Dogecoin hit an all time high last week when it was trading at USD$0.11. Although it has dipped almost 50% since then, it may now be good time to buy a lot of this cryptocurrency.
Dogecoin has had a really, really good month and some people have made a 10X return on their investment in a little less than 30 days.
In January $DOGE was trading at a little over USD$0.01 per coin and it was pretty much considered a dead currency. That was until some social influencers decided to invest big in the coin as a joke. Since the cryptocurrency had such little value most people just bought it for the meme so they could say they are Dogecoin millionaires.
Due to the growing interest in Dogecoin the cryptocurrency shot up to USD$0.8 which meant that these influencers had made a lot of money. This inspired a bump and dump scenario where the social influencers would sell their Dogecoins to capitalise on the growth which ultimately sent the value diving to USD$0.03 immediately.
However, more people are catching on and $DOGE is becoming increasingly more popular as a lot of new buyers/investors are now riding its wave.
Because of its low price and high potential Dogecoin has become a very popular cryptocurrency for momentum traders.
Momentum trading is the practice of buying and selling assets according to the recent strength of price trends. It is based on the idea that if there is enough force behind a price move, it will continue to move in the same direction. Considering that Dogecoin appears to be on an upwards trend thousands and thousands of new investors are buying low and selling high.
Sadly the influx of new traders meant an increase in traffic to the few sites who actually buy/sell Dogecoin resulting in crashes and downtime.
US-based crypto exchange company Kraken (click here to sign up for a free account) is one of the few apps that trade Dogecoin. The exchange provides cryptocurrency to fiat trading, and provides price information to Bloomberg Terminal. As of 2020, Kraken is available to residents of 48 U.S. states and 176 countries, and lists 40 cryptocurrencies available for trade. It is one of the most popular apps for trading Dogecoin because of their low fees.
Will Dogecoin hit one dollar?
We initially warned people to stay away from Dogecoin because it was extremely volatile and appeared to be a pump and dump trump. Influencers hyped the cryptocurrency by saying that the coin had the potential to hit USD$1.00 very soon which means that people could potential earn a 90X return on their investment. But this is something we, at first, believed to be highly unlikely due to how how limited access to this coin was.
Like we mention early, Kraken was one of the only exchanges that actually traded in $DOGE which means that it would be impossible for the coin to have significant growth. We said that this needs to change if there is any hope for Dogecoin to take off in the near future, and it looks like other exchanges/brokers are finally listening.
Perhaps it was all the social media buzz. Perhaps it was Elon Musks’s tweet but more and more exchanges and even online retailers are now starting to accept Dogecoin. This has greatly increased the chances of Dogecoin, one day, hitting USD$1.00. And it will become more and more likely the more accessible this currency becomes in the mainstream.
So, the question begs, should you buy/invest in Dogecoin? Like any other cryptocurrency or stock, investment can always be risky, but risks sometimes pay off. While Dogecoin is still volatile right now recent trends show that it is on an upward trend so the potential to earn good money is there. Maybe invest a couple of hundred dollars in Dogecoin using Kraken and see how it goes. If it does hit a dollar, you won’t regret that gamble.
However, it is important to remember that $DOGE is, and always will be, a meme currency. And a lot of people take issue with the fact that it backs very little and has no supply limit.