Markets are notable for their lack of predictability. It is nearly impossible to time the top and bottom of different trends, making it difficult to pull a profit consistently.
However, some traders not only miss out on profits but also miss out on some of the largest market moves for an asset by selling at inopportune times.
Benzinga reports on one Dogecoin (DOGE) investor who is a prime example.
One of the largest DOGE wallets over the past decade finally sold its tokens in late 2023, just before one of the larger DOGE price runs in recent years.
The wallet first began acquiring DOGE tokens in late 2013, 21 days after the tokens launched. The initial investment of $146.87 netted the wallet over 274,000 DOGE tokens.
Throughout 2014, the wallet continued to acquire tokens, making numerous investments ranging from a few cents to a few hundred dollars.
In total, the wallet invested around $5,000 in DOGE during 2013 and 2014, with a final investment of $195.61 in early 2015.
Between 2015 and 2023, the price of DOGE skyrocketed, especially in 2021, when the token gained notable attention from social media and Tesla Inc. CEO Elon Musk.
This surge helped the token rise from less than 1/100 of a cent to nearly 75 cents at its peak, amassing a fortune for the wallet’s owner.
At its peak, the $5,000 investment in DOGE was worth over $4 million, but the wallet’s owner did not sell at that time.
DOGE’s price fell considerably throughout 2022 and 2023, losing over 90% of its value due to the overall crypto bear market.
Just as DOGE began to recover, the wallet’s owner sold all of the tokens on October 28, 2023, across three transactions, generating proceeds of around $370,000, or 5.39 million DOGE.
Soon after the sale, meme coins, and DOGE in particular, began to take off. DOGE is up more than 60% year to date and over 120% since the sale date.
At its peak in 2024, the price of DOGE reached as high as 23 cents — more than 235% higher than the average price of 68 cents at which the tokens were sold. If the wallet had held the tokens until now, it would have seen an additional $450,000 in gains.
At the peak in 2024, the wallet could have sold the position for proceeds of $1.25 million, achieving nearly $900,000 in total gains.
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