Dogecoin, the original memecoin, is one of the most exciting cryptocurrencies. Elon Musk among others famously supports Dogecoin, both the idea of it and the technology that goes behind it. But is it a good investment for the average retail investor? Data and trends seem to suggest so.
When Dogecoin was born, it was more of a spoof Bitcoin. Today more than 4 million people own Dogecoin. While part of the reason is the attention it has received from social media users and famous personalities, another part concerns the core idea of Dogecoin.
That being said, let’s move on to the 5 most important reasons you should buy Dogecoin. At the same time, it is important to remember that no cryptocurrency is immune from losses and market crashes. It is crucial to understand this before investing in any crypto.
Dogecoin is one of the earliest players to enter the crypto market
While other meme tokens like Shiba Inu are relatively new to the market, Dogecoin has been around for a long time. When Billy Markus and Jackson Palmer created Dogecoin in 2013, it was one of the few cryptocurrencies available. This has given Dogecoin the first-mover advantage.
In the crypto market, time is a marker of resilience. Many tokens and coins come with hype but slowly fade into the background. They are more concerned with short-term speculative attention than long-term wealth and community creation. By being at the forefront of the market for almost a decade, Dogecoin has proved that it is here to stay.
There are other advantages of being one of the first in the market. The Dogecoin community is not concerned with making money overnight or feeding hypes and rumors. Some of the biggest crypto investors in the world are also Dogecoin investors.
Being in the market for so long has earned Dogecoin the credibility and trust it enjoys today. As we already said, time is a very important factor in the crypto market. Dogecoin’s age is among the chief reasons you should consider buying it.
Dogecoin is mainstream
If Elon Musk advocates any cryptocurrency or token, it suddenly gets pushed to the mainstream. However, the case is different for Dogecoin. Since its very beginning, it was more or less mainstream (as mainstream as it gets in the crypto world of 2013). With every passing year, Dogecoin is becoming more and more mainstream.
For the average investor, it matters a lot whether crypto is mainstream or not. Being mainstream, or popular, also means that there is a large community. These factors give retail investors a lot of confidence in buying Dogecoin, as it happens with Bitcoin and Ethereum.
The meme element of Dogecoin plays an important role in its popularity. Word of it spreads like a wildfire on social media platforms even today.
Dogecoin, in fact, ranks above Bitcoin and Ethereum when it comes to the number of Google search queries. People have confidence in Dogecoin for this among other reasons.
Real-world utility
Since Dogecoin has many similarities with Bitcoin in terms of how transactions work, it has a lot of real-world utility. Froom buying VPN services to tipping creators on Twitch, there are a lot of things you can do with Dogecoin. If crypto is more than an investment tool for you, Dogecoin can be a very useful purchase.
While most people do not use cryptocurrencies for day-to-day purchases, there are certain places where you can use them. There might be many reasons for you to want to do so. For example, some platforms offer additional discounts and bonuses for payments in crypto.
In the future, use cases for crypto payments are expected to increase. If you get into Dogecoin now, it will be very beneficial in the future. It is one of the many reasons you should buy Dogecoin.
Dogecoin is ideal for portfolio diversification
Every crypto investor must try to diversify their portfolio. However, diversifying a portfolio is easier said than done. It does not mean buying as many cryptos as possible to have the biggest range of diversity. Doing that will have a negative impact instead.
To understand how to diversify a portfolio properly, you must understand having the right balance of the right cryptos. Instead of buying 10 different cryptos, it is generally better to stick to four or five.
Dogecoin is a perfect candidate to be a part of those three or four primary cryptos you need in your portfolio.
After Bitcoin and Ethereum, Dogecoin is the third most common crypto that people want to add to their portfolios. If you want a well diversified portfolio, investing in Dogecoin is a great choice. It will keep you protected from downfalls in individual cryptos and protocols.
Dogecoin is beginner-friendly
Most people are introduced to the world of cryptocurrencies through Bitcoin. However, Bitcoin might not be the most beginner-friendly crypto out there.
Understanding things like Bitcoin halving and the concept of deflationary currency can be complicated for people without any experience in crypto investing.
Today you can buy Dogecoin in Canada, England, India, Australia, or from any part of the world through the leading crypto exchanges. It is one of the most accessible cryptocurrencies owned by people from across the world.
The ease of buying and selling Dogecoin is another key reason you should buy Dogecoin.
Another factor which makes Dogecoin beginner-friendly is its relative safety as a long-term investment. With a huge international community of Dogecoin holders, this cryptocurrency is not going away any time soon. Coupled with the fact that it is great for portfolio diversification, Dogecoin is among the first cryptos that new investors should buy.
Conclusion
Dogecoin has the potential to be the next big thing in the world of crypto.
Once the market recovers from its present slump, Dogecoin can be among the most profitable cryptocurrencies.
While these reasons support the argument for buying Dogecoin, you should not invest in haste. Buy Dogecoin only after you understand the risks and rewards associated with it.
