With the steep ascent of Dogecoin’s value this year, can it reach $100? Find out the answer in this article.
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Many innovations are created to make people’s lives easier in general. Technology advances with each passing day, and we must keep up.
With this comes cashless payments, online banking, and digital currencies that can be converted to real cash. It’s really convenient when you think of it. Moreover, they can be managed with just your phone – yup, everything’s right there!
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What Is a Dogecoin?
Dogecoin is a cryptocurrency or a digital currency that has the internet a buzz nowadays. It originated as a joke in 2013 and became one of the highest valued cryptos, ranked in the top 5.
Founded by Billy Markus and Jackson Palmer, it was inspired by a meme of a Shiba Inu dog which became its mascot. If you’re usually on the internet, you’re probably familiar with the meme.
Dogecoin has big names like Elon Musk and Mark Cuban to thank for its popularity. We can now safely say that it absolutely has value. Same as other cryptocurrencies, Dogecoin is bought, sold, and used as an investment like real money.
Before we answer the question if Dogecoin can reach $100 in value, let’s go over some facts about it.
How Do You Trade a Dogecoin?
You can trade Dogecoin via:
Exchanges
You can buy or sell Dogecoin using fiat currency or another cryptocurrency that you possess. If you don’t know, fiat currency doesn’t have any intrinsic value but can be declared as legal tender by government regulations.
Examples of exchanges where you can trade Dogecoin are Binance, OKEx, HitBTC, VCC, and Thodex.
Online Brokers
Most brokers now offer Dogecoin trading. You can do your own research and see which brokers are available in your country. You can also buy CFDs, futures, and forex from online brokers. These will help you speculate or predict the value of Dogecoin so you can invest smarter.
You should consider if you can afford to lose money since some of these instruments, such as CFDs, have high risks of losing money due to leverage.
Should You Trade Dogecoin?
This is a good question to ask yourself when you already have some Dogecoins. Now, there are a variety of reasons why you should trade your Dogecoin. Let’s discuss them.
Inflationary Supply
Unlike the first cryptocurrency, which is Bitcoin, Dogecoin is an inflationary coin. Inflation can devalue a single Dogecoin. You might think this is bad, but it will be the reason for Dogecoin’s survival.
An inflationary coin will guarantee a constant supply because users will most probably spend their coins rather than use them as a store of value. This will cause Dogecoin to circulate, ensuring a consistent cycle.
Users/Communities
Dogecoin has a pack of loyal followers – a fanbase, if you will. The people from this specific crypto community are friendly and approachable. They also do a lot of charity work. Believe it or not, they’re even trying to send a physical Dogecoin to the moon. They also give Dogecoin to others users as tips.
These users, without question, are what keeps Dogecoin going. Because of them, this cryptocurrency won’t be going anywhere anytime soon.
How Can You Buy a Dogecoin?
When you’re planning to buy or invest in a Dogecoin, you should do some research and find yourself some reliable brokers with low fees.
Below, we listed down some of the best platforms to buy Dogecoin.
1. Skilling
This platform has a clear and straightforward interface that is very helpful, especially for new traders. It also offers a wide range of features that an investor can choose from.
In Skilling, you can choose a specific trading option that suits your needs the best. It has tight spreads, and it’s fully regulated, so you can rest easy that your Dogecoin is in good hands.
2. Plus500
If you want a CFD broker with low fees and plenty of coins, then this platform is for you. It is secure, reliable, and uncomplicated to use.
You don’t need a special wallet or exchange account with Plus500. You can also control your risks and losses since this platform is at your disposal 24/7.
3. eToro
eToro has boomed into a big name in the trading industry in a very short time. It has also emerged as one of the best brokers for buying Dogecoin.
In addition, the eToro marketplace has a user-friendly interface and tough security protocols. You can surely make the most of your investment with this platform.
Is Dogecoin Safe?
To answer this question simply, yes, Dogecoin is safe and secure. It runs on Dogechain, its dedicated blockchain providing real-time consensus.
Is Dogecoin a Good Investment?
If you’re planning to invest in Dogecoin long-term, it can be a profitable investment for you. If you’re planning to trade on a short-term basis only, then this cryptocurrency isn’t the right choice.
There’s a lot of things to consider if you want to invest in Dogecoin. The very first is your current financial status. Can you afford some loss? Remember, there are high risks when it comes to Dogecoin.
So, Can Dogecoin Reach $100?
Beginning 2021, the value of Dogecoin increased gradually. By May 2021, it hit its highest point at $0.73. There’s a chance that this cryptocurrency will reach $1, $2, or even $10 in this decade. But if your question is “Can it reach $100 per token?”, then that isn’t likely to happen anytime soon.
At $100, Dogecoin’s market value would be in the trillions. That’s comparable to the world’s biggest GDPs. It will take a lot of money to push Dogecoin to that value.
Market cap depends on the supply of a cryptocurrency. For instance, Bitcoin’s maximum number of coins is 21 million, while Dogecoin doesn’t have a limit. The current number of Dogecoin in circulation at present is around 131 billion.
When it comes to the distribution of the tokens, Dogecoin has a fair launch system. That means there’s no early access or allocation to private entities before the tokens are made public.
Note that Dogecoin is fully mined, earned, and governed by the community. Still, about 100 people are in possession of the majority of Dogecoins in circulation. One whale owns a staggering amount of Dogecoin, more than 80 or 90 of the other users combined.
This is not necessarily a good sign for investors since the whale can instantly crash the Dogecoin market.
The bottom line, though, is that even though Dogecoin is continuously garnering attention from crypto traders and even pop culture fans, hitting $100 is improbable due to market cap, token distribution, high risks, and circulation volume.
