Since its surge in 2020–21, which concluded in May 2021, Dogecoin hasn’t experienced any significant news. In November 2021, most cryptocurrencies reached new all-time highs, while Dogecoin investment appears to have lost steam in the middle of the year and never recovered.

So, is Dogecoin Investment worthwhile today?

Analysts are divided on whether Dogecoin has what it takes to reach new highs in the future. Which way should Dogecoin go? In 2022, is DOGE a wise investment? You have come to the right place if you are having trouble understanding this question. Find out if Dogecoin is one of the best cryptocurrencies to buy right now for long-term growth by reading on.

A description of Dogecoin

Dogecoin was initially intended to be a crypto satire, but it has grown beyond the founders’ initial vision to rank among the top 20 cryptocurrencies. After Bitcoin‘s popularity, there was an explosion of different cryptocurrencies, many of which had no use.

Jack Palmer and Billy Markus, two computer scientists, were inspired to lampoon the market as a result, and Dogecoin was the ideal vehicle for their efforts. They produced Dogecoin, a worthless coin with an infinite supply. In contrast to the two creators’ expectations, Dogecoin went on to develop a unique community. Over time, the district expanded to the point where Elon Musk expressed interest in Dogecoin in 2020.

Since 2020, an unprecedented Dogecoin rally led by Elon Musk has increased the number of businesses that accept Dogecoin payments. Due to its rising usage, Dogecoin has a promising future. But is Elon Musk the only factor contributing to Dogecoin’s popularity as a cryptocurrency in 2022?

No, many other factors make Dogecoin one of the most significant cryptocurrencies to invest in and retain for the long term. In 2022, would Dogecoin still be a promising cryptocurrency to invest in?

Here are seven reasons why Dogecoin is currently a wise cryptocurrency investment.

For many years, Dogecoin was a sleeper, but around 2020, Elon Musk became interested in it, and things started to change. In addition to price increases, the long-abandoned Dogecoin development team returned and performed technical adjustments to the Dogecoin code.

Here are seven reasons Dogecoin is a good investment right now if you’re still on the fence despite the Musk effect.

Dogecoin is decentralized, for one.

Decentralization has value if the recent fall of popular cryptocurrencies has taught us anything. Decentralized cryptocurrencies eliminate single points of failure. Despite its sluggish speeds and expensive costs, it is one aspect that makes Ethereum valuable.

One of the most decentralized cryptocurrencies on the market right now is Dogecoin. Anyone can mine DOGE without expensive mining equipment because it uses a Proof-of-Work algorithm. This indicates many supporters of the Dogecoin network throughout the world. Dogecoin is one of the safer cryptocurrencies to buy now and retain for the long term due to its high level of decentralization. As more investors begin to value decentralization, Dogecoin may experience significant gains. It’s one of the factors that makes Dogecoin, despite being a meme coin, one of the most valuable cryptocurrencies to invest in and keep in 2022. 

Dogecoin occupies a highly distinct market niche.

Positioning is essential for success in any market. The cryptocurrency market operates similarly. Because of its positioning as possible digital gold, Bitcoin, for instance, is where it is right now.

Similarly, Dogecoin, the first and largest meme coin, has created a community around itself. Dogecoin is the foundation for most of the other meme coins available today. Due to its market positioning, Dogecoin has an advantage over most of the main DOGE rivals on the market. As a result, Dogecoin may set the example for the other meme coins to follow if the overall cryptocurrency market regains strength.

It makes sense to include Dogecoin in a cryptocurrency growth portfolio for the years 2022 and beyond because of this.

Dogecoin makes ordinary transactions easy.

Adoption is the key to a cryptocurrency’s long-term success. Even after the initial enthusiasm has worn off, this is what is anticipated to drive the price. The typical transaction cost is one of the essential elements in deciding if a cryptocurrency is suitable for everyday transactions.

Comparing Dogecoin to Bitcoin or Ethereum, the number of transactions is almost tiny. A few minutes are all it takes for Dogecoin transactions to be confirmed. Additionally, unlike centralized systems like banks, Dogecoin’s decentralized nature ensures users that their transactions cannot be controlled.

