Dogecoin, aka Doge, is one of the most lucrative cryptocurrencies that is being traded today. Dogecoin was founded in the year 2013 by Billy Markus and Jackson Palmer. Its creation was funny since it was formed as a joke from a meme featured from a Japanese dog breed known as Shiba Inu. Dogecoin later gained popularity, and it started having a real value in the cryptocurrency market. However, the breakthrough was this year where it has a strong community and is being used as an alternative to Fiat currency. Dogecoin has even joined the top five lists of most famous cryptocurrencies and even creating several Dogecoin millionaires. This week, Doge has reached the market capitalization of about $50 billion, more than that of giant automobile Ford Motor Co. Doge has highly trended on social media to the point of being hailed by Tesla CEO Elon Musk.
However, within a couple of days, Investors decided to retract from holding for too long after realizing the surge was too high, making Dogecoin tumble down from $50 billion to about $ 45 billion. After all, this should be expected from a cryptocurrency inspired by a joke.
Before trading with Doge, like any other cryptocurrency, you have to do good research. Otherwise, trading dogecoin blindly may lead to substantial un-recoverable losses. The following are the Pros and cons of trading Dogecoin.
Pros
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Community support
Since the introduction of Dogecoin to the cryptocurrency market, it has gradually gained popularity. One of the primary reasons it is famous is its community support from people who use it for trading crypto as an absolute value. The other reason is that Doge community support is very active on social media platforms, and this should be expected since Doge is a result of a joke from memes shared on social media.
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Celebrity influence
Cryptocurrency is influenced by several factors such as politics, influential people, governments, big business, etc.
Recently the CEO of Tesla, Elon Musk, has supported using Dogecoin after speaking highly about it. His constant tweets regarding Doge are boosting the market price of Dogecoin. In 2021 alone, the dogecoin market price has risen to more than 14000%, which is viewed as a positive move. Besides Elon Musk, Dogecoin has gained more popularity from influential people like Mark Cuban, owner of Dallas Maverick (NBA team). He has been showing support for Doge by accepting payment in the form of Dogecoin.
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Exchange availability
Since Dogecoin is among the list of the most famous cryptocurrency available today for investing and trading, it makes it for you to trade with it. Such availability makes it possible for Dogecoin to draw more activities, liquidity, and the usage of cryptocurrencies. Its availability makes it easy to purchase Dogecoin and trade it whenever you feel it’s comfortable, depending on various factors you consider before executing a trade. Some of the factors you should consider are the volatility of the price, analysis of the market trends, chart analyzing, etc.
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Easy transaction
Dogecoin shares many similarities with the most famous crypto bitcoin, and it gives it similar benefits characterized with bitcoin. This ensures that you can use it to send or receive value internationally, just like bitcoin. Dogecoin coding is almost identical to that of bitcoin, which makes it secure and easier to transact. Another advantage of using Dogecoin is that, unlike other cryptocurrencies, Dogecoin can be mined infinitely, which means there is no limit for mining doge. This gives you unlimited opportunity to trade with Dogecoin inconsiderate you are drilling for fun or as a serious investment.
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listing in the stock Exchange
By now most of the best crypto exchanges have started listing Dogecoin due to its trending. For example, Dogecoin was listed by eToro, one of the biggest multinational brokerages, by 3rd May 2021. The reason behind being listed by eToro is the arising substantial client’s demands to trade Dogecoin. Since eToro introduced Dogecoin to its platform, it has attributed to more traffic from clients interested in trading dogecoin, and they lack such an opportunity in another brokerage. Doge has also been listed Gemini as an option for investment.
Cons
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Its fun nature contradicts any real innovation
Most of the investments across financial news portals are too focused on giving joke stories since dogecoin creation is from a meme of a Japanese dog breed known as Shiba Inu. DOGE was developed to poke jokes at the existence of other cryptocurrencies like Bitcoin and Litecoin. The nature of Dogecoin hinders it from integrations and adoption of the digital asset. One thing for sure is that there is too much hype on cryptocurrencies reliance, and more upgrades are done to ensure there is finance decentralization for boosting price substantially.
However, DOGE remains as a joke what is left is for it to fend itself as a transacting currency. Dogecoin is the one to decide the number of assets to trade and when ditch DOGE for other cryptocurrencies, which is not a good thing investment-wise.
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Too much reliance on celebrities to drive its price
When Elon was about to be hosted live on 8th May 2021, social media platforms such as Facebook, Reddit, and Twitter were overwhelmed, anticipating what Eon would say about Dogecoin. Such perspective makes it difficult for investors interested in Dogecoin to determine information about the future of the DOGE. This puts Doge at risk of extinction if a creator of digital currency lacks to see improvement on how Doge can independently survive in the cryptocurrency market.
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DOGE is not the number one transactional currency
Unlike other currency such as Tronic (TRX) and Ether (Ether) which has its blockchains and functions as a transactional currency, Dogecoin can primarily be used as a digital currency. It also falls back from Bitcoin, Litecoin Dash, Ether, and Bitcoin cash, with which investors have high confidence in investing. These crypto has also been integrated with a lot of merchants globally, such as Skrill and PayPal. these are among other factors you should consider before trading DOGE.