Is DOGE a joke anymore? What is the worth of it? Does it have anything in it for me?
Yes, these are a few questions a newbie may ask while planning to buy Dogecoin or DOGE.
DOGE was thriving as a joke with its value less than a penny. But, due to several remarkable events, including a big nod from Elon Musk, DOGE is now one of the vital players in the world of cryptocurrency. By May 2021, DOGE saw a spike in its value.
The value went up to become more than 70 cents with an $88.8 billion market cap. DOGE is now holding its position as one of the top 10 cryptocurrencies worldwide, considering its market capitalization.
People ask a very common question, how to invest in Dogecoin and make money?
To get the correct answer, one must first understand whether or not DOGE is the right choice for them, as far as investment is concerned.
So, we will focus on the basics of Dogecoin and why it might or might not be suitable for your portfolio.
Cryptocurrency, in general, is a very well-suited option for people who want to explore alternative investment options. The reason is simple, cryptocurrencies are volatile, new in the market compared to other investment options, and have less stringent regulations. But, before getting all buckled up for investing in cryptocurrencies, it is best you first understand the risks, else you might incur losses.
Let us remind you again, it is suitable for people who have a diversified portfolio.
People who have built a corpus of low-cost index funds through reaping the benefits of taxable brokerage accounts or tax-advantaged accounts. These people must also have a mindset to keep investing to let their corpus of low-cost index funds grow. The bottom line is, if you have any surplus amount to spare, you can consider including DOGE in your portfolio.
If you are a novice, it is best to stand aside and learn adequately about what is what and what you shouldn’t do, mostly. Investing in Dogecoin doesn’t take much time. There are dedicated exchanges where you can indulge in peer-to-peer trading through Dogecoin and reap the benefits.
But, the matter is not that simple.
You must have a preliminary idea of how the market works; what is short-selling? What are long positions? And so on. Without knowing these basic rules, you might get confused and give in to the volatility of cryptocurrencies.
Note that Dogecoin does not hold any traditional value. This means the price of DOGE is solely dependent on the market forces.
If you ask, is Dogecoin safe?
The answer is – of course, it is.
As far as the technical aspect of DOGE is concerned, it is inspired by Bitcoin, i.e. Blockchain technology. Dogecoin is used to send value from point A of the world to point B of the world seamlessly, and the network they operate in is undoubtedly secure.
Dogecoin has a strong real-time consensus, and people are getting more interested in DOGE over time. The reason behind this increasing affinity is simple, the hash rate is 203.97 TH/s, and this characteristic makes this network a safe option for transferring value.
If you are torn between whether you should or should not invest in Dogecoin, here’s one more aspect that you might want to consider. The market cap of DOGE slid, and now it is standing at $7 billion. It is lined up to work on some global projects with the big industrial giants. If you look at its last year’s performance, the total value of Dogecoin saw a spike of up to 2,400%. According to skeptics, Dogecoin’s value can be controlled, altered, and manipulated quickly.
To many crypto experts, it is nothing more than buying a lottery ticket. In an interview with Forbes, Mark Cuban revealed that he invested in DOGE because his motive was to teach the basics of investment to his son, and of course, the fun part and PR can’t be missed out on!
Well, if you are going to invest seriously, first learn about Dogecoin. Learn how the market forces affect its movements, talk to your financial advisor if possible, and then take the final call.