Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency. It was created as a joke, as opposed to Bitcoin, the first cryptocurrency ever created.
Jackson Palmer, a product manager at Adobe Inc.'s from Sydney, Australia, created Dogecoin as a way of satirizing the hype around cryptocurrency. Palmer is described as a "skeptic-analytical" observer of emerging technology. His initial tweets about his cryptocurrency venture were ironic. However, after receiving positive feedback on social media, he purchased the domain dogecoin.com. Dogecoin was launched in December 2013 with the logo of a Shiba Inu dog, that became viral as a meme some years ago.
Although it may have been created as a joke, Dogecoin’s blockchain still holds merit. Billy Markus from Portland, Oregon, a software developer for IBM, reached out to Palmer for permission to create the software that would power Dogecoin.
Markus based Dogecoin’s code on Luckycoin, which was derived from Litecoin’s blockchain. In the beginning, Luckycoin was a randomized reward system for block mining. However, that was later changed to a fixed block reward, in March 2014. Dogecoin is operating on a Proof-of-Work (PoW) consensus mechanism and uses Litecoin's scrypt technology. Dogecoin's scrypt algorithm is notable for its fast transactions and unlimited supply.
What brought Dogecoin in front of so many crypto enthusiasts is a mix of factors, and its rapid price surge after it was launched was sure to help. Although DOGE had its fair share of ups and downs, it always had a core group of supporters on Twitter and Reddit who trade it and use it for tips.
Dogecoin was seen by the community as a fun version of Bitcoin that featured a Shibu Inu logo. Dogecoin's casual presentation was appropriate for the growing crypto community. The unlimited supply and scrypt technology were arguments for a faster and more flexible version of Bitcoin.
Dogecoin can be described as an inflationary coin. Cryptocurrencies like Bitcoin, however, are deflationary due to a limit on the number that can be made. The amount of Bitcoin that is released via mining rewards is reduced by half every four years and the inflation rate is also reduced by half until all coins have been released. In Dogecoin’s case, rewards are fixed and there is no hard cap, making the total supply infinite, similar to fiat currency.
The Dogecoin community has been trying to get involved in social causes, and donated 27 million Dogecoins, approximately $30,000, to support the Jamaican bobsled team's trip in January 2014. In March 2014, $11,000 of Dogecoin was donated to Kenya to build a well. $55,000 of Dogecoin was donated to sponsor Josh Wise, NASCAR's driver.
Because it became so popular, Dogecoin is now listed on all major cryptocurrency exchanges
As crypto exchanges have become more accessible and the DOGEUSD price has risen, more people have begun to invest in cryptocurrency. Dogecoin trading is allowing a great transfer of wealth and even new investors can hope to profit from its fast growth and earn higher returns than they would on the stock market. At the same time, unexpected changes in market sentiment can lead to sharp and sudden moves in price. It is not uncommon for the value of cryptocurrencies to quickly drop by hundreds, if not thousands of dollars.
With so much attention from the media and financial traders, new cryptocurrency investors are always looking for advantageous ways (platforms) to buy Dogecoin (DOGE) online. Luckily, there are numerous services and guides on how to buy Dogecoin to help you get started in the cryptocurrency market.
Where to Buy Dogecoin (DOGE)
There are two ways cryptocurrency investors can choose when searching how to buy Dogecoin (DOGE) online:
- Cryptocurrency exchange
- Online Brokers
Crypto exchanges might be a good option for holding your funds, especially if you plan to withdraw them to a private wallet.
Online brokers are another great option where to buy Dogecoin (DOGE), which is increasing in popularity lately due to ease of trading, fast transaction, and greater control over the digital assets in your portfolio.
When you use a broker platform, you gain access to a comprehensive feature set that will assist you in more precisely calculating your strategies and risks. As a result, you will be able to add more indicators to the chart and use the built-in technical analysis tools. However, unlike an exchange, the broker platform will not provide you with the same large offer of cryptos to trade.
