<p dir="ltr">Since its 2020/2021 surge, which concluded in May 2021, Dogecoin has had no notable news. While other cryptocurrencies reached new all-time highs in November 2021, Dogecoin looks to have peaked in the middle of the year and never recovered. So, is Dogecoin still a good investment today?&nbsp; If you're having trouble with this question, continue reading this article to find out the best answer with <a href="https://www.builder.news/" alt="Builder.news" title="Builder.news" target="_blank" rel="" class="">Builder.news</a>.</p><h2>Everything you need to know about Dogecoin</h2><h3>What is Dogecoin</h3><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed2906065853f4a8e6023f659fee92.jpg" alt="what is dogecoin" title="what is dogecoin" width="600" height="334" class="lykafe0"></p><p dir="ltr">Dogecoin was created in 2013 by Billy Markus, who worked as an IBM software developer, and Jackson Palmer, who is known as an Adobe software engineer. Initially, their goal was to build a parody of the previously existent Bitcoin in order to provide the general public with a simple method to learn about the world of crypto-assets. However, after that, people began using Dogecoin almost immediately after the product was published, much to the surprise of the engineers. Nonetheless, according to experts, in terms of technology and general usefulness, Dogecoin is claimed to be inferior to those of Bitcoin and Ethereum.</p><p dir="ltr">Although Dogecoin started off as a joke, since early 2021, Dogecoin’s value has risen by more than 14,000%. Dogecoin’s price is currently around $0.064 and the current CoinMarketCap ranking is #10, with a live market cap of $8.496.635.292 USD.&nbsp;</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed290606585b44a8e6023f659fee92.jpg" alt="dogecoin price" title="dogecoin price" width="600" height="377" class="lykafe1"></p><h3>How does Dogecoin work</h3><p dir="ltr">Dogecoin, like many other currencies, works on its own specialized blockchain. Dogecoin's digital ledger is regularly updated with new transactions, and the network employs cryptography to ensure the security of all transactions.&nbsp;</p><p dir="ltr">Miners employ computers to solve complicated mathematical equations in order to process transactions and record them on the Dogecoin blockchain, which uses a proof of work consensus method. Miners receive more Dogecoin in return for supporting the blockchain, which they may then keep or sell on the open market.</p><h3>How to buy Dogecoin</h3><p dir="ltr">Dogecoin is one of the popular coins in the market, so investors, especially new investors, will be curious about <strong>where to buy Dogecoin</strong> and how to buy it. There are many different ways, as well as various sites, to purchase Dogecoin, and your choice of which one to do may depend on your purpose.</p><p dir="ltr">In terms of wanting to buy Dogecoin just to speculate, you may use an online brokerage such as Robinhood, which permits cryptocurrency trading, or Webull and eToro, which also trade the currency. However, don't forget that the broker will hold the number of stakes you have in the coin.&nbsp;</p><p dir="ltr">On the other hand, if you want to own Dogecoin not only for speculating but also to actually use it among other investors, you can consider some exchanges such as Coinbase. In order to <strong>buy Dogecoin on Coinbase</strong>, you need to follow these steps:</p><ul><li><p dir="ltr">Step 1 - Create a Coinbase account: Download the Coinbase app and start the sign up process.</p></li><li><p dir="ltr">Step 2 - Add a payment method: Connect a payment method by tapping the payment method box. You can use a bank account, a debit card, or a wire transfer.</p></li><li><p dir="ltr">Step 3 - Buy Dogecoin: Type "Dogecoin" into the search bar to look for it. When Dogecoin appears in the results, click it to open the buy screen.</p></li><li><p dir="ltr">Step 4 - Enter the amount: Input the amount you want to spend in your native currency using the number pad. The program will immediately convert that amount to Dogecoin.</p></li><li><p dir="ltr">Step 5 - Accomplish purchase: When you're ready, tap "Preview purchase." The specifics of your purchase will be displayed to you. Check that everything is in order before confirming your transaction.</p></li></ul><h2>Why Dogecoin is a good cryptocurrency investment</h2><p dir="ltr">In the current market, Dogecoin is known as one of <a href="https://www.builder.news/crypto-insights/which-are-the-best-meme-coins-to-invest-in-8JUCQ" alt="Which are the best meme coins to invest in?" title="Which are the best meme coins to invest in?" target="_blank" rel="" class="">the best meme coins to invest in</a> because it gathers a lot of advantages.