Is Dogecoin Still an Attractive Investment?
First Published date: 29. August, 2022Last Updated: 28. February, 2023Fact-checked by Adrian Müller
Dogecoin is a highly volatile asset. Over the years, it has seen significant ups and downs. Although, that applies to cryptocurrencies in general. Every crypto coin that has ever existed shows similar fluctuations in value. However, Dogecoin is different from other cryptos. So, is Dogecoin still an attractive investment today?
This guide dives deeply into Dogecoin’s history, performance, and forecasts. Dogecoin’s biggest asset is its community. But since it is purely speculative, how does the future look for this digital currency? Keep on reading to find out.
Table of Content
Dogecoin Performance So Far
When considering investing in a particular asset, you should not only see how it is performing now – history matters. That is why you must look at the big picture. Let’s look at Dogecoin’s performance since it launched in 2013.
Do not worry. We will not bore you with boring details. There is some solid information here. The intelligent investor knows that information is the best tool you can have.
Dogecoin did not start how you might expect. It began as a joke and was created as a meme.
It is named after the famous breed of a Japanese dog, Shiba Inu. More specifically, there is a popular meme character, Doge the Shiba Inu. That is how it got its name. Dogecoin started as an alternative to Bitcoin.
Many early crypto adopters started to buy Dogecoin because they wanted to get into the crypto action. In 2018, Dogecoin saw the highest valuation, over $1B. However, by the end of the year, the value dropped.
So, what about now? Dogecoin is still going well. In 2021, the market cap of Dogecoin was about $70B.
Early investors were the ones who benefitted the most from Dogecoin’s boom. They made 13,600% in profits. That is some payday!
Twitter, Elon Musk, and Dogecoin
Dogecoin became famous when serious investors and billionaires like Elon Musk showed interest. Because Elon Musk is closely tied to Dogecoin and DOGE, his actions significantly impact the value.
In 2021, Dogecoin’s value went up by 14,000%. Why? It reached meme status, and it was caught in the meme universe. That is how the internet works.
Dogecoin also had another big value bump when its value went up by 140% because Elon Musk bought Twitter.
Moreover, when Elon Musk gave hints that Dogecoin could be used as payment, its value increased by 20%. Although, there has yet to be an official confirmation about whether you can use Dogecoin for payments on Twitter.
How Does Dogecoin Price Forecast Look?
Dogecoin has had a pretty wild ride. However, its value has fallen by approximately 84% since 2021. That is not a small drop. A drop of 84% would rattle any investor.
So, what does this mean for the future of Dogecoin? The thing about crypto is it is very versatile – Dogecoin is no different. Although you cannot predict any asset’s value with 100% certainty, you can make educated guesses.
Many experts are making claims about cryptocurrency. Let’s see what they are predicting about Dogecoin’s future.
2023 Forecasts
Only one month has passed in 2023, and analysts are already predicting what price Dogecoin will trade. Some are more conservative than others.
On the more optimistic side, analysts predict Dogecoin to trade at a value of $0.13 to $0.14. However, Wallet Investor is expecting the value to be much less. They are predicting Dogecoin will trade for only $0.04.
2024 Forecasts
Value for Dogecoin looks more optimistic in 2024. Analysts predict that the value will be between $0.20 to $0.24.
2025 Forecasts
Forecasts for 2025 are more varied. Some analysts predict the price to be around the $0.10 mark. On the other hand, more optimistic sources like DigitalCoinPrice forecast a value of $0.25 in 2025.
2030 Forecasts
Let’s jump forward. What does the future look like for Dogecoin in 2030? Coin Price Forecasts believes Dogecoin will be around $0.19 by the end of 2030. However, this is at the lower end of the spectrum.
Some forecasts, like DigitalCoinPrice, are much more optimistic. They predict the value could be $0.51. In addition, other sites are much more bullish.
Sites like PricePrediction.net believe that Dogecoin will trade for around $1.69. This is the only prediction that claims the value will go over $1.
Investors should not take these numbers and predictions at face value, as it all comes down to volatility. The cryptocurrency market is volatile and also speculative. But it should give you an idea of the market sentiment.
Dogecoin is the 12th Best Crypto to Buy During a Crash
Despite the volatility, and price crash, Dogecoin remains reasonably strong. Although it is not competing for head to ahead with Bitcoin, it is still the 12th best crypto to buy.
The meme status of the coin has played strangely in its favor. In some cases, Dogecoin was resilient to typical market trends. In addition, its adoption is increasing day by day, whereas most other crypto assets are sluggish.
But since Dogecoin has Elon Musk in the picture, its value continues to rise. Especially the hint that Twitter might start accepting Dogecoin as a valid payment. This is one of the biggest drivers for its increasing value.
The question remains, though; is Dogecoin an excellent short-term investment or a long-term investment?
Investors either optimize their investments for the short-term or the long-term. Dogecoin has supporters for both sides of the coin. On the one hand, many experts see Dogecoin as a short-term asset. Its high volatility means investors can benefit from the massive price swings.
