- According to a Doge contributor, the halving of BTC will cause market fluctuations to be strange. This is especially true with new participants bringing in high levels of liquidity.
- Dogecoin’s futures listings on Coinbase will increase its exposure in the US market.
- A trader who gained 69.500% by trading a token with a meme could reignite the meme frenzy.
Dogecoin contributors warned DOGE users on Thursday against trading derivatives due to high volatility. This is because the Bitcoin half-life will be approaching soon. Coinbase, which has received approval from the Commodity and Futures Trading Commission to trade Dogecoin Futures Contracts, is about to launch the trading.
Click here to read more Dogecoin surges by nearly 20% following Coinbase’s announcement of listing DOGE derivatives
Dogecoin derivatives can expose traders to high risk
Dogecoin, and other top meme currencies have been trading sideways in the last week after a market consolidation. The market has been consolidating for the past week. Bitcoin The halving of the price is creating a buzz across social media, and traders are expecting a new meme frenzy. However, recent prices have not reflected this hype.
In an X message posted on Thursday, Dogecoin’s @Mishaboar said that people will think it is easy to predict the markets and “things are going to get strange (in either direction).
Please read also: Dogecoin reaches highest price in 2021, after massive transaction volume
He gave examples to show how new participants on the market, increased trading volumes, and their large liquidity flows have altered market dynamics. The high-risk nature of crypto trading is compounded by leverage and derivatives. According to @Mishaboar, many traders in this arena view Doge as the ultimate playground.
Coinbase now lists DOGE, PEPE and derivatives
Coinbase announced on its blog on Thursday it will launch Dogecoin Futures on the 29th of April after receiving approval from CFTC in early March. The result is that more US traders are exposed to DOGE derivatives, which allows them to speculate about its price movements.
Coinbase announced another update on meme coins just a few short hours after releasing its announcement on DOGE. It stated that it will be adding PEPE perpetual futures to Coinbase International Exchange, Coinbase Advanced, and Coinbase Advanced by April 18th. PEPE price soared after the announcement. It gained nearly 6% over the last 24 hours.
Click here to read more As meme coins are awakened, the price of Pepe is on the rise.
The fading meme craze could return as new products like meme tokens enter the market.
Lookonchain revealed data that showed a trader had made a gain of more than 69.500% by purchasing the APU meme token for $9,000 in ETH. The current value of his holdings is $6.27million.
Meme coin trading is high-risk, because its price fluctuates significantly, and certain tokens are scams. Investors should do thorough research before investing and determine their level of risk tolerance.
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