These appealing qualities make Dogecoin a wise cryptocurrency investment for a trader who has faith in the future of cryptocurrencies. When Dogecoin becomes more widely accepted as a form of payment, increased demand will counteract its inflationary effects. To date, more than 20 important businesses, including the Dallas Mavericks, accept Dogecoin payments. It’s a promising sign for the direction Dogecoin might take in the future.

The Dogecoin community is vibrant and expanding.

Since its inception, the district has been one of Dogecoin’s main supports. The network now numbers millions and has well-known members like Elon Musk and Mark Cuban. These are wealthy individuals who also have a sizable social media following. As a result, every time they mention Dogecoin, they attract additional investors. This could cause Dogecoin to become one of the best-performing cryptocurrencies in the future.

Consider that since Elon Musk and other community members began promoting DOGE, the number of businesses that accept Dogecoin has increased rapidly. This gives you an idea of how much influence the community has on Dogecoin.

As the community grows, more cryptocurrency novices will likely select Dogecoin as their first investment. That should give anyone on the fence about investing in Dogecoin more confidence.

Dogecoin is available on several exchanges.

Are you still debating whether or not Dogecoin would make a decent investment? The fact that Dogecoin is one of the few meme coins listed on nearly all significant cryptocurrency exchanges should be considered. Even on Robinhood, a website that Americans adore for being a beginner-friendly broker, Dogecoin is listed.

Multiple listings have positive effects on Dogecoin in different ways. As a result, Dogecoin has become a highly liquid cryptocurrency that is less susceptible to manipulation. At the same time, it implies that novice investors have a simple way to access Dogecoin during bull markets. It’s a factor that might raise the price of Dogecoin during bull markets. This became especially clear in May 2021, when a buying frenzy on Robinhood propelled Dogecoin to record levels.

Due to its growing popularity, Dogecoin may hit new highs in the upcoming bull run, given that more exchanges are now listing it. It’s a compelling argument to consider using Dogecoin in a portfolio of cryptocurrencies in 2022.

The durability of Dogecoin has been established.

Do you intend to make a long-term investment in cryptocurrencies? Then, by all means, you must invest in cryptocurrencies that have not only been widely publicized but also demonstrated their ability to endure.  This is significant since numerous coins have come and gone since the cryptocurrency industry was established in 2009. Interestingly, Dogecoin, a parody coin with little practical use, has endured everything. It is now the oldest meme coin and one of the most successful meme coins ever created.

Due to the recent collapse of a cryptocurrency worth billions of dollars, currencies like Dogecoin, which have shown a survival component, may experience tremendous growth in the future. For anyone who thinks cryptocurrencies are the wave of the future of finance, this is one of the main reasons Dogecoin is one of the finest cryptocurrencies to buy right now. If the cryptocurrency Dogecoin’s history indicates, it will indeed exist for decades and may be worth significantly more than it is now.

Dogecoin can be scaled

Scalability is one of the main obstacles to bitcoin adoption. The likelihood that a cryptocurrency will ever be able to compete with centralized systems is minimal if millions of users cannot use it without experiencing network issues.

This issue has never existed with Dogecoin. Since it is so widely utilized, network outages and delayed confirmation speeds are seldom a problem in cryptocurrencies with the potential for broad adoption, scaling places DOGE in the lead. Today, DOGE appears to be a wise cryptocurrency investment, especially for those with a long-term perspective on the market, because adoption and long-term value growth are intertwined. 

Reasons why investing in Dogecoin investment might not be wise

You now have a solid understanding of why Dogecoin is a wise cryptocurrency investment.

But every intelligent investor is aware that there are no risk-free investments. To invest in Dogecoin, like any other investment, you must be informed of the hazards involved.

Dogecoin has an infinite supply of coins.

