There was a cryptocurrency craze in April and May 2021, and Jasyn Prolifiq and Glauber Contessoto rode it to paper wealth.
As a result of putting money into Dogecoins (DOGE). In only 69 days, Prolifiq was able to transform $180,000 into $1 million, which is around £800k in British pounds.
Meanwhile, during this time period, Conessoto invested over £200k in Dogecoin and became a billionaire on paper. To ensure a steady supply of DOGE, Conessoto even required payment from his customers in the digital currency.
Many people are encouraged to take risks by stories like these, investing in the newest meme currency or stock in the hopes of striking it rich. But should you put your money into Dogecoin? In addition, is it wise to put your money into this cryptocurrency?
Let's check out Dogecoin and see whether it's a good fit for you.
Table of Contents:
Dogecoin, what is it? 🐕🦺
One of the earliest cryptocurrencies, Dogecoin, was created in 2013. Two software programmers, Billy Markus and Jackson Palmer, came up with the idea for it as a practical joke. To create Dogecoin, Markus essentially copied Bitcoin's source code. And to prevent Dogecoin from being mined in the same way Bitcoin is, he nicked some code from Litecoin. Dogecoin and Litecoin (LTC) may be mined together, however.
Named after a famous internet meme featuring a Shiba Inu dog that often used the words “very” and “much” as adverbial modifiers, such as in “extremely teamwork” and “much awe”, the digital currency was created in 2010. The duo launched a website and started minting their own currency. Dogecoin gained traction when billionaire Tesla CEO Elon Musk started tweeting about it, although the community behind it had already been growing for some time.
Dogecoin's price stayed low for a long time. With the 2021 GameStop short squeeze, however, its popularity skyrocketed. A Reddit community started promoting Dogecoin after realising the success that could be had by organising people and generating buzz via the website. Dogecoin was widely discussed throughout the months of February and May 2021.
The Elon effect… 🎸
Elon Musk's tweets were important in popularising the cryptocurrency. Mark Cuban's declaration that the Dallas Mavericks will begin accepting Dogecoin also contributed to a rise in the cryptocurrency's value. Several early adopters said they would HODL, an abbreviation for “hang on for dear life” that describes a common investing approach in the cryptocurrency market.
At this moment, there were tremendous expectations that Dogecoin's price would rise to £1, but it never did. On May 8th, Elon Musk joked about Bitcoin and other cryptocurrencies during his appearance on Saturday Night Live. After hearing his remarks, the price immediately dropped. In fact, in only 45 minutes, it fell from a peak of 58 pence to a low of 47 cents. Having lost a high of over £25 billion in value, Dogecoin was trading at 33 pence on May 9 morning.
Despite Musk's confirmation that he will utilise Dogecoin to finance a space trip, the cryptocurrency's value has not yet rebounded. Neither has the reactivation of the Dogecoin Foundation, whose stated mission is to advance the Dogecoin network.
But should you put your money into Dogecoin? 💰
Investors rode the Dogecoin wave for a few months in early 2021, but the cryptocurrency hasn't done much since. Some early investors are holding on to Bitcoin in the hopes that it will rebound. A key question to examine when deciding where to put your cash is whether or not the asset in question is a suitable match for your overall investment strategy.
In 2022, Dogecoin didn’t do too well. April 2 saw one Dogecoin worth 14 cents. Individuals who invested in Dogecoin when its price was between 20 pence and 40 pence have seen significant losses.
Dogecoin is one of many cryptocurrencies that Elon Musk has admitted to possessing. In addition, he is represented by a member of the Dogecoin Foundation's governing board. They call themselves the “Doge Army”, and they want Musk to help revive the cryptocurrency by tweeting about it and supporting it. The likelihood of the Dogecoin price returning to its highs from last year, much alone 80 pence, is low.
The popular exchanges all stock DOGE
Think long and hard about whether or not Dogecoin is a good investment for you before making the decision. In April 2022, Dogecoin's market worth was over £17 billion, and its trading volume was above average. Coinbase, eToro, and Binance are just some of the biggest cryptocurrency exchanges where you may buy and sell it. Dogecoin is more liquid than some other cryptocurrencies, meaning that you may more easily purchase and sell it when necessary.
Yet, keep in mind that Dogecoin is notorious for its extreme price swings. Moreover, Dogecoin hasn't been put to any use other from being a speedier payment method than Bitcoin.
Hence, Dogecoin might be seen as a cryptocurrency market speculation. Fans are prepared to keep it as a long-term investment, however depending on your objectives, it may not be prudent to put all your eggs in the Dogecoin basket.
Doge vs Bitcoin & Ethereum
To what extent does Dogecoin have the potential to compete with Bitcoin and Ethereum?
Dogecoin, according to Elon Musk, has been dubbed “the people's cryptocurrency”. It's possible, but not certain, that it will ever become as popular as Bitcoin or Ethereum.
BTC is valuable as a cryptocurrency because there will only ever be 21 million of them produced. Bitcoin, because of its relative rarity, has been compared to gold in the minds of many. Being the first cryptocurrency ever created, Bitcoin is accepted in more locations than its imitator, Dogecoin.
The technology behind the Ethereum blockchain and its cryptocurrency, ether (ETH), makes for a compelling application case. Smart contracts may be automatically carried out thanks to the use of this technology in interparty agreements. Games and financial applications may be developed on top of the Ethereum infrastructure with the help of this technology.
