Is Dogecoin a Good Buy?
Is Dogecoin a good buy? We get asked this question a lot by people looking to invest in the joke cryptocurrency. Dogecoin can be a good or bad investment, depending on what you are trying to achieve by buying it. In other words, you need to consider your unique investment goals and decide whether this coin is the right addition to your portfolio.
In a traditional sense, Dogecoin has all the qualities of a bad investment. First of all, it is a joke. Then it doesn’t have a whitepaper and is not trying to achieve any goal like its competitors. Dogecoin doesn’t also have a serious team behind it and mostly thrives on hype and speculation, which means it has the worst kind of volatility.
With all these downsides, should you go ahead and buy DOGE?
Read ahead, by the end of this guide, you should know whether to buy or pass.
So, Should You Buy Dogecoin?
For some reason, the downsides we outlined above are the very selling points that Dogecoin is using to attract investors. This is because the cryptocurrency was created for novice investors who are put off by the seriousness of the more visionary digital crypto assets like Ethereum, IOTA, or Cardano.
In other words, the meme-based DOGE is supposed to be ‘lighthearted’ or even funny. People thought that Dogecoin was a funny idea, and Reddit users vehemently backed it in a bit to prove that you don’t need a whitepaper and a pool of whale investors to border an $80 billion valuation.
Most of these supporters invested in Dogecoin not because they thought it was some kind of a get-rich-quick scheme but because they wanted to be part of something exciting.
Soon, the joke began to gain some seriousness, and people began investing just for the fun of it or for fear of missing out. Dogecoin is now ranked the 4th biggest cryptocurrency by market cap.
So, if you are willing to put your money on an insanely valuable cryptocurrency that has no team, is highly volatile, and not looking to solve any real problem, then Dogecoin might be a good buy.
However, if you are looking for a crypto that has plenty of institutional backing, a proven store of value, and a solid plan to disrupt the financial market, then DOGE might not be what you are looking for.
Yahoo! Finance recommends buying Dogecoin only if you are willing to bet your money on one of the most volatile digital assets. The possibility of making money is just as big as losing all of it.
DOGE might not even be able to survive in the long haul, given its volatile and inflationary nature.
So before you buy, be ready to take on some very wild price swings.
Read Also: Pros and Cons of Investing in Dogecoin
Why is Dogecoin So Popular Now?
Dogecoin is making a lot of headlines now, and there is a good possibility you are here because you have been confronted by its news more than a dozen times. Part of this popularity has something to do with Elon Musk and the fact no one expected a joke to be so seriously profitable.
Not even the founder, Billy Markus, who apparently sold a good junk of his shares in 2015 to buy a second-hand car.
Dogecoin’s popularity mostly stems from its meme-status, which means it is easily sharable online. The more memes are created about Dogecoin, the more people know about it, and the number of investors increases.
The coin is most popular on Reddit and Twitter, where high-profile celebrities like Elon Musk and Mark Cuban occasionally tweet about it.
This kind of social media popularity is both good and bad. It is good in the sense that it helps the price and the overall valuation of Dogecoin to up. It is bad because as soon as people stop sharing stuff about Dogecoin, the price begins to plummet.
How much has this popularity helped raise Dogecoin’s price so far? Let’s look at the current price and valuation.
Check Out: Could Dogecoin be a Millionaire-Maker Coin?
How Much Is Dogecoin Worth Today?
At the time of writing, Dogecoin is trading at around $0.55 with a market cap of $71.42 billion. This is a great improvement from a few days ago when DOGE dipped below $0.4 after a slight drop.
So, if you think Bitcoin’s current price of over $50,000 is a bit of overkill for a start, this might be a good time to buy.
Keep in mind that Dogecoin is currently growing faster than most coins, including Bitcoin. So, the earlier you buy, the earlier you will be able to enjoy some great ROI.
If you don’t know how to buy Dogecoin, we will show you how to easily do so on eToro later in this guide.
What is the possibility of Dogecoin hitting $1 this year, and should you wait until then before buying?
Will Dogecoin Reach $1 in 2021?
There has lately been a lot of talk around the possibility of Dogecoin reaching $1 by the end of this year. Based on the current momentum, this seems like a fairly feasible projection.
The Dogecoin online community has launched several campaigns meant to catalyze DOGE to $1 or above by December 2021.
Some price predictors also believe that the Dogecoin asset might have a shot at $1 target before the year comes to an end. For instance, Long Forecast predicts that DOGE might hit $1 as early as October 2021.
It will then increase month-to-month and close the year at around $1.57.
This is a good sign, especially for investors who have already bought Dogecoin and looking to sell off as soon as the asset reaches $1.
However, this is not a guarantee, and there is an equally high possibility that the price might fall. That is why it is prudent that you don’t wait until the DOGE coin hits $1 before you can buy.
You just can’t know when that will happen.
Don't Miss: Dogecoin Price Predictions
Ready to buy? Keep reading below.
How to Easily Buy Dogecoin on eToro
If you came this far, it means you are now confident that Dogecoin is a good buy and are ready to get some for yourself. If that is the case, we recommend doing it on eToro, which is our favourite platform for buying DOGE.
Follow the steps below to buy DOGE on eToro.
- Create an account with eToro
- Deposit some funds into your account. eToro allows a minimum of $200 deposit
- Select the correct currency pair. For instance, if you are using USD, you will select the DOGE/USD pair
- Enter the amount of Dogecoin you want to buy and complete the transaction.
That is it! You are now the proud owner of some Dogecoin.
If you want to trade, the process is much more complicated, especially if you have not done it for the first time. So, make sure to check out our guide on how to trade Dogecoin for more detailed instructions.
Buying Dogecoin is different from buying shares or bonds. Cryptocurrencies are incredibly volatile, and it is easy to lose your money. So, before buying, make sure that you understand what you are getting yourself into and are ready to stomach some big risks.
We understand that there is a lot of talk around Dogecoin right now, but that should not be a reason to buy blindly. Take your time, study the market, talk with an expert and be sure that DOGE is a good fit for your portfolio.
eToro – Best Exchange to Buy Dogecoin
eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.