What Is Dogecoin (DOGE)? Should You Invest In DOGE And Where To Buy It?
Dogecoin is a pretty famous cryptocurrency. It had a remarkable beginning and has been hyped by some of the naughtiest cryptocurrency fans, including Elon Musk. Long before the Billionaire owner of Tesla started tweeting about his apparent affection for the digital currency, it has performed relatively well. His tweets did a lot for DOGE and cryptocurrency enthusiasts who believe in him. Some have become DOGE millionaires by investing in the coin.
Enough about Elon Musk and his tweets – this post is all about Dogecoin and how regular folks can decide whether it is the right investment option for them. So, what is Dogecoin? Should you invest in Dogecoin? And where can you buy DOGE?
Depending on how long you have been involved in cryptocurrency trading, you may have several other questions on your mind. Here, we will answer most of the important questions that relate to investing in Dogecoin.
It is crucial that every potential cryptocurrency investor understands how the market works before jumping in. But even if you are a beginner, you can start investing once you learn about a particular digital coin and determine that it is the right fit for your investment portfolio. Here, we will help you decide whether to invest in DOGE or stay away. Read carefully so that you don’t make a costly mistake in your investment journey.
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What Is Dogecoin?
Dogecoin is a decentralized, open-source digital currency that supports secure and fast peer-to-peer transactions at a relatively low cost. It is one of several penny cryptocurrencies that has caught the attention of cryptocurrency enthusiasts and serious online traders/investors.
Considering how serious Dogecoin investment has become, one is tempted to say that the current buzz is an irony. Dogecoin started as a joke, and in just about 8 years of existence, it has become one of the most talked-about digital currencies.
Dogecoin is a fork of Litecoin, which (in turn) is a fork of Bitcoin. The three coins share similarities but are different in many regards. There have been claims that Dogecoin is nothing but an imitation of Bitcoin, but there are notable differences between the three tokens and other forks of Bitcoin. Besides, Dogecoin is nothing like Bitcoin in terms of value and price.
Besides the publicity stunts pulled by some of the members of the Dogecoin community, the coin is popular because of its logo. It has as its theme, the Shiba Inu doge as its logo. This is a Japanese dog breed that has become an internet sensation and the subject of an internet meme.
Before we move on to the next subject, it is crucial that we mention that Dogecoin has a digital coin like other cryptocurrency platforms. The coin is simply referred to as DOGE and represents the digital asset regular investors need to buy to make a profit from the network. As you should know, the chances of losing are also there.
Brief History Of Dogecoin
Billy Markus (from Portland, Oregon) is widely credited as the founder of Dogecoin, but he co-created the digital currency with Jackson Palmer (from Sydney, Australia). As hinted earlier, it was forked from Litecoin, but there are several other stories behind the success of the coin.
Before co-founding Dogecoin, Markus and Palmer were gainfully employed in the tech sector. Billy Markus worked as a software engineer at IBM while Jackson Palmer worked as a programmer for Adobe. There are reliable reports that Markus started the project as a joke and was surprised that it succeeded.
Dogecoin had what can best be described as a modest beginning. It went live on December 6th, 2013 and was able to gain a significant audience on a select Reddit community. However, it is worthy to note that the Dogecoin website had more than a million visitors on the very first day of launch. That was probably a good sign for the creators that the coin could amount to something with a little bit of seriousness.
About 13 days after its launch, Dogecoin experienced its first breakout moment. The value of DOGE, the token, jumped by nearly 300% in less than 72 hours. The value of the coin was corrected by market factors within three days, but there have been many other impressive upswings.
Dogecoin is one of the many cryptocurrency platforms that has been hacked. It happened during the early days (December 17th, 2013). The company’s native wallet, simply called Dogewalet, was hacked and about 21 million DOGE was stolen. The value of the stolen assets, at the time, was just $12,000. The Dogecoin community didn’t let the minor setback distract them from building one of the tightest cryptocurrency communities on the internet.
What Problem Does Dogecoin Solve?
Many cryptocurrencies, especially the newest ones, solve some real-life problems. Dogecoin belongs to the older generation. It was developed when there were no smart contracts, and most projects were focused on creating a secure platform for peer-to-peer transactions. We can say that Dogecoin succeeded to some extent, in this regard.
Within the cryptocurrency scene, Dogecoin solves the problem of scalability. It significantly improves the speed of peer-to-peer transactions, making it easier and more convenient for users to transfer digital assets or use them to make payments for goods and services.
