Dogecoin Investment Options: Where To Invest?

Dogecoin is a cryptocurrency that was started as a joke in 2013, inspired by the Doge meme featuring a Shiba Inu. It was created by software engineers Billy Markus and Jackson Palmer in the early days of crypto, soon after major players like Bitcoin and Litecoin. It started off as a joke based on the popular Doge meme featuring a Shiba Inu dog. Dogecoin is a digital currency introduced as a more memorable and fun alternative to other cryptocurrencies. It is known as the people's currency or underdoge and has sparked both optimism and skepticism in the cryptocurrency world. Dogecoin can be purchased on exchanges such as eToro, Robinhood, Coinbase, Uphold, Webull, Kraken, Crypto.com, and Binance.

Dogecoin's value and volatility

Dogecoin is a highly volatile cryptocurrency with no intrinsic value. Its value is derived from its meme status, user adoption, and utility. It is inflationary by design, with an unlimited total supply, and is used for small transactions and online tipping. Dogecoin's beta coefficient of 1.71 indicates that it is a risky investment with above-average volatility.

Dogecoin's historical daily return volatility represents how much the crypto coin's daily returns swing around its mean. It is a statistical measure of its dispersion of returns. Dogecoin's beta of 1.71 provides an investor with an approximation of how much risk the crypto coin can potentially add to an existing portfolio.

Dogecoin's volatility can be measured by its standard deviation, which reflects the average amount by which its price will differ from the historical average over time. A high standard deviation indicates a volatile entity, while a stable instrument will have a low deviation. Dogecoin's standard deviation is currently 7.31, and it accepts 7.3148% volatility on return distribution over a 90-day horizon.

Dogecoin's value is also influenced by its supply and demand. With a large supply of over 130 billion Dogecoins in circulation, the per-token price is lower. Dogecoin's low price, growing popularity, and faster transaction speeds compared to Bitcoin have made it an attractive option for investors.

Dogecoin's value is also heavily influenced by social media hype and high-profile individuals like Elon Musk, Snoop Dogg, and Mark Cuban. Musk's tweets, in particular, have played a significant role in Dogecoin's price movements.

Dogecoin's future remains uncertain, and it is considered a risky investment due to its high volatility and lack of intrinsic value. It is crucial for investors to understand the risks associated with investing in cryptocurrency and proceed with caution.

How to buy Dogecoin

Dogecoin is a cryptocurrency that was created as a joke in 2013, inspired by the "Doge" meme featuring a Shiba Inu. It was designed to make digital currency more fun, friendly, and approachable, and to be a more accessible and less serious alternative to Bitcoin. Despite its humorous origins, Dogecoin has become a recognised digital currency with a strong, charitable community.

• Create an account with a reputable cryptocurrency exchange that supports Dogecoin, such as Coinbase, Robinhood, eToro, Kraken, Uphold, Webull, Crypto.com or Binance. You will need to provide personal information such as your email address, name, and phone number.
• Verify your account by providing proof of address and identity. This may include submitting government-issued identification documents and undergoing a Know Your Customer (KYC) verification process.
• Deposit funds into your account. You can do this through wire transfer, ACH transfer, or by using a credit or debit card, depending on the exchange's rules and your location.
• Search for Dogecoin (DOGE) on the exchange, check its market price, and place a buy order. The price of Dogecoin is volatile and subject to change, so it is a good idea to track the price over time.
• Finalise your purchase of Dogecoin.

An alternative method is to use a peer-to-peer (P2P) marketplace, which allows you to buy Dogecoin directly from other individuals. These platforms match buyers and sellers and provide a secure escrow system to facilitate the transaction.

It is important to remember that investing in cryptocurrencies is risky, and Dogecoin is highly volatile. Be sure to do your research and only invest money you are willing to lose.

Dogecoin wallets

Custodial Wallets

A custodial wallet is one to which you do not hold the private key. Instead, a trusted third-party entity holds the private key on your behalf and manages your coins. Web-based exchange wallets are an example of custodial wallets. These are typically favoured by people who trade Dogecoin more frequently due to their convenience.

Non-Custodial Wallets

A non-custodial wallet, on the other hand, is a wallet where you hold and control the private key to your Dogecoin. Smartphone wallets, Dogecoin Core, and hardware wallets are examples of non-custodial wallets. Non-custodial wallets are preferred by many because they store your private keys locally, rather than with a centralised third-party. However, it is very important that users of non-custodial wallets do not lose their private keys or seed phrases. Backing up your non-custodial wallet is essential, and you should never share your seed phrase or private key with anyone you do not trust.

