DOGE as an Investment: Should I Invest in Dogecoin?

Dogecoin is a fun and innovative cryptocurrency worth taking a closer look at. Despite its relatively low value compared to other digital assets, Dogecoin has some major advantages that could make it a wise investment for the future. But should you really invest in Dogecoin? Let’s explore some of the pros and cons of Dogecoin so that you can make an informed decision.

Dogecoin (Doge) Actual Price

Dogecoin (DOGE) today price is $0.09

Dogecoin: Overview

Dogecoin (DOGE) is a cryptocurrency whose logo features the Shiba Inu dog from the “Doge” Internet meme.

Launched in December 2013, DOGE enjoyed an initial mining frenzy but floated around a dollar for its first year. Since then, Dogecoin has reached unprecedented levels and spawned a whole bunch of other “meme tokens.”

The appeal of Dogecoin lies in its wide distribution and low price per coin; each Dogecoin is worth just a fraction of Bitcoin, making it affordable to anyone. Dogecoin transactions are also fairly quick and get confirmed in a matter of minutes. Thanks to its low price and easy availability, Dogecoin has become a popular choice for small online purchases, tipping content creators on social media, and even funding charitable causes. Since 2020, a large number of businesses have accepted Dogecoin payments. While it remains to be seen whether Dogecoin can maintain its current level of popularity, there is no doubt that it has significantly impacted the cryptocurrency world.

Dogecoin Mining

Dogecoin is based on the Bitcoin protocol but with a few tweaks, such as the Scrypt algorithm instead of SHA-256. The altcoin has a fast block time of 1 minute and uses a proof-of-work scheme. Additionally, Dogecoin mining has a far smaller environmental impact than Bitcoin mining because it is faster and requires much less energy. Moreover, unlike Bitcoin, there is no limit to the number of Dogecoins that can be mined, meaning that anyone will be able to engage in DOGE mining as long as they’re interested. There are currently over 130 billion Dogecoins in circulation

So should you invest in Dogecoin? Let’s examine this option!

Dogecoin’s Price History Analysis

DOGE to USD. Source: CoinMarketCap

DOGE came to life in December 2013, when the altcoin’s creators, Jack Palmer and Billy Markus, came up with their idea of satirizing the industry. They produced Dogecoin, a worthless coin with an unlimited supply. In contrast to their expectations, Dogecoin went on to develop a unique community. Over time, the community expanded to the point where Elon Musk expressed interest in Dogecoin — and you can definitely see the point on the chart when it happened.

Dogecoin Price Prediction

Wonder what the future holds for DOGE? Check out our Dogecoin price prediction.

The Elon Musk Controversy

The founders expected Dogecoin to be nothing but a joke, but it has seen a surge in popularity in 2021 thanks to Tesla CEO Elon Musk in large part.

Musk has been a vocal supporter of the coin, tweeting about it several times and even calling it “the people’s crypto.” As a result of Musk’s endorsement, we witnessed an unprecedented Dogecoin rally — the altcoin’s price skyrocketed, rising from around $0.01 in January 2021 to an all-time high of over $0.70 in early May of the same year.

Elon Musk is no stranger to controversy, but this move caught even his most diehard supporters by surprise. It concerned many experts that Musk was simply trying to cash in on the hype around the cryptocurrency and that once the excitement died down, the price of DOGE would plummet. This statement was not far from the truth: the altcoin’s price fell again in May after Musk said he had sold all his Tesla stocks.

In October 2022, Dogecoin increased by 35% as Elon Musk’s acquisition of Twitter neared completion. In a similar vein, the meme currency experienced a price increase in April after Musk had first suggested including DOGE as a form of payment for Twitter’s subscription service. This event triggered another round of Dogecoin buying frenzy.

So what we see here is a pattern — when the CEO of Tesla speaks, the token’s price frequently follows suit. Musk’s involvement has split the DOGE community in half. Some assume that his tweets about the coin are simply publicity stunts and that he is not really interested in its success. Others believe he genuinely stands by the coin and is working to increase its adoption. Regardless of who is right here, one thing is certain: with Musk in the picture, Dogecoin attracted a great deal of attention, and it remains to be seen what impact this will have on its future. Nonetheless, there is a chance that the price will crash, and the Dogecoin developer team will give up on the project as they did before 2020 if someone like Musk was to sell all his Dogecoin holdings publicly.