Another quality that makes Dogecoin unique is the motive for creating it. The founders didn’t set out with such lofty goals as freeing the masses from oppression (like Bitcoin). They just wanted to spread goodwill and have fun at the same time. It paid off in multiple ways. Many still see the Shiba-Inu-themed coin as a source of goodwill, fun, and inspiration.
Don't Miss: Pros and Cons of Investing in Dogecoin
More About the Dogecoin Token (DOGE)
We have discussed a lot about Dogecoin as a network with a tight community – now is a good time to focus on DOGE. As stated earlier, this is the digital asset you will have to buy as an investment vehicle for profit-making.
DOGE has become a popular digital coin in recent times. The coin existed for several years and had its fair share of ups and downs before some members of its community decided to take to hype. A viral TikTok video in 2020 hyped up the coin by declaring that if everyone deposited $25, DOGE would reach $1 and each $25 investment would be worth $10,000 in no time. This was a hoax, but it made the coin trend.
There have been several other efforts to hype up DOGE – celebrities have been part of it. However, the value of DOGE has not increased as much as many of the members of the community want it.
At the time of writing this piece, DOGE is trading at $0.3301. It has recorded a 24-hour low of $0.2976 and a 24-hour high of $0.331. The 24-hour trading volume is $3,896,123,430. The coin has an impressive market capitalization of $43,224,489,213, making it the 7th ranked cryptocurrency in terms of market capitalization.
DOGE recorded its all-time low value of $0.00008547 on May 07th, 2015. It reached its all-time high value of $0.7376 on May 08, 2021. The circulating and total supplies are identical at 130,936,375,962 DOGE. It has no hard cap.
Should You Invest In Dogecoin (DOGE)?
There are several things to consider before making any Dogecoin investment. At the moment, the Dogecoin platform is one of the fastest-growing communities in the crypto universe.
To invest in Dogecoin, you have to buy DOGE. But is this something you should do? Well, it depends on your attitude to risks and your take on the Dogecoin community as a reflection of the entire cryptocurrency universe.
Depending on who you ask, you will get different feelings regarding investing in Dogecoin. DOGE has made some people millionaires. At the same time, people have lost lots of money through Dogecoin investment. It is the nature of the cryptocurrency market and is also majorly dependent on the experiences of the traders/investors involved.
You should invest in Dogecoin if you have enough reasons to believe it will favour. If you feel that the drawbacks are just too much for your investment strategy, then avoid the coin by all means.
Is Dogecoin A Safe Investment?
Safety is the most important factor to consider when investing in Dogecoin or any asset. Of course, the entire system is risky, but you want to make sure that you minimize your risks as much as possible when making a commitment.
Before we start discussing the major reasons to invest or not to invest in Dogecoin, it is important to talk about the safety of the token as an investment vehicle as well as the safety of its platform. Security is obviously one of the most important things to consider before making any investment online.
It is generally safe to invest in Dogecoin, but you have to be really careful. The native wallet of Dogecoin has been hacked once. This is not an anomaly in the cryptocurrency universe. The latest heist on Poly is just a recent reminder that traders/investors have to be more careful.
One of the ways to play safely in investing in Dofecoin is to transact on a reputable platform. We will come to that later. It is also important that you learn to store any cryptocurrency you buy in a safe digital wallet. Of course, observing other cyber security protocols is crucial.
Major Reasons To Invest In Dogecoin
Regardless of the risks involved in investing in Dogecoin, many have invested already. Some have made huge profits and some have lost money, which is normal in cryptocurrency investing.
In spite of the ups and downs, there are several concrete reasons to invest in Dogecoin. The major ones include:
✅ Dogecoin Has a Friendly and Friendly Feel to It
From its inception, Dogecoin was all about fun. It was a joke that became real and valuable in a short while. Nearly eight years after it was created, Dogecoin is still fun and friendly, and many love it that way. If you choose to invest because of this, then be assured you are in a jolly company of enthusiasts who are unlikely to abandon the coin anytime soon.
✅ Dogecoin Scales Much Faster Than Bitcoin and Many Other Cryptos
Bitcoin and several other cryptos have the problem of scalability. Dogecoin is not in this category. Its unique algorithm that has SCRYPT makes it scale much faster than other cryptos, and this attracts users. The faster speed of transaction also means your experience buying and selling Dogecoin will be enjoyable, compared to many other coins.
