31 Dec Dogecoin Investment in India: 5 Tips to Remember Before Investing
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There haven’t been many cryptocurrencies with a wilder 2021 than Dogecoin. Dogecoin’s price increased by 12,000% from the start of the year to the beginning of May. It has plummeted by more than half since then. It’s also one of the few cryptocurrencies that have become well-known. The price fluctuations and growing popularity of Dogecoin may entice you to join in. However, this coin is far from a sure thing, so ask yourself a few key questions before investing.
Here’s a quick rundown of everything you should think about before becoming involved with Dogecoin and cryptocurrencies in general. Furthermore, if you’ve already made a cryptocurrency investment and are seeking ways to further gain from it, these tips can be of help.
Before you buy Dogecoin, be sure you know what it is. In basic terms, Dogecoin is a cryptocurrency that is similar to Bitcoin. In 2013, IBM software developer Billy Markus and Adobe programmer Jackson Palmer collaborated to create it. It’s an alt-coin that began as a joke but has gathered a lot of traction in the last year.
Now that we know what Dogecoin is, let’s look at some factors to think about before investing. Before we get started, keep in mind that this post is not intended to be taken as investment advice. Investing in any asset, as usual, is dangerous and should only be done after thorough financial study and counsel.
5 Tips to consider before investing in DOGE in India
There is substantial research involved and multiple things to consider before investing in any crypto. Here are 5 significant factors to consider before investing in DOGE.
The significant volatility of Dogecoin should be noted first and foremost. Over the last six months, Dogecoin’s price has fluctuated dramatically, reaching an all-time high of roughly $0.70. However, it soon plummeted to roughly $0.45 and currently sits at ₹14.0572 as of 29 December 2021. While Dogecoin has grown in popularity as more people learn about it and invest in it, these investors also cash out as the price rises, causing the price to plummet.
Not only equities but also cryptocurrency can be influenced by well-known individuals. Elon Musk, dubbed as the “Dogefather” and “Dogecoin CEO” by the community, has frequently tweeted about the coin. As a result, its prices have risen dramatically on several occasions. It goes to reason that if a single person has the ability to impact Dogecoin pricing, things may go either way.
Musk has always been a supporter of the token, and his recent performance on Saturday Night Live was expected to drive its price near $1. However, this did not occur, as Dogecoin’s value plummeted after his performance on Saturday Night Live.
With Dogecoin sweeping the internet and everyone talking about investing in it, there’s a serious risk of FOMO on a rich investment opportunity. But, before that happens, it’s important to remember that not everyone is as successful as the few Redditors who became millionaires by betting their life savings on a fad.
The Dogecoin cryptocurrency can be viewed as a speculative bubble that will shortly burst. However, failing to recognize it as such would cause further problems because its value swings depending on how many people own it, how many DOGE are in circulation, and how many are issued each day. If one examines Dogecoin’s price graph, the widespread expectation is that it will rise in the future, yet there is no evidence to support this. Even if someone invests in cryptocurrency, they may consider selling before the bubble bursts, but isn’t that what every investor is thinking?
Understanding the real value of a digital asset can be difficult and time-consuming, if not outright impossible. You can receive a price-to-earnings ratio for most assets, which tells you how much investors are prepared to pay for a business for each dollar of earnings. This statistic might assist you in determining whether a company is overvalued or undervalued. With dogecoin, however, you’re in the dark.
Unlike stocks, cryptocurrency holders can use their holdings to buy something. If you intend to spend your Dogecoin, there are a few places that take it.
The Kessler Collection, a luxury hotel brand, has signed a collaboration with BitPay to accept DOGE as payment at its properties. Burger Bear, situated in the United Kingdom, now appears to accept Dogecoin as payment. Similarly, DOGE can be used to pay hundreds of small businesses in the United States.
The post Dogecoin Investment in India: 5 Tips to Remember Before Investing appeared first on WazirX Blog.
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