Dogecoin has been a hot topic due to its comical nature. It also recently announced partnerships that should help the value of this coin grow even more in the coming weeks.
Dogecoin is now one of the most valuable cryptocurrencies in the industry. It was created as a joke but soon became a huge success, considering it’s such an easy-to-use cryptocurrency and has such an attractive value. DOGE has been popular and more traders have begun to hold it as a long-term investment. According to coinmarketcap, it holds the 11th largest market cap, standing at US$23.37 billion. DOGE has a lot of people that love it, from all varieties of backgrounds, genders, and walks of life. It’s an accessible coin because it is so simple, similar to other memes. Dogecoin prices have skyrocketed in recent years thanks to the increasing media coverage. However, it is still entirely uncertain whether the value of DOGECOIN will continue to appreciate. Dogecoin is a cryptocurrency that you could stake on, with the pros and cons listed to help the reader make an informed decision.
Dogecoing investment Pros
- One of the advantages of dogecoin is that it’s a community-supported cryptocurrency with a lot of other people backing it, which often leads to its rapid growth. Cuban and Mark stated that Facebook is becoming a medium for exchange, and often start new groups to discuss ideas. One of the main reasons its community is so supportive is that those investing in the currency are active on social media. The cryptocoin was also promoted through a meme that was shared, which has driven up interest
- Decentralized exchange compatibility: Many different types of coins can be transacted on decentralized exchanges. A popular example is DOGE, which is traded disproportionately on the Ren project which has enabled it to work on the Ethereum blockchain platform or access the decentralized finance network. DOGE is a good coin that is gaining popularity in the crypto market. It has all the features to support financial transactions and it is easy to carry out, so that ensures liquidity for traders all across the world.
- Dogecoin shares a lot in common with Bitcoin which can provide distinct benefits for the coin & business. There is a lot of similarity with Bitcoin that makes it easier to transact and secure. Also, no mining limits mean there’s no worry about buying too many coins. With the four different blockchains, DOGE has available in the marketplace, there’s no limit on where you can trade your coins. Dogecoin is becoming more & more popular as time goes on, both for short-term and long-term investment opportunities.
- Since its inception, some of the best stock and crypto exchange platforms have listed DOGE, including eToro. It’s not surprising that an online platform that allows you to search for, open, and close DOGE-tokens has caused a step-up in the popularity of trading cryptocurrency.
- Dogecoin’s unique position in the market: It is not subject to the same inflation as other coins, it has a unique mining feature and its background ties to Litecoin are considered unique by some investors. But because it was an early crypto coin, its mining model is based on a different type of proof-of-work that needs more complex computational processing to validate transactions across the blockchain. In other words, this distribution can be seen as sustainable and less vulnerable to malicious attacks.
Dogecoin investment Cons
- Many people know that the lack of a supply cap is one of the biggest disadvantages of Dogecoin. With cryptocurrencies, the supply cap regulates a currency’s rate and value over time. This is unideal for an asset to hedge against inflation but not all altcoins have this problem. In the future, DOGE’s infinite self-mining will require more expansive blockchain mining activities. And since it uses the proof-of-work mechanism, it’ll increase its pool of miners and computer power.
- Despite being a joke coin, DOGE has become more than just that. Its unique traits make it perfect for reaching new audiences. This means the community of people within the coin is more likely to upgrade in the event of any changes or announcements that are made.
- Poor technical support: Dogecoin has a relatively small community of users and little to no corporate support despite its growing popularity. DOGE languished for some time, but it has made a surge recently. BTC, ETH, and ADA are bigger and offer more ways to spend your digital coins or tokens. DOGE is also lacking any unique offering that appeals specifically to its target market – traders & investors.
- Pump and dump schemes have been around for a long time, even dating back to the early days of cryptocurrency. However, they are now strictly prohibited on regulated crypto exchanges. Pumping means creating an artificial increase in price. This can be done easily by purchasing a large amount of the altcoin in question, which creates a significant increase in demand for that particular coin, leading to a significant increase in the asset’s price. When a coin is bought for below what it’s worth, it’s then dumped on the market and its owners are left with huge profit. This manipulation is quite common with DOGE.
- Despite being called a digital currency, Dogecoin can only be used as a form of payment for goods and services. Many other currencies can be exchanged for Tronic or Ether. More cryptos are becoming more important and popular in the market than DOGE. Cryptocurrencies like Bitcoin, Litecoin, Dash, and Bitcoin Cash provide significant transactional value.
- Doges have made a name for themselves recently in the short-term trading, and never before has anyone been so lucky with this coin. They offer not just unique gates of opportunity but opportunities to learn invaluable information about blockchain technology that people who invest in the currency will not regret.