Dogecoin started as a joke aimed at the seemingly unnecessary attention cryptocurrency was getting. It was developed by Billy Markus and Jackson Palmer in 2013. However, to their surprise, it rose to become one of the most popular cryptocurrencies within a very short period of time.
Dogecoin is an open-source, peer-to-peer digital currency considered to be a Bitcoin imitation. Its logo is a picture of a Shiba Inu.
Marked as the 10th top cryptocurrency based on market capitalization according to coinmarketcap, it makes sense of the immense investor interest over the past few years
Let’s look at the strategies to cash out this interesting digital asset.
Dogecoin Cash-Out Strategies
1. Market Trend Analysis:
Studying past trends and identifying patterns in the Dogecoin market is a surefire strategy to know when the right time is to cash out on your holdings. Analyzing historical data and identifying trends would give you valuable insight into future price behavior and help you make informed decisions about when to sell.
2. Technical Analysis:
Technical analysis involves diving deep into understanding the Dogecoin market chart, trade volumes, and industry trends. Knowing these factors will help you predict future price movements and aid in your cash-out decision-making.
3. Monitoring Trading Volumes:
Trade volumes are known to provide hints to the strength of price movement. Decreasing volumes during a bull run signal weak price momentum, while increasing volumes indicate a strong price movement and potential continuation in that direction. So, monitoring trading volumes would aid in the decision to sell.
4. News Outlets and Resources:
Aside from technical and volume analysis, it is equally important to stay informed through Dogecoin news outlets and verified Dogecoin resources like coinmarketcap to help you stay ahead of the trends.
Platforms For Selling Dogecoin
Here are some of the best platforms for selling Dogecoin:
Binance is the most popular cryptocurrency exchange in the world. It enables users to trade on not just Dogecoin but an extensive list of other cryptocurrencies. However, Binance uses a Peer-to-Peer system to cash out Dogecoin, which may be time-consuming.
Presmit is an “all-in-one” platform for buying and selling various cryptocurrencies and Gift cards. You can choose to be paid in Naira, Cedis, Bitcoin, or USDT.
Kraken is a well-known and secure exchange. You can trade all sorts of cryptocurrency, including Dogecoin, here. However, its User Interface may be complicated for beginners who want to sell Dogecoin.
HOW TO SELL DOGECOIN SEAMLESSLY
Selling Dogecoin on Breet is simple and straightforward. These are the steps:
- Sign up for an account on Breet.
- Perform the necessary KYC operation.
- Copy your generated Dogecoin address (This belongs to you permanently, and any Dogecoin sent here will be automatically converted to fiat currency and ready for withdrawal at any time)
- Send Dogecoin to your generated Dogecoin address.
- Once the Dogecoin has been received on your Breet Wallet and automatically converted to your preferred denomination, you can go ahead and withdraw to your bank.
There is also an option to automate this step.
RISK MANAGEMENT TACTICS WHEN SELLING DOGECOIN
Selling Dogecoin involves a set of risks that require tactics to mitigate potential losses. Here are some risk management tactics when selling Dogecoin:
1. Diversify your portfolio:
It goes without saying, but it is very important to diversify your holdings, especially with volatile assets like cryptocurrency. For example, In May 2022, the price of $LUNA fell from $80 until it was basically worthless in just a few days. This underlines the role of portfolio diversification as a risk mitigation strategy.
2. Practice caution:
Exercise caution and make sure to stick to your cash-out strategy when selling Dogecoin to avoid making sentimental decisions and panic sells. Consider the risk-to-reward ratio and make your sales with a rational mindset.
3. Set stop-loss:
If you sell Dogecoin on an exchange like Binance, always remember to set a stop-loss -price level at which your Dogecoin sells automatically as a safety net against significant losses.
4. Do your own research (DYOR):
Diligent research is the most important risk management strategy. Carefully studying market trends and historical data and following relevant news outlets for up-to-date information arm you with the knowledge needed to make the right decisions and avoid significant losses.
Managing Your Dogecoin Profits
Now that you understand the dynamics around cashing out DOGE, learning to manage gained profits is a crucial part of the equation.
Here are some insights on how to manage the profits:
1. Moving to Stablecoins:
If you choose to leave your funds as a digital asset, moving your profits to a stable coin like USDT or USDC is important. Stablecoins are cryptocurrencies that are pegged to the value of the traditional fiat to which they are backed. For example, USDT is backed by USD and thus pegged to the value of USD.
This step helps as a safety net against high volatility.
2. Taking Profits at Milestones:
Having clear financial goals is everything when trading cryptocurrencies like Dogecoin. Take profits at certain milestones corresponding to your preset goals to avoid emotional trading.
3. Reassess Your Portfolio:
Consider reassessing your portfolio and funds allocation after taking profits. If Dogecoin experiences a price surge which makes it a large percentage of your portfolio, sell a portion and allocate to other assets to maintain your portfolio’s diversity.
The essence of this process is to protect your portfolio from being one-asset-intensive and at the mercy of a single market.
FREQUENTLY ASKED QUESTIONS(FAQs) ABOUT HOW TO SELL DOGECOIN AND MANAGE PROFIT
Can I Sell Dogecoin for Naira?
Yes. You can sell Dogecoin directly for Naira on Breet. To do this:
- Sign up for an account.
- Complete the KYC.
- Send Dogecoin to your Dogecoin address on Breet.
- Once it has been automatically converted to Naira, request a withdrawal.
Easy as ABC.
Is Selling Dogecoin Taxable?
Dogecoin’s taxable status varies based on region. In Nigeria, there is currently no specific tax law regarding cryptocurrency. However, the Federal Inland Revenue Service has stated that cryptocurrencies may be classified and taxable as Capital Gains Tax (CGT) in the future.
Where Can I Sell My Dogecoin?
An Over-The-Counter platform like Breet is the best option for selling Dogecoin. Prioritizing transaction speed and known for having the best rates, Breet stands out as the best platform for crypto to naira or cedi transactions.
Should I Sell Or Hold Dogecoin?
This depends on your own financial goals and risk tolerance. It is important to DYOR analyze the market and make a decision based on your findings. Consider if you are interested in short-term gains or if you’re in it for the long term.
How Much is Dogecoin Worth in 2024?
For up-to-date Dogecoin prices, use Breet’s in-app calculator. This tool provides precise and accurate data to ensure you stay well-informed about Dogecoin prices. Given the fluctuation in Dogecoin price, the in-app calculator aids in monitoring price changes in real time and assists in deciding when to sell.
Cashing out Dogecoin and managing the profits require much planning. Set clear financial goals, and practice the risk management techniques: diversify your portfolio, exercise caution, and DYOR. Utilize user-friendly platforms like Breet for fast and efficient transactions.
Whether you’re a seasoned investor or a newbie, these tips will help you in your Dogecoin journey.