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There haven’t been many cryptocurrencies with a wilder 2021 than Dogecoin. Dogecoin’s price increased by 12,000% from the start of the year to the beginning of May. It has plummeted by more than half since then. It’s also one of the few cryptocurrencies that have become well-known. The price fluctuations and growing popularity of Dogecoin may entice you to join in. However, this coin is far from a sure thing, so ask yourself a few key questions before investing.
Here’s a quick rundown of everything you should think about before becoming involved with Dogecoin and cryptocurrencies in general. Furthermore, if you’ve already made a cryptocurrency investment and are seeking ways to further gain from it, these tips can be of help.
What is Dogecoin?
Before you buy Dogecoin, be sure you know what it is. In basic terms, Dogecoin is a cryptocurrency that is similar to Bitcoin. In 2013, IBM software developer Billy Markus and Adobe programmer Jackson Palmer collaborated to create it. It’s an alt-coin that began as a joke but has gathered a lot of traction in the last year.
Now that we know what Dogecoin is, let’s look at some factors to think about before investing. Before we get started, keep in mind that this post is not intended to be taken as investment advice. Investing in any asset, as usual, is dangerous and should only be done after thorough financial study and counsel.
5 Tips to consider before investing in DOGE in India
There is substantial research involved and multiple things to consider before investing in any crypto. Here are 5 significant factors to consider before investing in DOGE.
1. Volatility
The significant volatility of Dogecoin should be noted first and foremost. Over the last six months, Dogecoin’s price has fluctuated dramatically, reaching an all-time high of roughly $0.70. However, it soon plummeted to roughly $0.45 and currently sits at ₹14.0572 as of 29 December 2021. While Dogecoin has grown in popularity as more people learn about it and invest in it, these investors also cash out as the price rises, causing the price to plummet.
2. Influencers
Not only equities but also cryptocurrency can be influenced by well-known individuals. Elon Musk, dubbed as the “Dogefather” and “Dogecoin CEO” by the community, has frequently tweeted about the coin. As a result, its prices have risen dramatically on several occasions. It goes to reason that if a single person has the ability to impact Dogecoin pricing, things may go either way.
Musk has always been a supporter of the token, and his recent performance on Saturday Night Live was expected to drive its price near $1. However, this did not occur, as Dogecoin’s value plummeted after his performance on Saturday Night Live.
3. FOMO and public influence
With Dogecoin sweeping the internet and everyone talking about investing in it, there’s a serious risk of FOMO on a rich investment opportunity. But, before that happens, it’s important to remember that not everyone is as successful as the few Redditors who became millionaires by betting their life savings on a fad.
4. The crypto bubble
The Dogecoin cryptocurrency can be viewed as a speculative bubble that will shortly burst. However, failing to recognize it as such would cause further problems because its value swings depending on how many people own it, how many DOGE are in circulation, and how many are issued each day. If one examines Dogecoin’s price graph, the widespread expectation is that it will rise in the future, yet there is no evidence to support this. Even if someone invests in cryptocurrency, they may consider selling before the bubble bursts, but isn’t that what every investor is thinking?
5. Understanding its actual value
Understanding the real value of a digital asset can be difficult and time-consuming, if not outright impossible. You can receive a price-to-earnings ratio for most assets, which tells you how much investors are prepared to pay for a business for each dollar of earnings. This statistic might assist you in determining whether a company is overvalued or undervalued. With dogecoin, however, you’re in the dark.
Spending your DOGE
Unlike stocks, cryptocurrency holders can use their holdings to buy something. If you intend to spend your Dogecoin, there are a few places that take it.
The Kessler Collection, a luxury hotel brand, has signed a collaboration with BitPay to accept DOGE as payment at its properties. Burger Bear, situated in the United Kingdom, now appears to accept Dogecoin as payment. Similarly, DOGE can be used to pay hundreds of small businesses in the United States.
DOGE can be bought on WazirX for those who intend to participate in the latest crypto trends!
Frequently Asked Questions
Will Dogecoin Reach $1?
The future value of Dogecoin is unpredictable and can be influenced by various factors. Invest wisely and consider the risks.
Is Dogecoin Private Crypto?
No, Dogecoin is not a private crypto.
Where To Buy Dogecoin In India?
If you want to purchase Dogecoin, you've to sign up on a licensed and secure Crypto exchange. Don't forget to verify that the exchange you're considering has DOGE available for purchase. To get started, you'll first need to deposit fiat into your exchange account. You can then go on to purchase the token or in case you already have other tokens, you can trade it for DOGE. Here's a detailed guide on purchasing DOGE: https://rb.gy/83vehp
What Is Dogecoin?
Dogecoin is a decentralized Crypto that was created as a joke based on a famous internet meme. It uses the same technology as Bitcoin and can be used for transactions or traded on Crypto exchanges. Dogecoin has a large following and significant market capitalization, but its value can be highly volatile. Despite its origins, some individuals now consider it a serious investment option.
How To Buy Baby Dogecoin In India?
Here are the common steps by which you can buy Baby Doge coins in India.
- Select a trusted Crypto exchange that supports Baby Dogecoin.
- Create an account: You can create your account by providing personal information and complying with the KYC verification.
- Add funds to your account: Exchanges support various ways by which you can add funds to your account. You can do a bank transfer or a debit/ credit card.
- Buy Baby Dogecoin: Now you can easily trade in Baby Dogecoin.
How To Invest In Dogecoin In India?
To invest in Dogecoin in India, you can register on a crypto exchange that supports Dogecoin and buy it.
Is Dogecoin A Good Investment?
Dogecoin can be a good investment, but it is similar to a roller coaster ride at an amusement park. The crazy ups and downs in the prices of Dogecoin have always shocked investors and traders. Investing in Dogecoin can be exciting, but it also has its share of risks and volatility. So, always do your due diligence and then think of investing.
How To Buy Dogecoin In India?
You can buy Dogecoin in India by registering on a crypto exchange that supports Dogecoin and purchasing it with fiat currency or other cryptocurrencies.
Should I Invest In Dogecoin?
Dogecoin, one of the popular meme coins is highly decentralized which is a key factor in making it a safe token to invest in. It is one of the first meme coins which gained momentum with Elon Musk's endorsement. It has an ever growing network, a thriving community, several transactions, and is widely available on many exchanges globally. While most of the signs about Dogecoin are bullish, it is recommended to do due dilligence before investing in any token.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
