Dogecoin being a new cryptocurrency has gained massive interest from investors until the recent price slash. Nevertheless, the effect occurred to every cryptocurrency, while the price margin varies with each.
The eagerness attached to cryptocurrency at the beginning has dropped drastically. Many factors may be responsible for why people have lost interest in Dogecoin. It could be a result of high volatility or uncertainty of its relevance.
Let’s throw light into these claims as this article unravels the frequently asked questions about Dogecoin and its supposed effect on investors.
What are Dogecoins?
Dogecoin is a digital currency, which you can trade with other investors. More so, you can convert your Bitcoin into Doge with a Bitcoin doge transaction
Doge is a decentralized currency without involving a third party. It leads to an easy and fast transaction with other traders.
What is the Mining Process for Dogecoin?
Since Dogecoin is from Bitcoin, it follows a particular mining mechanism.
Doge mining uses the Proof-of-Work mechanism, just as Bitcoin currency. However, Proof-of-Work requires more power consumption than the Proof-of-Stake used by some other currencies.
Therefore, is the Dogecoin blockchain mechanism responsible for people’s lack of interest in it? Certainly not. In the real sense, only a few investors have adequate knowledge about cryptocurrency and the mining processes.
What Can I Use Dogecoin For?
Dogecoin is a payment mode for some services like Bitcoin Jerky, AirVPN, Frontier Vapor, and Keys4Coins. Despite its flexibility, some people refer to it as an irrelevant coin. Since it is available almost everywhere, investors are skeptical of its relevance in the future.
While Dogecoin is a derivative of Bitcoin, investors often decide to stick with the top coin. Hence, DOGE is yet to gain solid ground among investors.
How Many Dogecoins Are Existing?
Many investors ask this question, wondering if doge coins can go round. Being a new cryptocurrency, investors lack faith in it and are often pessimistic of its sustenance in the Crypto world. You should bear in mind that cryptocurrencies have no cap on the amount available in the market. Hence, the amount of Doge available is unlimited.
However, miners try to balance the supply and demand ratio to stabilize the market trend.
How Can I Buy Dogecoin?
Many investors ask about the buying process of Dogecoin rather than other cryptocurrencies. If your exchange includes Dogecoin transactions, you can get a suitable seller from there. However, an alternative is to buy Bitcoin, then exchange it for doge currency.
Uncertainty in Dogecoin
The frequently asked questions above show that investors are curious about cryptocurrency. Hence, they have no full conviction about its purpose and would remain on the safe side, based on their level of knowledge.
Findings from one of the top cryptocurrency exchanges, Evonax, states that;
“One of the main reasons it is so hard to set an accurate Dogecoin prediction and that determining the future outlook of this coin is so tough is how the volatility of this particular coin is influenced heavily by social media. Nevertheless, many genuinely believe Dogecoin could reach the astonishing high of $1 before the end of the year.”
Dogecoin’s prices are much influenced by social media, painting it as a gambling coin for investors. Likewise, it becomes more difficult to predict its next price. As a result, many investors draw away from this currency. However, there are doge enthusiasts that would keep trading regardless of the unpleasant market situation. In the worst cases, they hodl their coins.
When Not to Buy Dogecoin
Having mentioned the frequently asked questions, they are not enough reasons not to buy doge. Instead, it is more of a personal preference. Hence, this article recommends you do not buy Dogecoin if you belong to any of the categories below.
1. If You Cannot Handle Risk
Cryptocurrency is a high risk even though it would yield a big profit in the long run. If you cannot see the long-term goal, you may stay away from investing in it.
2. Inadequate Knowledge of Dogecoin or What it Offers
The best is to understand why Dogecoin, and the benefits associated with it. More so, learn its mode of operation and past users’ history.
3. You Have No Extra Savings
The most unwise investment risk is staking all your savings. Therefore, have backup savings for emergency needs.
Although many investors question the authenticity of Dogecoin, it is worthy of note that it is usual for a new coin. Hence, we recommend you buy DOGE if you have a better understanding of what it offers. Hopefully, the answers to the questions above have helped you figure it out.
If you need an exchange platform to trade your Bitcoin to Doge, Evonax is a reputable platform. It is secure, fast, and non-stressful. Interestingly, you would not need to go through a vigorous registration process before creating an account. Therefore, give them a try today.
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