Cryptocurrencies or digital coins like Bitcoin, Litecoin, Ethereum, and others are pretty popular and have gained attention from investors around the world. But the crypto space has many more digital currencies vying for investors’ attention. One such cryptocurrency is Dogecoin. If you’re active on Twitter and follow Elon Musk, you must have seen him tweeting about Dogecoin. It was Elon’s tweets that gave a sudden rise to this coin’s popularity, demand, and value. Even today, a single tweet from Elon Musk on Dogecoin can fluctuate its pricing in the market.
It is also a digital currency that is fast picking up in value, inching closer to the popular cryptocurrencies. With trends like these, many investors have started considering investing in Dogecoin. If you too want to buy Dogecoin in India, you can do so by purchasing them from reliable cryptocurrency exchanges. But before you jump to the bandwagon of being a Dogecoin owner, it’s important to be aware of the rollercoaster ride this coin is on. It will help you plan your cryptocurrency purchase accordingly.
Investors are always on the lookout for assets that give them good capital appreciation. While the equity market always held their attention, it is no longer the case as the world still struggles to recover from the damages caused by COVID. As the equity market failed to give a positive return or match the investors’ expectations this calendar year, cryptocurrency charts showed otherwise.
2021 was also the year for cryptocurrency, and the wide acceptance of this digital asset by major investors and funds took its success to another level. A close look at Bloomberg’s galaxy crypto index will show you how it has gained a whopping 272% since the beginning of the year. While Bitcoin gained a lower 94%, Dogecoin surprised everyone by leading the cryptocurrency index gain by 9,940%, while other cryptocurrencies trail behind.
It won’t be incorrect to say that 2021 was the year of Dogecoin as its market valuation reached $62 billion from $1.07 billion. These trends have been tempting many investors to get their hands on Dogecoin.
How it started & where is it going?
What was launched as a joke in 2013 has emerged as a valuable digital asset for many investors in 2021.
It was created by Jackson Palmer and Billy Markus as a fun alternative to Bitcoin. When it was launched, its use was limited till being used as online tips or crowdfunding social causes. But as years passed by, Dogecoin’s valuation reached over the roof, surprising quite a lot of people. A stark difference between Dogecoin and Bitcoin is that the former has an infinite number of coins.
Those who actively keep a close eye on the cryptocurrencies’ valuation chart of all popular currencies will know how Dogecoin was quick enough to join the rally of reaching a higher valuation. A lot of Dogecoin’s rise can be attributed to Elon Musk’s tweets favouring Dogecoin.
Not to forget, Dogecoin is also a cryptocurrency, so it is subjected to extreme volatility. If you’re not in for the long run or are looking for some quick wins, you may consider cashing out your Dogecoin during peak times by converting Doge to inr or any other FIAT currency.
Caution for Investors
The rising value and growing popularity may tempt you into buying Dogecoin; you should understand its highly volatile nature before investing in it.
Elon Musk, though, referred to Dogecoin as the currency of the future in one of his interviews; one cannot ignore how its valuation fell rapidly when he was found saying Dogecoin is a hustle.
If investors invest in Dogecoin even after knowing that the asset they’re planning to include in their portfolio can dip in value by 70% in a week or so, it becomes a different matter altogether.
Irrespective of the rising trend of Dogecoin, it shouldn’t come as a surprise if the same valuation comes crashing down after a piece of single negative news around this digital asset.
Crypto Field Calls for Safer Play
Investors, by nature, are risk-takers and risk assessors. However, as the crypto landscape is still unfolding itself every passing day, it’s important to be careful while investing in cryptocurrencies.
Dogecoin has shown excellent improvement in terms of market capitalization, growing demand, and popularity, but these factors cannot be used to discount its risk and volatility factors.
If you’re new in the crypto space, start investing an amount on Dogecoin that you can comfortably lose as you learn along the journey. But seeing Dogecoin’s performance this calendar year, chances of possible losses to investors remain highly unlikely.
Use crypto exchange platforms like Coinswitch for a smooth trading experience and ease of converting the same in the FIAT currency of your choice. You can scale your Dogecoin holdings with time as you continue to gain a better understanding of how this cryptocurrency performs.