Trading Dogecoin to USD – DOGE/USD
Dogecoin is a cryptocurrency invented by software engineers Billy Markus and Jackson Palmer, who decided to create a payment system that is instant, fun, and free from traditional banking fees. Dogecoin features the face of the Shiba Inu dog from the ‘Doge’ meme as its logo and namesake.
The Dogecoin to USD, or Dogecoin to Dollar, crypto pair is composed of a cryptocurrency that was initially a joke project (but became a cryptocurrency with strong market capitalisation) and one of the world’s strongest fiat currencies. With the exception of a few price spikes, the Dogecoin price had fluctuated within a range until the end of 2020 and beginning of 2021 when the Doge to USD value experienced significant price increases.
The attractiveness of this currency pair and the increase in value originates partly in the phenomenon of retail investors influencing the financial markets using social media. After the entrepreneur Elon Musk published a couple of tweets of support, the price of Dogecoin experienced a significant increase.
Traders should closely monitor social media to identify possible signals that might indicate the potential direction of the Dogecoin price. Tweets and social media statuses of certain celebrities and famous entrepreneurs should also be put on watch lists.
What is Dogecoin?
Dogecoin is a digital currency created by software engineers Billy Markus (from IBM) and Jackson Palmer (from Adobe) and introduced in December 2013. The Dogecoin was created to serve as a fast and reliable payment system that would increase the efficiency of payments by eliminating banking fees. This cryptocurrency is generally used for tipping creators of digital content and people who share interesting content, or in fundraising. The mascot of the coin is based on the Shiba Inu, a Japanese breed of dog heavily used in the creation of memes.
Dogecoin market capitalisation reached more than $10bn at the beginning of 2021 with more than 128bn Dogecoins in circulation and the opportunity for five billion new Dogecoins to be produced each year.
Here are some interesting facts about the cryptocurrency:
- 1. It is well known that Dogecoin started as a joke between its creators. Now, this cryptocurrency is widely accepted and enjoyed by a well-developed online community.
- 2. Dogecoin creation is based on Litecoin technology.
- 3. There is no maximum cap on the number of coins that can be produced or mined.
- 4. The cryptocurrency is available for trading on major exchanges, ensuring an adequate level of demand.
- 5. It has a rather fast mining process which enabled the mining of 100 billion coins within the first year of its introduction.
- 6. Verification of transactions is based on the proof of work system, which is also used in Bitcoin technology.
- 7. When it comes to speed of transactions, transactions executed with Dogecoin are faster than those using Bitcoin.
- 8. Aside from Elon Musk, other celebrities that tweet about the Dogecoin are Snoop Dogg and Gene Simmons.
The price of Dogecoin is affected by the general factors that affect the overall cryptocurrencies market. Changes in legal frameworks, increasing the number of stores accepting cryptocurrencies as a means of payment for purchases, and demand for a cryptocurrency are some of the factors that could put pressure on the value of this cryptocurrency.
However, some factors are specific to the cryptocurrency and these factors may influence the Dogecoin price without any major effect on the other currencies. One factor is the strong community behind Dogecoin, one that has high confidence in the stability and the investment potential of this cryptocurrency. Another factor is the strong presence and popularity of Dogecoin on Twitter and TikTok, which is evident from the influence that specific tweets had on the value during January and early February 2021.
How to invest in Dogecoin?
The factors affecting the cryptocurrency markets combined with the support given to Dogecoin caused a significant increase in its value in just a couple of months. The Dogecoin price chart shows that this cryptocurrency price has gained a couple of thousand per cents since it was first introduced. Dogecoin price fluctuated to a level of $0.084106 during the first week of February 2021, which is an increase of more than 2,000 per cent from early December 2020 when the cryptocurrency was priced at $0.003432. It is evident from the price chart that, prior to the price spike, the price was fluctuating in a narrow band.
Investing in Dogecoin can be performed in a variety of ways that differ in terms of complexity, ease of use and level of fees. Traders can decide to purchase or sell this cryptocurrency directly from a crypto exchange with fiat money or with some of the other acceptable cryptocurrencies. Your Dogecoin investment comes with the need for a wallet where you will securely store your coins. Keep in mind that you will use this wallet each time you want to buy or sell your Dogecoins. Although the process of working with a crypto wallet (either physical or digital wallet) is not as complex as it may sound, traders will have to go through the steps each time they want to trade Dogecoin or any other cryptocurrency that is available for trading.
Another way to invest in Dogecoin is through online brokers that offer derivative instruments such as Contracts for Difference (CFDs), futures or Forex markets instruments where you can speculate on future price movements. However, these methods for trading Doge to USD may come at higher costs and higher fees, while some instruments may also be complex to be understood by everyday traders.
Alternatively, traders have the opportunity to benefit from movements in the Dogecoin to Dollar value when trading tokenised assets offered by the Dzengi.com trading platform. The tokenisation of assets enables traders to open long and short positions without the need to directly buy or sell the underlying assets. A tokenised crypto pair such as Doge to USD will imitate the changes in Dogecoin to USD price in real-time, eliminating the need for traders to use crypto wallets or the need to cope with complex derivative instruments. The Dzengi.com tokenised assets platform gives traders the opportunity to select whether they will fund their account with fiat money or with crypto. Depending on the underlying asset, tokenised assets can be traded with a leverage of up to 1:500 offered by Dzengi.com platform.
Why trade Dogecoin to USD with Dzengi.com
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