Dogecoin has failed to sustain its real-world value due to its lack of a use case beyond quick payments and its immature blockchain. Not helping matters is the fact that, as of April 2022, there were over 132 billion Dogecoins in circulation, suggesting that the supply of Dogecoin might be infinite.
If you want to invest in altcoins but aren't convinced that Dogecoin is the best option, researching the practical applications of other currencies might help you make up your mind. Solana (SOL) is one cryptocurrency that competes with Ethereum by providing similar functionality at a reduced cost and much higher transaction speed. In addition, there are currencies like Polkadot (DOT) that aid in cross-blockchain communication.
Rather than depending on the hype, it may be useful to examine the underlying use case while considering whether or not to invest in cryptocurrencies. Although it's true that trading meme coins might be entertaining and even lucrative, your portfolio would be best served by focusing on more stable and less speculative currencies.
Getting DOGE into your e-wallet 📂
Putting the dangers of Dogecoin purchases aside, where can I get some?
The process of learning how to get Dogecoin is straightforward. This digital asset, known as DOGE, is listed on various cryptocurrency trading platforms.
Check out our recommended cryptocurrency exchanges for more information.
The Robinhood app also provides access to Dogecoin. Decentralized exchanges, like as Uniswap, also facilitate Dogecoin purchases. Create an account with a cryptocurrency exchange of your choosing to purchase some Dogecoin. After that, you may shop with the added money from your bank account or credit card.
Dogecoin may be purchased with fiat cash or traded for other cryptocurrencies, depending on the exchange. If you wish to keep your Dogecoins off of an exchange and in a decentralised wallet, tell the exchange to transmit the coins to your wallet's address.
Learning how to purchase Bitcoin and store it is made much simpler by the fact that the process is the same as that utilised to acquire other digital currencies.
You'll need to locate Dogecoin-accepting establishments if you want to spend any of your Dogecoin. You may use your wallet to send the required amount of Dogecoin to a vendor after you discover one that accepts the cryptocurrency. You may also buy gift cards from large merchants like Walmart and Amazon by using a third-party facilitator like BitPay.
What we anticipate in 2023
While looking forward to the years 2023 and beyond, should one invest in Dogecoin?
The success of Dogecoin in 2021 can be attributed in part to Tesla's CEO Elon Musk, as many investors know. Several of Musk's tweets on DOGE meme tokens were met with price increases.
Gains in the hundreds of per cent were expected by investors in 2021 In October 2022, as a consequence of Elon Musk's more recent remarks, Dogecoin's value again skyrocketed, something he had already done in the past.
As of the turn of the month in November 2022, DOGE's market cap had risen by over 144% from its value at the beginning of the month. The question of whether or not now is a good time to invest in Dogecoin has arisen in light of the coin's recent price movement.
Due to the enormous volatility of the cryptocurrency markets, there is no simple solution. Many market watchers still consider DOGE to be a valuable cryptocurrency investment, despite the fact that its value has declined significantly since the FTX exchange collapsed and dragged the market down with it.
Speculation persists that Twitter may begin taking DOGE, a big boon for investors that might lead to further use of the cryptocurrency as a means of online payment.
Analysis of Dogecoin's growth since its release and predictions for 2023
Readers wondering “Should I invest in Dogecoin?” will likely want to learn more before making a final choice. Looking into the coin's historical performance is a good place to start if you're considering investing in Dogecoin.
This is due to the fact that past outcomes may serve as a guide for the future.
- ☑️ Dogecoin was first introduced in 2013, but the joke cryptocurrency floated under the radar for a long time.
- ☑️ Dogecoin was first developed as a humorous alternative to Bitcoin (How to buy Bitcoin).
- ☑️ The concept was inspired by a viral internet meme depicting a certain breed of Japanese dog.
- ☑️ Dogecoin attracted 2018's cheap-altcoin-seeking investors. The price of DOGE doubled in a short period of time, taking it to an all-time high of more over a billion dollars.
- ☑️ However, at the month's conclusion, Dogecoin's market value had fallen again.
But 2021 was the year of the meme token, and Dogecoin quickly rose in value to become one of the top cryptocurrencies. In May 2021/22, Dogecoin's market valuation surpassed $70 billion, an all-time high.
Do you think Dogecoin will ever be worth £1 or more?
No one can say for sure whether Dogecoin will ever be worth £1 or more. Getting the price of Dogecoin to £1 was an objective of those who invested in it. While the cryptocurrency has lost a significant portion of its peak value, there are still believers.
Such a target is contingent on the recovery of Dogecoin's price and the creation of new applications for the cryptocurrency.
What is the optimal time to put money into cryptocurrency?
It is impossible to enter (or exit) the market at precisely the correct moment, just as it is impossible to time the market with any investment. No certain period is better than any other to begin investing in cryptocurrencies.
First things first: learn why you want to invest in cryptocurrency. One possible investing technique is to only risk money you can afford to lose.
Although Dogecoin might be a humorous addition to your investment portfolio, you should be aware of the potential downsides before purchasing. There is potential for significant profits if the price of Dogecoin increases rapidly once again, like in 2021. If Dogecoin's popularity declines and does not eventually recover, however, you risk losing part or all of the money you invested in it.
There are a wide variety of alternative cryptocurrencies available. If you're looking to meet your long-term financial objectives and diversify your portfolio, it's possible that other cryptocurrencies may be a better match.