Investing in Dogecoin: 10 Risks and Rewards of October 2023

A list of risks and rewards of investing in Dogecoin in 2023

The first meme coin project ever was Dogecoin, a cryptocurrency that was introduced in 2013. Dogecoin is a satirical cryptocurrency that was developed by Jackson Palmer and Billy Markus. Its logo is a picture of a Shiba Inu, a Japanese dog breed that has become a well-known internet joke. Even though Dogecoin was first developed as a joke, it performs better than Bitcoin and other established blockchains. For instance, Dogecoin allows wallet-to-wallet transfers and has a block duration of under one minute, compared to Bitcoin's block length of ten minutes.Additionally, Dogecoin transactions cost a lot less than Bitcoin transactions. For instance, the normal transaction cost for Dogecoin is 0.0025 DOGE. This translates to a minuscule fraction of a penny at the current exchange rate. In contrast, Bitcoin is now averaging $3.80 each transaction, although this has previously exceeded $30. As a result, Dogecoin is preferred above Bitcoin as a medium of exchange, although the great majority of users purchase Dogecoin only for speculation. Like all cryptocurrencies, its value fluctuates according to the state of the market, albeit meme coins are more volatile than other crypto asset classes. The top cryptocurrency exchanges now offer Dogecoin as a result of its increasing popularity. In fact, eToro, Webull, and Robinhood are just a few of the top brokerages that currently accept Dogecoin. As a result, Dogecoin is now more approachable than ever, especially for total newbies.

Why should you invest in Dogecoin in 2023?

1. Over the previous several years, Dogecoin's price has seen a major correction. Recent upward price movement for Dogecoin indicates that it has the potential to be a great long-term investment.

2. As was already established, Musk has been one of the Dogecoin community's most outspoken members. He frequently tweets about DOGE, which has boosted the value of the cryptocurrency. A major factor supporting Dogecoin's long-term viability is Musk's ongoing backing of the cryptocurrency. Some of Musk's most recent tweets regarding Dogecoin demonstrate his continued optimism for the future of the cryptocurrency. Even so, he referred to Dogecoin as his "favorite cryptocurrency".

3. One of Dogecoin's most important cornerstones ever since it began is its community. Today, the network is made up of millions of people, including well-known figures like Elon Musk and Mark Cuban, the American billionaire and owner of the Dallas Mavericks. Along with being affluent, they also have a sizable social media following. Therefore, anytime they bring up Dogecoin, they draw in additional investors, which might eventually lead to Dogecoin being one of the best-performing cryptocurrencies.

4. As a decentralized cryptocurrency, Dogecoin is not governed by a single entity. The currency is managed by the community and its creators. This provides Dogecoin an edge over other cryptocurrencies. It is less likely, for instance, to be impacted by laws and regulations.

5. Several exchanges, including Binance, Kraken, eToro, and Robinhood, advertise Dogecoin as an available asset. This indicates that purchasing and selling this cryptocurrency won't be an issue for investors. Dogecoin is a more alluring investment for people seeking a substitute for conventional investments due to the fact that it is listed on several platforms.

6. One of the main obstacles to the adoption of cryptocurrencies is scalability.This issue has never arisen on the Dogecoin network. It is extensively utilized, thus network outages or poor confirmation rates are seldom a problem. Due to its scaling abilities, DOGE is in the lead among cryptocurrencies with a high chance of becoming widely used.

7. When compared to other major currencies like Bitcoin and Ethereum, Dogecoin's buying price is still quite low, and this is something that should not be disregarded. The cost of this coin is now less than $0.1. Due to its lower price than Bitcoin, Dogecoins may be purchased in bulk without having to acquire fractions.

RISK FACTORS ONE SHOULD BE AWARE OF?

1. Some predictions indicate that Dogecoin's price may yet decrease. Even if it's not a given, it's crucial to consider the potential before making a purchase.

2. One of Dogecoin's biggest flaws is that there is an infinite supply. 5 billion DOGE coins are released into circulation each year. If all of these cryptocurrencies are not used in a situation when demand is extremely high, the price may drop. Since cryptocurrencies are still in their infancy and haven't gained broad adoption, the short- to medium-term outlook for Dogecoin's price is uncertain due to the currency's expanding supply. Dogecoin is therefore viewed as a riskier cryptocurrency than Bitcoin, which has a low and limited quantity.

3. Dogecoin's sluggish technological growth is its major drawback. The DOGE team is not in a rush to complete the development of their technology. It doesn't give superior technologies because of the slow growth. Because Dogecoin doesn't give the same benefits as other cryptocurrencies, this is a serious issue. For instance, DOGE doesn't support dApps or smart contracts. Due to its sluggish growth, Dogecoin may fall behind other cryptocurrencies. As a result, DOGE's price can decrease.