Dogecoin is one of the many altcoins that came into existence after Bitcoin. Developers Jackson Palmer and Billy Marker developed this piece as a meme-mimicking joke featuring a Japanese dog breed called Shiba Inu. The coin then gained popularity and began to appreciate in value both as a digital currency and as an investment. Dogecoin is currently ranked number 12 on Coinmarketcap, with an impressive market cap of over $ 22.8 billion. Although it is a coin and having no real tangible value, there are still a few reasons why you should consider having this coin as part of your crypto investment.
Keep in mind that all cryptocurrencies are volatile. This means that they are subject to sudden market fluctuations. You should only invest what you would be prepared to lose. Plus, be sure to do intensive and thorough research before settling on a coin. With that said, here are five reasons why you should invest in Dogecoin.
Dogecoin is popular
Since its inception in 2013, Dogecoin has grown in popularity significantly. In fact, it is arguably the most popular coin after bitcoin. On social media, this piece has a growing list of followers. For example, he has over two million subscribers on Reddit, and the number is growing. Cryptocurrencies tend to gain in value as they attract more supporters and users. Their value is indexed to the number of people who believe in its use and value. On these metrics, Dogecoin is doing well. Additionally, he not only had the support of random individuals online, but also prominent figures such as Tesla CEO Elon Musk, Paris Hilton, and popular hip hop artist Snoop Dogg. Such personalities have millions of followers, some of whom may be interested in cryptocurrencies and in particular Dogecoin, and push its demand upwards. The more its demand increases, the higher its price will be.
Since all cryptocurrencies are speculative in nature, their popularity plays a vital role. The growth of Dogecoins has been driven by this popularity. If those who invest in it continue to do so and continue to believe that its value will increase, it is more than likely that it will increase. The bigger the hype, the bigger the growth. Dogecoin is still popular, so investing now might be a good idea. However, you need to keep an eye on the market in case another coin becomes more popular.
Dogecoin is very liquid
Liquidity refers to the ease with which a particular commodity or asset can be converted into cash. This also applies to cryptocurrencies or digital coins. The ease with which a coin can be turned into cash is its liquidity. It is easier to make a profit with a highly liquid coin because you can easily buy and sell the coins and take advantage of the opportunities to make money. It is easier to enter and exit transactions when the market is very liquid.
Determining the liquidity of a digital coin is easy. You can simply refer to the various exchanges that list that particular coin and check its trading volume. Looking at Dogecoin, it has seen a trading volume of over $ 868 million in the last 24 hours. This volume is quite large given that it is only a coin. This means that there is still a significantly high demand for the part.
The nominal price of Dogecoin is still low
Dogecoin the purchase price is still very low compared to other big coins like bitcoin and Ethereum. The price of this coin is always less than a dollar. This means that unlike bitcoin which you have to buy a fraction of because of its very high price, you can buy whole Dogecoins and buy in large volume.
If you buy around 1000 coins, under $ 1000, you could make a nice profit if the coin hits around $ 10. Reaching this price is very possible given the popularity that this coin has gained in cryptocurrency circles.
Dogecoin has a team of experienced developers
It is vital for any room to have a good team developers if she hopes to have a positive future. It is for this reason that Bitcoin and Ethereum continue to dominate the market since there is a team that is constantly updating and ensuring the security of the projects. In the case of Dogecoin, developers Jackson Palmer and Billy Marker are still quite involved in sustaining the Dogecoin ecosystem.
It is also important to consider the characteristics of a digital coin before investing in it. Most of the coins are just generics of traditional cryptocurrencies that are simply meant to raise money and then go bankrupt. Dogecoin is different from most of these coins. Although they copied most of the bitcoin code and then changed it to bitcoin, the developers of Dogecoin made sure that they actually made an improvement.
Dogecoin uses an advanced SCRYPT in its algorithm, which is structurally different from Bitcoin’s SHA256. This script allows for faster block creation and confirmation, making transactions on Dogecoin much faster than on Bitcoin. The Dogecoin platform also prevents double spending, dramatically improving peer to peer transactions. These changes show that Dogecoin, despite being seen as some kind of joke, has some serious mechanics that apply to digital coins as a whole. If the developers keep improving the code and the coin community continues to grow, this could become a serious coin to contend with in this market.