Is Dogecoin a Scam? • System overview • Benzinga

Dogecoin was one of the first cryptocurrencies to enter the industry and has established itself as the flagship meme coin. With celebrities like Elon Musk tweeting tirelessly about DOGE, the price has skyrocketed more than ever. While Dogecoin is hovering around $ 0.20 per coin, its market cap is a staggering $ 25 billion. Is Dogecoin a Scam? Find out more about DOGE now and understand why the price has skyrocketed.

What is Dogecoin?

Dogecoin is a cryptocurrency with no maximum supply. Instead, new coins are minted every minute when a new block is added to the Dogecoin blockchain. Without maximum supply, Dogecoin will struggle to be a store of value like Bitcoin.

Instead, Dogecoin wants to be used as a currency. The transaction fees are much lower than Bitcoin and Ethereum fees, making it a better option for everyday payments. However, other cryptocurrencies have even cheaper transaction fees, which makes the Dogecoin use case questionable at best.

This isn’t the first time Dogecoin has skyrocketed in price. In the bull market of 2017, DOGE had several pumps where the price rose well over 1,000%. However, Dogecoin has never seen values ​​above 10 cents until 2021 after being rediscovered by Elon Musk.

History of Dogecoin

Jackson Palmer and Billy Markus founded Dogecoin in 2013. At that time, Bitcoin was only 4 years old and Ethereum didn’t even exist. The cryptocurrency consensus model is the same as that of Bitcoin (proof-of-work) and it is extremely similar to Litecoin technology. Litecoin and Dogecoin will be merged, which means that all miners who mine Litecoin can mine Dogecoin as well.

Within a few trading days, the price of Dogecoin rose by over 300%. Since then, the cryptocurrency has remained extremely volatile. It wasn’t until this year that Dogecoin topped 5 cents, and the doggy-themed cryptocurrency was trading at around 69 cents per coin at its peak.

Dogecoin price promotion

Unknown to most new crypto investors, the price of Dogecoin has skyrocketed several times. Since the majority of the offer belongs to only a few wallets, some investors speculate that the price of Dogecoin is being manipulated by these wealthy Dogecoin investors. However, some of these wallets have been inactive for a long time, suggesting that access to the funds may have been lost.

It’s hard to imagine the past price movements for Dogecoin as it has appreciated so much over the past few months. Below is a graph of the price of Dogecoin from 2016 to 2020. As you can see, there have been several instances where Dogecoin has skyrocketed in value by well over 100%, but the cryptocurrency never broke 2 cents.

So is Dogecoin a scam?

Technically, Dogecoin is not a scam. It’s just another cryptocurrency that has grabbed the attention of the masses. Basically, Dogecoin is not a good investment – other cryptocurrencies outperform Doge in almost every way.

Dogecoin is listed on Robinhood and is therefore easily accessible for private investors. You can look at Dogecoin in a similar way to Gamestop: while it is not a scam, it is only valued based on speculation.

Since Dogecoin has grown so much this year, it’s an extremely risky investment. This is even more the case when you consider the lack of utility of the cryptocurrency.

Dogecoin security risks

Because Dogecoin uses the same consensus model as Bitcoin, it’s relatively safe. However, the cryptocurrency has been hacked in the past. Just weeks after launch, hackers were able to seize 21 million Dogecoin, which was worth a modest $ 12,000 at the time.

It is important to note that the Dogecoin blockchain was not hacked, the hackers were able to crack the Dogecoin website to redirect payments to their wallet.

Will Dogecoin fly to the moon?

According to Elon Musk, a literal Dogecoin is sent to the literal moon aboard a SpaceX satellite. Take this with caution – he posted this news on April Fools Day. Figuratively speaking, Dogecoin has already reached the moon, and more.

With a market cap of over $ 80 billion at its peak, Dogecoin became worth more than most of the companies in the S&P 500.

Is Dogecoin a joke or a good crypto?

Can’t something be a joke and good crypto? Even the founder of Dogecoin has admitted that the crypto started out as a joke. According to some people, Dogecoin is a good cryptocurrency as it is a joke at the same time. Others see Dogecoin as a middle finger for big banks and the government, creating a “joke” that is worth more than most public corporations.

Something to think about:

If you compare the technology of other cryptocurrencies to Dogecoin, the project seems lackluster at best. However, adoption is arguably just as important as technology. While Bitcoin is not the most technologically advanced cryptocurrency, it remains the most valuable due to its mainstream adoption.