✅ Dogecoin Has Secured Several Important Partnerships
2021 has been an incredible year for DOGE in many ways. During the first and second quarters of the year, Dogecoin secured key partnerships that will serve its future very well. It was recognized by COVCARE, one of the biggest medical suppliers in the world. It is also linked to the Dallas Mavericks, thanks to Mark Cuban’s interest in the coin. There are several other mainstream partnerships, and they elevate the status of DOGE and can make its future brighter.
✅ Dogecoin Has One of the Most Interesting Online Community
The cryptocurrency universe is ruled by several factors, and community engagement is one of the most helpful factors for the growth and relevance of a coin. Talk about loyal fans, and the Dogecoin community will rank at the very top. DOGE has many social media fans, comprising investors and regular folks who are attracted by the fun and friendly feel of the coin and all it represents.
✅ It Is Loved By Influencers
Elon Musk is probably the most influential person in the cryptocurrency space right now. His tweets can push up the price of a coin or mar its performance for a few days, at least. Musk happens to like Doge, and he is not alone. The friendly meme coin is loved by several other celebrities and influencers. This factor, alone, can continue to push the price of DOGE, even if financial institutions continue to refuse to recognize it.
✅ It Has Seen Some Really Good Day
Volatility is a tricky issue in cryptocurrency as it can work to your favour or disadvantage. Dogecoin is a volatile coin, but it has seen several good days and there are several chances that it will perform a lot better in the future. Remember that it is a hard fork of Litecoin, which is a hard fork of Bitcoin. The prices and performances of these coins can influence the value and performance of DOGE.
✅ DODE Is a Cheap Cryptocurrency
Dogecoin price has never reached the $1 mark. Those who currently own DOGE may not see this as a good thing, but it is an encouraging factor for those who are still hopeful of investing in the coin. With little capital, you can start investing with the hope of making a profit in the future. DOGE is also seen as a great coin for day-trading. Even if the coin’s price does not rise in any dramatic manner in the near future, you can gain by being an active trader.
✅ DOGE Is Now Available In Some of the Best Platforms
In the past, people avoided Dogecoin because it was only available in select exchanges. A lot has changed in the last 12 months in terms of its availability in major exchanges. Even Etoro, one of the most popular brokerages for cryptocurrency investment has made DOGE available for willing investors. The change is an indication that the coin is becoming more acceptable and ready to enter its next phase of existence.
Reasons to Reconsider Investing In Dogecoin
Just as there are many reasons to invest in Dogecoin, there are reasons to think twice before investing in the coin. Here are some of the most concrete reasons you may need to think twice about investing in the coin:
❌ Dogecoin Does Not Offer Any Real Innovation
A lot has changed in the cryptocurrency space after the creation of Ethereum. Most of the newest coins are innovative in the sense that they solve specific problems either within the crypto scene or even outside it. With decentralized finance emerging as a whole new subsector with lots of potentials, transactional coins like Dogecoin will see fewer growth opportunities. Besides, DOGE is not among the top transactional currencies, which casts doubt on its long-term future.
❌ Dodgecoin Relies Heavily On Hype
For a long time, DOGE has been associated with hype. Most of the upswings it has had in the past were fueled by hypes or Bitcoin’s growth pattern. While is part of the game and considered fair in many instances, it has led some unsuspecting members of the community to experience losses. Hype is also not sustainable. It may work severally in the future, but people will start becoming aware that the coin offers nothing significantly better than hopes, and that may affect its reputation and potentials. Even some of the biggest investors in DOGE see it for what it is – a gamble.
❌ Dogecoin Is Associated With Pump and Dump Schemes
This is probably the most discouraging thing about Dogecoin because it is a form of illegality, even within the unregulated cryptocurrency scene. It involves a group purchasing a large volume of an asset to boost its price and then selling it off to unsuspecting buyers once the asset reaches a relatively higher price. This may appear like smart investing but it leaves those who buy during the dump losing lots of money and is considered illegal. Dogecoin has been associated with this scheme, and that alone is a big slap on its long-term future and reputation among informed investors.
❌ It Has Infinite Supply
Dogecoin doesn’t have a hard cap, meaning that the supply is infinite, at least for now. This may sound cool or harmless, but it is a sign that the coin’s value may not improve with time. Similar coins like Litecoin and Dash thrive mostly on their final supply. A bit of scarcity is needed in most instances to drive up the price of assets. With DOGE, it is almost impossible to create any form of scarcity because it is infinitely mineable.