</p><h3>Has a very unique market position</h3><p dir="ltr">In any market, positioning is a crucial factor to success, and the cryptocurrency market does not also lay out this rule. Bitcoin, for example, is where it is now due to its position as potential digital gold.</p><p dir="ltr">Similarly, being the first and largest meme coin, Dogecoin has created a community around itself. The majority of the other meme currencies on the market are based on the Dogecoin concept.</p><p dir="ltr">This market placement offers Dogecoin an advantage over the majority of the market's top DOGE rivals. As a result, if the larger cryptocurrency market regains pace, Dogecoin may pave the way for the other meme currencies to follow.</p><p dir="ltr">Therefore, including Dogecoin in a cryptocurrency growth portfolio for 2022 and beyond makes sense.</p><h3>Convenient for everyday transactions</h3><p dir="ltr">The average cost of transactions is a critical consideration in deciding whether a cryptocurrency is suitable for everyday transactions. Obviously, when compared to Bitcoin or Ethereum, transactions in Dogecoin are essentially non-existent. In addition, Dogecoin transactions are also fairly quick and are confirmed in a matter of minutes. This is a great advantage, which significantly attracts users.</p><p dir="ltr">On top of that, the decentralized structure of Dogecoin ensures that users' transactions cannot be restricted, unlike when utilizing centralized systems such as banks. Thanks to this benefit, Dogecoin has become an excellent cryptocurrency investment for anybody who believes in the future of cryptocurrencies.</p><p dir="ltr">So far, more than 20 big companies, such as the Dallas Mavericks, accept Dogecoin payments. It's a promising sign for where Dogecoin may go in the future.</p><h3>Has a strong and growing community</h3><p dir="ltr">Since its inception, the Dogecoin community has been one of its most important cornerstones. Today, the network has millions of members, including celebrities such as Elon Musk and Mark Cuban. These are folks who are not just affluent but also have a large social media following.&nbsp;</p><p dir="ltr">As a result, anytime they talk about Dogecoin, they attract additional investors, which might lead to Dogecoin becoming one of the top performing cryptocurrencies in the future.&nbsp;</p><p dir="ltr">Consider how much of an impact the community has had on Dogecoin. Since Elon Musk and other community members began pushing DOGE, the number of firms that accept Dogecoin has expanded rapidly.</p><p dir="ltr">The more the community grows, the more likely it is that crypto newcomers will select Dogecoin as their first investment. That should reassure anyone who is unsure whether Dogecoin is a wise investment.</p><h3>Been listed on multiple exchanges</h3><p dir="ltr">Although Dogecoin is one of the few meme currencies, that doesn't take away the fact that it is listed on nearly all of the big cryptocurrency exchanges.&nbsp; Dogecoin is even featured on Robinhood, a platform popular among Americans as a beginner-friendly broker.</p><p dir="ltr">The impact of several postings benefits Dogecoin in a variety of ways. For starters, it makes Dogecoin a very liquid cryptocurrency, making it less susceptible to manipulation.</p><p dir="ltr">At the same time, it means that during peak bull runs, new investors may easily obtain Dogecoin. It's a factor that might drive Dogecoin's price higher during bull markets. This became clear as the Dogecoin buying frenzy on Robinhood propelled Dogecoin to new heights in May 2021.</p><h3>Have longevity</h3><p dir="ltr">One of the main factors which directly impacts investors' decisions is the capability to survive in the cryptocurrency market. Simply explained, this is crucial because since appearing in 2009 so far, the world has witnessed numerous coins have come and gone in the market. Surprisingly, Dogecoin, a humor coin with minimal practical value, has weathered the storm. It is now the oldest meme coin, as well as one of the most successful meme currencies ever created.</p><p dir="ltr">With the recent collapse of a multi-billion-dollar cryptocurrency, cryptocurrencies such as Dogecoin, which have demonstrated a survival factor, might see considerable growth in the future.