The infinite supply of Dogecoin is one of its main disadvantages. Every year, 5 billion DOGE are put into circulation, which will always be the case. These coins could bring down the price unless they are entirely absorbed in a situation of exceptionally high demand. Given that cryptocurrencies are still in their infancy and have not yet experienced widespread adoption, there is a chance that the growing supply of Dogecoin will outpace the price in short to medium term. As a result, Dogecoin carries a greater risk than a cryptocurrency like Bitcoin, which has a small and fixed supply.

The best investment strategy might not involve betting everything on Dogecoin. Remember that risk exists in even deflationary cryptocurrencies, and DOGE is no exception. In essence, it’s advisable to include Dogecoin in a diversified cryptocurrency portfolio even if you invest in it.

Developer team negligence

The development team had long since given up on Dogecoin until Elon Musk became interested in it in 2020. This indicates that despite Dogecoin’s long existence, the community does not support it sufficiently to continue enhancing its technical capabilities.

This is a significant danger because it suggests that developer interest can depend on how enthusiastic celebrity investors like Elon Musk are about DOGE. A developer might stop supporting Dogecoin, just as they did before 2020, if someone like Musk were to sell all of his Dogecoin holdings publicly.

There are numerous Dogecoin pump and dump strategies.

Dogecoin has frequently been the target of pump and dump scams since it is mainly seen as a joke currency. This means there is always a chance to lose money if you invest in a fake Dogecoin surge and then sell your cryptocurrency after the whales have sold all of their positions.

While this will probably become less dangerous as Dogecoin acceptance rises, it is still a significant risk in short to medium term. Because of this, it makes sense for Dogecoin investors to store DOGE alongside other high-potential cryptocurrencies and invest only what they can afford to lose. 

Also, read – Webcams Site, BongaCams, Becomes Next Major Player to Accept Dogecoin

Dogecoin Investment Details

The likelihood is that DOGE is a significant investment. Dogecoin sells at a price higher than 80% of its most recent record high. This suggests that at the current price, the risk-reward ratio is optimal. Additionally, the chances of DOGE’s long-term growth are in favor because businesses like Tesla now accept payments in Dogecoin.

Here are two reasons why it would be a brilliant idea to buy Dogecoin right now, in addition to the Tesla adoption.

1. The 4-year crypto cycle

The cryptocurrency market is currently experiencing a severe bear run. If previous crypto cycles provide any indication, the market will likely reach new highs by the subsequent halving of Bitcoin in 2024. In summary, now is a fantastic moment to invest in high-potential cryptocurrencies that are anticipated to experience a significant increase in value during the upcoming down market.

One of the cryptocurrencies that can increase in value during the upcoming crypto bull run is Dogecoin. This is because Dogecoin’s popularity has increased since 2021, and now businesses like Tesla accept it as payment. In addition, Dogecoin’s community is more vital now than ever.

In essence, Dogecoin will be worth more in 2024 than it is now. This, together with the bear market hype, may cause it to reach new highs, possibly at $1 or more. Because of this, buying Dogecoin today and holding it for the long term is a no-brainer.

2. The development crew has returned.

After years of neglect, the Dogecoin development team came back in 2021. They have been striving to improve Dogecoin, including addressing all network issues. This indicates that confidence in the Dogecoin network will probably improve over time. The same will increase adoption, which will increase Dogecoin’s intrinsic value. As a result, Dogecoin has tremendous potential for future value increase.

Guidelines for Dogecoin Investment

You now have a solid knowledge of whether or not Dogecoin investment is wise. In addition to the DOGE foundations, there are a few more things you should know before buying Dogecoin.

Look at this:

1. Only invest in Dogecoin with money you can lose.
2. Purchase during market downturns like this and sell during bull markets.
3. Purchase Dogecoin only from reliable cryptocurrency exchanges.
4. Ensure that your account is secure, including by utilizing 2-FA.
5. After purchasing, obtain your DOGE via exchangers.
6. A hardware or software wallet with your control over the keys is the ideal place to keep them.
7. Make investments in additional cryptocurrencies in case Dogecoin turns out to underperform the market.

If you adhere to these straightforward guidelines, you are ready to begin your Dogecoin investment journey.

