Is Dogecoin A Good Investment And Should I Invest In DOGE?
Dogecoin Could Be The Next 100-Billion Dollar Cryptocurrency!
Are you wondering if now is a good time to buy Dogecoin? Or maybe due to the price fluctuations associated with crypto, you are not sure if Dogecoin is safe to invest in?
If you are a newbie to the joke and fun world of Dogecoin investing, you may have asked yourself several questions such as, is Dogecoin a good investment, or should I invest in DOGE?
There are no easy answers to crypto investing but the answer is yes. Dogecoin could likely become a good investment and investing in Dogecoin could bring you great gains in a short time.
Dogecoin has returned 8317.43% since 1st January 2021 up to the time of writing the feature article. Despite such high figures, the cryptocurrency does not show any indications of slowing down.
Several analysts and experts have made forecasts about the future of the Dogecoin cryptocurrency and still see a future of growth ahead for the meme-inspired coin. The experts believe that investing in Dogecoin especially for the short-term might be one of the smartest financial decisions ever taken.
Therefore, this year could be a good time to invest in Dogecoin (DOGE) since its performing well taken into account investor interest with an eye on the trading volume.
One of the biggest reasons you should invest in Dogecoin is Elon Musk and fans across Reddit, Twitter, and Facebook. Aside from that, there are several partnerships in the pipeline which could expose Dogecoin to the global market.
If all the partnerships, Elon Musk’s comments, and the promotion by the digital currency’s fans are successful, it may play a contributory role in increasing the price of Dogecoin extraordinarily. Those factors are not the only reasons that make investing in Dogecoin profitable.
In this article, we are going to take a look at Dogecoin and all the controversies causing traction online. By the end, our fundamental analysis will help you decide as to whether you should consider investing in Dogecoin.
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- What Is Dogecoin? A Simple Explanation
- Dogecoin Investing: Getting Started
- Is Dogecoin a Good Investment?
- Should I Invest in Dogecoin?
- Should I Invest in Bitcoin or Dogecoin?
- How Much Could Dogecoin Be Worth?
- Who Should Include Dogecoin In Their Portfolio?
- But Is 2021 Too Late To Buy Dogecoin?
- Is Investing In Dogecoin Risky?
- Does Dogecoin Have A Future?
- How Safe Is Dogecoin?
- How Legit Is Dogecoin?
- Conclusion: So, Is Dogecoin A Good Investment?
So, What Is Dogecoin? A Simple Explanation
Created by Billy Markus and Jackson Palmer in 2013, Dogecoin is a peer-to-peer cryptocurrency that enables anyone with an internet connection to send and receive money without any intermediaries (traditional finance institutions, insurance companies, and clearinghouses) that have hidden fees in transactions.
Dogecoin is the fourth-largest cryptocurrency by market capitalization after Binance Coin (BNB). Dogecoin has its novel token called DOGE. This powers transactions on the Dogecoin blockchain.
Unlike Ether (ETH), Binance Coin (BNB), Tronix (TRX), Cardano (ADA), Neo (NEO), and EOS which powers decentralization applications on its parent protocol’s blockchain, Dogecoin only serves as a transactional currency for the settlement of online transactions.
With that said, Dogecoin has one of the fastest blockchains in the crypto finance space. Since Dogecoin was designed on existing cryptocurrencies Luckycoin (LKY) and Litecoin (LTC), it adopted the features of the two digital assets.
Although a transactional currency that could have mirrored itself after parent company Bitcoin, it dumped SHA-256 proof of work algorithm. Instead, Billy Markus and Jackson Palmer employed the SCRYPT technology in its proof-of-work (POW) algorithm.
As a result, it is extremely easy to mine DOGE. This is because miners do not need Application-Specific Integrated Circuits (ASICs). Computers with normal Central Processing Units (CPU) and Graphic Processing Units (GPUs) can be used to mine the coins.
Dogecoin has a relatively faster transaction and confirmation speed which leads to a low cost of a transaction. Dogecoin has a block time of 1 minute which is relatively faster than Litecoin’s 2.5 minutes.
To have full confirmation of transactions, Dogecoin takes a maximum of 6 minutes. On the other hand, BTC and LTC take 30 minutes and 15 minutes respectively.
