Dogecoin. – A Summary

Dogecoin was created to be a mock cryptocurrency, but it has developed beyond the founders’ original expectations to become one of the top 20 cryptocurrencies. Following the success of Bitcoin, several cryptocurrencies exploded, many of which were useless.

Two computer scientists, Jack Palmer and Billy Markus, were motivated to make fun of the results of the market, and Dogecoin was the perfect platform for their antics. They created Dogecoin, an endless supply of worthless currency.

Contrary to the aspirations of its two creators, Dogecoin went on to grow a distinctive community. Elon Musk indicated an interest in Dogecoin in 2020 due to the community’s long-term growth. Since 2020, more companies have started accepting Dogecoin payments thanks to an extraordinary Elon Musk-led Dogecoin rally.

Dogecoin has a bright future because of its growing popularity. But is Elon Musk the only element influencing how well-liked Dogecoin will be as a cryptocurrency in 2022?

No, Dogecoin is one of the best cryptocurrencies to invest in and hold onto for the long run for a tonne of other reasons.

Would Dogecoin still be a worthwhile cryptocurrency to invest in 2022?

Here are 7 reasons why investing in Dogecoin at this time is a smart move. Dogecoin was a sleeper for many years, but things started to change in 2020 when Elon Musk showed interest in it. The long-forgotten Dogecoin development team returned and made technical changes to the Dogecoin code in addition to price increases.

Consider these seven arguments if you’re still on the fence about investing in Dogecoin despite the Musk effect.

1. Dogecoin has no central authority.

If the recent collapse of well-known cryptocurrencies has taught us anything, it is that decentralization has value. Decentralized cryptocurrencies do away with single points of failure. It is one feature that makes Ethereum attractive despite its slow speeds and high fees.

Dogecoin is one of the decentralized cryptocurrencies available today. Because DOGE uses a Proof-of-Work algorithm, anyone can mine it without purchasing expensive mining equipment. This demonstrates that the Dogecoin network has a large global following.

Due to its high level of decentralization, Dogecoin is one of the safer cryptocurrencies to purchase today and hold for the long term. Investors increasingly value decentralization, and Dogecoin may see big profits.

It’s one of the things that, despite being a meme coin, makes Dogecoin one of the best cryptocurrencies to invest in and hold onto in 2022.

2. Dogecoin fills a very specific market niche.

In any market, positioning is crucial for success. The bitcoin market functions in a similar manner. Right now, Bitcoin is where it is due to its status as potential digital gold. Like this, Dogecoin, the first and biggest meme coin, has developed a following. Most of the other meme coins currently in circulation are built on the foundation of Dogecoin.

Due to its market positioning, Dogecoin has the upper hand over the bulk of the major DOGE competitors currently present on the market. As a result, if the cryptocurrency industry as whole recovers, Dogecoin might serve as a model for other meme coins to imitate.

For 2022 and beyond, it makes sense to include Dogecoin in a cryptocurrency growth portfolio.

3. Dogecoin is useful for everyday transactions.

The secret to a cryptocurrency’s long-term success is adoption. It is anticipated that this will continue to boost the price long after the initial excitement has subsided. The average transaction cost is one of the crucial factors in determining if a cryptocurrency is appropriate for routine transactions.

Compared to other cryptocurrencies like Bitcoin or Ethereum, Dogecoin’s transaction volume is incredibly low. Dogecoin transactions can be confirmed in just a few minutes. Additionally, Dogecoin’s decentralized structure guarantees users that their transactions cannot be regulated, unlike when utilizing centralized institutions like banks.

For a trader who believes in the potential of cryptocurrencies, Dogecoin is a good cryptocurrency investment because of all these alluring features. This is because greater demand will offset Dogecoin’s inflationary impacts as it becomes more widely accepted as a means of payment.

The Dallas Mavericks are among the more than 20 notable companies currently accepting Dogecoin payments. It’s an encouraging indicator for the future course Dogecoin might take.

4. Around Dogecoin, a lively community has grown.

The community has been one of Dogecoin’s biggest supporters since its launch. Elon Musk and Mark Cuban are two well-known network members with millions of users today. These are affluent people with significant social media fan bases.

As a result, they draw in more investors each time they discuss Dogecoin. As a result, Dogecoin might, in the future, rank among the best-performing cryptocurrencies. Think about how many more companies are accepting Dogecoin after Elon Musk and other community members started pushing DOGE. You can see from this how much the Dogecoin community influences Dogecoin.

