3 reasons to invest in Dogecoin this year
With cryptocurrencies now firmly positioned within the financial industry, and tens of millions of dollars traded each and every day – there are some that boast a high price to trade, while others are a little more affordable and versatile. Dogecoin (DOGE) just so happens to fall into the latter category and although cheap to purchase, its value to traders and investors is certainly prominent. In this post, we’ll be taking a look at 5 reasons why a trader might want to invest in DOGE this year and why it could allow them to reap the rewards in the not-too-distant future.
The value of Dogecoin
The current value of Dogecoin is at 0.66 US at the time of writing. When compared to other types of cryptocurrency on the market such as Bitcoin or Ethereum, the price of DOGE is much, much lower – making it a viable investment opportunity as even if the token doesn’t take off like the aforementioned types did, the losses involved will be minimal. Additionally, the value of DOGE isn’t in relation to its market price, but its trade-appeal – and as the first meme coin, it’s already made a name for itself across the globe and is recognized widely.
One of the most prominent reasons to invest in DOGE is to diversify a crypto wallet. Most traders will consider Dogecoin to be a complimentary token, simply because it’s cheap to purchase, is easy to trade with and will only require a small percentage of an investor’s capital to buy. Many traders prefer to keep diverse wallets as markets can rise and fall and when this happens, it’s good to be able to fall back on a particular type of crypto to account for any losses. As a cheap and cheerful solution, DOGE can be a good way to add a little diversity to a wallet.
Low fees, fast transactions
With a market cap of $9 billion (USD), DOGE has a very loyal fan base that trade with it frequently. One of the biggest benefits of Dogecoin is its consistent level of demand, which could continue into the future. For microtransactions, this coin is almost unparalleled as it is incredibly fast and efficient to buy and sell, can be purchased in any volume, and transactions fees involved are very low – making it as cost-effective as it is attractive to store in a wallet.
Appealing future potential
Due to its low price at the time of writing, and with a predicted gradual cost increase over the course of the next decade, DOGE could make a viable investment opportunity for traders in the future. By investing just $650 USD into 1000 tokens now, in a decade, there is a possibility that the value could reach $1 per piece, providing a profit of $350 as an example. With many experts agreeing that this potential is fairly likely, although not guaranteed, it could be possible to turn a substantial profit if higher volumes of DOGE are purchased, even if the long-term investment may take a while to come to fruition.
It’s worth noting that many retailers now accept Dogecoin as a suitable method of payment, with options to exchange the crypto via fiat services into traditional cash, or transact via a direct wallet-to-wallet transfer. Although it’s predicted that DOGE will never reach the infamous $100 price tag, its value actually has very little to do with its trading cost, and more to do with its versatile nature, easy transaction process, low fees and high level of demand among investors.