Will Dogecoin Make Me Rich?
There is no surefire way to become rich immediately, and there’s definitely no such thing as a money making machine. However, investing in Dogecoin is as close as you can get to one!
Dogecoin could make investors super rich. Even when the digital asset has jumped substantially in May 2021, some reasons indicate that it is a strong investment and Dogecoin DOGE’s price could experience a huge growth in the near future.
Dogecoin recently had a bullish run that took it to over $0.70 as it continues to enjoy support from celebrities and a lively online community. This has got veteran and novice investors asking whether the coin will make them rich if they invest now.
It seems most people have learned from Bitcoin’s journey and are not willing to take chances anymore. That is why most new cryptocurrencies are quickly picking up speed as investors hope that these assets will eventually make them rich.
Dogecoin has already shown a lot of potential this year. The meme-based coin broke new records in the first half of the year, attracting a boatload of new investors who now hope to tap on its newfound momentum.
The joke coin was sometime back thrust into the spotlight by billionaire Elon Musk who casually tweeted about its potential. Since then, it has had one of the most dramatic growths.
Dogecoin coin crossed the 70 cents mark, with its market cap playing between $60B and $80B depending on the price action, in May. Does all this mean that the DOGE will make you rich if you invest now?
Let’s explore that in detail below.
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Can I Make Money Investing in Dogecoin?
Crypto investors and experts believe that Dogecoin will increase in value over time. This is indeed a good method that can make you money by buying and holding Dogecoin.
Long-term crypto investing or “HODLing”, as it is sometimes known, is one of the best strategies when investing in Dogecoin. The idea is to buy DOGE when its price is low, hold it and wait for the price to grow, at which point you’ll convert it into cash.
In order to minimize the risk of making a loss on your investments, it’s important that you put the effort into gaining knowledge and confidence when choosing to put your money into Dogecoin. You should make use of the endless available online resources to keep yourself informed before you invest your capital.
The more you prepare yourself prior to investing in Dogecoin, the likelier the chances are that you can profit from your invested capital.
Don't Miss: Will Dogecoin Reach $1?
Dogecoin’s recent surprises have got most people wondering if the coin can go as high as $100. While it pays to be hopeful as an investor, Dogecoin might not touch $100 anytime soon.
To adequately answer this question, we need to consider a number of things. First of all, Dogecoin is inflationary. This means that its supply is not limited as billions of coins are added each year.
Now, based on the laws of supply and demand, we see that as demand for DOGE increases, the supply will also increase, and this will eventually bring down the price.
As a result, Dogecoin will have a hard time going to even $50. To do so, its market cap would have to be insanely high.
In fact, based on the current data, if DOGE were to ever reach $100, its market cap would hit $18 trillion. That is almost the same as the USA's GDP in 2020. According to CoinMarketCap, the current global crypto market cap is about $2.27 trillion.
That goes to show just how impossible it would be for Dogecoin to hit $100 anytime soon.
The fact that Dogecoin’s price majorly relies on hype and speculations also exposes it to high levels of volatility which makes it hard for its price to have any major leaps. In fact, most analysts believe that Dogecoin might be headed for a bubble burst.
Yes, the price is was on an uptrend and hitting new ATHs, but for it to hit $100 in the coming years would be tricky.
Again, this is a cryptocurrency, and we have seen stranger things, especially at the start of this year. So, it’s safe to say that anything is possible.
Read Also: Should You Buy Dogecoin?
Where will Dogecoin be worth in 5 years?
If the current bullish trend holds, Dogecoin might be headed for a huge breakout in the next five years. As usual, the predictions vary, with some believing that the bullish trend will continue while others think it will drop.
Wallet Investor borders a bit on the bullish side and predicts that Dogecoin will still be worth $1.292 by May 2025. The site hints at stability along the way. Wallet Investor’s prediction of around $1.033 by May 2025 shows that DOGE will stay in the $1 range, even if moving up and down.
Of course, some analysts are a bit less hopeful. For example, Coin Price Forecast believes that Dogecoin DOGE will be worth over $0.54 by the end of 2025, and over $0.63 when 2026 comes to an end. Long Forecast is a bit conservative and predicts that Dogecoin will be trading slightly above $0.49 by mid-2025.
