Highs and Lows of Dogecoin as an investment

By: Timilehin

Highs and Lows of Dogecoin as an investment

July 22, 2022 10:49 AM

There is no denying the popularity of Dogecoin (DOGE) as an investment. Perhaps it's the charming Doge, a Japanese Shiba Inu dog who serves as the currency's emblem. Or perhaps it's Elon Musk, a millionaire who appears to favor Dogecoin over Bitcoin (BTC). Whatever the cause, the price of Dogecoin has historically been unstoppable, rising as much as 1,000% in as little as a month.


In general, DOGE has also become an online joke coin, allowing it to trade more on its social prowess than on sound fundamentals. However, as DOGE's applications as a payment mechanism and a green investment grow, it will progressively start to trade on its own merits.


Many investors have taken advantage of the DOGE trend without carefully considering the actual benefits that Dogecoin offers. But eventually, investors will need to consider the question, "Is Dogecoin a decent investment?" We can nevertheless make some inferences about the cryptocurrency that sent meme coins into orbit even if the answer depends a lot on your risk/return profile.


Cryptocurrency investing is not the same as purchasing stock in UPS or Walmart. It's volatile, to start. Wild price fluctuations that would make the average investor uneasy are commonplace.


Even the most tech-savvy investors have no idea how Bitcoin is created, distributed, validated, or accounted for. Cryptocurrency is still a highly experimental niche notion that the great majority of people know very little about and are nowhere near embracing, even though it seems like everyone is talking about it. It is not backed by any bank, government, or business. 


Markus will probably be the first to acknowledge that Dogecoin was developed as a joke. Even worse, he sold his whole investment in 2015, which now would be worth millions. Dogecoin's market capitalization topped $75 billion on May 4, 2021. However, Dogecoin has considerably decreased since then. Despite being valued at only 20% of its peak value, the dog-themed cryptocurrency still has a market size in the billions of dollars.


Dogecoin appears to be the ideal cryptocurrency to purchase in the USA in 2022 given Musk's influence, rising usage, and sharply decreased costs. DOGE may potentially increase in value by three times once the entire cryptocurrency market resumes a positive trend. Virtual money is incredibly unstable. Your money is in danger.


Is it too late to get on the Dogecoin rocketship, or does Elon Musk still have a few additional Falcon 9s available for the trip? You can invest in DOGE if you wholly agree with the latter.