Will Dogecoin Crash? How To Buy And Latest Price
You may have heard that Dogecoin hit another all-time high on May 3, crossing over a $53 billion market cap and beating Twitter’s estimations of a $43.59 billion value.
2021 has, so far, been a record-breaking year for the underdog of cryptocurrencies, which started out as a joke with the infamous Shiba Inu dog meme as its logo.
Dogecoin is now outpacing the bigger cryptos such as Ethereum and Bitcoin in terms of growth rate – 500 per cent in the last month.
Having seen Dogecoin’s success in recent months (and possibly, Elon Musk’s tweets), more people want a slice of the action, so we’ve been looking at how safe an investment Dogecoin is, and how you can buy it.
Dogecoin: Price and how to buy it
‘There are numerous amounts of ways to get Dogecoin. You can buy them, trade for them, get tipped, “mine” them, and more. They are surprisingly endless!’ Says Dogecoin.
If you head to dogecoin.com, there’s a guide on how to get started with investing in Dogecoin. You’ll need to set up a wallet and it’s a good idea to join one of the Dogecoin communities, such as the Reddit Dogecoin community.
Here are some of the exchange platforms you can buy Dogecoin from in the UK:
- Binance – Binance is the largest and most well-known cryptocurrency exchange in the world, according to securities.io, who ranked it as the best platform to buy Dogecoin from if you’re in the UK.
- Kraken – One of the “original cryptocurrency exchanges” – Kraken is based in more than 60 countries, including the UK and comes recommended by securities.io.
- Gate.io – Another recommendation for UK Dogecoin traders is Gate.io. While it’s said to be a good platform for beginners with an easy interface, it isn’t one of the most highly-rated platforms, says securities.io.
- eToro – eToro has recently made Dogecoin available to trade to its some 20 million users online and on the app.
- Kryptomat – Kryptomat is a European cryptocurrency exchange service based in Estonia. It provides crypto trading and security services to 80 countries in the world, including the UK.
Why does Elon Musk love Dogecoin so much?
SpaceX and Tesla CEO, Elon Musk, has not been shy of praising the meme-crypto numerous times on Twitter, causing a spike in the market thereafter.
He recently tweeted to say he’ll appear on Saturday Night Live as “the Dogefather”.
Could it be that Elon Musk likes this crypto so much simply because of its light-hearted nature and friendly dog-meme?
That’s certainly what the creators aimed for when they created the ‘fun and friendly internet currency’ back in 2013.
Will Dogecoin crash?
You’d think that Dogecoin is a safe bet with billionaires such as Elon Musk supporting it. But like all crypto assets, Dogecoin does come with risks – one being the fact that it’s an ‘inflationary coin’, explains Daniel Martin, a crypto expert from securities.io.
‘It should be noted that its unlimited supply defeats many of the benefits of other cryptocurrencies. Dogecoin is an “inflationary coin,” while cryptocurrencies like Bitcoin are deflationary due to the limited supply of tokens. For example, Bitcoin (BTC) has a maximum of 21 million tokens, while Litecoin (LTC), has a maximum supply of 84 million tokens.’
Experts have warned that cryptocurrency is a volatile market and that investors should only spend what they’re willing to lose.
Back in January, the Financial Conduct Authority raised their concerns about consumer protection, price volatility, product complexity, products and fees, and marketing materials in the crypto market. They class cryptocurrency investments as ‘very high risk’ and ‘speculative’.
At the end of the day, what goes up can also come crashing down. So while Dogecoin could be on track to reach the value of $1, be aware of the risk you’re taking and gamble responsibly.
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