Additionally, global brokers like CAPEX also provide a few options to indirectly invest in Dogecoin and other cryptocurrencies: cryptocurrency Exchange-Traded-Funds (ETFs) and companies connected to cryptocurrencies (crypto stocks).
Such multi-asset platforms hand investors many useful financial instruments that can generate a passive income (interest with forex trading or dividend with stock trading).
Buying Dogecoin (DOGE) over an exchange
If you want to participate in a crypto project development and own the digital asset, you can buy Dogecoin (DOGE) online through a cryptocurrency exchange, such as Binance, Kraken, Bittrex, or Coinbase, and store it in a digital wallet.
Having an account on a cryptocurrency exchange allows you to send and receive Dogecoin (DOGE). Transferring Dogecoin is like the way traditional bank transfers work, except for the bank account address, which is replaced with a Dogecoin address. Because digital currency is transmitted directly between individuals without needing third-party entities, such as banks, transaction fees are cheaper than those charged by traditional institutions.
If you want to hold your crypto for a longer time, it is advised to transfer them from the crypto exchange to a secure cryptocurrency wallet. Wallets are much safer, and each private crypto wallet has a private key. It is critical to keep your private key safe because you won't be able to access your crypto without it, and if it's easily available, your funds could be stolen.
Buying Dogecoin (DOGE) through an exchange is for those who want to use it for day trading or purchasing crypto to transfer to a wallet. When you’re buying Dogecoin (DOGE) through a cryptocurrency exchange, you own the digital asset, and you can transfer it to a crypto wallet or do whatever you wish with it. If the price of Dogecoin rises, then the value of your portfolio goes up as well. But if the price of Dogecoin (DOGE) falls, then the value of your portfolio falls, while the amount of Dogecoin (DOGE) remains the same.
Here are the main drawbacks when buying Dogecoin (DOGE) through a cryptocurrency exchange:
- Cryptocurrency exchanges may not be regulated in your country and offer little to no protection for investors.
- The matching engines and servers on Dogecoin (DOGE) exchanges are often unreliable, leading to the inability to access your account and control your funds.
- Cryptocurrency exchanges have many restrictions and limitations for their services, including transaction fees, withdrawal fees, and imposing minimum amounts for funding and withdrawing funds.
The good news is that investors can limit the risks presented by the crypto exchange by trading Dogecoin (DOGE) with contracts for difference (CFDs). Dogecoin (DOGE) CFDs allow you to speculate on the price of the cryptocurrency without having to own the digital asset.
Read on if you want to learn to trade Dogecoin with capex.com in the most convenient way.
Buying Dogecoin (DOGE) with an Online Broker
Trading Dogecoin (DOGE) with an online broker like CAPEX means that instead of owning Dogecoin outright, you’ll be speculating on its price with CFDs.
The main difference between buying Dogecoin (DOGE) from an exchange and buying Dogecoin (DOGE) from an online broker is that you don’t own Dogecoin (DOGE) when you use a broker. Owning crypto requires investors to have a crypto wallet, either within the exchange or a private wallet. But when you purchase Dogecoin (DOGE) CFDs using an online broker, the CFDs are stored in your account and are far more liquid, which makes trading CFDs more popular. Unlike cryptocurrency exchanges, online CFDs brokers are regulated by financial authorities.
The Alternative Way to Invest in Dogecoin (DOGE)
Trading CFDs is a process of buying or selling CFDs and can generate a profit if the value of the asset moves in the direction of the investor’s prediction, or a loss if the market goes against him.
You can buy Dogecoin CFDs (go long) if you believe the value of the digital asset will increase.
At the same time, you can “go short” if you believe that the price of the underlying asset, in this case, Dogecoin (DOGE), will decrease, by selling CFDs.
Trading CFDs provides leverage, and you can open your position by depositing only a margin.
For example, if a trader wants to buy 1,000 Dogecoin CFD at $0.16 would only require $800 of trading capital.
It’s important to remember that leverage can increase both your profits and your losses, and they will be based on the full exposure of the trade, not just the margin requirement needed to open it. Potential losses, as well as profits, could exceed your margin.
