Investing in Dogecoin or any other cryptocurrencies or stocks like Robinhood or GameStop should not be triggered by hype but by careful scrutiny of the investments you are making, NBA team owner, TV personality and crypto investor Mark Cuban stressed.
In an interview with The Daily Beast, Cuban shared about the ease of getting lost in the hype of the meme cryptocurrency or digital stocks. While such investments could provide dividends, "...you've got to know why you are investing."
Mark Cuban's Advice to First-Time Investors: 'Do Your Homework'
Cuban reminded investors to do "their homework, (by) finding out companies and seeing if it's something you agree with - and believe in" and not just invest "because of some video you saw on TikTok or a video you saw on YouTube, or a friend told you," which "aren't good enough reasons."
But for first-time investors, Cuban advised to use funds that would remain in their pockets after paying off credit card bills and allotting for a "rainy day fund." Paying off your credit cards would help "because that's 29 percent you're getting ripped off every month." He added this would be "hard to make that up in your annual return."
In allotting for a fund for emergencies, "who knows if we'll have another wave of the pandemic or what have you."
What's left over after those, Cuban said, "That's when you can have some fun (investing)."
Cuban previously lambasted Robinhood for making it difficult for Dogecoin investors to withdraw their holdings, as per Deseret News.
Mark Cuban: There Must Be Delineation Between Income, Net Worth
Cuban also responded to a query on ProPublica report that America's richest paid little to no income tax, even as their wealth ballooned to over $1 trillion during the pandemic. He emphasized there should be a delineation between income and net worth. Such rising high figures reported by ProPublica constitute net worth, which is fleeting or could change at any point in time.
The question must be would it be right to tax income or tax your net worth. Cuban said he has been a diligent and responsible income taxpayer, If taxing net worth is pushed, which includes stocks or crypto assets, Cuban said he will be forced to sell off his holdings since he could not afford to pay for them when these assets deflate.
"Should I pay more in taxes? I've got no problem doing it. I paid 29 percent last year, and 19 percent the year before. Fair or not, we can discuss that, and I'm open to paying more. But if you tax me on my net worth, then I have to sell s&%t," Cuban further told The Daily Beast.
Cuban, who owns the Dallas Mavericks and stars in the ABC series "Shark Tank," said in an email interview with Newsweek last month to invest on crypto with more utility. However, he warned that it can be stressful.
Cuban also emphasized that cryptocurrency leans more on software, and the key to success in such industry is to have a software with "happy users" that they can't live without. With satisfied users, Cuban highlighted that users will be more than willing to pay to keep in working and as vibrant as ever. The foundation of these cryptocurrencies, he said, are token holders, validator and miners who "all get rewards".