Hot Wallets and Cold Wallets

Wallets can also be categorised as hot or cold, depending on whether they are connected to the internet or not. Hot wallets are connected to the internet, and examples include Dogecoin Core, browser extension wallets such as MetaMask, and smartphone wallets. Cold wallets, on the other hand, are not connected to the internet, and include hardware wallets and paper wallets. Cold wallets are typically considered to be safer than hot wallets and are preferred by those who want to hold their Dogecoin long-term. However, non-custodial hot wallets, such as smartphone wallets, are generally considered safe enough for day-to-day expenses and for holding small amounts of Dogecoin.

Dogecoin's future

Community and Popularity

Dogecoin has a strong and passionate community that actively engages in charitable donations, crowdfunding initiatives, and social media campaigns. This community support has been instrumental in driving Dogecoin's success and mainstream attention. The involvement of high-profile individuals like Elon Musk, Snoop Dogg, and Mark Cuban has also fueled its popularity and price surges.

Technical Improvements and Innovations

The Dogecoin development team is continuously working on improving the network's efficiency, security, and scalability. They are exploring layer-2 solutions, protocol enhancements, and ways to reduce the environmental impact of mining. These technical advancements could enhance Dogecoin's viability and competitiveness in the cryptocurrency space.

Price Predictions and Market Trends

Dogecoin's price has experienced significant volatility, surging during bull markets and correcting during bear markets. Analysts' predictions for 2024 vary, with some expecting a price range between $0.085 and $0.26, while others forecast a potential surge to $0.3751 or even $1. Looking further ahead, predictions for 2025 and beyond become more optimistic, with some analysts anticipating prices above $1. However, it's important to note that these predictions are highly speculative, and the actual trajectory will depend on various factors, including market conditions, community support, and technical advancements.

Challenges and Risks

One of the main challenges for Dogecoin is its lack of practical use cases. Unlike other cryptocurrencies, Dogecoin doesn't seem to have any inherent value beyond its popularity as a meme coin. Additionally, the unlimited supply of Dogecoin could dampen long-term price appreciation compared to coins with capped supplies. Centralization is another concern, as the top 10 holders control a significant portion of all Dogecoin coins. These factors could make it difficult for Dogecoin to sustain its value over the long term.

In conclusion, Dogecoin's future remains uncertain. While it has the potential to benefit from community support, technical improvements, and bullish market conditions, it also faces challenges related to its limited utility, unlimited supply, and centralization risks. Investors considering Dogecoin should carefully evaluate these factors and understand the risks associated with investing in highly speculative and volatile meme coins.

Dogecoin's creators and history

Dogecoin was created in late 2013 by software engineers Billy Markus and Jackson Palmer. Markus worked at IBM, and Palmer worked in the marketing department of Adobe in Sydney, Australia. The pair wanted to create a peer-to-peer digital currency that could reach a broader demographic than Bitcoin, and distance itself from the controversial history of other coins. Dogecoin was also intended as a joke, satirising the wild speculation in cryptocurrencies at the time.

Markus and Palmer were inspired by the "doge" meme, based on a 2010 photograph of a Shiba Inu dog called Kabosu, which was adopted by Japanese teacher Atsuko Satō from an animal shelter in 2008. The creators wanted to make light of the craze of minting altcoins that have little value beyond novelty symbolism. The cryptocurrency's logo features the face of Kabosu.

Dogecoin was introduced on December 6, 2013, and quickly developed its own online community. Within two weeks, Dogecoin had established a dedicated blog and forum, and its market value reached $8 million, once jumping to become the seventh-largest electronic currency in the world. Within the first 30 days, there were over a million visitors to Dogecoin.com.

Palmer is credited with making the idea a reality. He purchased the domain Dogecoin.com and added a splash screen, which featured the coin's logo and scattered Comic Sans text. Markus reached out to Palmer after seeing the site, and started efforts to develop the currency. Markus designed Dogecoin's protocol based on existing cryptocurrencies Luckycoin and Litecoin, which use scrypt technology in their proof-of-work algorithm.

Dogecoin's creators left the development efforts in 2014, and a Dogecoin Core Development team was formed. The team has been maintaining and developing Dogecoin since then.

Frequently asked questions