Of the thousands of cryptocurrencies out there, Dogecoin was the star of the show in 2021. DOGE, the digital currency of the platform has made quite the splash in the first quarter of the year, thanks to several factors, including Elon Musk’s tweeting habit.
If you are new to the cryptocurrency world, you will be forgiven for thinking that Dogecoin is a new cryptocurrency. The coin has been around since 2013, but the sudden rise in popularity has made it one of the hottest topics in online trading.
Are you considering buying DOGE for long-term investment? Do you feel the coin could be your ticket to becoming a millionaire in the next ten years? You need to learn enough about the coin so that you can make an informed decision about long-term investment with it.
We know that DOGE has made several people rich last year – there are several interesting stories out there. But we also know that the cryptocurrency market is highly volatile. Again, no way can correctly say what will be the fate of Dogecoin investors in ten years.
To help you make an informed decision, we will discuss Dogecoin extensively here. Read carefully to learn the possibilities and risks of making a significant long-term investment in DOGE.
Contents:
- What Is Dogecoin?
- What Has Been The Story Of Dogecoin?
- Is Dogecoin Being Hyped?
- Weighing the Pros and Cons of Investing In Dogecoin
- Is This A Good Time To Invest In Dogecoin?
- Where Will DOGE Be In Ten Years?
- Should You Play The Long-Term Game With Dogecoin?
- Important Tips for Investing In DOGE
- Invest the Smart Way
What Is Dogecoin?
Dogecoin is a peer-to-peer, open-source cryptocurrency that has grown very popular in recent times. While the coin has been in existence for a while, its recent fanfare started in late 2020.
Dogecoin is similar to some of the most popular cryptocurrencies in many ways. Like Bitcoin, it is traded as a digital asset in the crypto universe. It is also based on blockchain technology.
Dogecoin is also called DOGE. Crypto enthusiasts can buy and sell the coin through exchanges at their own discretion, unlike stocks and shares. It operates as a decentralized digital asset.
Like other cryptocurrencies, DOGE is considered a valuable asset. It is traded by crypto enthusiasts, investors, and other members of the public who are confident in its value. It is been described as a shiny new thing.
Investors in DOGE can potentially make a lot of money. In fact, many people have already made millions from investing in Dogecoin and similar altcoins. However, you should know that investing in any type of cryptocurrency comes with elements of risks. You can gain so much or lose so much – which is why learning about the cryptocurrency universe is very important.
At the time of writing this piece, Dogecoin (DOGE) price was $0.1569, according to coingecko. Market capitalization was $20 billion. The coin previously hit an all-time high of $0.73 earlier in May 2021.
What Has Been The Story Of Dogecoin?
Like most other cryptocurrencies, Dogecoin has a rich history behind it. The coin was originally created as an almost sarcastic meme coin. The project was initiated by Jackson Palmer, a product manager at the Sydney Australia office of Adobe Inc. as a way to satirize the popularity of cryptocurrencies in 2013.
It is generally believed that Palmer was sceptically observing the emerging cryptocurrency universe and tweeted his new cryptocurrency venture to get reactions. When he saw that the reactions were mostly positive, he bought the domain dogecoin.com.
Jackson Palmer was contacted by a software engineer in IBM, Billy Markus, who also wanted to create a digital currency. The two agreed to work together to make the project happen. The software behind the actual coin was built by Markus, with inspiration from Palmer's work.
Dogecoin’s code was reportedly based on Luckycoin, which was also derived from Litecoin. Initially, the software used a randomized reward for block mining. This was changed in March 2014 to a static reward, but Dogecoin still uses Litecoin’s scrypt technology and proof-of-work mechanism.
DOGE was officially launched on Dec. 6, 2013, retaining the name, which is derived from the popular meme featuring a Shiba Inu (a Japanese breed of dog). It also has the image of the Shiba Inu dog as its logo.
Just two weeks after Dogecoin was created, its value jumped to 300%. Some attributed the rise to China’s decision to ban its banks from investing in cryptocurrencies. However, the coin was marketed as a fun version of Bitcoin. It attracted several enthusiasts and an active community started with time.
The Dogecoin community did a handful of charitable works but the fun didn’t last too long. The first sign of trouble was when Jackson Palmer departed, citing the growth of a “toxic community” as his reason.
Dogecoin has seen several ups and downs. Its value soared like that of other coins during the crypto bubble of 2017 and fell in 2018 like others too.
