Is Dogecoin a good investment? Should I Buy It?

Is Dogecoin a good investment 1: What is Dogecoin

In this article, we will explore in totality whether Dogecoin is a good investment. Firstly, what is Dogecoin? Dogecoin is a cryptocurrency that was created by two software engineers on December 6, 2013. The two software engineers were Jackson Palmer and Billy Markus. Secondly, Jack and Billy indeed created Dogecoin as an alternative to Bitcoin. It is a known fact that for a long time Bitcoin had only been available to a select few rich people. It is primarily to contest this fact that Dogecoin was created. These two engineers initially intended for Dogecoin to be a joke on the almighty Bitcoin by making Dogecoin available to the common people.

It is a fact that Dogecoin started trading in 2017, four years after it was created. Currently, Dogecoin has a market cap of about $36,503,667,142.25 and a complete diluted market cap estimated at $36,503,667,142.25. Dogecoin is very popular nowadays and it was trading at $0.2256 as of October 12th, 2021. Of course, many mainstream exchanges trade Dogecoin including Kraken, Binance, Bisq, etc.

Bitcoin is indeed the largest crypto coin with a well-funded ecosystem. Naturally, this makes Bitcoin the yardstick against which all other cryptocurrencies are measured. It for this reason that we will compare various Bitcoin features against those of Dogecoin and discuss wthether dogecoin is a good investment.

For example, it is important to note that the maximum number of Bitcoins that can be mined is 21 million coins. Naturally, this ensures that Bitcoin remains scarce making it very valuable. In contrast, Dogecoin has no maximum number to the coins that can be mined. Nevertheless, Bitcoin like the other cryptocurrencies is still volatile and investors can lose a huge amount of money in case the prices plunge. Of course, this volatility is also witnessed across all other cryptocurrencies including Dogecoin.

is dogecoin a good investment

Dogecoin’s price history

To understand whether Dogecoin is a good investment, then the price history of Dogecoin is a good reference standard.

2017

In the beginning, Dogecoin’s opening price was $0.000257. Dogecoin indeed took some time before it became popular even though it was developed in 2013. It is important to note that the minimum price of Dogecoin that year was $0.000195.

Comparatively the maximum price of Dogecoin that year was $0.010729. Eventually, Dogecoin closed the year 2017 trading at $ 0.0089.

2018

 Dogecoin opened the year 2018 trading at $0.018773. Later, on January 7, 2018, Dogecoin briefly reached a peak of $0.017 per coin. This of course had the positive effect of putting its total market capitalization near $2 billion. Certainly, this was a real good performance considering that the market trends at that time were not good.

Nevertheless, every year has highs and lows. In that light, the minimum price of Dogecoin in 2018 was $0.0020006. Additionally the maximum price of the Dogecoin that year was $0.18773. Dogecoin finally closed the year 2018 trading at $0.002346.

2019

Initially, Dogecoin opened the year 2019 trading at $0.002458. This was a good start. Further, the price of Dogecoin improved mid-way through the year to register a maximum price of $0.004096.

However, this price improvement did not last long. A bear market trend dominated the remaining part of the year subsequently leading to a reduction in prices. Of course, it was during this last part of the year that Dogecoin registered its lowest price that year to trade at $0.001837. In the end, Dogecoin closed the year 2019 trading at $0.002028.

2020

Dogecoin’s market price in January was indeed estimated to be at $0.002570. Of course, this was by all measure a good price.

However, the Covid 19 pandemic led to a reduction in most of the activities in the crypto market mid-way through the year. As a result, it was during this pandemic time that Dogecoin registered the lowest price that year to trade at $0.001247.

Nevertheless, in late November, Dogecoin’s price improved and it attained the highest price that year of $0.004256. Dogecoin finally closed the year 2020 trading at $0.004682.

2021

At the beginning of 2021, Dogecoin attained a high price of $ 0.077973.

As expected, Dogecoin maintained a relatively good price throughout the rest of the year. For example, on April 16th, Dogecoin attained the price of $ 0.4377000 making it the fifth-highest-valued cryptocurrency.