</p><p dir="ltr">This is one of the main reasons why Dogecoin is one of the finest cryptocurrencies to buy right now for anyone who believes in cryptocurrencies as the financial future. If the past is any indication, Dogecoin is a cryptocurrency that will be around for decades and may be valued much more than it is now.</p><h3>Dogecoin is scalable</h3><p dir="ltr">Scalability is one of the most significant barriers to Bitcoin adoption. If millions of users cannot use a cryptocurrency without encountering network issues, the chances of it ever competing with centralized systems are slim. However, this has never been an issue with Dogecoin. It is extensively utilized, and there are no problems with poor confirmation speeds or network outages. Scaling propels DOGE to the forefront among cryptocurrencies with large adoption potential. DOGE appears to be a good cryptocurrency investment today, especially for those with a long-term view of the industry, because acceptance and long-term value increase are inextricably linked.</p><h3>Related to Dogechain</h3><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed290606585f6ca8e6023f659fee92.jpg" alt="dogechain" title="dogechain" width="600" height="303" class="lykafe2"></p><p dir="ltr">On its website, <a href="https://www.builder.news/crypto-insights/dogechain-in-the-doge-ecosystem-jTvVA" alt="Dogechain - An essential element in the DOGE ecosystem?" title="Dogechain - An essential element in the DOGE ecosystem?" target="_blank" rel="" class="">Dogechain</a> describes itself as a "Layer 2 for Dogecoin." Dogechain is a proof-of-stake (PoS) blockchain that runs on the Polygon network. Therefore, Dogechain offers scalability, security, resilience, and utility for Dogecoin. This completely deletes the assumption that Dogechain competes with Dogecoin. Instead, it intends to include smart contract features in the currency that sparked the entire craze. It promises to provide numerous features for $DOGE holders, including DeFi, NFT, DApp, and many more gaming use cases. The feature that has been lacking in the meme currency since its inception will finally be available.</p><h2>Whether Dogecoin is a smart investment&nbsp;</h2><h3>An unlimited coin supply</h3><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed2906065863baa8e6023f659fee92.jpg" alt="dogecoin supply" title="dogecoin supply" width="600" height="362" class="lykafe3"></p><p dir="ltr">One of the most significant disadvantages of Dogecoin is its infinite supply. Every year, 5 billion DOGE enter circulation, and this will continue in perpetuity. Unless all of these cryptocurrencies are absorbed in an extraordinarily strong demand scenario, they can impact on the price.</p><p dir="ltr">Given that cryptocurrencies are still in their early stages and have yet to receive broad adoption, the expanding supply of Dogecoin is likely to overpower the price in the short to medium term.</p><p dir="ltr">This makes Dogecoin a riskier cryptocurrency than Bitcoin, which has a limited and hard supply.</p><p dir="ltr">In essence, even if you buy in Dogecoin, you should do it as part of a well-diversified cryptocurrency portfolio. Going all-in on Dogecoin might not be the best investing strategy. Consider that even deflationary cryptocurrencies, such as DOGE, are risky.</p><h3>Be considered as a joke coin</h3><p dir="ltr">Because Dogecoin is widely seen as a joke coin, it has frequently been the target of pump and dump schemes. This implies that there is always the danger of investing in a false Dogecoin surge and losing money when the whales sell and abandon their positions.</p><p dir="ltr">While this is anticipated to decrease as Dogecoin acceptance increases, it remains a significant risk in the near to medium term. As a result, a Dogecoin investor should not only invest what they can afford to lose, but also hold DOGE alongside other high-potential cryptocurrencies.</p><h2>Bottom lines</h2><p dir="ltr">The cryptocurrency market always fluctuates every second, so buying any coin involves risk, including Dogecoin. However, it can not be denied that Dogecoin is not only a pretty suit for beginners who are familiarizing themselves with the system, but also brings a lot of benefits for investors. On the other hand, investing in Dogecoin is still a difficult decision because Dogecoin seems to have no significant inherent value. Its value is determined mostly by its popularity. This can result in exciting short-term returns, but it is not a realistic long-term investing approach.</p><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

"Should I invest in Dogecoin?" is the big question among investors. Through this article, you will find the best answer!

Why should I invest in Dogecoin?