Dogecoin is among the most traded cryptocurrencies at the moment and the main attraction is its continually increasing prices. Given its growing user base and popularity on the internet, Dogecoin may actually reach the $1 mark by the end of 20201. If not, then it should do so by mid-2022.
The cryptocurrency that started as a joke less than a decade ago has been on a crazy ride as individual investors have piled in. This cryptocurrency was named after a meme around the image of a Shiba Inu dog with bad spelling habits. Who would have thought it would become so popular? The internet is one crazy place.
A couple of years ago, most people would have laughed if you said you hold part of your investments in crypto. However these days, you might actually be seen as behind on the times if you have never traded a single Bitcoin, litecoin, or dogecoin in your life.
There are many reasons why you should consider investing in crypto, three of the prominent ones being:
- High liquidity
- Flexible trade
- Increased protection
If you have the chance, you should move with the pace of the world and catch up with the advancing technology. Many believe that cryptocurrency will be the new way of payment in the future.
Finally, as for now, it seems like Bitcoin has two advantages over existing currencies. It's much more vulnerable to hyperinflation crises and all transactions are permanent and immutable.
Because of this volatility, a lot of people opt to gamble with BTC literally, as many online casinos accept Bitcoin as a regular payment. While this doesn’t influence the crypto, it can let you spend some of it on entertainment. Not to mention that if you win this can increase your funds more than gambling with anything else.
Advantages of investing in Dogecoin
If you didn't know this already, the primary idea behind Bodecoin was to create a cryptocurrency that is more friendly and approachable. Since Litecoin and Bitcoin were based on many technicalities, DOGE decided to be different and unique and provide a fun side towards its usage.
Lots of speculators think Dogecoin has a big and bright future ahead, making it an attractive option for new and established traders. So what exactly are the benefits of investing in Dogecoin?
The first benefit of investing in DOGE is that you can earn profit by capitalizing on volatility. Due to its volatility, small price changes can return huge gains for all investors who know what they're doing.
The second advantage of DOGE is its fan base across social media networks such as Twitter and Reddit. So you have the ability to watch the feeds and chats of DOGE holders alerting you to learn where the price of DOGE is headed.
Additionally, one of the biggest pros of investing in this crypto is Elon Musk himself. His promotion of this coin has sparked an interest that has led many people interested in this cryptocurrency.
Finally, Dogecoin has a friendly as well as humanitarian feel to it. Dogecoin has been used to sponsor athletes and raise funds for a Bobsled Team from Jamaica for a total of $50,000. Finally, dogecoin is very secure and sooner or later, blockchain will be universally recognized as the best technology in user security.
Downsides of Dogecoin
As with anything else, Dogecoin as well as some negative sides to it. At the end of the day, it's up to an individual to weigh out the good and the bad and make a decision.
The first downside of Dogecoin is its weak fundamentals. As you already know, dogecoin was created as a joke and got famous on social media. With that said, its price is not determined by the fundamentals of its technology.
Secondly, unlike Bitcoin, dogecoin is not capped and has an unlimited supply. And due to its inflationary nature, it's not an ideal choice to store value.
Finally, despite the fact that dogecoin is better than bitcoin in terms of transaction speed and fees, it still poses capability issues. With that said, once the network is propagated among the masses, it, unfortunately, can't be used for practical purposes.
The Future of Dogecoin
Without a doubt, crypto has seen explosive growth in the last few years. From the start of 2021 to the beginning of May, Dogecoin's price went up by 10,000% and experts think that it will be $1 by the end of the year.
The main question that arises out of all of this is should you buy Dogecoin? Well, the answer is not that simple. Preferably, if you can't afford to lose your money, then you should skip it. However, if you are an experienced trader, you can try your luck.
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