Where Will Dogecoin be in 10 years?
Dogecoin is highly speculative, and predicting its price for the next ten years is a huge gamble. The best we can do is try to understand why Dogecoin behaves the way it does and, more importantly, what drives its success.
As we mentioned above, Dogecoin mostly feeds on speculation and hype. These are probably what will determine how much the DOGE coin will be worth in 10 years. There are three parties that are mostly responsible for this hype and will be responsible for Dogecoin’s long-term valuation.
These are :
- Celebrities: Dogecoin has got the attention of some of the most high-profile celebrities. One of the most outspoken is Tesla CEO Elon Musk, who has previously caused huge price spikes by simply tweeting.
- Online Community: Dogecoin has a huge and active online community that is mostly responsible for its price surges. The community is currently trying to push the price of DOGE to $1 by the end of this year.
- Memes: DOGE started as a meme and found itself in the limelight after going viral as a meme. There is currently an endless supply of humorous memes that always get new investors on board without much persuasion.
Now, if these three parties were to be consistent with their support for DOGE, the coin could be highly valuable in 10 years. It all depends on whether more celebrities will keep endorsing it, the community remains lively, and if people will keep sharing memes about Dogecoin.
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Is Dogecoin a Good Long-Term Investment?
There are numerous reasons to justify why investing in Dogecoin is a good idea. Thanks to the wide variety of trading sites, exchanges, and online brokerages around the world, Dogecoin is possibly one of the most popular cryptocurrencies to invest in. With extremely low fees, you can conveniently exchange DOGE for cash or other cryptocurrencies.
As you already know, Dogecoin started as a joke to show how people blindly invested in cryptocurrencies without fully understanding them. This means that the asset, unlike others like Ethereum and IOTA, has no goals to achieve. It does not have a whitepaper or a full-time team of developers or an executive board, or any fundamentals whatsoever.
Apparently, the founders never expected it to amount to much. However, along the way, the joke backfired, and Dogecoin soared against many people’s expectations. From trading at a fraction of a dollar, Dogecoin has grown to become one of the most valuable digital assets.
The joke Dogecoin crypto has grown by more than 14,000% this year and almost touched $80 billion in market capitalization; more than Dell’s, a company with over 160,000 employees.
So, is it a good long-term investment?
Let’s break this down for you.
Assume you bought Dogecoin DOGE five years ago, let’s say on May 4, 2016, when it was trading at $0.000227. Recently, DOGE went as high as $0.69. That is almost a 304,000% increase in just five years.
Obviously, you wouldn’t spend a fraction of a cent to buy crypto for long-term investment. So, let’s raise the figures just a little bit. If you had spent just $10 that same day, you would have roughly 44,050 Dogecoins which would be worth over $30,300 today.
Now, let’s say you put in $100. That would be 440,500 DOGE, which is worth over $303,000 based on the $0.69 rate. So, if you were a bit daring and put in $500, it would be valued at over $1.2 million today.
So, as you can see, Dogecoin is definitely a good long-term investment.
Read More: Is Dogecoin a Good Investment?
Conclusion: Should I Buy Dogecoin DOGE?
Whether or not you want to buy Dogecoin DOGE depends on your investment goals. However, if you are actively into cryptocurrencies and looking for new coins to try, Dogecoin is definitely worth a spot on your portfolio.
So If you feel that you are prepared and have learned as much as you need to about investing in Dogecoin now may be the time to invest in.
As mentioned earlier, Dogecoin reached its all-time high this year. This may be your opportunity to shine and get in early. If you have already decided to invest in cryptocurrencies, you should definitely consider Dogecoin.
Experts believe that the value of Dogecoin has plenty of growth ahead and investing in DOGE is a smart decision for the long-term. Therefore, it could be a good time to buy Dogecoin while the asset is performing very well.
Keep in mind that there are huge risks in cryptocurrency investments, and you could lose most of your money. Dogecoin is particularly highly volatile since it relies on social media hype and speculations.
So, before you buy Dogecoin, make sure that you understand what you are getting yourself into.
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