Dogecoin was established to poke fun at Bitcoin. Software engineers Billy Marcus and Jackson Palmer created Dogecoin in 2013 and ever since then, the community of enthusiasts has gone out of their way to better the profile of this cryptocurrency. They gained the attention of investors by doing outlandish things like sponsoring the Jamaican bobsledding team and a NASCAR driver. Let us take a look at a few facts if you are looking to buy Dogecoin in India.
How has the Dogecoin graph been since its creation?
The Dogecoin graph did not see a rise till 2021. By May 2021, Dogecoin had reached the value of 55 rupees. 2022 was rough for Dogecoin just like it was for all the other cryptocurrencies. Dogecoin started the year at 12.90 rupees. Since then, it has seen a steady decline in the price. The value of Dogecoin in July is at 5.43 rupees, which is 57.91% lesser than what it started at this year. That being said, it is surprising that Dogecoin is still one of the top 20 cryptocurrencies in the world according to market capitalization.
What makes Dogecoin work?
Dogecoin was created with absolutely no agenda in mind. It gained cult status on Reddit and became really popular when Tesla’s CEO got involved. So why are people investing in Dogecoin and how does it really work? Like most cryptocurrencies in the market, Dogecoin has its own dedicated blockchain. Dogecoin uses proof of work and miners use heavy-duty computers to solve complex mathematical equations and record them. They are rewarded with Dogecoin for supporting the blockchain and the miners can do as they please with the crypto. They can be held or sold in the market.
Is Dogecoin a good long-term investment?
This cryptocurrency is highly inflationary because there is no known cap. Dogecoin has no lifetime cap on the number that can be mined. This means, that every day there are large numbers flooding the market and there is no real way to determine the future of this crypto. It is not known when the last coin will be released or what is the total number of tokens. Every cryptocurrency undergoes halving when the miner’s reward becomes half and from this, you can predict the future. Since there is no relevant information regarding the number of Dogecoins, there can be no speculation regarding the future. This makes Dogecoin a tricky long-term investment. It is better if you use it for payments and purchases but do not expect any long-term gains.
Risks involved with buying Dogecoin
Dogecoin is not well-known for big gains. However, those who invested in it before 2021 have amassed a small fortune. There is no particularly well-developed mining community and it is not as secure as the leading cryptocurrencies. Dogecoin is an easier target for a mining-level attack and hence is more vulnerable to losses. The constant flow of coins in the market is pushing the Dogecoin graph downwards. However, there are some risks associated with every cryptocurrency.
Why should you buy Dogecoin?
Despite the risks, people are still locked in and are investing in this crypto. This is the perfect time to buy a stock of Dogecoin. Dogecoin is a good currency that you can spend instead of FIAT online. It is an excellent option if you are looking to switch to cryptocurrency as a form of payment. It is good crypto for beginners who wish to understand the inner workings of the crypto market without joining the big leagues. Dogecoin is also used to “tip” people for a job well done or for information online. Even when the status of this currency as an investment was at risk, it still is looked at as crypto that is being traded, bought, and sold for fun.
Buying Dogecoin in India
If you are looking to buy Dogecoin in India, it is a fairly simple task. It is easily available on trading platforms. When you are buying Dogecoin, be clear about why you are buying it, and then go ahead. If you decide on the purpose, then you can settle on the amount you want to invest in. At the same time, you can also think of buying other cryptocurrencies. As suggested by experts, any cryptocurrency should be only up to a maximum of 10% of your total crypto investment. The golden rule of investing in crypto is to invest only how much you can afford to lose.
The next time you are investing in Dogecoin, don’t forget to consult this guide!