Concisely, if you choose to trade crypto CFDs, you can profit from the difference between the buying and the selling position.
With CAPEX, you can trade CFDs on futures or spot prices. Trading CFDs on futures gives you exposure to the futures market, but without requiring you to take on any obligations or worry about any of the other nuances that are associated with futures trading.
Buy Dogecoin DOGE CFDs - Go Long
Instead of taking ownership of Dogecoin, you can place a ‘long position’ translates to buying Dogecoin CFDs. Your position, or Dogecoin CFDs, will increase in value according to the increase in the price of the digital asset Dogecoin’s price increases. If the price of Dogecoin falls, then your position will lose value and can lead to loss.
Let’s assume that Dogecoin is trading at a sell/buy price of 0.1620/0.1660 USD. You want to buy 1,000 CFD (units) because you think the price of Dogecoin will go up. Dogecoin has a 1:2 leverage or a margin rate of 50%, which means that you must deposit only 50% of the position’s value as position margin.
In this example, your CFD position margin will be $830 (50% x (1,000 units x $0.1660 buy price)). Losses greater than the margin can occur if the price of Dogecoin moves against your position.
Outcome A: a profitable trade
If your prediction was correct, and the price of Dogecoin surges over the next hours or days, then you have made a profitable trade. If the sell/buy price is 0.1860/0.1900 USD when you decide to close your position by selling at 0.1860 (the new sell price), then your profit will be $1000.
The price has moved $0.02 (0.1860 - 0.1660) in your favor. Multiply this by the size of your position (1,000 units) to calculate your gross profit which is $20.
If the position was closed during the day, there will not be any swap charges and the net profit is $20.
If the position was closed after a few days, there will be swap charges according to the overnight rollover specification, in this case, -0.0563%.
Let us assume the position was closed the next day, the overnight swap calculation formula will be:
- Overnight swap = 1,000 (units) x $0.1750 (price at rollover) x 0.0563% x 1 (days) = $0.1
Therefore, your total profit on Dogecoin CFD is your gross profit minus the rollover cost.
- $20 - $0.1 = $19.9 net profit
Outcome B: a losing trade
If your prediction for the price of Dogecoin was wrong, the Dogecoin CFD trade will result in a loss. Let’s assume that the price of Dogecoin drops over the next hour to a sell/buy price of $0.1560/0.1600. Because you want to limit the loss in the eventuality that the price continues to drop, you can sell at $0.1560 (the new sell price) to close the position.
The price has moved $0.01 (0.1660-0.1560) against you. Multiply this by the size of your position (1,000 units) to calculate your loss, which is $10.
Sell Dogecoin DOGE CFDs - Go Short
In this CFD example, Dogecoin is trading at a sell/buy price of 0.1620/0.1660 USD. Assume you want to sell 2,000 CFDs (units) because you think the price will go down. Dogecoin has a 1:2 leverage or a margin rate of 50%, which means that you only must deposit 50% of the position’s value as position margin.
In this example, your CFD position margin will be $1620 (50% x (2000 units x 0.1620 sell price)). Remember that if the price moves against you, it is possible to lose more than your initial position margin of $1620.
Outcome A: a profitable trade
Your prediction was correct, and the price falls over the next 2 days to a sell/buy price of 0.1280/0.1320 USD. You decide to close your trade by buying back at $0.1320 (the new buy price).
The price has moved $0.03 (0.1620-0.1320) in your favor. Multiply this by the size of your position (2,000 units) to calculate your profit, which is $60 gross.
Let us assume the position was closed after 2 days, the overnight swap calculation formula will be:
- Overnight swap = 2,000 (units) x 0.1450 (average price at rollover) x 0.0118% x 2 (days) = $0.07
Therefore, your total profit on Dogecoin CFD is your gross profit plus the rollover cost.