Which is a better buy: Shiba Inu or Dogecoin?

It would be advisable to think about purchasing both Dogecoin and Shiba Inu if you have adequate money. Let’s compare the two to help you choose the best investment if you only want to make one.

Shiba Inu has shown to be more responsive than Dogecoin to overall cryptocurrency market activity. In 2021, this was very clear. Shiba Inu rose once more along with the market and reached new highs in November 2021, while Dogecoin stagnated after the highs of May 2021.

Shiba Inu, however, has superior tokenomics to Dogecoin. Nearly half of Shiba Inu’s total supply had been consumed by the middle of 2020. Shiba Inu supply continues to decline as more of them are continuously burned. Dogecoin, on the other hand, has an infinite supply.

The inflationary nature of Dogecoin, however, is not a disadvantage. Although Dogecoin has been inflating since its inception, it nonetheless experienced a rally in 2020 and 21. In essence, Dogecoin’s value can increase despite the supply as long as acceptance continues to grow.

So, which should you choose: Shiba Inu or Dogecoin investment? Shiba Inu might be a better cryptocurrency investment if you can only buy one. Dogecoin’s fundamental building blocks are improving. This makes DOGE a valuable cryptocurrency to purchase right now. Nevertheless, it would be better to purchase these cryptocurrencies since they are two of the best penny coins available now.

The Verdict: Is Dogecoin investment a wise step?

In a word, yes! Elon Musk has vowed to continue supporting Dogecoin despite the recent fall of the cryptocurrency market. This is a significant matter because he is one of the main factors for Dogecoin’s recent success. For this reason, 2022 investors might consider Dogecoin a suitable cryptocurrency investment.

Three reasons why Dogecoin investment might not be wise.

You now have a solid understanding of why Dogecoin is a wise cryptocurrency investment.

But every intelligent investor is aware that there are no risk-free investments. To invest in Dogecoin, like any other investment, you must be informed of the hazards involved.

Dogecoin has an infinite supply of coins.

The infinite supply of Dogecoin is one of its main disadvantages. Every year, 5 billion DOGE are put into circulation, which will always be the case. These coins could bring down the price unless they are entirely absorbed in a situation of exceptionally high demand. Given that cryptocurrencies are still in their infancy and have not yet experienced widespread adoption, there is a chance that the growing supply of Dogecoin will outpace the price in short to medium term.

As a result, Dogecoin carries a greater risk than a cryptocurrency like Bitcoin, which has a small and fixed supply.

The best investment strategy might not involve betting everything on Dogecoin. Remember that risk exists in even deflationary cryptocurrencies, and DOGE is no exception. In essence, it’s advisable to include Dogecoin in a diversified cryptocurrency portfolio even if you invest in it.

Developer team negligence

The development team had long since given up on Dogecoin until Elon Musk became interested in it in 2020. This indicates that despite Dogecoin’s long existence, the community does not support it sufficiently to continue enhancing its technical capabilities.

This is a significant danger because it suggests that developer interest can depend on how enthusiastic celebrity investors like Elon Musk are about DOGE. A developer might stop supporting Dogecoin, just as they did before 2020, if someone like Musk were to sell all of his Dogecoin holdings publicly.

There are numerous Dogecoin pump and dump strategies.

Dogecoin has frequently been the target of pump and dump scams since it is mainly seen as a joke currency. This means there is always a chance to lose money if you invest in a fake Dogecoin surge and then sell your cryptocurrency after the whales have sold all of their positions.

While this will probably become less dangerous as Dogecoin acceptance rises, it is still a significant risk in short to medium term. Because of this, it makes sense for Dogecoin investors to store DOGE alongside other high-potential cryptocurrencies and invest only what they can afford to lose.

The Verdict: Is Dogecoin a wise investment?

In a word, yes! Elon Musk has vowed to continue supporting Dogecoin despite the recent fall of the cryptocurrency market. This is a significant matter because he is one of the main factors for Dogecoin’s recent success. For this reason, 2022 investors might consider Dogecoin a suitable cryptocurrency investment.