As the community expands, more cryptocurrency newbies will probably choose Dogecoin as their initial investment. Anyone on the fence about buying Dogecoin should now feel more confident.

5. Dogecoin can be purchased on a variety of exchanges.

Do you still have second thoughts about whether Dogecoin would be a wise investment? Consider the fact that Dogecoin is one of the few meme coins that is listed on almost all of the major cryptocurrency exchanges. Dogecoin is featured even on Robinhood, a service Americans appreciate as a beginner-friendly broker.

Different ways that multiple listings are beneficial for Dogecoin. As a result, Dogecoin has developed into an extremely liquid cryptocurrency and is less prone to manipulation.

In the meantime, it suggests that beginning investors have a straightforward option to obtain Dogecoin during bull markets. During bull markets, it’s a factor that could drive up the price of Dogecoin. This was especially evident in May 2021, when an online buying frenzy drove Dogecoin to historic highs.

Given that more exchanges are now offering Dogecoin due to its rising popularity, it may reach new highs in the approaching bull run. It makes sense to consider including Dogecoin in your portfolio of cryptocurrencies in 2022.

6. Dogecoin has proven to be enduring.

Do you have any long-term cryptocurrency investment plans? Then, by all means, you must buy in cryptocurrencies that have proven their durability as well as been publicly publicized. Interestingly, Dogecoin, a satirical cryptocurrency with little real-world application, has survived everything. It is now the oldest and one of the most popular meme coins ever made. Because so many coins have come and gone since the cryptocurrency market was founded in 2009, this is noteworthy.

Currencies like Dogecoin, which has demonstrated a survival component, may enjoy huge growth in the future as a result of the recent collapse of a cryptocurrency valued at many billions of dollars.

This is one of the key reasons why Dogecoin is one of the best cryptocurrencies to buy right now for anyone who believes cryptocurrencies are the wave of the future of money. If the history of the cryptocurrency Dogecoin is any guide, it will undoubtedly last for decades and possibly be valued a lot more than it is right now.

Also Read: Bitcoin, Ethereum, and Dogecoin are the three most popular crypto assets in 2022

7. You could scale Dogecoin.

One of the primary barriers to the widespread adoption of bitcoin is scalability. If millions of users cannot use a cryptocurrency without encountering network problems, the likelihood that it will ever be able to compete with centralized systems is limited.

With Dogecoin, this problem has never existed. Network disruptions and slow confirmation rates are rarely a problem because it is so frequently used. Scalability puts DOGE at the forefront among cryptocurrencies with the potential for widespread adoption.

Given that acceptance and long-term value growth are connected, DOGE now seems to be a prudent cryptocurrency investment, particularly for individuals with a long-term outlook on the market.

Three reasons why buying Dogecoin may not be a sensible decision.

Now that you know why Dogecoin is a wise cryptocurrency investment, you can make an informed decision.

There are no risk-free investments, as any wise investor is aware. Like any other investment, investing in Dogecoin requires knowledge of the risks. Now let’s look at why it might not be the best strategy to stake all on Dogecoin.

There are always more coins available in Dogecoin.

One of Dogecoin’s biggest drawbacks is that it is infinitely available. The amount of DOGE in circulation each year will always be 5 billion. Unless they are completely consumed in a circumstance of unusually high demand, these coins could lower prices. Given the early stages of cryptocurrency development and the lack of widespread usage, there is a potential that in short to medium term, Dogecoin’s expanding supply will surpass its rising value.

As a result, Dogecoin entails more risk than a cryptocurrency with a tiny and set supply like Bitcoin.

In essence, even if you buy in Dogecoin, having a diversified portfolio of cryptocurrencies is a good idea. The greatest investment plan might not require putting all your eggs in the Dogecoin basket. Remember that risk exists with all cryptocurrencies, including deflationary ones like DOGE.

Developer team negligence

Before Elon Musk became interested in Dogecoin in 2020, the development team had long since given up on the cryptocurrency. This shows that despite Dogecoin’s long history, the community does not support it enough to keep advancing technically.

This is a serious risk because it implies that developer interest may be influenced by how passionate celebrity investors like Elon Musk are about DOGE. If someone like Musk publicly sold all of his Dogecoin assets, a developer might quit supporting Dogecoin, just as they did before 2020.