- $60 + $0.07 = €60.07 net profit
Outcome B: a losing trade
Unfortunately, your prediction was wrong, and the price of Dogecoin DOGE rises over the next hour to a sell/buy price of $0.1680/0.1720. You feel the price is likely to continue up, so to limit your potential loss you decide to buy at $0.1720 (the new buy price) to close the position.
The price has moved $0.01 (0.1720-0.1620) against you. Multiply this by the size of your position (2,000 units) to calculate your loss, which is $20.
If you are not ready to trade CFDs at spot or futures prices yet, we have also got educational resources like CAPEX Academy with free courses on how to trade. Plus, we offer a demo account – giving you $50,000 in virtual funds to build your confidence in a risk-free environment.
Investing in Dogecoin without actually buying Dogecoin
While buying and day trading cryptocurrency is a major trend right now, it is important to remember that cryptocurrencies are a volatile and risky investment choice. If investing in crypto on an exchange or via a broker does not feel like the right choice for you, here are a few options to indirectly invest in Dogecoin and other cryptocurrencies:
Exchange-Traded Funds - Crypto ETFs
Exchange-traded funds (ETFs) are popular investment tools that allow investors to buy exposure to hundreds of individual investments in bulk. That is why ETFs are a means of diversification for your portfolio and as less risky than investing in individual investments.
A crypto ETF allows investors to trade cryptocurrency on a traditional market and eliminates the need to trade the asset on a crypto exchange. Another advantage of trading crypto ETFs is that investors do not have to worry about the security aspects of trading crypto.
US investors can enter the crypto market by using ProShares Bitcoin Strategy ETF (BITO). The Fund provides capital appreciation through managed exposure to bitcoin futures contracts.
A Dogecoin ETF could come in 2022. The approval of a Bitcoin ETF means a similar offering for Dogecoin is imminent.
>> Learn what is an ETF and how does it work
Companies Connected to Dogecoin and Cryptocurrency - Dogecoin Stocks
Another option is to invest in cryptocurrency indirectly by investing and buying shares of companies that offer real-life products and services but still use or own cryptocurrencies as part of their business model (known as Dogecoin stocks). With an all-in-one trading account with CAPEX, you can also trade shares CFD of public companies like:
- Nvidia (NVDA). This technology company builds and sells GPUs, which are the main equipment needed to mine Doge cryptocurrency. Learn how to buy Nvidia shares
- Tesla (TSLA). Tesla is an electric vehicle manufacturer. Its CEO, Elon Musk, has publicly announced that Tesla will accept Dogecoin for some merchandise. Learn how to buy Tesla shares
- Square (SQ). Since October 2020, Square has purchased over $220 million worth of Bitcoin. As of February 2021, this payment services provider stated that 5% of its cash is stored in Bitcoin. Their app, Square Cash, allows clients to buy, sell and trade crypto. Learn how to buy Square shares
- Coinbase (COIN). Coinbase is a cryptocurrency exchange that allows consumers, financial institutions, and businesses to transact between fiat and cryptocurrencies and securely store and use cryptocurrencies, including Dogecoin. Learn how to buy Coinbase shares
- Intel (INTC). Intel is actively working with Hyperledger, an open-source blockchain project that aims to advance cross-industry blockchain technology implementations. Learn how to buy Intel shares
>> Learn more about stock investing
How to Buy Dogecoin (DOGE)
Are you wondering how to buy Dogecoin with CFDs? CAPEX offers DOGE trading via CFDs on Dogecoin USD spot prices to speculate on the value of DOGE against the US Dollar. Here are the steps:
Step 1: Create an account and deposit funds
When you trade on cryptocurrencies, instead of purchasing Dogecoin and other popular digital currencies, you can be ready to open a position much faster. You do not need a digital wallet or an account with an exchange. In fact, all you need to trade via CFDs is an account with a leveraged trading provider.
With CAPEX, you can open an account in minutes, and there is no obligation to add funds until you want to place a trade.
When you create a trading account with CAPEX, you will be able to:
- ‘Buy’ (go long) or ‘sell’ (go short) Dogecoin and other popular cryptocurrencies to speculate on their price rising or falling
- Take a position on our range of ETFs to get exposure to a basket of shares from an entire country, index, or sector that could be rising or falling in price.
