Dogecoin is one of the most popular meme coins available in the crypto space. What made this cryptocurrency’s success so surprising is the fact Dogecoin was launched to merely poke fun at the rapidly increasing altcoins.
For many parts during its initial months, Dogecoin was used to raise funds for social causes, and it provided an easy entry gate to crypto enthusiasts who just wanted to get hands-on experience on what owning, and trading crypto feels like.
But once the community support started increasing for Dogecoin, and it even received words of favor by verified social media handles, its popularity and value began to grow. Dogecoin price skyrocketed when Elon Musk tweeted in its favor.
Since meme coins don’t always have a real-life or unique utility that investors can peg on for the long term, serious investors always remain skeptical about investing in this Shiba Inu featuring coin.
If you’re a wise investor who wants to analyze both sides of Dogecoin before investing, we’ve got something for you.
To make your work easier, we’ve listed down the pros and cons associated with Dogecoin so you’re able to plan your next move accordingly.
Pros of Dogecoin
Even though Dogecoin doesn’t offer any unique value proposition, it still holds certain advantages over other coins. Check out the list of pros of Dogecoin shared below.
Actively Growing Community of Holders
Mark and Cuban, Dogecoin’s founders, once stated that the prime strength of this coin is the actively growing and engaging community. Investors or owners of Dogecoin use it as an absolute value, and the number of transactions keeps increasing with the rise in the number of users.
Since all Dogecoin investors are highly active on social media, they keep promoting it, which positively impacts the coin value.
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Dogecoin is supported by an extensive list of crypto exchanges around the world. It means investors can easily buy and sell Dogecoin.
You can also convert ETH to INR using a reliable crypto exchange that supports Dogecoin at a reasonable fee.
Supported by Celebrities
As an investor, you must have noticed how the prices of cryptocurrencies skyrocket when a celebrity tweets in its favor. Elon Musk and Dogecoin are great examples of it.
The best part of Dogecoin is Elon Musk isn’t the only celebrity supporting and frequently promoting it. Snoop Dogg, Kevin Jonas, Gene Simmons, Ben Philips, Mark Cuban, etc., are also on the list.
Cons of Dogecoin
If you want to invest in crypto and gain from it, you must assess a cryptocurrency from both sides. Now that you’re aware of the pros of Dogecoin, let’s take a look at its cons shared below.
Poor Technical Support
Despite being so popular, Dogecoin has failed to offer the technical support its community expects. The same can be said for its development team, as Dogecoin hasn’t launched any significant upgrade for years.
Though its founders have released a roadmap, its implementation still seems far-fetched.
Association with Pump & Dump Scheme
Dogecoin has often been associated with pump and dump schemes. For those who don’t know, it is a scheme where a group of people purchases significantly higher coins leading to an increase in its value.
Once the same crypto reaches a higher valuation, they release all their purchased cryptos in the market, taking back huge profits. This manipulation is quite common with Dogecoin
Hype Cannot Last Forever
Since DOGE doesn’t offer any unique real-life utility, its value significantly depends on the hype existing in the market.
While the public hype has proved to be profitable for Dogecoin to date, one cannot rely on public hype for long. They can change in a jiffy, resulting in wild price swings.
Also Read: Top Secure Platforms For Converting Bitcoin, Ethereum and Litecoin
What to do with DOGE?
Dogecoin, aka DOGE, is a highly risky cryptocurrency that people should invest in at their own risk. Now that you’re clearly aware of the pros and cons, you’ll be able to make better and more informed investment decisions.