YearMaximum PriceMinimum Price
2017$0.010729$0.000195
2018$0.018773$0.002006
2019$0.004096$0.001837
2020$0.005420$0.001247
Jan-Oct 14th 2021$0.737567$0.004615

For more details on dogecoin price history and dogecoin price prediction please check out this article.

Comparison between Dogecoin and other cryptocurrencies

Is Dogecoin a good investment vs Is Bitcoin a good investment

Supply indeed is one of the most significant differences between these two types of cryptocurrency. Dogecoin has an unlimited supply of coins while Bitcoin has a limited supply of coins.

Similarly, another significant difference is the infrastructure behind the two cryptocurrencies. In other words, Bitcoin features well-defined processes from mining coins to ultimately replacing traditional forms of currency.  In contrast, Dogecoin does not have such well-defined features.

Nevertheless, Bitcoin does have its critics from an environmental standpoint. This is mainly because it takes an incredible amount of energy to mine Bitcoin leading to global warming.

DogecoinBitcoin
No cap on the number of coins.Supply of coins is limited to 21 million.
Does not have a well-developed ecosystem.Has a well-developed and well-funded ecosystem.
Initially created as jokeCreated to become a decentralized digital currency.

Is Dogecoin a good investment vs Is Ethereum a good investment

Not only are both Dogecoin and Ethereum stores of value but they are also capable of facilitating transactions. What this means is that you can be able to pay for various commodities online using either of these cryptocurrencies.

However, the cost of carrying out transactions is not entirely equal. Interestingly, it is cheaper to use Dogecoin compared to Ethereum. For example, if you want to send your friend a couple of dollars, it might cost you $10 on the Ethereum network. In contrast, it will cost you just $0.10 on the Dogecoin network. Additionally, Dogecoin transactions will also process faster compared to Ethereum transactions!

DogecoinEthereum
Started as a marketing experiment.Initial purpose was to be a store of value.
Has limited utility.Widely accepted as a form of payment on many avenues.
Not as frequently used.Frequently used.

Is Dogecoin a good investment vs Is Cardano a good investment

While comparing Dogecoin and Cardano, we cannot fail to mention that one important fact. Specifically, Cardano is arguably the most sophisticated blockchain on the market. In contrast, Dogecoin is a comparatively simple cryptocurrency that is driven almost entirely by its community.

DogecoinCardano
An inflationary token.The total supply is capped at 45 billion coins.
Has a loyal fan base.Does not have very many loyal followers.
Simple cryptocurrency.Very technically advanced cryptocurrency.

Is Dogecoin a good investment vs Is Litecoin a good investment

Interestingly, in the beginning, Litecoin’s developers wanted it to be similar to Bitcoin. They wanted to make it available only to the rich people.  In contrast, Dogecoin was created as a new cryptocurrency that would be more accessible to the general public.

Additionally, it is true that the number of Litecoins available is restricted to 84 million while the number of Dogecoins available is unlimited.

DogecoinLitecoin
An inflationary token.Supply is limited to 84 million coins.
Has faster transaction processing speeds.Relatively slow transaction processing speeds.  
Has a lesser value.More valuable compared to Dogecoin.

Is Dogecoin a good investment vs Is XRP (Ripple) a good investment

It is a fact that XRP (Ripple) is a financial settlement built for banks and financial networks. On the contrary, Dogecoin is a cryptocurrency used merely to pay for goods and services.

Furthermore, XRP has a maximum supply of 100 billion coins whereas Dogecoin does not have any theoretical supply limit on its coins.

DogecoinXRP (Ripple)
Does not have a theoretical supply limit.Has a max supply of 100 billion coins.
Built on blockchain technology.Utilizes a consensus mechanism database.
Designed to be used to pay for goods and services.Built for banks and financial networks.

What do other people think of Dogecoin

Dogecoin is indeed a cryptocurrency that started as a joke less than a decade ago. However, Dogecoin has been improving in price and gaining in popularity especially in the last year. This of course has been a result of online marketing from various celebrities through social media. For example, this popular cryptocurrency which traded at less than 1 cent at the start of the year, temporarily surged to a high price of 74 cents last month.  