- Trade a host of global indices to go long or short on the performance of an entire economy with a single trade.
- Use QuantX, the smart portfolio builder that helps you cover the popular industries and only invest in the top-performing stocks.
Step 2: Choose your Crypto trading platform
Our trading platforms can provide you with a smarter and faster way to trade Dogecoin CFDs – with personalized alerts, interactive charts, trading signals, and built-in risk management tools. You can trade via the CAPEX trading platform using:
CAPEX Web Trader
Trade on one of the most complete, fully customizable trading platforms on the market.
Available on desktop (Windows, Mac) and mobile (Android, iOS), it provides intuitive, web-based access to a vast range of tradable instruments, charting tools, analytical tools, and many more features.
To view Dogecoin's real-time price and chart on the trading platform can click on the "Search" icon located in the left panel or by clicking on "Cryptocurrency" and then select the instrument, in this case, Dogecoin (DOGE).
MetaTrader 5, one of the best crypto trading apps, is providing superior tools for comprehensive price analysis, use of algorithmic trading applications (trading robots, Expert Advisor), and copy trading.
MetaTrader 5 is available on both desktop and mobile.
Step 3: Pick up a Dogecoin trading strategy
Learning how to buy Dogecoin is easy but adopting the right Dogecoin trading strategy is essential to time the market.
The main Dogecoin trading strategies are:
Buy and hold, also called position trading, is an investment strategy whereby an investor buys Dogecoin to hold them long term, with the goal of realizing price appreciation, despite volatility.
Traders take a position according to the main trend (months to years). You can “go long” if Dogecoin is in a bullish trend or “go short” if the Dogecoin trend is bearish. If the major trend starts to slow or reverse, you will think about closing your position and opening a new one to match the emerging Dogecoin trend.
All trades are performed during the day. There are no open positions overnight, though no rollover charges. Traders are looking to profit from Dogecoin’s short-term price movements (including scalping), and it can enable them to make the most of daily volatility in bitcoin’s price.
When you hedge Dogecoin, it means that you use CFDs to counteract the Dogecoin price movement you already own. For example, if you owned some Dogecoin but were concerned about a short-term drop in their value, you could open a short position on Dogecoin with CFDs. If the Dogecoin price falls, the gains on your short position would offset some or all the losses on the coins you own.
Following the chart patterns and general trends can give you a hint to where Dogecoin is going.
Step 4: Set your Dogecoin orders
A trade order is an agreement to buy or sell a specific asset like Dogecoin at a specific price or price range.
To buy Dogecoin CFD with CAPEX, click on the "Buy" button and a window is displayed to configure the purchase order. You can choose among Market, Limit, and Stop orders.
Additionally, you can pre-define Stop Loss and Take profit orders, which are crucial risk management tools – that help you minimize the potential loss and maximize the potential gains.
How to buy Dogecoin with Market Orders
The simplest type of trade order is a market order. Market orders are usually placed by traders if they want to be certain trade is executed. A market order is instant. Therefore, it is simply an order placed by a trader to buy or sell Dogecoin immediately at whatever its current price is.
I want to buy 200 Dogecoin (DOGE) right now or as quickly as possible.
How to buy Dogecoin with Limit Orders
While a market order is simply an order placed by traders to buy or sell an asset immediately at whatever the current price, a limit order in its most basic sense, is an order to buy or sell an asset at a specific price. Buy limit orders are placed above key support levels with the purpose of limiting price risks anticipating the uptrend will resume after a correction (buy the dip).
The price for DOGE/USD is currently at USD 0.1660 and you place a buy limit order at USD 0.1600, then your order is meant to execute at the price of USD 0.1600 as soon as there is a matching sell order at this price or better.
How to buy Dogecoin with Stop Orders
A stop order is an order that becomes a market order only once a specified price is reached. It can be used to enter a new position or to exit an existing one. Limit orders are placed above key resistance levels anticipating a breakout after a consolidation.
