Dogecoin price: Three things you need to know before investing in Dogecoin cryptocurrency
Dogecoin ‘is pure speculation and will end badly’ says Yusko
When you subscribe we will use the information you provide to send you these newsletters. Sometimes they’ll include recommendations for other related newsletters or services we offer. Our Privacy Notice explains more about how we use your data, and your rights. You can unsubscribe at any time.
Dogecoin’s meteoric rise in the cryptocurrency market has staggered analysts across the world. It’s now the fourth most popular crypto available, behind market leaders Bitcoin and Ethereum.
The so-called ‘memecurrency’ is currently trading at slightly over $0.60, which is close to its all-time high.
DOGE peaked at $0.70 on May 5, and is likely to continue rising.
It’s risen by more than 1,200 percent over the past month, catching the eye of numerous investors.
But if you’re looking to invest in Dogecoin going forward, it’s essential that you really think about the risks.
It’s crucial that you understand the risks associated with investing in ‘alt-coins’, according to Crypto Head co-founder, Adam Morris.
These types of cryptocurrency are most likely to have a sudden crash if the market dips, he said.
You should only invest in Dogecoin if you can really afford to lose the money.
It doesn’t have any real utility, and is essentially gambling, said Morris.
Jeff Bezos could ‘rocket’ price of Dogecoin tomorrow [ANALYSIS]
Dogecoin creator Billy Markus explains why token is ‘a roller coaster’ [LATEST]
Dogecoin price: Dogecoin value jumps 47% in just one week – how to buy [EXPLAINER]
You’ll also need to be “on the pulse”, added the crypto expert.
If the currency drastically dips in a short space of time, you’ll need to be available to cash out while you still can.
But, it’s also important that you assess whether it’s worth investing in Dogecoin, compared with some of the more long-standing cryptos, he said.
For example, it’s likely that Ethereum will keep rising and hit an all-time high later in 2021.
“The reason people like investing in cryptocurrencies like Dogecoin is because they feel they can turn their investment into a much larger amount in a short period of time,” said Morris.
“While it’s one of those investments that could go well short-term, this gambling mentality makes for poor long-term investment decisions.
“But, when it’s risen by 1260 percent in the last month you can see why retail investors would be attracted to invest.
“If you’re investing in coins like this you need to be on the pulse and understand the level of risk you are taking on.”
Dogecoin started out in December 2013, and has since been valued at £12.5billion ($17.7billion).
Creators Billy Markus and Jackson Palmer invented the cryptocurrency as a joke, hoping to make an online payment system that was free from traditional banking payments.
Over the past year, Dogecoin returns have increased almost 3,000 percent.
Dogecoin’s value could rise even further over the next few months, it’s been predicted.
Source: Read Full Article