Certainly, Dogecoin has been getting notable mentions from celebrities on social media. For example, Elon Musk, the chief executive officer of Tesla has taken on to tweeting regularly about Dogecoin. Similarly, celebrities like Snoop Dog and Paris Hilton have also been heaping a lot of praise on Dogecoin on social media. Of course, these celebrities have millions of followers on social media, and they have an influential power over them. As a result, people who initially had zero ideas about cryptocurrencies like Dogecoin are now thinking of investing in them.

This social media marketing from various celebrities gave the cryptocurrency a year-to-date gain of more than 15,000%. This is according to closing numbers from CoinDesk. However, there has also been some negative publicity.  For example, after Mr. Elon Musk’s Saturday night live recent appearance, the cryptocurrency dropped in value. This of course was because of the negative remarks aired by Elon Musk. The CEO of Tesla termed trading the cryptocurrency as a hustle during that popular show. As a result, Dogecoin was soon afterward trading at about 42 cents which was a drop of roughly 43% from its previous highest price.

In conclusion, remarks from these celebrities have a big impact on the popularity of Dogecoin as we have illustrated in this section.

FAQ

How to mine Dogecoin

There are two ways on how to mine Dogecoin. The first option is that you can opt to mine Dogecoin alone by using your GPU or your CPU. Alternatively, you can opt to join a mining pool. Pooled mining is a method of mining in which a group of individual miners works together to create a block. For more details on how you can mine Dogecoin please check out this article.

How to invest in Dogecoin

We recommend that the best way to invest in Dogecoin is to use the Bexplus platform. The Bexplus platform offers the leverage of 100:1 to its users. Let us explain this leverage in detail. Assume that you open a cryptocurrency investing position using 0.01 Dogecoin (worth $0.002236) with 100x leverage.  Using the Bexplus platform your investing position will be worth 1 Dogecoin (equal to $0.2236).

How does Dogecoin work

The Dogecoin blockchain is capable of processing roughly 30 transactions per second. Interestingly, the Dogecoin blockchain employs an auxiliary Proof of Work consensus mechanism. This mechanism allows users to mine other proof-of-work cryptocurrencies (most notably Litecoin) to mine Dogecoin at no additional cost.

Summary:Is Dogecoin a good investment

Is Dogecoin a good investment? Of course, before buying Dogecoin you should know that investing in crypto is not like buying shares of Walmart. Firstly, cryptocurrencies are incredibly volatile. In other words, Cryptocurrencies are marked with wild price swings that would make the common investor bankrupt if he is not careful.

Secondly, there is a steep learning curve before knowing how to invest in cryptocurrency. This means that it requires the total dedication of your whole self to cryptocurrency before becoming a successful crypto trader. If you are just recently hearing about Dogecoin, it is probably best to invest a lot of time in research before you invest a single dollar in Dogecoin.

Furthermore, it is also important to note that cryptocurrency positions in market capitalization rankings matter a lot. For example today, Dogecoin is an elite-level cryptocurrency as it ranks tenth by market cap rankings. Of course, this makes Dogecoin a really good investment option. It is important to note that Dogecoin’s current worth is equivalent to top biotech organizations like GSK.

All in all, if a trader is cautious enough and does proper research. Then chances are, he will make a good profit by investing in Dogecoin.

How To Trade On Bexplus

Trading crypto futures on Bexplus is easy. Once registered, you will have a 10 BTC demo account to get familiar with the platform, a trading account to earn your real profit, and a wallet account to get up to 21% annual interest.

No KYC. Just simply click sign up to enter an email address, the verification code you received, and set up a password. Then you can start your journey on Bexplus. After making a deposit, you can apply for a 100% deposit bonus

After becoming a Bexplus user, you can trade BTC/USDT, EHT/USDT, LTC/USDT, DOGE/USDT, and XRP/USDT with 100x leverage.  Bexplus also offers market analysis, notification of the market changes to keep you updated.

Conclusion

Dogecoin has the potential to stay on top of the market with its popularity. But the cryptocurrency market is very volatile and the road to new all-time highs will surely be very bumpy. Traders who want to grow their wealth could try Bexplus, where they can use crypto futures to long and short cryptos with 100x leverage. No KYC, no deposit fee, traders can receive the most attentive services, including 24/7 customer support.

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