The price for DOGE/USD is currently at USD 0.1660 and you place a buy stop order at USD 0.1700, then your order is meant to become market at the price of USD 0.1700 as soon as the price is reached.
Step 5: Monitor and close your Dogecoin position
To open a Dogecoin trade, you’d buy if you thought that the price was going to rise or sell if you thought the price was going to fall. Once your trade is open, you’ll need to monitor the market to make sure that it’s moving in the way you anticipated.
The technical indicators available on our trading platform can help you to determine what Dogecoin’s price might do next. Indicators can also help you monitor current market conditions like volatility levels or market sentiment.
CAPEX WebTrader can deliver an in-depth analysis of the charts and offers over 90 indicators (including moving average, MACD, RSI, and Bollinger Bands). The WebTrader platform also supports an interactive trading activity with high-end research tools helping you interpret market data.
Take Profit & Stop Loss
Traders can close a position immediately to take a profit or to cut a loss. You can use market order or set Stop Loss and Take Profit levels when you set the order to buy Dogecoin.
The platform offers the stop-loss option, which lets you clearly state how much you're willing to risk with your trade. Similarly, the take profit is the exact opposite. It tells your broker how much you expect to make as a profit and when you want to close your position.
Any profits you make will be paid directly into your trading account. Losses are deducted from your account balance.
When to buy Dogecoin (DOGEUSD)
Investors should be aware of the fundamental and technical analysis when deciding when to buy Dogecoin. The fundamental analysis considers the news and events about the coins, exchanges, and other crypto businesses. The technical analysis uses the price value history to map the evolution of the supply and demand for Dogecoin.
Dogecoin Price Prediction using Fundamentals
When using the fundamental analysis approach, investors should be aware of the government regulation, latest cryptocurrency updates, and technical issues, as well as cryptocurrency exchanges that affect the supply and demand for cryptocurrencies.
For instance, when Bitcoin CME was introduced into the government regulations, and it drove the price of Bitcoin to almost $20,000 in December 2017.
An accurate Dogecoin price forecast using fundamental analysis considers the three main aspects:
- Blockchain metrics (hash rate, active addresses, transactions fees, and values)
- Financial (market capitalization, liquidity, trading volume, circulating supply)
- Project overview (team’s background, whitepaper, competitors, roadmap, tokenomics)
>> Learn how to forecast Dogecoin price with fundamental analysis
What is the future of Dogecoin?
In 2021, Elon Musk, the CEO of Tesla and the richest man to ever walk on this Earth, publicly supported Dogecoin. In May 2021, he tweeted that he was working with the coin's developers to improve transaction efficiency. Musk ran a survey on social media asking whether Tesla should accept Dogecoin for payment. In October, Tesla announce that it will accept DOGE as payment for some Tesla merch.
AMC Entertainment Holdings Inc. announced in October 2021 that it would accept Dogecoin as a digital gift card payment and this is expected to happen in Q1 of 2022. This further added utility to the meme-based cryptocurrency.
But Dogecoin's record-breaking price history is not just about celebrities and tweets from big brands.
Market conditions were also favourable. Online brokers and crypto exchanges made crypto trading easier for retail investors. And supporting Dogecoin is a way to mock the financial system, and some buy it just for that. Elon Musk only directed the attention of people, asking “why can’t Dogecoin have value?”.
But this remains the big Dogecoin debate. There are not many uses for the token at the moment. Indeed, more merchants are starting to accept Dogecoin as payment. However, it is not at the level of adoption that would allow it to be used to substitute any currency.
Dogecoin does not offer the utility of its rivals. For instance, Ethereum (ETH) allows programmers to create decentralised applications (DApps) on the Ethereum blockchain, serving the DeFi, gaming, NFTs industries and more.
Dogecoin can't be considered a reliable source of wealth, as it requires long-term faith in both the blockchain and the coin. And Dogecoin does not have a dedicated development team.