This is the main reason why the European Business Review pointed out on 18th February 2021 that, “Given its growing user base, popularity on the internet, and worldwide adoption, Dogecoin may breach the $1 target by the end of 2021. If that doesn’t happen, then it should do so by mid-2022.”
Dogecoin’s low transaction is why a man called Matt Thompson opted to use DOGE as a payment method for the sale of his Wisconsin Vacation Home as far back as 2014. He had earlier used DOGE to settle overseas transactions.
With huge investor interest and potential partnerships and integrations, a new and exciting ecosystem has been created where DOGE could potentially flow through easily.
Dogecoin Investing: Getting Started
For you to start trading or investing in Dogecoin, you need to register with a reputable cryptocurrency exchange or brokerage which would allow you to buy and invest in the coin. eToro is the exchange we’d like to recommend for not only buying but holding your DOGE in a safe and secure platform.
Follow the steps below so that you would be on your way to buying your first Dogecoin.
The FIRST STEP is to SIGN UP. This involves the same process of registering for an account online. Provide credible information with regards to your full legal name, phone number as well as residential and email address.
The SECOND STEP is VERIFICATION. Due to identity fraud, debit card and credit card fraud as well the use of digital assets as a haven for money laundering due to its decentralized nature, you’d be required to go through a Knowing Your Customer (KYC) phase. Under this process, you’d provide any government-issued ID card which bears the details you provided when signing up. In extreme cases, you would be made to provide an internet bill or bank statement not more than 6 months old to help prove your state of residence.
The THIRD STEP is UPLOAD FUNDS. After going through the verification process which takes a few minutes due to a strong customer service response base at eToro, you have to upload funds. Using a diverse range of payment methods which includes debit and credit cards as well as online payment platforms SKRILL and NETELLER, you can upload money in EUR, USD, or GBP.
Once done, you move on to the LAST STEP which is NAVIGATE to DOGE PAGE. At the current price of DOGE which would be displayed next to the digital asset, buy the number of DOGE which meets your current budget. Once you are done, your transaction would be processed and the coins would be added to your account.
Is Dogecoin a Good Investment?
Several crypto analysts at Coin Price Forecast and Trading Beasts estimate that Dogecoin is a good investment in comparison to other digital assets. Despite its low returns during its inception to its current price fluctuations, analysts are optimistic that DOGE could increase substantially in the long term.
One of the factors which will impact investing in Dogecoin DOGE in 2021 is its mainstream partnerships.
On Monday, 1st March 2021, CoinFlip announced via a tweet, “We’re excited to announce that we are listing #dogecoin on CoinFlip ATMs! You can now buy $DOGE with cash at any of our 1,800 locations nationwide!
CoinFlip has been around since 2015 and during its 6-year run has processed more than a million transactions. What is in for Dogecoin is that CoinFlip has more than 300,000 loyal customers which use their ATM to facilitate their crypto transactions. This has increased the exposure of the cryptocurrency across several outlets worldwide where CoinFlip’s presence is felt. This partnership has contributed to the rise of DOGE in March, April, and the early days of May through increased buying.
Another reason to consider investing in Dogecoin is the increasing number of mainstream institutions that are considering either listing the cryptocurrency or adding it as an option of payment. With the increasing usage of cryptocurrency and patronage of digital assets as a whole, DOGE could protrude several industries and become the main transactional currency for the settling of transactions online.
Should I Invest in Dogecoin?
You may have been asking yourself, why should I invest in Dogecoin? The right answer lies in the possibility of Dogecoin as a cultural currency that can change the world in terms of how people perceive cryptocurrencies.
To be more precise, Dogecoin has brought extreme attention to cryptocurrencies both as an investment vehicle and as a digital currency that allows users to carry out transactions without centralized authorities.
Thanks to the introduction of the meme-inspired currency several years ago, Dogecoin can help revolutionize the use, trading, and investing of cryptocurrency and the world of decentralized finance.
With the introduction of smart contracts due to the possibilities of blockchain made possible by Ethereum, DOGE has found its way into DeFi as part of the REN Project. In January 2021, REN through its blog on Medium pointed out that “We are excited to announce that Dogecoin ($DOGE) is now available on Ethereum as $renDOGE!
