Are you new to the world of cryptocurrencies? If yes, confusion about investing in a specific cryptocurrency won’t leave you quickly. It’s going to be challenging for you to decide which cryptocurrency to invest in.
The competition between Dogecoin and Bitcoin is the trending buzz in the crypto industry. Every crypto enthusiast has a separate opinion on this. A few crypto investors are also skeptical about investing in Dogecoin over other cryptocurrencies.
Does it sound familiar to you? Well, this article will resolve all your doubts about investing in Dogecoin.
What is Dogecoin?
Firstly, Dogecoin is crypto just like Bitcoin and Ethereum. However, it is a different type of crypto that falls within the category of a “meme coin”. It was created as a joke and has no technological breakthrough.
Dogecoin was created in 2013 by software engineers Jackson Palmer and Billy Markus. Its brand and the name took after a popular meme at that time with “doge” deliberately misspelled to refer to a Shiba Inu dog.
Today, Doge is not considered a joke. It became the most valuable meme coin with an over 5000% surge to near a dollar before the general market pullback that was triggered by the mass sell-off. A survey revealed that it is one of the most popular cryptos in America and has been tipped to replace Bitcoin.
The value was largely boosted by Tesla CEO Elon Musk who listed the assets as one of his favorites. He also created a poll on Twitter to ask his followers whether Tesla should accept Dogecoin as payment for its product. In addition, Elon Musk disclosed his intention to make Dogecoin the first cryptocurrency to land on the moon.
Things to Know About Dogecoin
There are a few areas you should be aware of before investing in Doge.
Doge Has Staying Power
No crypto enthusiast would love to invest in a disappearing cryptocurrency. Dogecoin’s staying power is beyond question. Dogecoin recently stepped into its 7th year in the crypto world.
Scope of Growth with Dogecoin
The price graph of Dogecoin has moved upward persistently over these years. With an impressive market value, Dogecoin keeps strengthening its position in the crypto world. The best thing is that the market cap value of Dogecoin has increased at an astonishing rate since its origin.
The market value of Dogecoin is supposed to reach the magic figure of 70 billion USD within the next couple of years. What can be a better investment option than a growing cryptocurrency like Dogecoin?
Dogecoin is Secure
Already 130 billion outstanding Dogecoin exists in the Dogecoin blockchain. In addition to that, 5 million new Dogecoin gets added to the blockchain, increasing the number of coins in the network. Naturally, the security factor of the cryptocurrency makes it a strong contender for investment purposes.
A Good Option for Beginners
As a beginner in the crypto world, you might lack the courage to invest in heavyweight crypto like Bitcoin. On the contrary, Dogecoin can turn out to be a better option for you as low-value crypto. That’s why most beginners in the crypto industry prefer investing in Dogecoin over any other cryptocurrency.
Is Dogecoin Better than Bitcoin?
Dogecoin has something in common with Bitcoin and Ethereum, like the use of Blockchain and the Proof of Work consensus algorithm. However, it is quicker than Bitcoin. It makes it easier for miners to record and complete transactions, making it easier for payment to be processed. It takes about 10 minutes for the Bitcoin blockchain to ratify new blocks. However, new blocks only take 1 minute to be ratified on the Dogecoin blockchain.
Many crypto experts raise concerns that the lack of technological breakthrough makes it very risky to invest in Doge as it is claimed its price is all about speculation. However, it is important to note that there is a level of risk with all the available cryptos. Their prices obviously are determined by a lot of factors including the emotions of investors. It is therefore advisable to note that it is appropriate to invest an amount you can afford to lose.