Dogecoin Community

The DOGE community is one of the most active and vibrant in the cryptocurrency space. Founded in 2013 and featuring members from all over the world, the community has grown rapidly. Thanks to their commitment to promoting Dogecoin and increasing its adoption, they have helped to make Dogecoin one of the most popular altcoins. Such results were achieved through a variety of means, including organizing meetups, developing educational resources, and providing support to new users.

While the community is spread out across the Internet, there are certain hotspots where members congregate. The most popular gathering place for DOGE fans is the subreddit r/dogecoin. This forum is full of funny pictures and videos featuring Doge, as well as discussions about all things related to the meme. In addition to the subreddit, there is also a dedicated Discord server for DOGE fans. Here, members can chat about anything and everything related to the meme. Whether one would rather discuss the latest Doge news or simply share funny pictures, the DOGE community is a great place for meme lovers to connect with one another.

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Investing in DOGE: Pros and Cons

So, should you invest in Dogecoin? As with any investment, there are pros and cons to consider.

Pros

  • Decentralization & scalability
  • Unique positioning in the crypto market
  • High market cap
  • Convenient for everyday transactions
  • Represented on multiple exchanges
  • A robust and expanding community
  • A popular crypto with a high level of adoption

Cons

  • Unlimited supply
  • Extreme volatility
  • Disregard from the development team
  • Pump and dump schemes

Ultimately, the decision comes down to your personal risk tolerance and investment goals.

Dogecoin vs. Shiba Inu: Which Meme Coin to Choose?

Dogecoin and Shiba Inu are both cryptocurrency tokens that gained popularity in recent years. Dogecoin was created as a parody of Bitcoin and features the Shiba Inu dog on its logo. Shiba Inu is a newer token that is actually inspired by Dogecoin. It also features the Shiba Inu dog on its logo. So, which one is a better buy?

Dogecoin has been around longer and is, therefore, more established. It is also more widely traded on exchanges, making it easier to buy and sell. However, Shiba Inu has some advantages over Dogecoin. For one, it has a much lower supply, which means its price could increase more rapidly as demand rises. Additionally, Shiba Inu is not subject to the same mining fees as Dogecoin, making it cheaper to use.

Ultimately, your investment goals define which token to buy. If you are looking for a more established coin with wider availability, then Dogecoin may be a better choice. However, if you are willing to take on more risk in exchange for potentially greater rewards, then Shiba Inu may be better suited for you.

Dogecoin Investing Checklist

Here’s a checklist of questions one has to ask themselves before embarking on their Dogecoin investment journey:

  • How much Dogecoin can I afford?

Just like any other crypto asset, Dogecoin carries risks. So, naturally, crypto assets should only make up a small portion of your overall portfolio. Cryptocurrency is extremely volatile: prices can fluctuate wildly from day to day. As a result, investing too much money in cryptocurrency could lead to financial ruin. It is important to diversify your investments and only invest the amount of money you can afford to lose. Following these guidelines, you can minimize the risk associated with investing in cryptocurrency.

  • Did I explore the DOGE price history, Dogecoin’s price prediction, and its market cap?

Some people believe that the price of a digital asset is the most important indicator, but this is not the case. The true indicator of a cryptocurrency’s value is its market capitalization. This number is more accurate than the price per token because it takes into account the supply as well as the demand.

  • Do I have a trustworthy crypto wallet to store my freshly purchased Dogecoin?

If the answer is negative, don’t worry — we’ve got you covered here. Just scroll down to see the best options.

  • What cryptocurrency exchanges will I use to buy Dogecoin?

Having a secure cryptocurrency exchange to rely on is essential. The right choice ensures you can buy, sell, or trade cryptocurrencies safely and efficiently. It’s better to pick a few exchanges than only one.

None of the content on Changelly is investment advice, nor is it a replacement of advice from a certified financial planner. Before deciding to buy or sell Dogecoin, we recommend you to do your own research.

How to Buy Dogecoin on Changelly

Buying Dogecoin on Changelly is a great way to get started in the world of cryptocurrency.

Changelly is a popular cryptocurrency exchange that offers some of the lowest fees and best exchange rates in the industry. The platform is easy to use and provides 24/7 support in case you ever need assistance. In order to purchase Dogecoin on Changelly, you will first need to create an account via email registration — and that 30-second process will be the hardest step!

