Is Dogecoin Worth Buying?

Dogecoin ($DOGE) is one of the most popular cryptocurrencies, much to the chagrin of its own creators. Co-founder Jackson Palmer is outspoken against the famous memecoin, while billionaires Mark Cuban and Elon Musk are huge supporters. That has some wondering is Dogecoin worth buying?

What Is Dogecoin?

Dogecoin was developed by Billy Markus and Jackson Palmer in December 2013 as a joke. The developers were making a statement about speculative cryptocurrency investments, and pairing a Litecoin fork with the popular Doge meme of a Shiba Inu dog.

Throughout the 2010s, it gained notoriety as a way to tip people and perform charity on the internet. Its rabid community often pulled publicity stunts, like sponsoring a NASCAR driver and the Jamaican Bobsled team at the 2014 Winter Olympics.

By the 2020s, the coin reached full cult status, and Reddit’s WallStreetBets community paired billionaire tweets skyrocketed the coin’s price to historic levels. Worth a fraction of a penny for much of its existence, it surged above $0.01 in early 2021 and reached well over $0.25 by year end.

This got the retail investment community buzzing around the question of whether DOGE could perhaps even disrupt the U.S. Dollar?

Is Dogecoin A Fringe Digital Currency?

Bitcoin ($BTC) is the apex cryptocurrency, but altcoins like Ethereum ($ETH) and Dogecoin are enjoying their time in the spotlight. Blockchain technology has a lot of use cases, but adoption of the top 100 crypto projects is relatively low when compared to fintech titans like PayPal (PYPL) or Square (SQ).

Dogecoin is a vanilla crypto meant to be used as a currency. That means it’s entirely dependent on marketplace acceptance, something even bitcoin can barely claim, even as it blazes the crypto trail. That leaves a lot of uncertainty in its future and makes it a risky investment for the average person.

Will DOGE play dead soon or be a winner again?

Can Dogecoin Reach $100?

Ever since it broke through the penny technical resistance level, everyone’s wondering just how high DOGE can jump. Can DOGE reach $1.00, $10.00, or even $100.00?

While it is theoretically possible – the coin is less still in its infancy, and mass crypto adoption seems likely over the next decade – the market cap of Dogecoin would be so astronomically large at those price points that practically it’s almost impossible.

In reality, Bitcoin is more likely to reach $1 million than DOGE is to ever reach $100.

Unlike Bitcoin, DOGE has no theoretical supply limit. In fact, the number of Dogecoins increases by five billion every year, and it’s circulating supply is already around 130 billion. This means DOGE is inflationary, while bitcoin is a deflationary asset.

Does that make it worth investing?

Is Dogecoin Worth Investing?

It’s hard to ignore the many headlines about Dogecoin millionaires. Early investors who “HODLed” through 2021 enjoyed over 100x gains in a very short time. Of course, those days are over, and the volatile price of DOGE makes it a risky investment.

You can buy a pre-owned Tesla with DOGE, and the Dallas Mavericks are heavily promoting it as a means of currency for its games and merch. In fact, Cuban offered $25 gift cards for customers buying Mavs merch with DOGE this NBA season.

However, you can’t pay your rent or bills with DOGE (yet), limiting its usage as a broad or trusted currency. And it’s not a blockchain ecosystem meant to support development like Ethereum. This puts Dogecoin in a precarious position, as it’s more of a Forex trade than an actual investment.

It’s possible to time the dips and day trade DOGE, but it’s probably not a great long-term hold. Still, if you want to buy DOGE, here’s how you do it.

Where to Buy Dogecoin

Buying DOGE is easier said than done, and many crypto exchanges don’t offer it. You can buy DOGE on cryptocurrency exchange markets like Coinbase (COIN), Kraken, and Binance.US. These exchanges are preferred because they give you the private keys to hold. That means you can easily transfer it to a cold wallet for maximum safety.

You can also buy DOGE on investment apps like Robinhood (HOOD), SoFi (SOFI), and Webull. However, these services don’t give you the keys, which means you can’t send and receive DOGE. Instead, you’re given the cash equivalent value while the exchange holds the actual crypto assets.

This is why pure cryptocurrency exchanges are the best places to buy DOGE. Which exchange you choose is up to you though, and don’t forget DOGE isn’t the only altcoin on the market.

Dogecoin Alternatives

If you’re looking to diversify your crypto investment, altcoins are the way to do it. Bitcoin is the most common cryptocurrency, but altcoins have different use cases, values, and functions.

Dogecoin is based on the Litecoin ($LTC) blockchain, and you can easily find that anywhere you can buy DOGE and more. Ethereum ($ETH) is a blockchain-based ecosystem meant for more than just a store of value.

Keep in mind when buying crypto that you’re essentially investing in a digital penny stock. Be aware of the risks, including a volatile market and the possibility the government could shut the business down. While risky, the massive possible returns still attract millions of investors.

Is Dogecoin Worth Buying? The Bottom Line

Dogecoin is a highly talked about cryptocurrency that was initially started as a joke. Now that billionaires like Musk and Cuban are tweeting about it, the joke seems to be on the coin’s bears. It already experienced 100x gains in less than a year’s time.

Of course, the utility and support behind DOGE is as speculative as the general crypto industry it was created to mock. This makes it a volatile investment that could leave a lot of people holding the bag.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.