Major cryptocurrencies by market value, including bitcoin and ether, plunged amid a massive selloff on Tuesday. Among these is the memes-inspired cryptocurrency dogecoin, which is down about 77% from its historic peak of nearly 74 cents in May.
But investor Glauber Contessoto, whose dogecoin holdings previously exceeded the value of $ 1 million, is not worried.
“You just have to zoom out and relax,” Contessoto, 33, told CNBC Make It. Although he is not a financial expert, he is optimistic that dogecoin has already bottomed out. The room hit 16 cents Tuesday morning before climbing to 17 cents.
Between his savings and borrowed funds, Contessoto says he invested more than $ 250,000 in dogecoin on February 5, when it was valued at around 4.5 cents. About two months later, on April 15, he says he became a paper dogecoin millionaire.
Contessoto has since refused to sell, despite dogecoin’s ups and downs. Even in May, when the value of his holdings exceeded $ 2 million, he still hasn’t budged. Now with dogecoin trading about 17 cents, he continues to buy the decline.
“I can’t pass up a good deal,” Contessoto said. Last week he bought over $ 5,300 worth of dogecoin when it was around 17 cents, he says.
“Doge is my savings account,” he says.
At around 2:50 p.m. EST Tuesday, his dogecoin holdings were worth $ 700,217.09.
However, financial experts are very skeptical of dogecoin, as well as other cryptocurrencies. Their extreme volatility is one of the reasons why experts say crypto is a speculative and risky investment.
Some warn to be especially careful when investing in dogecoin in particular, as it lacks the scarcity and technological development of bitcoin, for example. Investors could be burnt out and, in turn, should only invest what they can afford to lose.
“You risk losing almost all the money you put in,” James Ledbetter, editor of the FIN fintech newsletter and contributor to CNBC, previously told CNBC Make It. “It has no intrinsic value and its price may as well fall as it may continue to rise.”
Contessoto himself also tells his supporters not to invest more than they could afford to lose.
Nonetheless, Contessoto’s plan remains the same: “Once I hit $ 10 million, I’ll take 10% off.”
“I had a game plan in mind for this purchase, and I wouldn’t feel good always telling people to ‘buy and hold’ and as soon as I hit $ 3 million, cash it out and leave it all. the world in abeyance, ”he said. “Until I reach my goal, I will continue to buy it, hold it and ‘keep it diamond’.
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