What is the Best Dogecoin Wallet?

Cryptocurrency wallets come in all shapes and sizes, but they all serve the same basic purpose: to store your digital currency in a safe and secure manner. When it comes to Dogecoin, there are a few different wallet options to choose from.

Image source: Bitcoinist.com

ZenGo is a popular choice for those looking for security and usability, while Binance is ideal for those who want to trade their Dogecoin for other cryptocurrencies.

Trezor and Ledger are both hardware wallets that offer cold storage for your Dogecoin, meaning that your currency is offline and not at risk of being hacked.

No matter which wallet you choose, make sure to do your research and pick one that best fits your needs.

FAQ

Is DOGE still a good investment in 2022?

The answer to that question depends on a number of factors. First, you need to consider your personal risk tolerance. If you’re the type of person who is comfortable with high-risk investments, then DOGE may still be a good option for you. However, if you’re more risk-averse, then you may want to steer clear of DOGE. 

Another factor to consider is the current state of the market. If the market is volatile and prone to sudden dips, then investing in DOGE may not be the best idea. However, if the market is relatively stable, then investing in DOGE might be worth considering. 

Can Dogecoin reach $1?

Dogecoin’s price has been on the rise lately, and there’s speculation that it could reach $1. While DOGE isn’t worth as much as some other cryptocurrencies, it has much potential. 

For one thing, the altcoin is very popular on social media, which could help increase its visibility and adoption. Of course, there’s no guarantee that Dogecoin will reach $1, but it definitely has the potential to do so.

Can Dogecoin reach $5?

Dogecoin’s price has been on the rise in recent months, thanks in part to a series of high-profile endorsements from celebrities like Snoop Dogg and Elon Musk. 

Previously, some experts were skeptical of the cryptocurrency’s long-term prospects, given its lack of use cases beyond being a “meme coin.” Now the tables have turned: as of the end of 2022, there are 2000+ companies and stores accepting Dogecoin as a payment, and this list includes some major ones, like Tesla, AirBaltic, and The Dallas Mavericks. Moreover, chances are that soon the altcoin will serve as a payment method for Twitter Blue subscriptions, and there is no reason to doubt this could have a positive effect on the Dogecoin price.

Dogecoin’s price could continue to rise in the short term, especially if more celebrities jump on the bandwagon. Ultimately, though, it remains to be seen whether Dogecoin can sustain its momentum and reach $5 per coin.

Is Dogecoin the next Bitcoin?

Dogecoin has been on a wild ride since it was first introduced in 2013. What started as a joke based on an internet meme quickly caught on, and today Dogecoin has a market capitalization of $13 billion. While that’s still a relatively small sum compared to Bitcoin’s $350+ billion market cap, some believe that Dogecoin could become the next Bitcoin one day. After all, both assets began as jokes and have experienced explosive growth in recent years. 

Besides, Dogecoin has a few advantages over Bitcoin that could make it more attractive to investors. For one, it has a much faster transaction speed, and it also has lower transaction fees. As more people become interested in cryptocurrency, it’s certainly possible that Dogecoin could continue to rise in popularity. Only time will tell if it can dethrone Bitcoin as the world’s leading cryptocurrency, but it’s certainly worth watching Dogecoin’s journey.

Can Dogecoin realistically reach $100?

Some experts are skeptical about DOGE’s long-term prospects. One of the main concerns is Dogecoin’s unlimited supply. There are currently over 130 billion Dogecoins in circulation, and there is no limit to how many can be created. This could eventually lead to inflation and devalue the currency. Another concern is Dogecoin’s price, which is relatively low and very unstable. At its current price of around $0.1, Dogecoin would need to increase by 1000% to reach $100. This seems like a tall order for a currency with no inherent value. However, stranger things have happened in the cryptocurrency world, so Dogecoin’s proponents remain optimistic about its future. Only time will tell whether the Dogecoin price can reach $100.

Final Thoughts

So, what’s the verdict? Is investing in DOGE a good idea? Ultimately, that’s something that only you can decide. But if you’re looking for a potentially profitable investment with a high degree of risks involved, DOGE might be worth considering. Given that businesses like Tesla now accept Dogecoin payments, it makes sense for a Dogecoin investor to hold DOGE alongside other high-potential cryptocurrencies. After all, it might be a good asset for diversifying your investment portfolio.


Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.