Should I buy Dogecoin in 2022? Pros and cons of Dogecoin investment

Dogecoin hasn’t had any major news since its last rally that ended in May 2021. While most cryptocurrencies made new all-time highs in November 2021, Dogecoin seems to have lost momentum in mid-2021 and never recovered. 

Some analysts believe that Dogecoin has what it takes to make new highs in the future, but others are skeptical. So, which way for Dogecoin? Is DOGE a smart investment in 2022?

If you are struggling with this question, you have come to the right place. Read on to figure out whether Dogecoin is one of the top cryptocurrencies to buy today for long-term growth. 

 >>>Buy DOGE Now<<<

Virtual currencies are highly volatile. Your capital is at risk.

What is Dogecoin? – An Overview

Dogecoin was a crypto parody that outgrew the founders’ original idea to become the top 20 cryptocurrencies that it is today. 

After the success of Bitcoin, there was an explosion of all manner of cryptocurrencies, many of them with zero utility. 

This led two computer scientists, Jack Palmer and Billy Markus, to think of a way to satirize the market, and Dogecoin was their perfect way to do it. They created Dogecoin, a coin with no utility and limitless supply. 

The two founders expected Dogecoin to be nothing but a joke coin, but it went on to build a community of its own. The community grew over the years, to the point that Elon Musk took an interest in Dogecoin in 2020. 

Elon Musk triggered an unprecedented Dogecoin rally, and the number of organizations that have accepted Dogecoin payments since 2020 has shot up.

It is this growing adoption that gives Dogecoin a bright future ahead. But is Elon Musk the only reason why Dogecoin is a top cryptocurrency to invest in in 2022? 

Far from it, there are many other reasons why Dogecoin is one of the best cryptocurrencies to buy and hold for the long haul.  

 >>>Buy DOGE Now<<<

Virtual currencies are highly volatile. Your capital is at risk.

Top Reasons Why Dogecoin is a good cryptocurrency investment today. 

Dogecoin was a sleeper for many years, but things changed in 2020 when Elon Musk took an interest in it. 

Not only did prices go up, but the Dogecoin developer team that had long abandoned the ship returned and made technical improvements to the Dogecoin code. 

If you are interested in Dogecoin but still unsure despite the Musk effect, here are 7 reasons Dogecoin is worth buying now. 

1. Dogecoin is decentralized

If the recent collapse of highly rated cryptocurrencies has any lessons, it is that decentralization has value. With decentralized cryptocurrencies, there is no single point of failure. It’s one factor that makes Ethereum so valuable, despite its slow speeds and high fees.

Dogecoin happens to be one of the most decentralized cryptocurrencies in the market today. It runs on a Proof-of-Work algorithm, and anyone can mine DOGE without complex mining equipment. This means the number of people supporting the Dogecoin network is dispersed globally.

This high level of decentralization makes Dogecoin one of the safer cryptocurrencies to buy now and hold for the long haul. As more investors start appreciating decentralization, Dogecoin could benefit immensely.

It’s one of the reasons why despite being a meme coin, Dogecoin is one of the most promising cryptocurrencies to buy and hold in 2022. 

 >>>Buy DOGE Now<<<

Virtual currencies are highly volatile. Your capital is at risk.

2. Dogecoin has a very unique market position.

In any market, positioning is critical to success. The cryptocurrency market is no different. For instance, Bitcoin is where it is today, thanks to its positioning as potential digital gold. 

Similarly, Dogecoin has built a community around itself as the first and biggest meme coin. Most of the other meme coins in the market are largely built around the idea of Dogecoin. 

This market positioning gives Dogecoin an edge over most of the top DOGE competitors in the market today. The result is that once the broader cryptocurrency market picks momentum again, Dogecoin could lead the way for the other meme coins to follow. 

For this reason, it makes sense to include Dogecoin in a cryptocurrency growth portfolio for 2022 and beyond. 

3. Dogecoin is convenient for everyday transactions.

The key to a cryptocurrency’s long-term growth is adoption. This is what is expected to drive the price even when the hype is long gone. 

One of the key factors determining whether a cryptocurrency is good for everyday transactions is the average cost of transactions. 

In the case of Dogecoin, transactions are almost negligible when compared to, say, Bitcoin or Ethereum. Dogecoin transactions are quite fast too and confirmed in only a few minutes. 

On top of that, Dogecoin’s decentralized nature guarantees users that their transactions cannot be censored, unlike when using centralized systems such as banks.

These are all attractive features that make Dogecoin a smart cryptocurrency investment for an investor who believes in cryptocurrencies’ future. 

That’s because the more Dogecoin is adopted as a payment method, the more demand will cancel out its inflationary nature. 

So far, more than 20 major corporations accept Dogecoin payments, including the Dallas Mavericks. It’s a positive indicator of where Dogecoin could go in the future. 

