Investing in cryptocurrency is a potentially risky situation –however, it can also be incredibly rewarding. Since it’s a relatively recent phenomenon, there’s still lots to learn about how cryptocurrencies work. This includes ensuring safety and security, among other important factors.
Furthermore, as the world and markets of cryptocurrency continue to expand, we’re seeing more and more new cryptocurrencies emerge – including Dogecoin.
We’re here to give you all the information you need on this cryptocurrency in our very own Dogecoin guide.
Established in 2013, the initial intention of Dogecoin was to be nothing more than a joke based on a popular internet meme – that of a Shiba Inu dog that was thought to be both cute and comical. It was created as an attempt to mock the dramatic increase in popularity of cryptocurrencies more generally at the time. However, although it wasn’t meant to be serious, it quickly became incredibly successful and is now a very popular cryptocurrency.
Two software engineers, Jackson Palmer and Billy Markus coined the idea together. They created this parody as a joke, but since they had the appropriate expertise to make it real, it ended up flourishing into far more than a laugh. It subsequently increased in value dramatically. And it has since gone on to make not only Palmer and Markus successful, but it’s allowed many other investors to make money too.
Much like other cryptocurrencies, Dogecoin uses blockchain technology. This prevents counterfeiting and ensures that transactions remain secure. The creators were surprised at the popularity and loyal following that the cryptocurrency developed. Thus, it soon became known as a legitimate digital currency.
In true cryptocurrency fashion, Dogecoin has been incredibly volatile, and the value has risen and fallen dramatically over time.
In fact, Dogecoin has become more than just legitimate – it’s actually considered one of the top ten most successful cryptocurrencies based on market capitalisation.
Referred to by many as “the people’s coin”, largely due to its origin, Dogecoin is peer-to-peer and open source created.
The good news is that not only has Dogecoin done better than expected since its inception, but it’s only getting better and more successful as time goes by. In fact, 2022 was its most successful year yet.
There are several ways in which you can buy Dogecoin, as well as invest in it successfully. And just like any other type of investment or any other cryptocurrency more generally, there are many risks in the overall process.
There are various different ways in which you can buy Dogecoin, depending on your preferences and what you have access to. All of the following options, however, require that you register an account with the platform in question prior to starting out.
Here are the most successful and most popular ways that you can buy Dogecoin:
Buying and selling Dogecoin via a broker has a few different advantages. Because they set the prices, you’ll it makes things slightly less volatile. It also means that the whole process is safer, as the broker is responsible for ensuring that everything is above board.
Using a broker also means that they’ll be able to find you the best options and invest properly in Dogecoin in different amounts.
Another way to buy Dogecoin is to purchase it using fiat currency or another cryptocurrency. This is a good way to help you moderate what cryptocurrency you have and are using.
A P2P marketplace is a peer-to-peer situation in which you can buy and sell Bitcoin directly from and to individuals. This allows you to cut out the middle man. However, if you choose to do this, it’s really important that you verify and authenticate their identity.
Unlike many other types of cryptocurrencies, you can buy Dogecoin with fiat currency directly from an individual or an establishment. This is the most direct way to do it, but it also comes with risk. If you do this, make sure you meet them somewhere safe and ensure that they’re the real deal.
They aren’t particularly common, but these days there are things called Crypto ATMs. These allow you to purchase specific cryptocurrencies, including Dogecoin.
It’s essential that before you go ahead and invest in Dogecoin, you make sure you fully understand how it works. This involves all the risks as well as the plethora of pros and cons. Once you’re familiar with all that, you can start considering one of the many options for investing in Dogecoin.
Now, we’ve already spoken about brokers and exchanges. The former involves working with a professional and experiencing great customer service to find the best deal for you. The latter involves getting involved on an exchange platform that’ll allow you to exchange between cryptocurrencies. But here are a few options we haven’t spoken about yet:
A Dogecoin ETF is an exchange-traded fund that holds the Dogecoin cryptocurrency like stocks.
Index funds allow you to get market-average returns on investments that you make via Dogecoin.
Dogecoin mutual funds have both positives and negatives. The negatives are that they charge higher fees and they’re less predictable than index funds. However, on the positive side, they tend to provide higher-than-market returns on investment.
This is a process whereby you invest in Dogecoin and other types of coins with trusts using close-end strategies.
These days, you can actually get a credit card that operates in terms of crypto – hence, a crypto credit card. This allows you to make purchases using your Dogecoin.
There are many different apps that will allow you to buy, sell and trade Dogecoin.
A Dogecoin wallet simply allows you to keep your Dogecoin safe and it makes it easier to keep track of. They’re easy to use and some can also be used for Dogecoin investment.
Dogecoin has been incredibly successful, surprisingly so, and it seems to be getting better. Indeed, with its best year ever having been in 2022, it really does seem like this is a cryptocurrency that could continue to do well in the future. However, we also need to take into account market volatility. Cryptocurrencies are inherently unstable so there’s no real predicting exactly what will happen.
Having said that, here are some of the most important pros of Dogecoin that you should consider:
Depending on what is most important to you when considering which cryptocurrency to invest in, Dogecoin might be a great fit.
Unfortunately, Dogecoin does also come with its own set of cons. Depending on what’s important to you, these may or may not be a big deal. But either way, they’re worth considering when you’re deciding how to invest your money and which cryptocurrency to select.
Now, these cons aren’t necessarily reason enough to decide against investing in Dogecoin. However, if you are considering it, you certainly ought to make sure you are aware of all of these things.
After looking at the pros and cons of Dogecoin, you now have a pretty good idea of what it involves. So, if you decide you’re going to go ahead, have a look at our crypto guide below with some of our top tips for investing in Dogecoin.
This question really comes down to the individual and what you’d like to use Dogecoin for. Since it’s pretty volatile and doesn’t have the greatest tech development and support, it may not be a great idea to invest a large sum of money.
However, that said, it’s also a great option to diversify your portfolio or to even start using this crypto as a currency.