Best exchanges to buy Dogecoin

Because Dogecoin is controversial and highly speculative, most cryptocurrency exchanges do not support the asset. The easiest way to buy Dogecoin is through the stockbrokers Robinhood and WeBull. If you already have an account with one of these platforms, look for the DOGE ticker to buy your own Dogecoins.

Robinhood and WeBull both offer the ability to place limit orders to buy DOGE. Limit orders are a great way to average your buy-in price, which is especially useful with volatile investments. Recently, Coinbase added support for Dogecoin. As a dedicated cryptocurrency exchange headquartered in the United States, Coinbase is the best way to buy Dogecoin today.

With a limit order, you can set a price for the automatic purchase of Dogecoin so that you don’t have to time the market yourself. If the price never falls below the limit you set in your order, your buy order will not be executed.

1 minute review

Coinbase is one of the largest trading platforms for cryptocurrencies on the Internet. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally easy to buy and sell large cryptocurrency pairs.

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which has more order types and advanced features.

While Coinbase doesn’t offer the cheapest prices or the lowest fees, its simple platform is easy enough for absolute beginners to master in just a single trade.

Best for

  • New cryptocurrency traders
  • Cryptocurrency traders interested in important pairs
  • Cryptocurrency traders interested in a simple platform

advantages

  • Simple platform is easy to use
  • Comprehensive mobile app reflects desktop functionality
  • The Coinbase Earn feature rewards you with crypto as you learn more about available coins

disadvantage

  • Higher fees than competitors

Robin Hood

Best for

Buy and sell Dogecoin

getting started

safely through the Robinhood website

Webul

Best for

Middlemen and investors

Getting started

safely via the Webull website

Best for

Middlemen and investors

1 minute review

Webull was founded in 2017 and is a mobile app-based brokerage that enables commission-free trading in stocks and exchange-traded funds (ETF). It is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Webull offers active traders technical indicators, economic calendars, research agency ratings, margin trading and short selling. Webull’s trading platform is designed for advanced and experienced traders, although novice traders can also benefit.

Webull is widely considered to be one of the best Robinhood alternatives.

Best for

  • Active dealers
  • Middlemen
  • Advanced traders

advantages

  • Commission-free trading with over 5,000 different stocks and ETFs
  • No account management fees or software platform fees
  • No fees for opening and maintaining an account
  • Leverage of 4: 1 on margin trades on the same day and leverage of 2: 1 on trades held overnight
  • Intuitive trading platform with technical and fundamental analysis tools

disadvantage

  • Does not support trading in mutual funds, bonds, or OTC stocks

1 minute review

Crypto.com is committed to making cryptocurrencies a part of everyday life by offering a full range of services for crypto users. The company offers a Crypto.com App, Exchange, Visa Card, DeFi Swap, DeFi Wallet, DeFi Earn, Crypto.com Price, Staking, Crypto Lending and many other services. However, what really sets them apart is the combination of super low fees and incredibly generous rewards programs for their users.

Best for

  • Merchants who want access to a secure, inexpensive cryptocurrency exchange
  • Passive investors who want to earn interest on their balance without frequent trading
  • Mobile investors who prefer to have all of their crypto needs through their phone or tablet

advantages

  • Low fees
  • High security
  • One stop shop for all of your crypto needs (wallet, trading, spending and more)
  • Many ways to earn interest, bonuses and discounts

disadvantage

  • Little privacy
  • Customer service response time could be improved

Is It Too Late To Buy Dogecoin?

Most of the profits have already been made with Dogecoin. For an investor with DOGE to turn $ 100 into $ 1,000, the cryptocurrency would have to be worth $ 5 per coin. This would make Dogecoin the second largest cryptocurrency in the world, second only to Bitcoin. Realistically, it’s probably too late to get on the DOGE train.

frequently asked Questions

Can Dogecoin Reach 1 USD?

Theoretically yes. Dogecoin could hit a dollar, but that would value the cryptocurrency at over $ 100 billion. The price of a coin has little to do with the market capitalization of the crypto. Instead, you should compare market caps to account for the different amounts of offerings between cryptos.

Does Dogecoin have a future?

Since Dogecoin was one of the first cryptocurrencies ever made, it’s likely here to stay. While DOGE is unlikely to hold its value in the long run, there is good evidence that the cryptocurrency will persist. Even after a decline of over 90% in recent years, Dogecoin has proven itself and has skyrocketed again.

Related content: TODAY’S DOGECOIN PRICE

Benzinga has developed a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offers, prices and promotions, customer service, mobile app, user experience and benefits, and security. To see a full breakdown of our methodology, please visit our Cryptocurrency Methodology page.

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