4. Dogecoin has a strong and growing community. 

Dogecoin’s community has been one of its biggest pillars since its launch. Today, the community runs in the millions and includes big names like Elon Musk and Mark Cuban. These are people who are not only wealthy but also have a massive following on social media. 

As such, whenever they talk about Dogecoin, they draw in more investors, a factor that could see Dogecoin emerge as one of the best performing cryptocurrencies going into the future. 

To understand how big of an influence the community is on Dogecoin, consider that since Elon Musk and other community members started hyping DOGE, the number of companies that accept Dogecoin has grown exponentially. 

The bigger the community gets, the higher the odds that more crypto newbies will consider Dogecoin as their first investment. That’s a confidence boost for anyone wondering whether Dogecoin is a good investment. 

5. Dogecoin is listed on multiple exchanges.

Still, wondering whether Dogecoin is a good investment or not? Well, consider the fact that Dogecoin is one of the few meme coins that are listed on almost all the top cryptocurrency exchanges. 

Dogecoin is even listed on Robinhood, a platform that Americans love as a newbie-friendly broker. 

The impact of multiple listings is a plus for Dogecoin in various ways. For a start, it makes Dogecoin a highly liquid cryptocurrency, which makes it less prone to manipulation.

At the same time, it means that in peak bull runs, new investors have an easy way to access Dogecoin. It’s a factor that could fuel Dogecoin’s price in bull markets. This was most evident after the Dogecoin buying frenzy on Robinhood led Dogecoin to new heights in May 2021.  

Now that more exchanges are listing Dogecoin due to its popularity, the odds are that new money flow could see it test new highs in the next bull run. It’s a solid reason to consider adding Dogecoin to a cryptocurrency portfolio in 2022.

6. Dogecoin has proven to have longevity.

Are you considering cryptocurrencies as a long-term investment? Then, by all means, you need to invest in cryptocurrencies that are not just highly hyped but have proven their capability to survive. 

This is important because since the cryptocurrency market became a thing in 2009, many coins have come and gone. Interestingly, Dogecoin, a meme coin with little utility value, has survived it all. Today, it holds the title of oldest meme coin and doubles up as one of the most profitable meme coins ever made.

With the recent collapse of a multi-billion cryptocurrency, cryptocurrencies like Dogecoin, which have proven to have an element of survival, could see significant growth in the future. 

This is one of the biggest reasons why Dogecoin stands among the best cryptocurrencies to buy now for anyone who believes in cryptocurrencies as the future of finance. If its past is anything to go by, Dogecoin is a cryptocurrency that is likely to be around for decades, and possibly worth a lot more than it is worth today. 

7. Dogecoin is scalable

One of the biggest challenges to cryptocurrency adoption is scalability. If millions of people cannot use a cryptocurrency without facing network challenges, then the odds are low that it will ever compete with centralized systems. 

Dogecoin has never had this problem. It is widely used, and there are never issues of slow confirmation speeds or network breakdowns. Scaling puts DOGE at the forefront of cryptocurrencies that have the potential for widespread adoption. 

Since the adoption and long-term value growth are closely intertwined, DOGE comes across as a smart cryptocurrency investment today, especially for those with a long-term view of the market. 

 >>>Buy DOGE Now<<<

Virtual currencies are highly volatile. Your capital is at risk.

3 Reasons why Dogecoin may not be a smart investment

Up to this point, you have a good idea of why Dogecoin is a good cryptocurrency investment.  

However, every savvy investor knows that there are no foolproof investments. Like every other investment, Dogecoin carries risks, and it’s essential to be aware of them before investing. 

Let’s now look at why it may not be the best move to go all-in on Dogecoin. 

Dogecoin has an unlimited coin supply. 

One of the biggest drawbacks to Dogecoin is its unlimited supply. 5 billion DOGE enter circulation annually, and this will continue perpetually. Unless all of these cryptocurrencies are absorbed in a scenario of extremely high demand, they can weigh down on the price. 

Given that cryptocurrencies are still in their infancy and are yet to gain widespread adoption, the odds are that the rising supply of Dogecoin could overwhelm the price in the short to medium term. 

This makes Dogecoin a higher-risk cryptocurrency compared to a coin like Bitcoin which has a low, and hard supply. 

In essence, even as you invest in Dogecoin, it is best to have it as part of a diversified cryptocurrency portfolio. Going all-in on Dogecoin may not be the smartest investment move. Just consider that even deflationary cryptocurrencies carry risk, so DOGE is no exception. 

Neglect by the developer team 

Before Elon Musk took an interest in Dogecoin in 2020, the developer team had long abandoned it. This means even though Dogecoin has been around for a long time, the community doesn’t believe in it enough to keep working on its technical capabilities. 

This is a big risk as it means that developer interest may be premised on how interested celebrity investors like Elon Musk are in DOGE. If a person like Musk were to sell all his Dogecoin holdings publicly, there is a risk that the developer could abandon Dogecoin, just like they had done before 2020.

