Dogecoin Millionaire Story — From Rags to Riches to Rags — The #1 mistake to avoid

There are people in this world who would do all sorts of crazy things no matter what happens around them. You will either categorize them as extremely brave or highly irrational, standing at the edge of stupidity.

If I told you about an opportunity that could make more than three hundred percent in profit, would you sell your house and all your assets to invest in such an opportunity?

Probably not. Because returns on any of such investments are not guaranteed.

But what if I tell you that Mr. Glauber Contessoto did just that without taking into account the risks associated with the investment. But his risks paid off. The rags to riches story started with his fundamental belief that dogecoin will essentially be his ticket out of poverty.

Contessoto, also known as the Dogecoin Millionaire, tapped out his credit cards, sold his assets, went through everything he owned, borrowed funds from friends and family, and invested all his money into dogecoin.

As luck would have it, dogecoin started getting a lot of traction. The price increased, and soon his investment was worth over three hundred thousand dollars.

He became an internet sensation, and within a couple of months, his investments were worth more than a million dollars. Mr. Contessoto continued to hold on to his investments. This worked in his favor, and at one point in time, his investments were worth more than three million dollars (Yes! $3 million).

The more he held on, the bigger the internet sensation he became. But since the peak last year, Dogecoin has seen a consistent decline in value. The Dogecoin millionaire is no longer a millionaire and, in fact, has lost over 80% of its worth since the peak.

You can see the cycle.

He started with optimism and a belief that the fundamentals are there, market conditions are strong, Elon Musk is pro-doge, companies are accepting it as payment, etc. This lead to profits.

He continued to hold on to the DogeCoin. Fear of Missing Out on the opportunities that can come his way or the belief (read: greed) that this run can continue in the future helped me stay his course. This lead to profits.

The investment got to more than $3 million. He became an internet sensation with his strategy of Diamond hands (slang for an investor who doesn’t sell an investment despite downturns and losses — investor’s resolve and stubbornness, basically); he was all over the internet. This is where the ego kicked in. This led to losses.

This is the story of the Dogecoin millionaire.

You can learn from his story.

Control your emotions

Even the best of us fail.

That is just how life works.

Investing is no different.

The losses and gains that you make are NOT the biggest challenges in bull or bear markets. It is the emotions that you have while making those profits and losses. Read that again.

The timing of the market or the price movements of shares cannot be accurately predicted continuously. But that does not mean we don’t invest in the market.

The optimism of an expected price increase in the near future during a sell-off helps you get into the market, but the same emotion can lead to a disastrous investment. The confidence that you have read the fundamentals correctly and the shares are mispriced will help you make investments, but overconfidence in your ability to read the market signals will lead to denial and ego investments.

I’m Armaghan Tanveer, a numbers guy by profession and a romantic by heart. I write about everything I find interesting, including productivity, investments, passive income, and personal experiences. If you like what I do, you can buy me a coffee ☕️ here.