As a memecoin, many regarded Dogecoin as a ‘joke’ rather than a serious cryptocurrency. But it is established as a genuine choice for investors, leaving many to ask, ‘should I buy Dogecoin?’.
Not Investment Advice
Before we look at the pros and cons of DOGE, I want to remind readers that I am not offering investment advice. This article is to tell you more about Dogecoin, its story, and its potential. Before you decide to invest your money in any cryptocurrency, you should undertake exhaustive research from multiple independent sources.
Why is Dogecoin Hot?
Based on social media and news article mentions, if not value, DOGE is one of the best-known cryptocurrencies.
Launched as something of a joke, it rapidly gained popularity and retained investors due to its potential.
Interest peaked thanks to Elon Musk, who repeatedly tweeted about his interest in Dogecoin. That helped establish it as a potential investment for many.
It emerged in December 2013 with a logo based on the Shiba Inu dog, paving the way for many more memecoins sharing the Shiba imagery.
There are many potential positives about Dogecoin; unlimited supply, script algorithm, standard-setting technology based on Litecoin, etc.
DOGE’s potential has made it a popular long-term hold. But many still ask if they should consider buying Dogecoin.
Should I Buy Dogecoin?
Firstly, you should not buy any cryptocurrency you have not thoroughly, independently researched. It should suit your investment strategy and risk appetite, and you should never invest more than you can afford to lose.
DOGE has potential, and many analysts expect it to blow up. While this is expected, no one is certain when. So, investing in Dogecoin may be best for those who are in for the long haul.
DOGE took on new prominence in 2021 thanks to the publicity generated by Elon Musk.
His tweets brought in new investors and saw the value of Dogecoin soar to an all-time high of $0.7376 in May of last year.
Bearing in mind that the cryptocurrency was trading for less than $0.005 just months earlier, it was a massive boost for the coin.
The sudden surge in interest sparked excitement that DOGE was heading ‘to the moon’ and would soon break the $1 mark.
It didn’t.
In fact, its value dipped significantly and today it is trading for $0.07191 (10am August 9), according to CoinMarketCap.
It must be remembered, of course, that it was a tough start to the year for all cryptocurrencies as market values fell rapidly and for several weeks.
We are seeing recovery now. That, coupled with the potential for DOGE, means Dogecoin cannot be discounted.
Would I Buy Dogecoin?
The simple answer is yes, because I have. I made a modest investment as I believed DOGE was a cryptocurrency that needed to be on my radar.
Do I agree that DOGE has the potential to ‘explode’ in the future? Again, yes. Crypto markets are, of course, volatile, and a coin’s position can be flipped on its head by something as seemingly inconsequential as a tweet. That makes it impossible to predict the future confidently.
However, my opinion is that Dogecoin has potential and is currently at a low price. I am prepared to buy and hold. DOGE meets my risk appetite. That’s why it is part of my portfolio.
I will now wait patiently to see if the predictions of future value increases come true, knowing I am not over-exposed.
So, Should I Buy Dogecoin?
I think that DOGE has potential and the current low price could help optimise returns later down the line.
However, before choosing whether to invest yourself, you should take the time to research Dogecoin. Read independent analysis from multiple sources, and debate whether a long-term hold suits your investment strategy. You should also ensure you never invest more than you can afford to lose.
There are several reasons to have Dogecoin on your radar. If, however, it doesn’t suit you after you have completed your research, there are many more choices.
There are other memecoins, if you like the concept, established cryptocurrencies like Bitcoin and Ethereum, and tokens with compelling and solid use cases emerging all the time.
If you decide to invest in any cryptocurrency, do it smartly. Conduct your own research, have a strategy, and don’t risk money you can’t afford to lose.