These limitations make it appear that the Dogecoin bull run was built entirely on speculation. Dogecoin is worth its value because it is believed to be valuable by other people. They believe someone else will buy it at a higher cost.
So far, experts believe that Dogecoin's price was rising because of the low liquidity and extreme growth within the network. But once the network reaches critical mass, there isn’t much faith that this kind of growth can be sustained.
However, Dogecoin can have a bright future. But it’s all in the hands of the community. If Dogecoin has proven anything, is that there is a true power of community, even when it comes from a meme coin. And this powerful coin can retain its value if the community ever decides to change the supply and the way DOGE is issued.
Because is difficult to analyze the intrinsic value of a cryptocurrency, it is recommended you perform a technical analysis before investing in Dogecoin CFDs. It might offer some insight into the past movements of Dogecoin, helping you predict where it will head in the future.
Dogecoin price prediction using technical analysis
Some believe the high concentration of retail traders makes cryptos truer to traditional chart patterns and indications of oversold, overbought conditions, etc.
Technical analysis techniques can be applied to any market where the price can freely fluctuate, and data is available to see those fluctuations. The CAPEX Web Trader has a full suite of all the best-known technical indicators and chart drawing tools.
>> Learn how to forecast Dogecoin price with technical analysis
Dogecoin Forecast 2022
Dogecoin's price has seen tremendous growth in 2021, as it surged over 2500% in one year, without counting the bull runs. In May 2021, it reached a new record high of $0.7376.
During the second half of 2021, the price of Dogecoin consolidated around the 0.20 level. The falling wedge in progress, the potential inverse head and shoulders pattern, and the bullish divergence signal the uptrend may resume soon. A breakout above the resistance level $0.20 is the key and the most powerful bullish signal charts analysis can provide.
Doge has received significant celebrity support, and the biggest one comes from Elon Musk. After he announced that Tesla will be accepting Dogecoin for some merchandise, the coin gained even more social media popularity.
As of January 2021, the market sentiment is bullish and the price of Dogecoin is expected to surpass $0.36 by the end of the year.
The Dogecoin (DOGE/USD), forecast by Wallet investor, is bullish. It predicts that the average Dogecoin price will hit $0.352 before the end of 2022 and it could reach $1.31 by the end of 2027.
The DOGE price predictions from DigitalCoin suggest that the average price of Dogecoin will be $0.227 by 2022. Then, it will continue to rise to an average of $0.462 by 2027.
As of January 2022, Dogecoin trades at around $0.1646, with a current supply of 132,670,764,300 DOGE. Market capitalization is a solid $21,843,448,282. However, Dogecoin does not have a hard cap and an unlimited DOGE supply can be issued through mining.
Before making any investment decisions, we recommend that you do your own research and take into account the latest market news, technical, fundamental, and expert analysis. Don't invest more than what you can afford to lose.
What Moves Dogecoin Price
The most important aspects that can influence the Dogecoin price are:
- Social media attention
- Celebrities supporting Doge
An important aspect of what moves the price of Dogecoin is the influencers.
The Dogecoin price doesn’t get influenced by the market trends as much as other coins. But each time DOGE gets attention from another celebrity or a brand announces its interest in the meme coin, the trading volumes go up.
For instance, when Elon Musk announces that Tesla will accept Dogecoin for Tesla merchandise, the price went up by about 20%. This is the power of the crypto community.
However, Dogecoin is a fixed-inflationary currency that can be used for trading and payments. And this makes it very similar to fiat currency. Dogecoin users are actually encouraged to spend their Dogecoin and not hoard it like crypto inventors usually do.
But as with any digital asset, major price swings can occur in a matter of minutes because of factors such as regulations, competition, market sentiments, and the emergence of new technologies.
In conclusion, should you Buy Dogecoin or not?
As with any investment, make sure you carefully assess your financial situation before investing in cryptocurrency, Dogecoin, and the stock market. Dogecoin can be extremely volatile—a single tweet can make its price plummet—as cryptocurrencies are still a highly speculative investment. Follow the already famous crypto investment phrase — "invest only what you can afford to lose".