITHOUT putting in the work to actually BUILD something, then you would be wise to consider building up your wealth slowly, but steadily through investing for the long-term and dollar-cost averaging into the market over the long-term.


CONCLUSION


One-off events, such as the one I experienced, are nice to have every once in a while.


But the fact remains that it is impossible to time the market and make a consistent profit out of it.


Anyone serious about building their investment portfolio across the long-term should value time IN the market over TIMING the market.


Currently, tech stocks (and pretty much the rest of the market) are at a serious discount. This means it is actually a good time for long-term investors to get in on something that actually has a productive use for society.


The fact you are reading this right now through a digital screen means that you have benefitted from tech.


Tech will always have it’s place in an increasingly digital world, whether we like it or not.


Despite the current stock market slowing down, those with foresight will max out knowing that the markets are basically on a huge sale right now.


I covered this topic briefly in my video "My Thoughts On The 2021 Tech Bubble l How To Invest in 2021":

https://www.youtube.com/watch?v=uWvqRQazMJI&t=54s


Moving forward...

If you are on the verge of dumping your life savings into cryptocurrency and need someone to hold you back, you can always reach out to me. I am available for consultation sessions on appointment basis to optimize your financial portfolios moving forward.


Dollartainment is the brainchild of one Erdem Ong, a licensed financial consultant under MAS, the Monetary Authority of Singapore. The views on his blog are strictly of his own opinion and have no affiliation to any of the companies he works with.


This platform aims to serve the community as a resource for members looking to educate themselves on the ins and outs of insurance, investments and personal finance as a whole.


If you need clarification on the contents of the article and how it applies to your existing portfolio, feel free to reach out on WhatsApp +65 96176717


Facebook: https://www.facebook.com/theerdemong/


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