Is Dogecoin a Good Investment? Hither’due south What Yous Demand to Know

Between April and May 2021, in the middle of a cryptocurrency frenzy, Jasyn Prolifiq and Glauber Contessoto, became millionaires, at least on paper.

Due to their investments in dogecoin (DOGE). Prolifiq turned $180,000 into $1 million within 69 days. Meanwhile, Conessoto put well-nigh $250,000 in dogecoin and became a millionaire on paper in roughly the aforementioned time frame. Conessoto fifty-fifty had his clients pay him in DOGE equally a style to go along getting more of the cryptocurrency.

Stories like this inspire many investors to take a hazard, putting their money in the latest meme coin or stock, hoping to make it big. But is dogecoin a good investment? And should you use your coin to invest in this cryptocurrency?

Let’southward accept a look at dogecoin so you can decide whether information technology’s a proficient idea for you.

Here are 4 strategies the 1% use to deal with aggrandizement.

What is dogecoin?

Dogecoin was developed in 2013 and is ane of the oldest cryptocurrencies. It was originally developed by ii software engineers, Billy Markus and Jackson Palmer, as a joke. Markus used bitcoin’due south code to develop dogecoin. He also borrowed some code from litecoin to brand sure the same mining bitcoin uses couldn’t be used by dogecoin. Yet, mining dogecoin and litecoin at the aforementioned fourth dimension is possible.

The digital currency was named for the pop meme at the fourth dimension, a Shiba Inu dog who was known for adding “very” or “much” as a modifier, as in “very teamwork” and “much wow.” The two gear up up a website and began issuing coins. Over time, a community was built around dogecoin, but it didn’t really get a heave until billionaire and Tesla CEO Elon Musk began tweeting most information technology.

Dogecoin remained at a fairly low price for years. Yet, following the GameStop curt squeeze in 2021, information technology suddenly became popular. Afterward seeing what could be accomplished using Reddit to marshall forces and create a buzz, a Reddit forum began pushing dogecoin. From early Feb until early May 2021, dogecoin generated a lot of attention.

Tweets posted by Elon Musk helped promote the cryptocurrency. In addition, Mark Cuban’due south announcement that the Dallas Mavericks would take dogecoin helped fuel its price increases. True-blue adopters announced they would HODL, an acronym for “concur on for dear life,” which is a popular investment strategy in the crypto market.

Hopes of pushing the dogecoin price up to $1 were high at this point, only information technology never reached that marker. Elon Musk appeared on Sabbatum Night Alive on May 8 and made fun of the cryptocurrency. The toll plummeted following his comments. In fact, it dropped from a high of 71 cents down to 47 cents in a thing of 45 minutes. By the forenoon of May 9, dogecoin had dropped to 40 cents and lost a value of $35 billion.

And so far, dogecoin hasn’t recovered, despite Musk confirming that he planned to use dogecoin to fund a space mission. The re-establishment of the Dogecoin Foundation, which is designed to develop the dogecoin blockchain, hasn’t helped much either.

Simply is dogecoin a practiced investment?

Although dogecoin offered investors a wild ride for a few months in early 2021, it hasn’t done much since then. Faithful adopters withal programme to hold the cryptocurrency in hopes that information technology will surge college again. However, when you’re trying to decide how to invest coin, information technology’due south important to enquire yourself whether an asset is a good fit for your portfolio.

Dogecoin’s operation in 2022 has been lackluster. Equally of April 2, 2022, dogecoin is priced at 14 cents. Those who bought dogecoin when it was condign popular, between 25 cents and 45 cents, accept lost large percentages of their investments.

Elon Musk stated that he owns dogecoin, along with bitcoin and ethereum. Additionally, he has a representative on the board of the Dogecoin Foundation. The “Doge Army” would like Musk to reinvigorate the cryptocurrency with support and tweets. All the same, information technology might be far from certain that the dogecoin cost will ever attain last year’due south highs, allow alone $i.

When deciding whether dogecoin is a good investment, it’s of import to carefully consider whether it’south a good investment for you. Dogecoin nonetheless has a $22 billion market cap and a relatively high trading book equally of Apr 2022. It is also available on major crypto exchanges such every bit Coinbase, eToro, and Binance.US. Because of its liquidity, you’re probable to be able to buy and sell dogecoin when yous demand to, which isn’t always the example with less popular cryptocurrencies.

Withal, it’s also important to think that dogecoin regularly experiences intense price volatility. Additionally, other than being a faster class of payment than bitcoin, there oasis’t been many uses for dogecoin.

