How to Make $10,000 With Dogecoin (DOGE)

Dogecoin (DOGE) is the undisputed king of the meme coins, with a market cap of about $56 billion. The coin has been in a roaring rally

Dogecoin (CRYPTO: DOGE) is the undisputed king of the meme coins, with a market cap of about $56 billion. The coin has been in a roaring rally since late last year, rising by 355%, and, with the Trump administration signaling a serious pro-crypto bent, it's no surprise that investors are interested in making big gains with a purchase.

Is it possible to make a decent sum of $10,000 with a timely investment in this meme, even if your starting capital is on the small side? Yes, it is -- but only if you invest deliberately rather than reactively, and only if you avoid three key mistakes that are very easy to make if you don't plan ahead. Let's go over each so that you have the best odds possible.

1. Doing anything because a celebrity or influencer did it The first mistake to avoid when investing in Dogecoin is buying or selling it because you heard that a famous person recently bought or sold it. It doesn't matter whether Elon Musk is talking up his position in the coin again, or whether your favorite investing influencer says to buy it, even if it's yours truly. Here's why.

To be a serious investor, you need to develop your own investment thesis. There is no substitute for doing your own research and developing your own opinion, whether the asset in question is Dogecoin or a stock that you expect to hold for 30 years. Studying other people's opinions and hearing their arguments can be a part of that research process.

But that's a far cry from hearing that someone else took an action and then copying them. It's entirely possible that the other person was acting out of emotion rather than careful strategy. And it's practically guaranteed that they initiated their investment at a different time, and that they had different financial goals for it.

Following the trend with Dogecoin and other meme coins is advisable. Being a follower -- someone who can't organize their own management of the investment -- is not. Take note: The less you listen to noise coming from popular investors or influencers, the easier it will be to hold your position for the long term.

2. Selling or buying due to short-term price action It's easy to get carried away looking at Dogecoin's price chart, or the value of your holdings of the coin. It's certainly quite volatile, which corresponds to a more emotional investing experience no matter how you slice it.

But making $10,000 with Dogecoin is not a goal that's attainable in the short term unless you're willing to put a sizable amount of capital at risk at a time that may not be ideal. That means focusing on the price on any given day is a mistake, as you'll be more likely to experience fear of missing out (FOMO), or worse, simple fear of the price dropping. And fear will drive you to fumble your investment, or to enter it at the worst possible time.

To avoid making this mistake, simply zoom out. This meme coin has proven that it will still be alive 10 years from now. There is absolutely no rush to invest in it today, or tomorrow, or even next month.

Add the coin to your watch list. Then, use patience strategically to wait for a period when nobody is talking about it, typically after its price has fallen by 80% or more during the prior months. That is the time to start dollar-cost averaging (DCAing) into your position with gusto.

Eventually, the coin's recovery will increase the value of your investment for you. But that outcome is only possible if you stop thinking about what its price is doing in any given short period.

3. Letting euphoria get the better of you When the price of a meme coin like Dogecoin starts to go parabolic, like it did late in 2024, and which it will probably do again at some point, the emotion of euphoria can quickly become overpowering for holders.

It's nice to feel good that your investment is working. Nonetheless, euphoria almost always creates a tremendous temptation to make poor financial decisions, especially with assets that may feel like they're going to the moon, like Dogecoin.

During periods of euphoria, prices are at their highest, and increasing at their fastest pace. The most common mistake driven by euphoria is buying more of a coin than is warranted. Buying at higher and higher price points means that you are much more likely to see your investment go underwater as soon soon as the price peaks and starts to decline again. So don't do it.

Furthermore, there is no excuse for concentrating your portfolio into Dogecoin or any other meme coin; you still need to maintain your portfolio's diversification even if one of your investments is exciting.