Dogecoin pump and dump schemes are common

Because Dogecoin is largely considered a joke coin, it has often been subject to pump and dump schemes. This means there is always the risk of buying into a false Dogecoin rally and ending up with losses once the whales sell and exit their positions. 

While this will likely reduce as Dogecoin adoption grows, it remains a major risk in the short to medium term. That’s why for a Dogecoin investor, it makes sense to not only invest what you can afford to lose but also hold DOGE alongside other high-potential cryptocurrencies. 

So, Is Dogecoin a good investment today?

The odds are that DOGE is an excellent investment. Dogecoin is trading at more than 80% of its most recent all-time highs. This means the risk-reward ratio is at its best at current prices. Besides, with companies like Tesla now accepting Dogecoin payments, the odds favor DOGE’s long-term growth. 

Besides the Tesla adoption, here are two reasons why now could be a good time to invest in Dogecoin. 

1. The crypto 4-year cycle

The crypto market is currently in a massive bear run. However, if past crypto cycles are anything to go by, the odds are that the market will make new highs by the next Bitcoin halving in 2024. In essence, now is a good time to buy high-potential cryptocurrencies that are likely to make a big jump in the next cryptocurrency bear run.

Dogecoin happens to be one of the cryptocurrencies that could rally in the next crypto bull run. That’s because, since 2021, Dogecoin adoption has been growing, and now companies like Tesla accept it for payments. At the same time, Dogecoin’s community is now much better than at any other time in the past. 

In essence, by 2024, Dogecoin will have more value than it does today. This coupled with the hype that comes with bear markets, could see it make new highs, possible at $1 or more. This makes Dogecoin a no-brainer cryptocurrency to buy now and hold for the long term. 

2. The developer team is back.

The Dogecoin developer team, after abandoning the coin for years, returned in 2021. They have been working on improving Dogecoin, including handling all vulnerabilities in the network. This means confidence in the Dogecoin network is likely to grow better over time. 

The same will lead to more adoption, and that means a higher intrinsic value for Dogecoin. This gives Dogecoin massive potential for value growth going into the future. 

 >>>Buy DOGE Now<<<

Virtual currencies are highly volatile. Your capital is at risk.

Things to Know Before Buying Dogecoin

Up to this point, you have a good understanding of whether Dogecoin is a good investment or not.  

However, before you proceed to buy Dogecoin, there are a few other things you need to know, over and above DOGE fundamentals. 

Take a look:

1. Invest in Dogecoin only what you can afford to lose. 

2. Buy at times like these when the markets are down, and sell in bull markets. 

3. Only buy Dogecoin from trustworthy cryptocurrency exchanges .

4. Make sure to secure your account, including using 2-FA. 

5. Once you buy, get your DOGE off exchanges. 

6. The best way to store them is in a wallet where you control the keys – it can be a hardware or software wallet.

7. Invest in other cryptocurrencies as well, just in case Dogecoin ends up underperforming the market. 

If you follow these simple rules, then you are good to get started in your Dogecoin investment journey. 

 >>>Buy DOGE Now<<<

Virtual currencies are highly volatile. Your capital is at risk.

Dogecoin v.s Shiba Inu – Which One is a Better buy? 

If you have enough money, it would be best to consider buying both Dogecoin and Shiba Inu. However, if you only want to invest in one of the two, let’s compare them to help you decide on the best one. 

Shiba Inu has proven to be more responsive to broader cryptocurrency market action than Dogecoin. This was most evident in 2021. While Dogecoin stagnated after the highs of May 2021, Shiba Inu rallied again with the broader market and made new highs in November 2021. 

At the same time, Shiba Inu has better tokenomics than Dogecoin. By the middle of 2020, nearly 50% of Shiba Inu’s total supply had been burned. More Shiba Inu are continually being burned, further driving down the total supply of Shiba Inu. On the flipside, Dogecoin has an unlimited supply. 

However, Dogecoin’s inflationary nature is not exactly a handicap. Dogecoin has been inflationary since it launched, but it still rallied in 2020/21. In essence, as long as there is growth in adoption, Dogecoin’s value can go up despite the supply.

So, should you go for Dogecoin or Shiba Inu? If you are looking only to buy one, Shiba Inu could be a better cryptocurrency buy of the two. That said, Dogecoin’s core fundamentals are getting better. This also makes DOGE a good cryptocurrency to buy today.

That said, since these two are among the top penny cryptocurrencies in the market today, it would be best to buy both. 

 >>>Buy DOGE Now<<<

Virtual currencies are highly volatile. Your capital is at risk.

Final Word – Is Dogecoin a smart buy?

Absolutely yes! Despite the recent cryptocurrency market collapse, Elon Musk has committed to keeping supporting Dogecoin. Since he is one of the key reasons why Dogecoin has performed so well in recent years, this is a big deal. It’s a good reason to see Dogecoin as a viable cryptocurrency investment in 2022. 

 >>>Buy DOGE Now<<<

Virtual currencies are highly volatile. Your capital is at risk.