Is Dogecoin a Good Investment in 2023? The Motley Fool

You can also grow your Dogecoin holdings by lending liquidity in DOGE to leading exchanges and DEXs. KuCoin offers attractive interest rates via the Crypto Lending service, letting you lend your Dogecoin crypto for seven days, 14 days, or 28 days to generate passive income. While Dogecoin infamously started out as a joke, investors take it a lot more seriously now. That’s why experts recommend investing no more than 3% to 10% of your portfolio in cryptocurrencies. Remember, you should always carry out your own thorough research before making an investment. Even high-market-cap cryptocurrencies have proved vulnerable to the current bear markets.

• Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first.
• The “Dogefather,” as he is called, began showing his support for Dogecoin in late 2020 in a tweet and has continued to tweet and talk about Dogecoin ever since.
• In January 2022, when Musk announced on Twitter that dogecoin payments were live, the cryptocurrency jumped as much as 15%.

While the above-listed steps work for solo mining, letting you work as an individual miner, there are other ways to mine DOGE. You can sign up to be a part of Dogecoin mining pools or cloud mining services where you can contribute your computing resources and be a part of a larger group of miners. Send me exclusive offers, unique gift ideas, and personalized tips for shopping and selling on Etsy.

How We Make Money

As of April 2023, Dogecoin had a market capitalization of $11.4 billion. He periodically tweets about the token, which was created as a joke in 2013, predictably causing volatility each time. According to CoinMarketCap.com, dogecoin is the eighth-most valuable cryptocurrency, jns coin with a market cap of over $13 billion. The dogecoin price skyrocketed by 1,234% from April 2021 to peak at an all-time high of $0.7376 the following month. Dogecoin (DOGE) is a novelty cryptocurrency originally launched as a “memecoin” within the cryptocurrency community.

The networked computers perform complex mathematical calculations that effectively unlock coins or fractions of coins as a reward for processing transactions. One of the reasons why investors move coins from their personal wallets to centralized exchanges is to sell. This is because centralized exchanges provide higher liquidity, especially for larger investors, and fees on these exchanges are often lower. Dogecoin started with a supply limit of Ð100 billion, which would have been far more coins than the top digital currencies were then allowing.

Learn first. Trade CFDs with virtual money.

Like other cryptocurrencies, Dogecoin isn’t limited by trading hours; you can buy and sell Dogecoin 24 hours a day, seven days a week. While Dogecoin remains a wildly popular choice, it is not universally available on all crypto exchanges. Make sure any exchange you’re considering has DOGE available for purchase if you wish to buy it. Every dog has its day, and in the world of cryptocurrencies the luckiest dog today is Dogecoin (DOGE).

They can opt to store their Dogecoin on an exchange or in a Dogecoin wallet. Dogecoin was originally based on Litecoin and was launched in 2013. Primarily designed to provide a light-hearted means of communicating the basic function of cryptocurrency to mainstream audiences, Dogecoin is based on the “Doge” Shiba Inu meme.

Automatically buy low and sell high.

Over time, however, Dogecoin has grown into a large blockchain network and is one of the most popular altcoins available in the market. Dogecoin (DOGE) was created on a lark and launched in late 2013, without any serious intent behind the project. However, it gained popularity through its community’s widespread memes online. The price skyrocketed along with the craze of meme stock investments during the summer of 2021 but inevitably crashed because of its little utility. Before using a card to finance your crypto purchases, keep in mind that your credit card company will consider the money to be a cash advance and charge added fees and a higher APR. That’s why experts generally encourage people to avoid buying crypto this way.

Given this, Ali suggests keeping a careful eye on Dogecoin, which has not yet followed SHIB’s recent price movement. A list of resources created by shibes that can be useful to work with Dogecoin and to research it.

Shiba Inu achieves strong correlation with Dogecoin

So investors should be prepared to make losses and never purchase more than they can afford to lose. In that way, traders could win regardless of which individual cryptocurrency wins, without having to pick a winner. Like other cryptocurrencies, such as Bitcoin, Dogecoin can act as a way to transfer money between people, either as a payment for goods or services, or simply to send cash.

Because investors are still willing to buy the cryptocurrency for a higher price than they did the last few months, demand would likely rise up to meet this supply. During 2017 to early 2018 cryptocurrency bubble, Dogecoin briefly reached a peak of US$0.017/Ð1 on January 7, 2018, putting its total market capitalization near US$2 billion. While the native token, DOGE, was initially developed without any specific utility, its use as a digital currency has increased over the years. As of September 2022, over 2,000 merchants across the globe accepted DOGE as payment. To this day, Dogecoin has one of the most robust and vibrant online communities in the crypto space.

Musk has not only expressed favorable views of the project but has even taken steps to promote it. For example, he heralded the acceptance of Dogecoin by Tesla, the world’s largest automaker – a company he runs. Another one of his companies, SpaceX, also announced that they would be funding a rideshare mission to the moon entirely in Dogecoin, making the mission the first of its kind.

As a result, Dogecoin is inflationary, which means that its supply, which is currently 132 billion as of September 2022, will only grow over time. “A deliberate course of carnival barking, market manipulation and insider trading” enabled Musk to defraud investors and promote himself and his companies, the lawsuit alleges. Musk first broke into the crypto community in 2019 as the self-proclaimed “Dogefather” and fan-chosen “CEO” of Dogecoin.