Can anyone expect that a coin that started just like a joke, is now one of the top coins? Yes, we are talking about Dogecoin. Jackson Palmer and Billy Marker founded this altcoin in the year 2013. It was initially formed from a meme and was a joke for many people. But later it started gaining a lot of popularity. There are several investors for Dogecoin, who are with it even when its price came down. It is one of those affordable currencies that you can invest in.
You just invest a low amount and leave it for the long term to gain good profits. The market cap of this altcoin is high and also is one of the top 15 cryptocurrencies at present. If you are planning to buy Dogecoin now, then you need to gain good knowledge about it. Here we have discussed a few pros and cons of buying Dogecoin. Just go through them, compare them and then decide whether that is the right choice for you or not.
Pros of Buying Dogecoin:
Here are some of the pros of buying Dogecoin:
- One of the most important benefits that you will be able to enjoy after buying Dogecoin is the ease of transaction. Dogecoin is very similar to Bitcoin. That means you will be able to enjoy the same benefits as that of Bitcoin, even with Dogecoin. The code used for Dogecoin is similar to Bitcoin. That means, your transactions are more secured.
- The investors or holders of Dogecoin are growing every single day and that is one of the best advantages of holding Dogecoin. When there are more investors, the exchange rate will also be high and so will be its value.
- It’s listing in the crypto stock exchange is another benefit you can enjoy. Many top exchanges have listed Dogecoin, which includes Multinational crypto exchanges. This kind of platform will help in increasing the number of traders and that is again a benefit.
- It is a good choice for those who wish to invest for the short term. Yes, Dogecoin is not a good choice for long-term investments.
- Dogecoin comes with a very unique mining feature and that is going to be helpful for many people. For validating any transactions, complex crypto problems must be solved and that makes it a more secure path.
Cons of Buying Dogecoin:
Here are some of the cons of buying Dogecoin:
- One of the biggest cons of Dogecoin is there is no limit on the supply cap. When there is no cap, it is highly prone to inflation. More and more blockchain activities are required for expanding the mining pool.
- When it was initially launched, it was started as a poke joke against Litecoin and Bitcoin. This nature can be a problem for people to adopt it in the future.
- There is very little technical support or no support from Dogecoin. The network of supporters and investors is growing every single day, but there is not enough technical support for it like Bitcoin or Ethereum. No major updations also happened in Dogecoin since 2015.
- You will be able to use Dogecoin as just a digital currency at cryptodezire. You cant use this as transactional currency. The other coins like Dash, Litecoin, Bitcoin Cash, and Bitcoin are having more importance as transactional currencies.
- Pump and dump are very high with the Dogecoin. This has been restricted to a very great extent but it is still being used with some coins. Pumping means a group of people will buy a cryptocurrency in high volume for a certain price. When the volume of Dogecoin increases, its price also increases. Once the price goes to their desired value or higher than what they bought for, then they sell it off and make profits.
These were five pros and five cons about buying Dogecoin. You just need to be very careful you are buying it. Analyzing the present market, and then making your decision can be a great option if you don’t want to lose any money. Another important thing to keep in mind is you should invest only when you can lose at any time. Trading is always a risky thing.
