Oftentimes, when beginner investors hear about cryptocurrencies, they imagine something extremely innovative and utterly incomprehensible to most people. They tend to think so because digital assets are rarely mentioned on social media or TV shows and joked about in popular stand-up comedies. But is that really true?

Today, we would like to tell you about the funniest cryptocurrency of all. It is most commonly referred to as the meme-based coin. By the way, it is regularly mentioned on Twitter. As you might have guessed, it is Dogecoin (DOGE).

As a rule, traders prefer choosing digital assets based on their reliability and market capitalization. For that reason, they mainly pick bitcoin. However, this token is not for all those willing to invest heavily in cryptos as it has a higher value. So, investors have to turn to less pricey digital assets with considerable growth potential. One of such cryptocurrencies is DOGE. Let’s talk about the price, features, and attractiveness of Dogecoin for investors.

Past and future of DOGE

The DOGE cryptocurrency was created by American programmer Billy Markus and engineer Jackson Palmer. The coin was officially launched on December 6, 2013.

The new cryptocurrency is based on Litecoin. It also has a faster block production rate and the highest level of security available.

Initially, DOGE was created as a joke, making fun of the wild speculation in bitcoin at the time. The face of the Shiba Inu dog from the "Doge" meme as its logo proves the developers’ intention to make fun of the world of cryptocurrencies.

The Dogecoin creators wanted to design a nonprofit project so that investors could purchase the asset at a relatively small price and use it to buy goods in online stores.

Today, the digital coin has its own blockchain. The network users have the opportunity to mine DOGE, which increases the project’s chance to expand in the future.

Despite the fact that the technical features of the altcoin are quite simple, it proves to be popular enough owing to the attention of famous people across the world. For some reason, Dogecoin has become the favorite digital asset of Tesla and SpaceX CEO Elon Musk. His praising of DOGE on Twitter and in TV shows boosts the altcoin every time. Thanks to Elon Musk and other celebrities, the meme-based cryptocurrency is now accepted as a means of payment by big airline companies, sports clubs, medical organizations, and online stores.

At the same time, analysts’ forecasts for Dogecoin are still mixed. Although it has long become a popular brand with clear growth prospects, experts say investors should treat the DOGE project with great caution.

Interestingly, the Dogecoin developers did not believe in the success of their brainchild and sold all their assets at the cheapest price.

How to invest in DOGE?

Today, Dogecoin can be purchased on almost any cryptocurrency exchange. At the same time, investors buy the coin not only to invest their capital but also to exchange it for other virtual currencies. A commission for withdrawing DOGE is very low. It is several times less than that of bitcoin. So, the Dogecoin project opens up opportunities for traders to make a profit from transferring digital assets between exchanges.

At the same time, it is important to remember that the price movement of the meme-based coin is highly unpredictable. Nevertheless, DOGE has caught investors’ attention owing to its high volatility. Thus, having bought the coin at a low price once, many investors yielded a substantial profit on its price change when a market correction ended.

Investing in Dogecoin can hardly be called a long-term strategy. Having decided to buy the altcoin, you should consider your investment as an experiment and the coin itself as a speculative instrument with high growth potential.

Remember that to succeed in trading DOGE, it is important to monitor Elon Musk’s Twitter. As long as the Tesla CEO is interested in the meme-based coin, its price will be on the rise.

All you need to do to invest in Dogecoin right now is to register an account with a brokerage company. It will take a few minutes of your time. For instance, it takes just 3 minutes to open an account with InstaForex.

To calculate your potential profit, you can use the Forex calculator on the InstaForex website.

Then, feel free to buy or sell the cryptocurrency. MetaTrader 4 from InstaForex, a widely popular trading platform among all traders, will become your ideal assistant to trading DOGE.

After purchasing the digital asset, you can store it on the exchange or in an e-wallet, having previously registered it on the official website of the project.

Advantages and disadvantages of DOGE

Pros

  1. Technically, Dogecoin is a simple trading instrument. Unlike BTC and ether, it does not have infrastructure and billions of dollars in investments. At the same time, the meme-based coin is more environmentally friendly than bitcoin. It does not have an emission limit, making the mining process less energy-consuming.
  2. Dogecoin is a great alternative to fiat money* because the price of 1 coin does not rise sharply in the medium term.
  3. The affordable price of DOGE makes the coin available for thousands of users around the world. In turn, a constantly increasing number of DOGE buyers has a positive effect on its value.
  4. Dogecoin transactions are conducted faster than with other cryptocurrencies. In addition, a commission for transactions is minimal compared to other digital assets.

Cons

  1. Fundamentally, the coin is not as strong as other cryptocurrencies. Investing in Dogecoin is markedly different from investing in more popular and stable digital coins. Despite the fact that the meme cryptocurrency was launched back in 2013 and has grown significantly in value since then, it is nowhere near as strong as other virtual assets.
  2. DOGE's unlimited emission reduces its value. Today, there are more than 129 billion altcoins in circulation, making the asset more affordable and less valued. For example, one of the most important factors in investing in bitcoin is its limited amount - 21 million coins, which makes it a more valuable token.
  3. The lack of competitive advantages makes Dogecoin almost invisible among its counterparts. Bitcoin has more advantages than any other digital asset, while Ethereum blockchain technology allows the token to be used outside of the cryptocurrency field. At the same time, Dogecoin has no distinctive features.
  4. Many crypto market experts believe DOGE is a bubble. Nowadays, nothing guarantees the holders of the meme coin that it will grow or bring profit. Dogecoin rises in value only thanks to the attention of celebrities and social media hype. All this gives a reason to suggest that DOGE is a bubble that can burst at any time.

*Fiat money is a government-issued currency that is not backed by gold or other precious metals. Its nominal value is set by a state, regardless of the value of materials used to make it.

Outlook for Dogecoin

According to crypto market experts, DOGE is likely to grow steadily and remain one of the leading cryptocurrencies in the short term. At the same time, fluctuations in the Dogecoin rate depend both on random circumstances and investors’ behavior.

The meme coin enjoys a constantly growing market capitalization. Meanwhile, private and institutional investors continue to buy this virtual asset.

The main driving force behind the rising value of DOGE is, of course, Elon Musk’s attention to the coin on Twitter and the fact that it is now accepted as a means of payment by numerous large companies.

Both factors helped Dogecoin to find its niche in the cryptocurrency market and turned it into an attractive digital asset.

However, its unlimited emission is unlikely to allow the meme coin to be compared to other leading cryptocurrencies, and its exchange rate will always be affected by BTC.

Read all the latest news about Dogecoin and other cryptocurrencies online in the Analysis section on the InstaForex website.

Conclusion

Nowadays, DOGE is considered suitable for investors. It is very affordable owing to a high transaction speed and a minimum commission. Moreover, the meme coin is now gaining in popularity and becoming widely accepted as a means of payment for goods and services by leading international companies. In addition, DOGE boasts strong social support and love from users worldwide.

If you decide to invest in the Dogecoin cryptocurrency, you may visit the InstaForex website and open a trading account. Registration takes just a few minutes.