The prices of cryptocurrencies like dogecoin have posted incredible gains in recent weeks, leaving some on the sidelines to wonder: Is it too late to buy?
Some early buyers are holding on tight and encouraging newcomers, but others say it might be time to look at other cryptocurrencies or skip them altogether.
“In many ways it’s encouraging to see more people dipping their toes into trading, but this is more like betting on a horse than investing,” said Susannah Streeter, a senior investment and markets analyst at Hargreaves Lansdown PLC, about dogecoin. “It’s very difficult if not impossible to determine when demand will subside.”
Interest has been gaining steam, with dogecoin up 12,000% in the past year. Investors on Twitter and Reddit early in the year jumped in to encourage others to pile on.
The excitement swelled into a crowdsourced “Doge Day” in mid-April, when investors encouraged as many people as possible to buy the cryptocurrency and drive up its value. The social media-fueled rally drove the price up for a period of about 48 hours, followed by a dip and another rally in early May.