Is Trading DogeCoin Profitable

Posted by keith cooper on August 23rd, 2021

Dogecoin is considered the protagonist of a cryptocurrency story that no one can predict. With the growing popularity of meme cryptocurrencies, their market value has dropped like candlelight in the wind in recent weeks. He experienced an unimaginable climax and soon collapsed

Earlier this week, a cryptocurrency hoax hit an all-time high, with a market value of over US $ 50 billion, which is staggering. This makes the market value of Dogecoin higher than that of the auto giant Ford Motor Company and the American food and beverage company Kraft Heinz

The promotion was promoted before April 20, and this day is called Governor\'s Day. 

Cryptocurrency fans invested in it among the masses and its price soared to record highs. Dogecoin is widely praised on various social media platforms and is of course also endorsed by tech icon Elon Musk. Everything went well until everything fell apart. When investors realized that the increase was too large to hold in value for long, they withdrew their money, reducing the market value of $ 50 billion by roughly $ 45 billion in just a few days. After all, what do you expect from a digital currency that looks like a joke?

Understanding  Dogecoin 

 Dogecoin was born in 2013 to ease the tight market for cryptocurrencies. Even the name Dogecoin is an imitation of the popular Internet meme Shiba Inu at the time. The idea of ?? Mutual is to include a fair and interesting coin in the cryptocurrency market, which can attract very simple transactions, such as online tips or possible donations. It wasn\'t until around 2018, during the rise of cryptocurrency, that its market value once reached 2 billion U.S. dollars, that this token was taken seriously

However, these numbers cannot make Dogecoin as famous as Musk. Several regular tweets from Tesla\'s CEO praised Dogecoin as the best cryptocurrency, driving everyone involved in the cryptocurrency market into madness. People started asking Dogecoin and whether to invest in it.

Dogecoin, the technical aspect

This may be the reason why you read this article. But before you get the answer, you need to understand how cryptocurrencies work, as well as other cryptocurrencies. In short, its technical aspects. On the surface, Dogecoin is just another cryptocurrency. Only when you understand their use cases will you be able to understand their advantages and disadvantages. An example of this is the high transaction speeds associated with Dogecoin, and those transaction fees are too low.

One of the prime significant advantages of digital currency is this. This is because Dogecoin was designed for fun purposes rather than to generate profit for investors.Therefore, cryptocurrency is built for the existence of excess, and excess refers to an unlimited amount.

This is also the primary distinction among Dogecoin and all the other cryptocurrencies such as Bitcoin. Although Bitcoin has some limited number of coins on the blockchain, it continues to produce more and more Dogecoins every year. In essence, Dogecoin has an infinite supply on the blockchain. Therefore, compared to other cryptocurrencies, the nature of cryptocurrencies makes their prices much lower. It also helps maintain value stability in a turbulent market, which is the concept of tragic failure that we have seen recently.

Whether to invest in Dogecoin 

Dogecoin’s low value and the prime fact that it will continue to exist did not make it an attractive proposition for investors, that is, until recently. Once the world sees the tremendous growth of Dogecoin, everyone wants to try the cake. The decline is more shocking than the rise because it confuses many people about the expectations of cryptocurrencies. We contacted a cryptocurrency expert to obtain relevant information. Edul Patel, The CEO, and co-founder of Mudrex, a cryptocurrency trading platform, said: \"Doge is a memetic coin designed to make fun of the concept of Bitcoin. Therefore, it is extremely volatile and susceptible to random fluctuations in the market. 

He suggested not investing money in it, and said: \"I don\'t recommend putting money here for a long time. On the other side, a lot of people just want to gamble and participate for fun and get a \'player charge.\'. This is completely yours. Choose! \"  Having said that, the Dogecoin community has widely used the coin for charitable purposes. People tend to donate to organizations and causes through Dogecoin. As long as the coin represents these purposes, the community of its followers is enough to stabilize the cryptocurrency on the market

As for investing in Dogecoin

 Another important reason not to invest in India is that the Indian government is about to make a decision on cryptocurrency. In a major move that has long been hinted at, the center may completely ban cryptocurrency transactions in the country as before. At that time, any investment in Dogecoin would definitely not be profitable

Most investors can explain what a bubble is

 This happens when the price of a commodity far exceeds its actual value. And those who are considering buying Dogecoin may know that the cost of digital tokens has risen by more than 12,000% in a year, and the support behind it is just the hope that it will continue to become more expensive. Of course, this speculation is the cause of the bubble. But experts say that knowing that Dogecoin has not become a more valuable commodity in the past year may not prevent people from trying to profit from this situation

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Bruce Mizrach, professor of economics at the Rutgers School of Arts and Sciences, said that even if they know that assets are overvalued, people will buy assets \"because they expect prices to rise even more.\" And, He said, \"Everyone thinks they can get out before the bubble bursts.\" Chapter   Remember: others think so