As per excerpts retrieved from the blog, “Users can now mint $renDOGE on OpenDAO’s dApp and use it within DeFi, as with any other ERC20.”
Additionally, users can use their $renDOGE as collateral to mint a dollar-pegged stablecoin called $DOGEO. Long-term holders of DOGE can take out a loan which is made possible by OpenDAO. You must go through two to three faces of processing. Firstly, you convert your DOGE holdings into $renDOGE and then from $renDOGE into $DOGEO. This means that you have confidence in the project of DOGE. You can then use your loan (new capital) for further investments in crypto or other purposes.
ARK.io announced in February 2021 that a partnership has been facilitated through the Dogecoin Community on Reddit. ARK.io introduced a new feature called Market Square. This feature is a platform for the sharing of content and Dogecoin has been added to the list of digital assets which is being promoted.
DOGE benefits from this partnership by seeing educational content around the cryptocurrency made available on the platform. Additionally, high-quality videos about the cryptocurrency would be created to support the adoption of the crypto trading asset globally.
With one partnership bringing exposure and another resulting in huge liquidity for investors to embark on other projects, DOGE may not have a track record but it’s poised to increase in value in the future.
By flirting with DeFi through DAPPS on Ethereum, DOGE has expanded its wings into an essential component of blockchain technology which has caught the attention of investors. This would bring more activity to the cryptocurrency and gains to investors going forward.
Read Also: Pros and Cons of Investing in Dogecoin
Should I Invest in Bitcoin or Dogecoin?
Will Dogecoin Ever Overtake Bitcoin?
Dogecoin is presently the fourth largest digital asset globally after Binance Coin (BNB), Ether (ETH), and Bitcoin (BTC). There may be great reasons to invest in Dogecoin but Bitcoin has a competitive advantage over the joke currency. They both serve as a transactional currency and BTC is also seen as a store of value (digital gold). BTC has more mainstream partnerships and adoptions as an option of payment than the meme-inspired currency.
Evidently, in the last 24 hours up to the time of writing this article, DOGE had been involved in 22,044 transactions worth $73,222,209. On the other hand, BTC had a transaction count of 271,636 worth $47,064,176,288. Aside from this, BTC has more exposure than DOGE since it can be bought, sold, and held on trusted online payment platforms PayPal and Skrill. Unfortunately, DOGE is yet to be listed on the two platforms which could see 400 million customers test their hands on the digital coin.
Other factors you should consider when pondering the question, should I invest in DOGE or BTC has to do with the length of your investment. While BTC currently serves as digital gold with a view on the long term, DOGE is a speculative investment that brings short-term gains and has seen people lose huge sums of their money.
At its current prices, DOGE is relatively cheaper than BTC and can grow and bring returns to investors should the price go up. At the current price of BTC, investing in BTC for the long term could bring you great returns when the price forecast of analysts is tested.
Overall, you can invest in DOGE in the short term for huge gains. You can also invest in DOGE in the long term by taking advantage of its partnership with REN. You can convert DOGE through REN to stablecoin ($DOGEO). Once this has been done, you can get a loan by using DOGE as collateral. New digital funds acquired could be used to embark on investment projects such as crypto stocks TESLA, SHOPIFY, or NVIDIA, or other less volatile assets which can bring you gains.
With shaky fundamentals to back its current price, no track record, and a lack of global acceptance of the joke currency in the mainstream, DOGE will never overtake Bitcoin. There is no single analyst or expert who can boldly say DOGE would be around in the next 5 to 10 years. It may dwindle gradually like a candle flame in the wind. At the moment, the current price milestone DOGE aims to reach its $1 while BTC is $70,000. With the two price milestones under perspective, there is no degree of comparison as to whether DOGE can flip BTC.
Will Dogecoin Get as High as Bitcoin?
Dogecoin could reach all-time highs in the future. For Dogecoin to trade in the same price region as Bitcoin is not impossible in the volatile world of cryptocurrency, but it is highly unlikely. The total market capitalization of the cryptocurrency market is worth $2.27 trillion. Bitcoin controls 45.5% of the space.