Is Dogecoin Being Hyped?
To be frank, there are so many hypes surrounding Dogecoin that it may feel like a shady coin to a conservative investor. During the summer of 2020, a viral TikTok video hyped up the coin, claiming that it will reach $1 if everyone deposited $25. The author went ahead to predict that each $25 investment will be worth $10,000 in no distant time. That never happened.
One of the wealthiest men in the world, Elon Musk, has also played a huge role in the DOGE hype. The Tesla owner and cryptocurrency enthusiast frequently tweets about the digital coin. His influence has attracted many new fans to DOGE, and that has reflected in its value and appeal.
There is no denying that Dogecoin is being hyped. It was created as a joke, and fun people are the biggest adherents. Fun people are also known to promote the things they love, and they do so with Dogecoin through online communities like Reddit and social media platforms like Twitter.
Check Out: Elon Musk Explains Why He Prefers Dogecoin Over Other Cryptocurrencies
Weighing The Pros And Cons Of Investing In Dogecoin
If you are an ardent follower of cryptocurrency news and analysis, you should know that DOGE has had a splendid year. Many Dogecoin investors have also made a lot of money.
From what we’ve seen so far, trading DOGE can be a great way to make lots of money from the cryptocurrency market. The coin has the potential to be a lucrative short-term investment, but investors must learn to time the market. But timing the market is almost impossible for most people.
It is possible to make a lot of money by investing in Dogecoin, but how long the fanfare can last is what we don’t know. Cryptocurrencies are generally volatile and considered risky investments.
At the beginning of 2021, for instance, Dogecoin price climbed by nearly 400%, only to fell by nearly one-third in a matter of weeks. In spite of its growing popularity, the coin doesn’t have much credibility.
Unlike Bitcoin, Ethereum, Ripples and a few other cryptocurrencies, Dogecoin hasn’t been adopted for real-life transactions. There are no recognized businesses that accept DOGE as a form of payment, and this undermines its credibility further.
Read More: Pros and Cons of Investing in Dogecoin, Will It Be a Millionaire Maker?
One Crazy Success Story
As previously mentioned, 2021 was a spectacular year for DOGE and many people took advantage of that. Here is a crazy story to give you an idea of the opportunity the coin presents:
Glauber Contessoto now describes himself as a Dogecoin Millionaire inspired by Elon Musk. According to the crazy story published in CNBC, the 33-year old invested in February and reaped his heavy reward in April.
Contessoto said he learned about Dogecoin on Reddit. He decided to invest his lifesaving in the digital coin because Elon Musk supposedly supports it. Of course, the constant tweets are enough to convince the ardent followers. He was also impressed by the Reddit Dogecoin Community.
On February 5th, Contessoto invested over $250,000 in dogecoin when it was priced at about $0.045. He had a crazy belief that the coin can help him build generational wealth. He saw the coin as a huge deal and committed fully to it.
Another crazy part of the story is that Contessoto’s investment did not only come from his life savings. He didn’t have enough disposable income to fund his investment, so he sold all his stocks (including Uber and Tesla), added his life saving, and even borrowed money from the Robinhood app.
According to Contessoto, his friends were sceptical about his investment and warned him about it. One even predicted that DOGE was going to zero.
Against the odds, Dogecoin soared. It took a little over two months for Glauber Contessoto to realize that he has become a Dogecoin Millionaire. He posted on the Dogecoin subreddit about it. The post went viral and here we are, sharing it.
Now, the craziest part of this story is that Glauber Contessoto hasn’t cashed out of Dogecoin. He strongly believes that the digital coin will continue to grow. He plans to take out 10% once he hits $10 million.
Is This A Good Time To Invest In Dogecoin?
If you invested in $1,000 in DOGE on January 1st, 2021, it would have been worth over a whopping $120,000 when the coin hit its highest price of $0.73 in early May. That's a bullish 12,000%, which is significantly higher than what Bitcoin and Ether had offered within the same period. Does it mean you've lost your chance of becoming rich through Dogecoin?
No one can correctly predict how Dogecoin will fare in the near future. The price is unstable, and the coin is not as credible as the promoters will make you believe. However, it is still possible to invest in Dogecoin now and earn mouthwatering returns in the future. Timing the market is really important in this regard.
Where Will DOGE Be In Ten Years?
