What is it, how do i buy it and can Dogecoin make me rich?

Thanks Elon, very cool!

When the whole Gamestop and AMC situation comes into question, it definitely pays to get early when it comes to hyped internet investments. While it appears that the sensible people have paid off their supplies and killed, there are still a few warriors with diamond hands holding on in hopes of holding them to tie them to the man by holding their supplies. For those actively interested in investing their hard-earned cash but seemingly missed the boat with Reddit stocks, Dogecoin may have piqued your interest.

However, you are rightly doubtful about a currency that was literally built on the fundamentals of a fun dog meme, right? So is Dogecoin just a stupid meme investment or worth your money? Can you get rich with Dogecoin? Should I invest all my money in Dogecoin today? Let’s try to find out if Dogecoin is worth your time.

Dogecoin was started in 2013 by two software engineers

Dogecoin is a cryptocurrency, which is the same as Bitcoin and Ethereum. This means that it is tradable in the same way and, unlike stocks and shares, can be bought and sold at your own discretion. Although it started as a joke reaction to the surge in other cryptocurrencies, it has grown exponentially in value.

People got rich because they bought before the hype

@ Bridgettewhitney0I’m crazy that no one has ever taught me about stocks in my life

Yes, people have indeed made a lot of money buying Dogecoin, and while it was originally intended as a joke currency, it might not be a bad idea if you can afford to put a small amount of money into it. As it’s everyone’s guess if it could explode again.

Even so, anyone who invests close to £ 10,000 in something as high a risk as Dogecoin like the ones mentioned above is playing … a risky game.

Dogecoin saw an impressive increase in value

Image credit: Coinbase

Charts like this are enough to get even the most amateur of investors a little excited, but what does that actually mean? First of all, this right-most peak shows an increase of over 800 percent within 24 hours.

This shows that the value of this cryptocurrency has obviously skyrocketed, but it is impossible to tell if this is a trend that is continuing or simply culminating in a temporary spike as seen in 2018.

As of January 2018, Dogecoin had a market cap of nearly $ 2 billion. At the end of January 2o21, the market capitalization was $ 5.5 billion.

Dogecoin is hyped which makes it volatile

If there’s one thing we’ve learned from this entire Exchange x Wall Street Bets debacle, it’s often the money tied to when the hype dies.

Due to Reddit and TikTok as well as Elon Musk, the value of Dogecoin has risen dramatically. However, as we’ve seen with stocks like GME and AMC, the hype can only go so far that people see potentially huge losses.

Since no one can predict the fluctuation of stocks, stocks, and currencies 100 percent reliably (the temptation to include that douchey Warren Buffet anecdote was strong there, but I’ll fight it), it’s up to your personal risk assessment to decide whether this is a good investment for you.

Related stories recommended by this author:

• From Blackberry to Nokia: These are the stocks Reddit is looking to buy next

• Why everyone is talking about GameStop stock is explained as simply as possible

• ‘It’s About Accountability’: This student invested £ 1,000 in Gamestop stock

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