Trading Doge/USD: Everything You Need to Know
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- What is Doge and how has it been performing?
- Why should you trade Dogecoin?
- Dogecoin tips & tricks
Last year proved to be a very unique one in the history of the financial markets. While we grappled with pandemic-induced changes to our day-to-day habits, and the way we trade, the crypto sphere emerged more solid than ever. As the world turned its attention to the world of digital assets, some coins appeared to be shining more than others. This included a very unsuspecting candidate that came out of nowhere (quite literally) and stole the show. We’re talking about the famous Dogecoin, of course. If you’re curious to know more about the latest crypto cool kid, read on for additional details.
What is Doge?
Unlike the prodigy of the crypto world, the scope and objectives behind Dogecoin were not of the noble kind. In 2013 two software engineers, Billy Markus and Jackson Palmer created and launched a digital coin featuring the meme popular Shiba Inu doge and a splash page sprinkled with Comic Sans Text. For all intents and purposes, Dogecoin was created as a joke. However, it hasn’t stopped gaining attention since it was launched.
Suffice to say that the coin is now the sixth-largest digital coin. It has a market value that surpasses $50 billion. Not bad at all for a joke.
The Coin’s Performance Since Launch
So, while the coin’s origins may have a decidedly fun feel to them, the coin’s performance has had quite a few moments of glory. For instance, in 2014 Dogecoin’s trading volume briefly surpassed that of the market leader Bitcoin. In the early days of 2018, the coin briefly reached the peak value of $0.17 per coin. More recently, in 2020, a TikTok-led frenzy to get the coin’s price to $1 was the reason behind its value spike. Price spikes haven’t stopped this year. Indeed, in January 2021, its price went up by 800% in a time span of 24 hours, thanks to the efforts of Reddit users. As of May 1st, the digital coin has added a whopping 50% to its price from the previous week.
We cannot talk about the coin’s performance without mentioning Elon Musk’s link to the coin’s notoriety. The world-famous EV billionaire has been one of the coin’s strongest supporters. Indeed, the mogul’s tweets have often preceded notable dogecoin price increases. Elon Musk’s much-anticipated appearance on the prime-time American TV show, Saturday Night Live on Saturday 8th also continues to shed a spotlight on the coin. The mogul’s “The Dogefather SNL May 8” continues to increase curiosity and interest.
Other well-known figures who have spoken in favor of the coin include the rapper Snoop Dogg and the entrepreneur Mark Cuban.
Why Trade Dogecoin?
You may be asking yourself, what are the benefits for me if I start trading doge?
It is always recommended that you diversify your portfolio of crypto coins. Dogecoin is consistently emerging as a firm favorite among the altcoin crowd. With low transition fees, Dogecoin is a great asset for traders interested in diversifying their portfolios.
Moreover, the Dogecoin network is also characterized by a high level of security and has expanded significantly over the years. After more crypto traders and analysts look into the token, DOGE acceptance in traditional online vendors is steadily increasing each day. Just as traders do with Bitcoin, you can now use it as a token of value exchange with others.
Dogecoin also possesses one of the fastest transaction processing times in the crypto world. It is also worth noting that it has now been established for a long time and has the backing of a to support the token.
Dogecoin Tips and Tricks
Thinking about giving Dogecoin trading a go? Here are our top three suggestions when it comes to navigating the dogecoin world:
1. Dogecoin seems to be going from strength to strength which makes it a very attractive buying option. If you decide to purchase Dogecoin in the hope to sell it for a higher price, it is important to keep in mind to have a target. This will enable you to determine the profit margin that would fit within your trading goals and help you to gauge when it is the right moment for you to sell.
2. As with all investments, there is always an element of risk. As with many other cryptocurrencies, Dogecoin’s volatility can be extreme. That means prices can fluctuate highly in a shorter period of time. That’s why it’s important to not get carried away by the feeling of collective excitement and trade only the amounts you could realistically lose within your trading budget.
3. Dogecoin may be one of the most well-known altcoins at the moment but it doesn’t hurt to keep an eye out for other altcoins that may be performing well during 2021. As we’ve said above, diversification is the name of the game when it comes to trading.
Eager to be at the heart of the action? It is now possible to conduct dogecoin trading on Osprey FX. So, sign up today or log into your account to get started today.