Equally a upshot, dogecoin might be considered a speculative investment in the crypto marketplace. Even though enthusiasts are willing to agree it as a long-term investment, it might not be wise to devote too much of your portfolio to dogecoin depending on your goals.

Tin can dogecoin go similar to bitcoin or ethereum?

Elon Musk has publicly declared that dogecoin is “the people’southward cryptocurrency.” However, it might be far from certain that it could always be like bitcoin or ethereum, the 2 top cryptocurrencies.

One of the reasons bitcoin (BTC) has value as a cryptocurrency is because its circulation is limited to 21 million coins. This scarcity creates the thought that bitcoin is a digital shop of value, similar to how people view aureate. Additionally, bitcoin is the original cryptocurrency, which has made it accustomed in more places than dogecoin.

The ethereum blockchain and its cryptocurrency, ether (ETH), have a robust use case thank you to their underlying technology. This technology supports smart contracts, which permit the automated execution of agreements betwixt two parties. The technology likewise provides the power to build games and financial apps on pinnacle of the ethereum infrastructure.

Without a use example beyond fast payments and with a blockchain that is merely being adult, dogecoin has struggled to maintain real-globe value. The fact that dogecoin’s supply could potentially exist limitless with more 132 billion dogecoins in circulation equally of Apr 2022 doesn’t aid either.

If you’re interested in altcoins just aren’t sure that dogecoin is the correct option, it might exist worth looking into the use cases of other coins. For example, solana (SOL) offers many of the same features equally ethereum, but does then at a faster rate and lower cost. Additionally, in that location are coins such as polkadot (DOT) that contribute to interoperability between blockchains.

When looking at cryptocurrency investing, yous may notice it beneficial to consider the underlying utilize example, rather than relying on the hype. Although information technology could be fun to trade meme coins and you could potentially brand it large, avoiding higher risk and speculative coins could amend back up your portfolio.

Gamble aside, how can I buy dogecoin?

If you lot decide y’all want to learn how to buy dogecoin, information technology’s fairly easy to do and so. You can discover this cryptocurrency nether the moniker DOGE on several crypto exchanges, including Coinbase, Kraken, and Gemini.

For more details, cheque out our listing of the best cryptocurrency exchanges.

Additionally, dogecoin is available through the Robinhood app. It’s also possible to buy dogecoin on decentralized exchanges like Uniswap. To buy dogecoin, sign upward for an account with the commutation of your choice. Y’all tin can then add funds using a bank account or a credit carte du jour and make your purchase.

Depending on the exchange, you could buy dogecoin with fiat currency or by trading other cryptocurrencies. If you want to store dogecoin in your wallet, off an exchange, direct the exchange to send your coins to your crypto wallet address.

This is the aforementioned method used to buy other digital coins, which makes learning how to buy cryptocurrency relatively easy.

Spending your dogecoin requires finding merchants that accept it. When yous notice a retailer that accepts dogecoin, you could apply your wallet to transfer the appropriate number of coins to them. You could also apply a 3rd-party facilitator such as BitPay to purchase gift cards for major retailers like Walmart and Amazon.

FAQs

Tin can dogecoin attain college than $1?

Information technology’s non possible to know for sure whether dogecoin will reach the $ane goal, or even higher. Ane of the goals of those who were interested in buying and property dogecoin was to become it to $i. Although the cryptocurrency lost much of its highest value, there are enthusiasts who still recollect information technology could happen.

Ultimately, such a goal will depend on whether need for dogecoin rises again, and whether there are more uses developed for it.

How many dogecoins are in circulation today?

There are 132.67 billion dogecoins in circulation every bit of Apr 8, 2022.

When is the best fourth dimension to invest in crypto?

As with any investment, it’south incommunicable to perfectly fourth dimension the market and become in (or out) at the correct time. If y’all’re trying to determine when to buy cryptocurrencies, someday could exist a good time to outset investing.

A skilful starting point is to empathise the purpose of the cryptocurrencies you’d like to add together to your portfolio. Using a strategy where yous don’t invest more than you tin can afford to lose could also guide your investment plan.

Bottom line

Dogecoin could exist a fun addition to your investment portfolio, merely it’southward important to understand the inherent run a risk that comes with buying this cryptocurrency. If dogecoin surges again as it did in 2021, there could exist a potential for big gains. However, if it doesn’t, you lot might lose some of the coin you used to buy dogecoin if it never regains popularity.

There are many other cryptocurrencies offered in the market. Information technology might make sense for yous to consider whether other cryptocurrencies might be a ameliorate fit for your long-term financial goals and portfolio strategy.

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Disclosure: The author owns DOGE, SOL, ETH, BTC, and LTC. All of which are mentioned in this article.