Aside from this, Bitcoin is the first and only trillion-dollar cryptocurrency. Other digital assets which could rub shoulders with Bitcoin are Ether (ETH) and Binance Coin (BNB). The Dogecoin Community’s primed purpose is to take the cryptocurrency to $1, $5, and $10 in the future.
Once these price milestones are accomplished, with new and improved innovation, DOGE could soar to the price range of $20 to $30 as per the estimate of bullish analysts and experts. For the time being, it would continue to trade below $1 until several key decisions with regards to its total supply cap and mainstream adoption are addressed.
Check Out: Could Dogecoin be a Millionaire-Maker Coin?
How Much Could Dogecoin Be Worth?
Relying on the fact that Dogecoin has a primary purpose of serving as an alternative digital currency to mainstream currencies, many experts are conservative with their forecasts. Few are bullish about the potential of DOGE in such a saturated market.
Experts at Long Forecast think Dogecoin DOGE could be worth $0.25 by the close of 2021. Predicted by several analysts to be a reflection of 2018 (bearish season for cryptocurrencies), experts further estimate DOGE to have a trading price of $0.35 by the end of 2023 and $0.46 to see out 2024.
Previsioni Bitcoin has joined the DOGE discussion and predicts a price of $0.57 on 31st December 2021.
Dogecoin could be worth $0.24 by the close of 2021, $0.44 by the end of 2024, $0.59 at the end of 2027, and a new all-time high of $0.84 is the forecast of experts at Coin Price Forecast.
Due to continuous celebrity support and the huge mileage DOGE has received by being listed on eToro, the crypto trading asset could trade a minimum of $0.91 and maximum price of $1.07 by the end of 2021, is the price estimate of CryptoNewsZ. DOGE could increase substantially in the future and trade at $1.45 by the close of 2023 and $1.74 by the end of 2024, CryptoNewsZ added.
Crypto Ground predicts the meme-inspired currency to suffer immensely from the forecasted bearish season of 2023 and end the year at $0.5122. Analysts at the crypto website believe DOGE can test $0.7046 by the close of 2026.
Experts at Wallet Investor are more bullish about the price patterns of Dogecoin in the future. Despite the lack of track record for the cryptocurrency, experts think the Dogecoin cryptocurrency could exchange hands for an average price of $0.343 to end 2021, $0.847 in 2023, $1.121 in 2024, and $1.640 in 2026.
Don't Miss: Dogecoin Price Predictions
What Will Dogecoin Be Worth in 2022?
According to experts at the Economy Forecast Agency, which is also known as Long Forecast, Dogecoin could trade for a coin at $0.26 in January and close 2022 with a trading price of $0.35.
According to experts at CryptoNewsZ, Dogecoin could have a minimum price of $0.96 and a maximum price of $1.22 by the close of the year.
While several analysts and experts are not so bullish, Coin Price Forecast believes Dogecoin could command a price of $0.26 by the first half of 2022. The experts further forecast a trading price of $0.28 by the end of 2022.
Experts at Wallet Investor forecast a trading price of $0.588 to end 2022.
DOGE could have a price of $0.3528 by the end of the year, as per the analysis of Digital Coin Price.
How Much is Dogecoin Worth in 2025?
Long Forecast believes Dogecoin could trade for a price of $0.52 to begin January and exchange hands for $0.36 in June 2025. Coin Price Forecast estimates Dogecoin to reach a trading price of $0.45 by the end of 2025.
CryptoNewsZ predicts Dogecoin to have a trading price of $1.96 by the end of 2025.
Dogecoin could trade for a coin at $0.8596 in 2025, is the belief of Crypto Ground.
Wallet Investor forecasts an average price of $1.246 by the year’s end of 2025.
Digital Coin Price thinks DOGE could command a price of $0.5862 to close out 2025.
What Will Dogecoin Be Worth in 2030?
According to the experts at Coin Price Forecast, Dogecoin could have a trading price of $0.79 by the end of June and exchange hands for $0.67 by the end of 2030. CryptoNewsZ believes that the current trend of DOGE could lead to a price in the range of $8.5 to $12.3 by the end of 2030.