The most important thing to know about investing in Dogecoin is that it is highly speculative. It is really difficult, if not impossible, to predict where it will be in the next ten years. From what we know, the coin’s value feeds on hype.
From all indications, the value of DOGE in the next ten years will still be influenced by hype and fanfare. The influence of celebrities and the Dogecoin online community will continue to drive the valuation of the coin. Memes may also contribute to the popularity and valuation of Dogecoin, after all, it was inspired by meme.
Even if all the factors above continue to favour Dogecoin, the cryptocurrency is unlikely to become as successful as Bitcoin, Ethereum, Ripples, and other coins that have been adopted for real-life transactions. Dogecoin doesn't serve any real-world problem and is seen as less credible.
Many industry insiders are also sceptical about the changes of DOGE becoming a major digital asset. Coin Price Forecast, for instance, predicts that DOGE will be worth $0.47 by the end of 2031.
A few analysts are hopeful that Dogecoin will become far more valuable than it is at the moment. Wallet Investor, for instance, predicts that the coin will reach $1, and maybe go a little over, by mid-2025.
An asset cannot feed on hype and community promotion for so long. The value of Dogecoin will likely improve in the future, but it is unlikely to become one of the most valuable cryptocurrencies in the next ten years. It is even possible that the value will dip.
Read Also: What Will Dogecoin Be Worth in 10 Years?
Should You Play The Long-Term Game With Dogecoin?
Are you thinking of investing in Dogecoin now and waiting for your investment to become substantive in ten years’ time? You may need to think twice about that.
Dogecoin has come a long way from the period it was created as a joke. It has been around for several years and has grown in value, but no one is certain of what the future holds for the coin.
Just five years ago, Dogecoin was worth an abysmal $0.000227 but in 2021, it reached an all-time high of $0.73. If you invested just $100 five years ago and held on to your coin, it will be worth around $150,000 now. If you cashed out last year when DOGE hit the all-time high of $0.73, you would have gotten about $300,000 from your $100 investment.
It is possible to play the long-term game with any cryptocurrency and make a lot of money. It is also possible that your investment in a crypto asset will lose value over the years.
No matter how popular it gets, Dogecoin is not the most credible altcoin out there. It has grown significantly over the years, but it still feeds on speculations and hype. It is highly volatile and must be considered a risky investment.
If you are determined to invest in Dogecoin, you should be ready to monitor the market. The coin has shown in recent times that it can be great for short-term investing. Though the value has significantly increased over the years, it is not looking like one of the best assets for long time investments.
Important Tips For Investing In DOGE
Are you interested and ready to invest in Dogecoin? Here are a few tips you might find helpful going forward:
1. Play Safe with What You Can Afford to Lose
As we have stressed throughout this article, DOGE is not the most reliable cryptocurrency. It is highly volatile and is mostly traded based on speculations. While the value of the coin can rise over time, it will always be checked by reality. Investing in Dogecoin can bring meaningful results, but it can also lead to huge losses. It is advisable to invest only what you can lose, regardless of whether you are actively trading or investing for the long term.
2. You Don’t Necessarily Have To Wait Too Long
If you invested in Dogecoin in the early days, your investment will be worth something big now. Even if you invested at the beginning of 2021, you would have made a lot of money too. But no one is certain of what will become of Dogecoin in the next ten years. Dumping a reasonable amount of money in an unstable digital currency like DOGE for several years is not the best investment decision you can make now. When you invest, keep monitoring the market to know the right time to pull out to maximize returns or minimize your loss if things start going south.
3. Join the Online Community
Dogecoin has one of the most active online community and you can benefit a lot by being part of the community. The Reddit community is one of the right places to be if you have an interest in the coin. But you shouldn't swallow every piece of information you find there hook, line, and sinkers.
4. Keep Learning to Get Better
Online trading is more challenging than most people will like to admit. It doesn’t matter whether you are trading stocks, forex, or cryptocurrencies – you need access to the best information to become better at what you do. With quality trading education, it is impossible to become good at trading and make a steady income from it. Regardless of the type of trading you are involved in, keep learning and you will become better at taking advantage of opportunities on the market.
Invest The Smart Way
Investing in cryptocurrencies can be rewarding when you do it the right way. You need to know about the coin you want to buy as well as the right place to buy it. Most people also need professional help to maximize their investments – this is what smart investors do.
Read More:
Could Dogecoin be a Millionaire-Maker Coin?