Dogecoin and Uniswap Through a Trader’s Lens

The Lesson

Non-traders often find it hard to separate the asset from the price action. In other words, they can fall into the trap of paying too much attention to fundamentals at times when price action dictates almost everything. The performance of GameStop and other ticker symbols favoured by the WallStreetBets community this past year is a perfect example of this phenomenon. So, while rational onlookers shake their heads from the sidelines, the price action continues to offer the possibility for truly fantastic returns.

It happened with Tesla, long before the post-COVID trading bonanza we’ve seen, it happened with meme stocks, and it also happened with doge. It’s not just conservative traditional investors who are shaking their heads. Many crypto investors have also been sitting on the sidelines observing as the dogecoin meme massively outperforms their own thoroughly researched portfolio of crypto projects.

From a purely trading perspective, though, it’s important to remember that these symbols are just vehicles for accumulating more of your native currency; nothing more, nothing less. The best traders are able to separate their own beliefs and allegiances from what is actually driving markets and take positions that they would never dream of taking with their investor hat on.

How long will it last? That’s anyone’s guess. The point is that at this juncture the narrative is everything, and the power of retail investors to move markets by investing en masse in certain stories has been confirmed time and again this year. In a different kind of market, or even at a longer timeframe, the two charts presented above may look radically different. This is also why we want to make sure that our traders can access the most appropriate assets in any type of market.

As a global forex broker, HYCM has always offered a large range of products adapting quickly to respond to market trends and providing traders with the most in-demand instruments. In addition to cryptocurrency CFDs, HYCM offers forex, stocks, indices, commodities and ETFs with excellent trading conditions: fast execution and low spreads. The broker supports its traders every step of the way, providing regular insights on its blog, HYCM Lab, and hosting free online webinars and practical workshops. As an enduring and regulated broker, traders can rely on HYCM to provide both security and transparency.

by Giles Coghlan, Chief Currency Analyst, HYCM

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Note: Cryptocurrencies and ETFs are not available for trading under HYCM (Europe) Ltd and Henyep Capital Markets (UK) Ltd.

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HYCM is the global brand name of Henyep Capital Markets (UK) Limited, HYCM (Europe) Ltd, Henyep Capital Markets (DIFC) Ltd and HYCM Limited, all individual entities under Henyep Capital Markets Group, a global corporation founded in 1977, operating in Asia, Europe, and the Middle East.

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