Will Dogecoin Go Down in 2021?
Without any strong fundamentals and track records to support analysis on the future of the cryptocurrency, it is difficult to tell whether it would go down or not. For novice investors, an asset going down seems to be a bad thing. On the other hand, experienced investors know that reaching new high lows could spark renewed interest in an asset due to a relatively cheaper price which emboldens them to buy the dips.
With the buzz around Dogecoin and a recorded trading volume of $1.99 billion in the last 24 hours up to the time of writing. The Dogecoin Community and at a point in time, creators of the coin would continue to form several partnerships. Along the line, DOGE may see some form of strong leadership take hold of the digital asset due to its demand on the market.
Who Should Include Dogecoin In Their Portfolio?
There are many sets of traders and investors who can include Dogecoin DOGE on their portfolios now that it has also been listed on eToro and Gemini. Among others are,
- Day traders: Dogecoin has been known to have multiple-percentage swings in one day, making it a good option for day traders who believe they know what its short-term movements will be.
- Cryptocurrency traders: Dogecoin is the fourth well-known cryptocurrency, and therefore, many crypto traders buy it as part of their cryptocurrency portfolio.
Read Also: Is Dogecoin a Good Investment?
But Is 2021 Too Late To Buy Dogecoin?
No, it is absolutely not too late to buy Dogecoin. Many crypto market analysts appear to be quite bullish on Dogecoin and there is a general consensus that it will likely increase a lot in value in the near future.
As per predictions and forecasts by experts across more than 10 to 15 credible crypto finance portals, Dogecoin would command a relatively higher price than it is currently trading for. This means that the DOGE asset has not reached its real value in 2021 and can cross several price milestones ($1, $1.5, and $2) before the end of the year.
With that said, several analysts are conservative while a few remain extremely bullish. This does not give a clear picture under which the real valuation of DOGE could be assessed.
With a relatively lower trading price when compared to other transactional currencies such as DASH, Bitcoin Cash (BCH), BTC, or ETH, buying Doge at the current price could be the ideal time.
This could help prevent you from purchasing out of the Fear of Missing out (FOMO) in the future. The buying price in the future could be the final point of sale for many investors who would let go of their investments leaving you with huge losses in the process.
Read More: Is Dogecoin Worth Buying
Is Investing In Dogecoin Risky? Could Dogecoin Be A Bad Investment?
YES! Investing in Dogecoin is very risky and can become a bad investment. Dogecoin lacks credibility and only shot into the mainstream after fans online (Reddit, Twitter, and Facebook) started promoting the cryptocurrency.
Also, few businesses accept DOGE as an option of payment. Billy Markus and Jackson Palmer’s digital currency rides on speculation and is treading cautiously in shaky fundamentals. With the heat on social media where one question from a novice investor seeking knowledge on DOGE could lead to thousands of messages, the digital asset has traits of being a short-term investment that comes with instant gains. SHORT-TERM INVESTMENTS ARE HIGHLY RISKY.
With no track record, it is extremely difficult to predict if the cryptocurrency will still be talked about in the same breath in the future as today. It may end up like Peercoin, Luckycoin, Nxt, Auroracoin, or Monero which featured in a list of the largest digital assets 6 years ago.
With that said, DOGE has been able to survive and may breakout to price highs no one ever thought possible. DOGE is a risky investment and as a trader or investor, you should invest money you can afford to lose.
Conceive in your mind the possibility of the cryptocurrency finally bursting to a point of no repair. It could delve into an irrecoverable zone where its status as one of the largest digital assets in the crypto finance space would be long gone.
Does Dogecoin Have A Future?
Yes, despite all the controversies and naysayers, Dogecoin has a future. You should know that, unlike BTC, ETH, LTC, DASH, and BCH, DOGE only branched into the mainstream in 2021.
Through the crypto boom of the year, Dogecoin has formed successful partnerships which have had a tremendous effect on its price.
In the first 5 months of this year, DOGE has been integrated into one of the largest suppliers of medical equipment COVCARE as an option of payment. During these difficult times where millions of people are working from home, personal protective equipment (PPEs) has become a mainstay. People are now using DOGE to settle such transactions. The petty transactions add up to the transactional count of the cryptocurrency and impact heavily on the daily trading volume of the asset.
