Is Dogecoin Worth Buying In 2023?

The joke crypto is a strong buy for 2023

Last Updated December 29th 2022

7 Min Read

Wondering if Dogecoin is worth investing this year? Use the guide below and get your question answered!

You might have seen one too many stories of how people are currently cashing in on the Dogecoin craze. And since you are suddenly a victim of FOMO, you are wondering if Dogecoin is worth buying in 2023.

Read ahead, we prepared this guide to try and provide some answers.

Dogecoin is a digital asset that attracted a lot of attention throughout the last year and is now one of the most valuable cryptocurrencies by market cap.

After the May 2021 Dogecoin price surge, it is understandable that most people would be wondering if now is the right time to buy. Well, cryptocurrencies are unpredictable. It is even worse for Dogecoin. So, there is really not the right and wrong time to buy.

However, we are going to cover some factors that can help you decide whether to buy Dogecoin or take a pause.

What Is Dogecoin?

Dogecoin is a first-generation cryptocurrency that started as a joke. Literally.

The coin was created back in 2013 and has now grown to be among the ten most valuable cryptocurrencies by market cap. According to the creators of Dogecoin, they meant for the coin to bring some lightheartedness into the crypto market, which was then laden with blockchain mumbo-jumbo.

Dogecoin, they say, would be a stepping stone for people who were still new to cryptocurrency to learn about the new currencies. DOGE’s meme status quickly made it popular with internet users and was soon going viral.

However, despite its current popularity and valuation, DOGE is nothing more than a Bitcoin hard fork. It’s technically a copy and paste of Bitcoin’s code with a few modifications. The coin was apparently created in just three hours.

However, unlike Bitcoin and other mainstream cryptocurrencies like Ethereum, Dogecoin is not on some big mission to liberate the world from financial oppression. It has no whitepaper, which means no purpose or a description of what it is trying to achieve whatsoever.

This has not prevented the coin from growing parabolically, especially last year. The coin mostly feeds on speculations and hype from celebrities and an active online community.

According to CoinMarketCap, Dogecoin is now the 10th biggest cryptocurrency in the world by market cap.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Why Is Dogecoin So Popular Right Now?

If you have been keeping tabs on the crypto market, you know that Dogecoin blew up in May 2021. According to CNBC, the joke cryptocurrency grew more than 26,000% when it reached its all-time high in May and became one of the most valuable digital assets.

A big part of Dogecoin’s current popularity is due to celebrity endorsements and the active online community. The coin is particularly popular on Reddit and Twitter, where celebrities like Mark Cuban, Elon Musk, and Snoop Dog regularly tweet about it.

Dogecoin surged to over 70 cents within a few days, driving its market cap to almost $80 billion. Experts say this popularity is because of its meme status and the ‘fun’ it represents.

Also, Elon Musk announced that his company SpaceX would start accepting Dogecoin as payment. Another staunch supporter, Maverick’s Mark Cuban, announced that his company would also be accepting DOGE as payment.

This kind of credibility and support from the community has helped Dogecoin grow both in terms of price and popularity.

Read Also: Will Dogecoin Make Me Rich?

Should I Buy Dogecoin?

Whether or not you should buy Dogecoin depends on how ready you are to invest in an unstable, inflationary coin with no purpose to achieve other than grow bigger.

It is understandable that after the recent price surge, you might be experiencing acute fear of missing out.

Based on the current numbers, Dogecoin seems like a good investment. However, being a cryptocurrency and a highly volatile one in that matter, you might want to refrain from making any haste decisions.

So far, Dogecoin has proven to be a worthy investment. If the price starts rising, you might benefit in the long run if you buy now. However, being an unpredictable asset, there is a fifty-fifty chance that the price can move in either direction at any time.

We would recommend that you don’t do what the crowd is doing. Take your time and study the coin. If it is worth investing in, the price will keep rising. Otherwise, you could lose a sizable amount of investment by giving in to the FOMO.

