Should I buy Dogecoin in 2022?

The developers of Dogecoin started it as a satirical project to mock the crypto market. In 2021, it gained investors’ attention such as Elon Musk, Tesla and SpaceX founder, who became an advocate for DOGE. The coin enjoyed a 200% rise last year. But this brief rise soon ended due to bearish trends in the crypto market.

Since the start of 2022, DOGE’s price has been lingering around $0.07-$0.18 with no signs of recovery. Contrastively, the community is still quite optimistic about its potential rise. In this scenario, one might wonder, “should I buy Dogecoin and is it worthy of investment in 2022?”

Let’s get some insight into its price to find out whether or not it can add value to your portfolio!

Dogecoin’s journey so far

It is the first of the meme coins that entered the crypto market in 2013. It works with the exact consensus mechanism as Bitcoin and Litecoin. However, its developers used PoW to mock similar cryptocurrencies. Last year, it finally started attracting investors due to Elon Musk’s influence.

This brief period of popularity lasted only till the mid of 2021. Even in late 2021, when most cryptocurrencies reached their all-time high, DOGE’s price remained stuck. So far, the highest mark it has hit is $0.73. Besides, it doesn’t show any signs of a rise currently.

Is Dogecoin a good investment in 2022?

Should I buy Dogecoin or not? To answer that, you should evaluate its potential as an investment and see why it can be a risky bet.

Positives about the coin

One of the positives about this meme coin is its strongly growing community. Endorsements from Mark Cuban and Elon Musk play a significant role in its growth. Moreover, it has introduced a new genre in crypto, meme coins, allowing it to enjoy a unique position in the market. Its scalability and ease of use for transactions also make it a decent option for mass adoption.

Why is investing in DOGE risky?

On the other hand, it has its risks. One is the false hype from influencers that makes it highly volatile. DOGE whales can opt out anytime, which can directly affect their price. Also, it’s an inflationary token with extensive supply. Every year, 5 billion tokens enter the market, resulting in a price drop. Moreover, the lack of innovation and developers’ negligence makes it unreliable.

Find more about selling DOGE in 4 simple steps.

Final Verdict: Should I buy Dogecoin?

DOGE’s current price and its ecosystem dynamics suggest that it is not a reliable investment. For long-term investment in DOGE, you must consider your risk tolerance and whether it’s suitable for your portfolio. This article is a generalised opinion and should not be regarded as financial advice.