❌ DOGE Is One Of The Coins That Can Go Bust Under Heavy Regulation
Though more cryptocurrency exchanges have started accepting DOGE, its use is still restricted. Unlike Bitcoin, Ethereum, Litecoin, and many other crypto assets, DOGE cannot be used on such dynamic platforms as Paypal, Skrill, and Venmo. Though it boasts of loyal fans and enjoys the support of several influencers, it may be among the first coins to collapse if the sector comes under heavy regulation.
Where Can You Buy DOGE?
It is becoming a lot easier to buy most cryptocurrencies, but many are still restricted in mainstream exchanges. Dogecoin is not as widely available as some of the most prominent digital coins. Some of the mainstream exchanges do not offer DOGE for reasons best known to them, but the coin is slowly becoming more available than it was a few years ago.
Besides exchanges, you can buy DOGE and other crypto assets from select brokers. Some of the most progressive brokers have seen the future of cryptocurrencies and their potentials as investment vehicles and started making them available to their users. Buying from brokerages is considered safer for many reasons.
You can also buy DOGE and other cryptos from regular cryptocurrency apps that are neither official exchanges nor brokerages. While some of these apps are safe, many are unsafe and should be avoided. If you intend to buy from an app, be sure it is reputable and safe before making a financial commitment.
Best Platform To Buy DOGE?
Though you can buy DOGE from many platforms, it is always better to narrow your options to a few safe ones with known benefits. In this regard, choosing a good brokerage will be the best decision.
As mentioned already, brokerages are safer options than mainstream cryptocurrency exchanges. Most exchanges have been hacked in the past and they are not properly regulated. Brokerages, on the other hand, are pretty secured and regulated to a good degree.
Choosing a brokerage can also be challenging, especially if you are new to crypto investing. Experienced folks know that eToro is one of the top brokerages to trade and invest in cryptos and other investment vehicles. It is the one full-service brokerage we recommend for crypto investors and traders of all experience levels. It is a good thing that it recently added DOGE to the list of supported cryptos.
What Next After Buying DOGE?
A digital asset is safest when it is kept in a secure, digital wallet. It is unsafe to buy a cryptocurrency and leave it on the exchange or app you bought from. Crypto platforms are targets of hackers, and there has been several hacks and heist in the short history of the crypto market.
After buying DOGE, it is important that you keep it safely locked in a digital wallet. In fact, it is recommended that you get your secure wallet ready even before buying any digital asset to minimize your risks.
Safe storage of your digital asset is another important benefit you will derive from buying and selling with eToro. The full-service brokerages offer an easy to use, multi-token digital wallet you can use to keep your digital coins safe. It will safe as an excellent security layer for your crypto portfolio.
Key Points to Keep In Mind
So far, we have covered almost everything you need to know to decide whether investing in Dogecoin is a risk you are willing to take. There is obviously a lot of information here, so we will summarize the key points to help you understand better and make an informed decision:
- Dogecoin is an open-source cryptocurrency based on an internet meme that features the Shiba Inu on its logo.
- Dogecoin started as a joke but has become a world-recognized project.
- DOGE has a friendly and humanitarian feel to it that attract people.
- Dogecoin has already made some millionaires, though many have also lost their money by investing in the coin.
- Dogecoin is a hard-fork of Litecoin but the code has been described as being nothing more than a plagiarism of Bitcoin code.
- DOGE is a transactional currency but is not one of the top ones.
- Dogecoin does not solve any particular real-world problem, though it improves scalability. (The absence of innovation is a turn-off for many).
- Dogecoin has one of the most active online crypto communities and social media fans.
- DOGE is fancied by influencers and celebrities.
- DOGE relies on hype and has enjoyed many good runs due to publicity stunts.
- Dogecoin is associated with pump and dump schemes.
- eToro is a reliable platform to buy DOGE, other cryptocurrencies, as well as several other investment vehicles.
- You need a secure digital wallet to store DOGE and other digital assets to protect your investment portfolio from hackers and crypto thieves.
Dogecoin has already made many people millionaires, so we can’t say it is a bad investment option. However, you should know that it is very risky and that many have lost their money by investing in DOGE.
You should also know that DOGE is not the best coin for long-term investment, considering its qualities, drawbacks, reputation, and historical data. Day-trading DOGE is also risky, but far safer than HODLing a coin with an uncertain future.
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