Dogecoin keeps trending with an increase of over 12,000% since the beginning of 2021. The currency has had a smooth journey this year, attracting many crypto enthusiasts and exchange platforms. If you want to try your luck in DOGE, here are some of the elements you need to know about this virtual coin.
What is Dogecoin?
Before you make your investment, ensure that you what the DOGE asset is all about. Dogecoin is a virtual coin like Bitcoin. Jackson Plamer, an Adobe engineer, and Billy Markus, IBM software engineer, created Dogecoin in 2013. Although initially an internet meme, this altcoin gained momentum this year. You may have heard about Dogecoin if you follow cryptocurrency news.
After you know what the Dogecoin product is, you need to evaluate some considerations that will help you invest in the coin. However, you have to do your research before trusting any source. Make your investment decisions depending on what you want from the crypto market. Keep in mind that you are in a risky environment.
What You May Have to Consider
If you want to jump on DOGE investments, you may consider the following.
Firstly, beware that Dogecoin is highly volatile at the moment. This asset had massive fluctuations the last few months, reaching its highest mark, around $0.70. However, in no time, Dogecoin crashed to about $0.45. Although this coin has better momentum, attracting people to learn and invest in it, the investors withdraw when the asset spikes, resulting in price crashes.
Similar to stocks, prominent individuals can influence cryptocurrencies. Elon Musk, Tesla CEO and a self-labeled ‘Dogefarther’ has tweeted repeatedly about cryptocurrency and Dogecoin. The executive influenced the increase in popularity of the product. However, the CEO failed to take the asset to $1 even after his SNL appearance, where the coin crashed afterward.
How to Spend Your Dogecoin
Unlike stocks, you can use your digital coins to buy different products. If you are in the UK and want to use your DOGE, you can find outlets that accept Dogecoin payments. For instance, Burger Bear allows you to pay with your Dogecoin.
Follow your budget and preferences whenever you want to invest in virtual assets.