Though the crypto space is now flooded with numerous digital coins, the first name that comes to peoples’ minds on hearing the term “meme coin” is Dogecoin. Being an early entrant in the cryptocurrency market, Dogecoin got the advantage of gaining wider acceptance by many new and seasoned investors due to the lack of options. By the time new coins were launched, Dogecoin had already established itself as a well-known, popular cryptocurrency. It is why the Dogecoin price has mostly witnessed positive uptrends. And even if the price saw massive dips, the coin was able to recover in terms of value and price quite quickly.
Of all the small and big changes taking place in the crypto market, Dogecoin’s steady popularity and growth have amused many. People have now started looking for answers as to why this meme coin is attracting more investors and crypto enthusiasts alike. If you, too, have similar questions, we have the answer. After conducting extensive research, we found Dogecoin is being taken seriously by many because of the following reasons:
Dogecoin’s Popularity is the Primary Driver
If a popularity contest is ever held for cryptocurrencies, Dogecoin is sure going to emerge as a formidable contender. While some may argue that cryptocurrencies having a store of value or those solving real-world problems are more valuable than others, popularity alone can make a huge difference considering the speculative nature of this market. Not to forget, Dogecoin’s subReddit has millions of followers, and the coin is endorsed by business titans like Elon Musk, famous hip-hop performer Snoop Dogg, and many more.
Those who invest in Dogecoin rely significantly on the positive headlines given by popular celebrities on Dogecoin, as it always positively influences the coin’s value. It is no new news that Dogecoin is pretty popular in current times, and it gave its investors a whopping 9,000% return last year. When people can get such high margins even from short-term investing on meme coins, who wouldn’t want to bet their money on such digital tokens?
It is worth noting that those investing in Dogecoin are taking huge risks because this coin’s value is dependent on its popularity alone. So if you plan to get some Dogecoin for yourself, start with investing small. Any amount you’re comfortable losing would be ideal for investing in Dogecoin. You can check Dogecoin price in INR in today’s time before investing, keep track of price fluctuations, and book profits by selling it off whenever the market allows.
Dogecoin is the Coin for Beginners or Crypto Enthusiasts
The Shiba Inu meme-inspired coin, Dogecoin, has withstood a high degree of volatility past year, making many investors wary of investing in it further. However, all it would take to make them reconsider their decision is a few tweets or headlines encouraging Dogecoin, which would eventually skyrocket the coin’s valuation.
Besides professional investors, Dogecoin is a coin that has grabbed the attention of crypto enthusiasts and crypto novices too. This coin now acts as the first preference of people who want to step into the crypto world and experience what it’s like being a crypto-asset owner. Holding Dogecoin for an extended period can give beginners the experience of owning a digital currency, where they witness dips, surges and learn to monitor the market and predict the upcoming price trends. All this can help them become better at cryptocurrency investing.
The best part about Dogecoin is it’s among the top ten cryptocurrencies yet is relatively affordable than Bitcoin, Ethereum, and other popular digital coins. Moreover, the availability of Dogecoin in major crypto exchanges has made it easier than before to trade Dogecoin. With so many reasons to hold Dogecoin, especially among crypto enthusiasts or new investors, the coin is obvious to attract attention.
Dogecoin Enjoys a Unique Market Position
Crypto enthusiasts and investors who prefer Litecoin over other digital coins might like Dogecoin, too, as it has various similarities with Litecoin. Dogecoin’s mining model is similar to Litecoin and Bitcoin, i.e., Proof-of-Work (POW), which requires people to mine coins by solving complex mathematical calculations. Since this mining method is harmful to the environment, some experts believe that Dogecoin will soon shift to Proof-of-Stake as its mining method, which requires coin holders to verify transactions across Dogecoin’s network. So if you’re an environmentalist, you might want to invest in Dogecoin for the same reason.
Additionally, Dogecoin is known to utilize less energy per transaction, i.e., less than 2%. It is way less than the energy consumed by Bitcoin per transaction, making Dogecoin a good option from the point of sustainability. Another point that sets Dogecoin apart from other cryptocurrencies in the market is its transaction verifying method. It uses the Scrypt algorithm to verify transactions on the Dogecoin network via verified miners, which is similar to what Litecoin does but is pretty rare in the cryptocurrency world. Dogecoin and Litecoin are the only digital tokens that use Scrypt to verify transactions via verified miners, making them unique in their true sense.
Should You Invest in Dogecoin?
Now that you’re aware of the top three reasons behind Dogecoin’s growing popularity and demand, you should determine if this coin is an ideal fit for your portfolio or not. While some investors have shown concern over the coin’s inflationary status, it can be taken care of if its demand exceeds the usual or natural inflation rate. As various celebrities keep endorsing Dogecoin from time to time, you can be certain that Dogecoin isn’t going anywhere anytime soon. It is one of the most volatile, speculative crypto tokens out there, but the reward it gives back in terms of returns or profits is also phenomenal. So go ahead, calculate your risks, and get some Dogecoin if your risk appetite allows it.