There are several different Dogecoin pump and dump techniques.

Since Dogecoin is mostly used as a joke currency, pump and dump schemes have regularly targeted it. This implies that there is always a possibility of losing money if you buy into a fictitious Dogecoin spike and then decide to sell your cryptocurrency after the whales have liquidated all of their positions.

Although there is a chance that this may become less of a concern as Dogecoin adoption increases, there is still a big chance that it will happen in the near to medium term. As a result, it makes sense for Dogecoin investors to store DOGE together with other high-potential cryptocurrencies and to only invest money they can afford to lose.

Is Dogecoin currently a wise investment?

Most likely, DOGE is a fantastic investment. The current trading volume for Dogecoin exceeds 80% of its most recent all-time highs. This means that the risk-reward ratio is ideal at the current pricing. Additionally, companies like Tesla now accept Dogecoin as payment, increasing the likelihood of DOGE’s long-term growth.

Along with the Tesla adoption, the following two factors make buying Dogecoin at this time-wise.

1. A four-year crypto cycle

A major bear run is now affecting the bitcoin market. However, if prior crypto cycles are any guide, the market will likely reach new highs by the time Bitcoin is halved in 2024. In conclusion, this is a great time to invest in high-potential cryptocurrencies because they are predicted to significantly appreciate value during the impending bear market.

Dogecoin is one of the cryptocurrencies whose value may rise during the approaching crypto bull run. This is a result of Dogecoin’s rising popularity since 2021 when companies like Tesla started accepting it as payment. The community for Dogecoin is also stronger than it has ever been.

In essence, Dogecoin’s value will increase from its current level in 2024. This might lead to it reaching new highs, possibly at $1 or more, along with the bear market hype. This makes it a no-brainer to purchase Dogecoin today and hold it for the long run.

2. The developer group has returned.

The Dogecoin development team reemerged in 2021 after a long absence. They have been working to improve Dogecoin, which includes fixing all network problems. This suggests that trust in the Dogecoin network will most likely grow over time.

The same will boost adoption, raising Dogecoin’s intrinsic value. Dogecoin, therefore, has a huge potential for value growth in the future. Before purchasing Dogecoin, there are a few other things you should be aware of in addition to the DOGE fundamentals.

Consider this

1. Only invest funds that you can afford to lose in Dogecoin.

2. Purchase when the market is in a bear market and sell when it is in a bull market.

3. Only buy Dogecoin from trustworthy cryptocurrency exchanges.

4. Ensure that your account is protected by utilizing 2-FA and other security measures.

5. After making a purchase, get your DOGE through exchanges.

6. A hardware or software wallet with access to the keys is ideal for storing them.

7. Make additional cryptocurrency investments if Dogecoin is underperforming in the market.

Shiba Inu or Dogecoin: which is a better investment?

If you have enough money, it would be wise to consider getting both Dogecoin and a Shiba Inu. If you just want to make one investment, let’s compare the two to assist you in making the best decision.

Shiba Inu has proven to be more reactive to general cryptocurrency market activity than Dogecoin. This was very clear in 2021. Dogecoin stagnated after the highs of May 2021, but Shiba Inu climbed once more alongside the market and hit new highs in November 2021.

However, Shiba Inu has better tokenomics than Dogecoin. By the middle of 2020, almost half of the whole stock of Shiba Inu had been used up. As more of them are regularly burned, the supply of Shiba Inus continues to dwindle. On the other hand, there is never a shortage of Dogecoin.

However, Dogecoin’s inflationary nature is not a drawback. Despite Dogecoin’s continuous inflation since its introduction, it rallied in 2020 and 21. In essence, as long as adoption increases, Dogecoin’s value can rise despite its limited supply.

So, which should you pick between a Shiba Inu and a Dogecoin? Shiba Inu might be a better choice if you can only purchase one cryptocurrency. Dogecoin’s essential components are getting better. This makes DOGE an advantageous cryptocurrency to buy at this time. Nevertheless, since they are two of the best penny coins on the market, buying both of these cryptocurrencies would be preferable.

Is Dogecoin a wise investment, in conclusion?

Simply put! Despite the recent decline of the cryptocurrency market, Elon Musk has committed to supporting Dogecoin. He is a key contributor to Dogecoin’s recent success. Therefore this is a significant issue. Due to this, investors in 2022 may think of Dogecoin as viable cryptocurrency investment.