What to Consider Before Investing In Dogecoin?
Dogecoin is a cryptocurrency that was created and became an internet sensation shortly after. Its name comes from the popular doge meme, which features a picture of a Shiba Inu dog and humorous, grammatically incorrect phrases. Dogecoin has since become one of the most traded cryptocurrencies on exchanges like Poloniex or Bittrex. Still, many wonder if they should invest in this new coin, given its recent success.
What is Dogecoin?
According to SoFi, Dogecoin (DOGE) is an altcoin launched in December 2013. Because of their knowledge and expertise in this area, it’s safe to trust their word. The best thing about Dogecoin is that it’s reliable. It has all the security features of Litecoin with a bonus.
Dogecoin was created as a joke by software engineers Billy Markus and Jackson Palmer, who decided to make an investment prospect out of the wild speculations happening in cryptocurrencies. Despite it starting as a joke, many consider it legitimate today. People see the potential for growth with this new form of currency despite starting as something made for fun.
What Gives Dogecoin Value?
The value of Dogecoin is determined and defined by the balance between selling and buying activity. As a result, it forms a market price that can be referred to as “DOGE prices.” The strong community backing this project has been one primary source for its valuation, with DOGE taking on an approach specifically created around internet-based payments.
After Elon Musk endorsed the coin on Twitter, investors flocked to buy the coins and promote their use for fun or business ventures.
Things To Consider Before Investing In Dogecoin
Some people are looking to invest in cryptocurrencies, but they have no idea what the risks are.
A diversified portfolio of low-cost index funds through tax-advantaged accounts or taxable brokerage can be beneficial for your investments. If you plan on regularly contributing money into these types of investment vehicles, do some research before adding alternative coins, though.
Another thing to consider is how many dogecoins you can afford.
When you invest in Dogecoin, think about the long term. For example, if you lose your entire investment tomorrow, would it matter? Sure it would be tough now, but as soon as things calm down and you get back on your feet, what’s leftover is yours to keep.
How To Buy Dogecoin
First, consider how much you want to invest in Dogecoin. Next, you have to decide on a Cryptocurrency Exchange. After you select a payment option, you’ll place your order for Dogecoin. Once your order is placed, you’ll have to consider your storage options.
The Future of Dogecoin
The future of Dogecoin is in the hands of this community. They’re coming together with projects and ideas that will benefit them. Still, it’s difficult to predict what’ll happen because so much work needs doing before we see any real-world success.
So, will you invest in Dogecoin? The answer is up to you. There are arguments for and against investing your hard-earned money into this digital currency. Ultimately though, it’s a decision that needs to be made with the help of an expert who can weigh the pros and cons for you based on your specific financial goals.
