The cryptocurrency market is so unpredictable that prices fall and rise in an instant, and the case of the Baby Dogecoin is similar. Launched in June, the price of the Baby Dogecoin shot up by 1000% in just 15 days. And the boom continues, thanks to Elon Musk’s tweets.
This is luring many investors with the possibility of a continued spike. If you’re one of those crypto investors, pay attention to not make these mistakes that can cost you.
Before buying any cryptocurrency, the first thing you have to do is research. Analyze its price charts, follow the trends, and make wise investments. Baby Doge is a new cryptocurrency and might be subject to extreme volatility in no time.
At present, not many cryptocurrency exchanges have listed Baby Doge. There are numerous cryptocurrencies in the market and not all of them make the cut, like Baby Doge because it’s still a small token. Right now, you can buy Baby Doge on PancakeSwap.
PancakeSwap is a decentralized cryptocurrency exchange where users contribute the token for trading. This might sound complicated and unlike many other crypto exchanges but it’s not hard to follow. First, on the PancakeSwap website, you need to link your crypto wallet. Only then you can make your trade.
Once you go to the trading part, you can’t just deposit cash and buy the tokens. You have to trade one crypto for another. If you want to buy Baby Doge, you have to own another crypto to exchange it. The one that’s popularly used is the Binance Coin.
Trading on PancakeSwap involves one more thing, slippage. Slippage is the price you pay between the time you submit a payment and its execution. You can set your slippage tolerance or the maximum price change you are willing to accept for your trade, and it’s critical to adjust it to more than 12%. Baby Doge is a highly volatile cryptocurrency and hence, the trade won’t trade won’t go through with low slippage like 5%.
It’s a cheap cryptocurrency, but that doesn’t mean you should invest too much in it. Many cryptocurrencies in the market, like Baby Doge, and come and gone, leaving plenty of dejected investors behind. Think of investing in Baby Doge like a lottery and buy very small amounts and increase your investment slowly, after following the news and trends. Also, don’t forget to diversify your portfolio.