Dogecoin is one of the many altcoins that emerged after Bitcoin. Developers Jackson Palmer and Billy Marker developed this coin as a joke by mimicking a meme that featured a Japanese breed of dog called the Shiba Inu. Later, the currency gained popularity and began to grow in value as a digital currency and as an investment. Dogecoin is currently ranked No. 12 on Coinmarketcap, with an impressive market capitalization of over $ 22.8 billion. Despite being a meme 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.
Please note that all cryptocurrencies are volatile. That means they are prone to sudden market changes. You should only invest what you would be willing to lose. Also, be sure to do extensive and intensive research before deciding on any 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 significantly in popularity. In fact, it is arguably the most popular currency after bitcoin. On social media, this coin has a growing list of followers. For example, he has over two million followers on Reddit, and the number is growing. Cryptocurrencies require increasing in value as they attract more followers and users. Its value is linked to the number of people who believe in its use and value. On those metrics, Dogecoin is fine. In addition, he has not only had the support of random individuals online, but also high-profile personalities such as Tesla CEO Elon Musk, Paris Hilton, and popular hip hop artist Snoop Dogg. These personalities have millions of followers, some of whom may become interested in cryptocurrencies and, in particular, Dogecoin, and increase their demand. The more your demand increases, the higher your price.
Considering that all cryptocurrencies are speculative in nature, their popularity plays an integral role. The growth of Dogecoin has been fueled by this popularity. If those who invest in it continue to do so and continue to believe that its value will increase, it is very likely that it will grow. The more exaggeration, the greater the growth. Dogecoin is still popular, so investing in it might now be a good idea. However, you should keep an eye on the market in case another coin starts to become more popular.
Dogecoin is highly 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 currencies. The ease with which a currency can be converted into cash is its liquidity. It is easier to make a profit with a highly liquid currency as you can easily buy and sell coins and take advantage of profit opportunities. It’s easier to get in and out of trades when the market is very liquid.
Determining the liquidity of a digital currency is easy. You can simply check out the various exchanges that list that particular coin and check their trading volume. As for Dogecoin, it posted a trading volume of over $ 868 million in the last 24 hours. This volume is quite large considering this is just a meme coin. It means that there is still a significant high demand for the coin.
Dogecoin’s nominal price remains low
Dogecoin The purchase price is still very low compared to other large currencies such as bitcoin and Ethereum. The price of this coin is still below a dollar. That means that unlike bitcoin, which has to buy a fraction due to its very high price, you can buy whole Dogecoins and buy in considerable volume.
If you buy around 1000 coins, at less than $ 1000, you could make a considerable profit if the coin hits $ 10. Hitting this price is very possible considering the popularity this coin has gained in cryptocurrency circles.
Dogecoin has a team of experienced developers
It is vital for any currency to have a team of good developers if you hope to have a positive future. That is why bitcoin and Ethereum continue to dominate the market since there is a team that is constantly making updates 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 currency before investing in it. Most of the coins are just generic to mainstream cryptocurrencies that simply aim to raise funds and then sink. Dogecoin is different than most of these coins. Despite copying most of the code from bitcoin and then modifying it to make bitcoin, the developers at 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, which makes transactions in Dogecoin much faster than in bitcoin. The Dogecoin platform also avoids double spending, significantly improving peer-to-peer transactions. These changes show that Dogecoin, despite being perceived as something of a joke, has serious mechanisms that apply to digital currencies as a whole. If the developers keep improving the code and the coin community keeps growing, it could become a serious coin to deal with in this market.
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5 reasons why you should buy Dogecoin today to make a profit in 2022