Other partnerships formed include being one of the options of payments for 2011 NBA Champion Dallas Mavericks.
Among others, DOGE has partnerships with ARK.io which features educational content in writing and video about the cryptocurrency.
Lastly, DOGE is flirting with decentralized finance (DeFi) through its partnerships with REN. People can stake DOGE through REN and convert it to stablecoin which is used as collateral for a loan.
With more such partnerships in the pipeline and a potential listing on other popular cryptocurrency exchanges, the future of the cryptocurrency which lacks strong fundamentals has the potential to grow substantially.
Check Out: Will Dogecoin Make Me Rich?
How Safe Is Dogecoin?
Dogecoin is extremely safe. This is because it uses the features of blockchain technology to secure its network. Using SCRYPT and not SHA-256 proof of work algorithm, miners can use the normal Central Processing Units (CPUs) and Graphic Processing Units (GPUs) to confirm transactions. As a result of this technology, it is extremely hard for hackers to sink into the system.
Why? Any potential hacker would have to control as much as 51% of the computational power of the whole network of dogecoin. With several miners contributing to the quick validation and verification of transactions, no single individual can gain control of more than half of the network’s power to successfully cause changes to the ledger. This makes DOGE a very safe asset you can rely on.
How Legit Is Dogecoin?
DOGE is a legit cryptocurrency. It does not have any team behind to promote it or answer an important question such as a need for a soft or hard fork. It’s controlled by the people, its community. It is extremely decentralized. If you are unsure about the platform which can legitimately hold your DOGEs in a secure and safe environment due to the question marks surrounding the cryptocurrency, you can sign up at eToro.
eToro listed DOGE on Monday, 3rd May 2021 due to high demand. DOGE was not listed before. For eToro to gain confidence in listing such a highly volatile and speculative asset shows the legitimacy and authenticity of the cryptocurrency for trading and investing.
Alternatives to Dogecoin
If you are unsure of the potential of DOGE in the future, there are several altcoins available that can bring you great returns. Some of the biggest rivals of Dogecoin are,
Some of these coins are listed as payment options on millions of merchants worldwide. Others have decentralized finance (DeFi) applications running on their smart contract chains which drive its price. Some of the coins are great investments that come with low volatility. It can make up for the losses you may incur in your investments on Dogecoin.
Conclusion: Is Dogecoin A Good Investment?
investing in Dogecoin is worth considering. For many, Dogecoin has proven to be a great decision.
In January 2021, the price of one Dogecoin token was $0.01, and by May 2021 it had reached $0.70. If someone purchased DOGE in the beggining of the year, the person would have seen a return of 10,476.39% in less than 5 months.
So, is Dogecoin a good investment? Currently, Dogecoin is considered a good investment, and if you are looking to invest in it, now would probably be a good time to do so.
With that said, you should know that all investments come down to two vital factors. They are risks and rewards.
Several people make the mistake of not weighing the two. It comes with great delight that you are part of the people who want to know more about investing in Dogecoin. You should ask yourself, do the potential rewards exceed the potential losses.
While no investment is risk-free, investing in Dogecoin generated more than 10,000% return in the beginning of 2021. Whether you’re new to Dogecoin investing or just curious about how to make the most of your investment, understanding what to know before investing in DOGE is critical.
Dogecoin could become one of the main transactional currencies in the decentralized finance space. The cryptocurrency could enlist on Coinbase before the end of the year. It may also appear as an option of payment on a myriad of well-established institutions
Analyst Sahana Vibhute of CoinPedia has weighed in on the potency of DOGE in the future. She forecasts DOGE to hit the highest level of $0.974 by the end of 2021. With the attention of well-known influencers, Doge could test $0.474 before settling at $2.382 at the year’s end of 2022.
Suppose the price forecast of the analyst is reached, buying DOGE could result in at least 100% return by the end of the year. This certifies the joke currency as a good investment this year and beyond.
eToro – Best Exchange to Buy Dogecoin
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Virtual currencies are highly volatile. Your capital is at risk.