However, some are optimistic about its long-term prospects. It is among the top 10 cryptocurrencies that are becoming widely accepted, which is promising. At least for now.
Is Dogecoin Still an Attractive Investment In 2023?
This is a very tricky question to answer. In addition to the volatility, different investor types also make it tougher. That being said, Dogecoin does not seem like a safe investment in 2023.
The point we would like to emphasize here is ‘safe.’ The biggest draw of Dogecoin is its active community and the fact that it is still very much a meme-status crypto, along with Elon Musk’s involvement.
However, unlike other cryptocurrencies, Dogecoin does not obtain value from other assets. Moreover, Dogecoin does not have any intrinsic value. As a result, the value depends heavily on its relevance and popularity.
In addition, the FTX debacle has cast a dark shadow on the cryptocurrency market as a whole. It was a big deal. In three days, $6B worth of crypto was withdrawn from the market. All because of the FTX collapse.
As you might imagine, this was a massive blow to the industry. If your investing style is very risk-averse, we do not recommend investing in Dogecoin. However, there are advantages to investing as well.
Reasons to Invest
All investments are risky – some more than others. We would confidently put crypto on the riskier side, and an investor would not be surprised by this.
However, significant risks could also mean big payoffs. So, here is a quick look at some of the reasons why you might want to invest in Dogecoin:
- Very Low Prices: After the crash, the prices of crypto have been low. As we mentioned before, the price of Dogecoin fell 84% from its all-time high in 2021. So, you can buy it now for a lot cheaper.
- Possibility of Regretting: This one is not a solid reason. But it still counts as a reason. Many investors pass up opportunities that they come to regret. Dogecoin might be that for some. If the prices shoot up later on, or it becomes a widely accepted cryptocurrency, you might regret it.
- The Upturn Could Give High Returns: All assets have their bad days. But since crypto is very volatile, it could go up significantly. If you invest in some now, you might receive a massive return on your investment.
Reasons Not to Invest
On the flip side, the risk is still there. The main reason to avoid investing in Dogecoin, or any other crypto, is the volatility. If you are a risk-averse investor, it is best to avoid it.
Since its price is so low, it could remain at this rate. Or not go up very high. You could invest a small amount. But that is your call to make.
Where to Buy Dogecoin?
If you decide to buy Dogecoin but need help knowing where to start, do not worry. It is pretty straightforward.
Trading and investing in cryptocurrencies work almost like any other asset. You must open a trading account, fund it, and make a purchase. Here is a simple step-by-step guide.
Step 1: Open a Trading Account
Start by opening a trading account. This step is vital for any investment. However, you must check whether your platform supports Dogecoin. They should also have a crypto exchange.
Some platforms have different perks. If you are new to investing in crypto, it is worth comparing platforms. This allows you to pick the best one for you. You can check out the best platforms here.
Places like SoFi are fascinating. When you open an account, you receive Bitcoin for free. It gives you a great way to get your feet wet, especially if you have never invested in crypto.
Other platforms, like Coinbase, are very beginner-friendly, which can also be quite enticing. On the other hand, Robinhood lets you invest and trade with no fees.
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Step 2: Fund Your Account
After you have opened your trading account, you need to fund it. At this point, it pays to keep an eye on the price movements. We have said it many times and will repeat it – crypto is very volatile.
So, check to see where the prices are at the moment. Whatever the prices are, you will almost certainly need to pay the market rate. So, fund your account accordingly.
Step 3: Make a Purchase
You do not make a purchase yourself, per se. As an investor, you set an entry point; your broker places the order. By the way, brokers are essential when investing in crypto.
A good broker makes the experience much more seamless. You can check out this article to find the best broker for cryptocurrencies. Honestly, that is mostly it. You just invested in crypto. However, there is an additional step.
Step 4: Buy a Wallet
You will hear lots of opinions about having a crypto wallet. Many say that a wallet is not necessary. However, we strongly disagree. Having a wallet allows you to keep your cryptocurrencies like Dogecoin safe.
That is well worth it. In our books, at least. You can keep your Dogecoin off of an exchange. As a result, if the exchange is hacked, your investments will not be immediately compromised. That is why having a crypto wallet is important.
Wrapping Up
It is challenging to say if Dogecoin is still an attractive investment in 2023. The crypto market itself is very volatile. However, Dogecoin has shown signs of being resilient to market trends.
Dogecoin is in a meme status, and big names such as Elon Musk are also behind it, which adds to the hype. Speaking of the hype, the community is also its biggest asset. However, risk-averse investors might do well avoiding it. Still, there is a chance of big payoffs as well.
Thanks for stopping by. We hope this article provided a more detailed look into Dogecoin and whether it would be a suitable investment for you. Best of luck!
About the author – D. Schmidt
I’m a German stock trader who has lived around the world. I travel extensively and believe that my experiences give me a unique perspective on global markets. I love trading! It’s always exciting to see what happens next. My goal is to help people understand the game so they too can enjoy it to the fullest. In this blog, I will share some tips and tricks that helped me along the way.