The truth is, no one knows when is the right time to buy any cryptocurrency. The best you can do is study the market because sometimes the price might be high, but there is a high chance that it will tumble.

This is particularly true for Dogecoin. Why?

You see, Dogecoin, as we already mentioned, is inflationary. This means that its supply is endless, and soon, there will be more tokens than demand. When this happens, the price will come down, and until another catalyst comes along, it might never go back up again.

So, what should you do? Take your time and study the market. Understand what you are about to get yourself into and be sure that it is what you want.

Dogecoin can be profitable in the long term. There is plenty of previous price data to prove that. So, after studying the market and being sure that it is the right addition to your portfolio, go ahead and buy before the price shoots up.

So, Is Dogecoin Worth Buying In 2023?

If Dogecoin resumes its bull run, then it is worth investing in 2023, though investors should be aware that every investment entails risk.

We should also note that it is not always ideal to invest in cryptocurrencies, including Dogecoin. Cryptocurrency investments can lead to unexpected outcomes. We can never know for certain whether Dogecoin will rise or fall in value. The same applies to any asset. It would be unwise to invest in Dogecoin if it is on the verge of depreciating, at least not for the short-term.

The volatility surrounding cryptocurrencies and the fact that Dogecoin has seen much less mainstream adoption than Bitcoin means that a lot of people are still on the fence as to whether they should invest in it.

Although the smaller market cap might come across as a red flag for investors, it is actually a proxy for the massive room for growth. Like most cryptocurrencies, the price of Dogecoin is steady and has grown from a record low to above the $0.60 mark.

Many crypto experts are confident that Dogecoin’s record high price is imminent this year.

This kind of confidence makes Dogecoin an alluring prospect for investors looking to establish their footing in the crypto market. Having said that, Dogecoin DOGE is a promising investment for young investors but is, nonetheless, still fairly speculative.

Crypto investors believe that Dogecoin is worth buying in 2023 compared to other coins. Experts believe that Dogecoin price could grow further this year.

Let’s quickly look at some of the reasons why Dogecoin could be or could not be a good investment for you.

Why You Should Buy Dogecoin

If you are still not convinced or looking for a more straightforward answer (which is hard to give when it comes to cryptocurrencies), below are some reasons why buying Dogecoin in 2023 might be a good idea.

Dogecoin is highly popular

In the crypto market, more popularity can easily mean a higher price. Lucky for you, Dogecoin is highly popular since it has the support of high-profile business figures and an active online community.

Dogecoin is a good long-term investment

People who bought Dogecoin back when it was insanely low are now enjoying some enviable ROI. For instance, if you had invested only $500 back in mid-2016 when DOGE was selling for as low as $0.000227, your investment would be worth close to a million dollars right now.

Dogecoin is liquid

With its limitless supply, Dogecoin is liquid enough, and you can easily buy and sell it in some of the most popular exchanges.

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Risks Associated With Dogecoin Investment

Like most cryptocurrencies, Dogecoin has its share of risks, and there is a good probability that it can drown your investment as quickly as it can magnify it.

Below are some reasons why you might want to rethink buying Dogecoin:

It’s highly volatile: This is the first curse that any cryptocurrency investor has to face. It is not different for DOGE. In fact, being a crypto that relies on hype and speculations, Dogecoin is much more volatile than most coins, and you might easily lose all your money.

It is inflationary: This means that the supply is limitless, and soon, there will be much more coins in supply than there is demand. As a result, Dogecoin can easily lose value, especially if a lot of people decide to sell off their investment.

Conclusion

So, there you have it! We hope this guide helps you decide whether or not to buy Dogecoin this year.

Despite the high levels of volatility, we still think that Dogecoin is a great investment asset, and if everything goes well, it will be making some major strides this year.

So after doing your research and working with an expert and you are still sure that Dogecoin is the right kind of investment for you, go ahead and buy.