Dogecoin may have started as a joke, but it represents real money now. In theory, it should be easy to make a profit on Dogecoin trading. Just buy DOGE tokens when the Dogecoin price is low and sell them when the price rebounds. Buy low and sell high – the fundamental rule of investing. The difference between the buying price and the selling price is your profit.
Of course, making a profit isn’t quite that easy – especial when you’re talking about cryptocurrency. Myriad forces contribute volatility to DOGE price tables. Peaks and valleys appear with no warning and no apparent cause. When you buy Dogecoin, last week’s 500 € purchase may be worth 200 € today – or 50 €.
That’s not just Dogecoin, of course. That’s the trouble with spot trading, the investing strategy in which you watch the market and try to time your transaction in highs and lows.
Nobody’s very good at that, even in the relatively stable world of corporate stocks. Unpredictable factors affect prices, and most day traders lose money.
So while there are some spot traders who buy and sell DOGE according to their hunches, theories, and predictions regarding the Dogecoin exchange rate, others take a long-term view with dollar cost averaging or simple hodl.
DOGE value rises to highs and plummets to lows according to international money market dynamics, speculation about government regulatory changes, tweets from billionaires and celebrities, and many other factors.
Timing the market amid all these influences is extremely difficult. That’s why almost all day traders lose money.
Dogecoin was created by software engineers Billy Markus and Jackson Palmer. It was launched on December 6, 2013.
Markus and Palmer created the token as a joke. Insiders understood they were spoofing the wildly hyped cryptocurrencies that were entering the market in those days. They referred to Dogecoin as the crypto world’s first dog coin.
It has also turned out to be the first coin based on an internet meme. It was to describe Dogecoin that the term “meme coin” was minted. It made sense, because before Doge was a cryptocurrency, it was an internet meme featuring the image of a Shiba Inu dog.
Today there are well over 100 memecoins, including Shiba Inu, Baby Doge Coin, Degelon Mars, Pitbull, MonaCoin, Samoyedcoin, Pepe Cash, Dogs of Elon, DogeBonk, DOGGY, YUMMY, Garlicoin, DogeCash, Pepemon Pepeballs, Akamaru Inu, Akita Inu, Baby Santa Token, BlowFish, Safemoon, RoboApe, and Floki Inu.
Dogecoin surprised industry watchers – and possibly its creators – when it attracted the attention of serious crypto investors. The coin supports an active online community and it has ranked in the top 10 cryptocurrencies by market capitalization.
Investing in Dogecoin
Many investors believe that Dogecoin has a bright future in the long term. The token’s loyal following is highly engaged in using, trading, and promoting the Doge vision.
Dogecoin may indeed prosper in the long term. In the short term, the Dogecoin exchange rate rises and falls hour by hour, day by day – sometimes dramatically. This market volatility makes Dogecoin trading tricky. But if you step back and look at the larger context, it’s clear that Dogecoin, like the cryptocurrency market as a whole, is part of a long-term upward trend.
Learning From the Past
What if you had purchased Dogecoin a week ago? A month ago? If you had purchased 100 € worth of DOGE, what would you have now?
There’s no need to consult price charts. The Kriptomat what-if calculator performs the calculations based on data that is refreshed around the clock. The Kriptomat calculator can tell you precisely how much your 100 € investment would be worth today, based on verified historical price data and exchange rates.
In fact, the calculator can perform the same calculations for any of the 350+ cryptocurrencies you can buy and sell at Kriptomat.
The calculator demonstrates that despite the short-term price volatility, crypto has generated substantial returns for long-term investors.
One of the best ways to take advantage of long-term upward trends is to use the Kriptomat Recurring Buy feature, which implements the widely used dollar-cost averaging strategy to minimize the effects of market volatility and turn market downturns into profits. Kriptomat Recurring Buy lets you set a schedule of regular purchases on a weekly, bi-weekly, or monthly basis. For the price of a daily cup of coffee, you can gradually build up your crypto portfolio to help you achieve long-term goals like purchasing a home, financing your kids’ university education, or living a worry-free retirement.
The Bottom Line
The world is full of crypto spot traders who have learned the hard way that there is nothing straightforward about predicting short-term high and low prices when it comes to cryptocurrencies. The factors influencing the Dogecoin exchange rate are too numerous and obscure to identify, much less track.
But the effects of volatility shrink when compared to long-term Dogecoin price trends. There are no shortcuts to profits in crypto investing, but many happy Dogecoin owners have found success by thinking of their meme coin holdings as a long-term investment.
Founded in 2018, Kriptomat revolutionized the cryptocurrency world with the introduction of the simplest platform in Europe. Kriptomat makes digital finance so simple that everybody everywhere can access the freedom, fairness, and fulfillment that crypto represents. Hundreds of thousands of customers across Europe and in 120 countries worldwide trust Kriptomat when they buy, sell, swap, earn, share, and invest in crypto.