The cryptocurrency market has over 200 meme coins available for trading on top crypto exchanges. While not all meme coins are worth your attention, the top of the lot does. We’re talking about Dogecoin, the first meme coin to appeal to a larger audience. Those who don’t know, Dogecoin was founded in 2013 to poke fun at the rapidly rising number of altcoins in the market. It didn’t come with any real-life utility and was used for trivial purposes.
Many beginner investors who wanted hands-on experience in crypto trading would start with Dogecoin trading and later move to other cryptocurrencies. But things are not the same anymore. With the rapid rise in popularity, Dogecoin has now become a cryptocurrency that people are looking for as a secure, long-term crypto investment. While there are many reasons behind this drastic shift, a prominent factor is the strong community support and mass appeal to investors. If you’re active on Twitter, even a little, you would know how a single tweet from Elon Musk in favor of Dogecoin resulted in a massive jump in Dogecoin price.
While there are staunch supporters of Dogecoin, there are an equal number of critics too. But knowing these details aren’t enough to decide if Dogecoin deserves a space in your crypto portfolio or not. To help you make an informed, wise decision, we’ve listed below the pros and cons that will assist you in your decision-making process. So let’s quickly head to the pros and cons of Dogecoin.
Pros of Dogecoin
Even though Dogecoin is a meme coin, investing in it can have its own benefits. Some of the advantages of Dogecoin are listed below:
- Growing Community of Dogecoin Holders
A significant benefit of owning Dogecoin is its growing community of staunch supporters. And the more supporters or owners a cryptocurrency has, the more suitable it becomes as a medium of exchange. As investors can use Dogecoin as an absolute value, more people have started showing interest in owning it. You can easily find Dogecoin supporters frequently sharing memes online to promote the cryptocurrency further.
- Dogecoin is Listed on Major Crypto Exchanges
The value of a cryptocurrency depends significantly on the ease of buying and trading the same. Luckily, Dogecoin is listed on all major cryptocurrency exchange platforms, making it easier for people to indulge in Dogecoin trading. Easy accessibility is also a reason behind the growth of other cryptocurrencies like Ethereum. As a number of platforms support buying and selling of Ethereum, the Ethereum price is mostly on the rise.
- Unique Market Position
The strong community support to Dogecoin is an added advantage to most investors willing to invest in this cryptocurrency. Many investors’ view Dogecoin’s inflationary status, unlimited coin supply, unique mining feature, and ties to Litecoin as unique. All this combined together places Dogecoin in a relatively profitable position.
Cons of Dogecoin
Now that you’re aware of the pros of Dogecoin, let’s take a quick look at its cons shared below.
- Dogecoin’s Nature Might Contradict Real Innovation
Even though Dogecoin has proved itself as a robust cryptocurrency in the market, many still view it as a regular coin created for purely entertainment purposes or poking fun at the rapidly growing altcoins. Dogecoin’s initial intent behind creation may prevent the coin from certain integrations and adoption as a digital asset.
- Poor Technical Support
Dogecoin has managed to get a vast investors base over a period, but its technical support didn’t grow the way it should. The coin doesn’t have a robust developer’s team and technical support team as big and sound as that of Bitcoin, Cardano, Ethereum, etc. It is also a reason why there haven’t been any serious technical upgrades to it. If you expect a cryptocurrency to be backed by a strong team, Dogecoin might not be for you.
- Association with Pump & Dump Schemes
For the uninitiated, pumping refers to the event where a group of people collectively buy a coin in huge numbers, resulting in a price hike of the same. Once the coin reaches a much higher value, the coin is released in the market, while the group gets to keep a considerable return. It ultimately leads to huge losses for regular investors. Unfortunately, Dogecoin has often been accused of being linked to a pump and dump scheme.
Should You Buy Dogecoin
You can only decide whether Dogecoin is the ideal investment for you or not after assessing its pros and cons. Now that we have listed both for your convenience, you can take an informed call that best matches your investment goals.