While some political and corporate leaders have been eager to invest in and adopt cryptocurrencies, others are entirely hostile. Turkish President Tayyip Erdogan recently declared outright war on the Bitcoin network. President Erdoğan: "We Are At War" President Erdoğan expressed his opposition to Bitcoin in a meeting with Turkish students this Saturday. The event comes after one of them asked if the country's central bank would adopt cryptocurrencies. Erdogan responded with total rejection: "We have absolutely no intention of embracing cryptocurrencies. On the…
If you are a true cryptocurrency enthusiast, I bet we both know that the industry can be pretty lucrative. However, that doesn’t mean anyone can hop in, invest and make huge chunks of money. The returns are never guaranteed, and success isn’t that easy. Seasoned traders use different trading strategies, including software, to help them choose the right coins and detect the correct entry and exit times.
Nevertheless, everyone must start somewhere. It’s so easy right now to get tempted to join in the current Dogecoin craze. But is it worth it? Well, Dogecoin is a cryptocurrency, just like Bitcoin. The internet is currently a buzz over the coin, although this could be a fad to short-term trading. Let’s dig a little deeper into DOGE and short-term crypto trading.
Short-term Crypto Trading
Hourly trading, day trading, or weekly trading are all short-term trading options. Short-term trading is where an investor acquires some crypto coins but only intends to keep them for a short period. It’s usually meant to make a quick profit when you anticipate that the coin’s price will increase in the short term.
Short-term crypto trading provides investors with an opportunity to make huge profits that are otherwise not realizable in the fiat currency markets. The high volatility of cryptocurrencies makes it possible for a coin to triple in value overnight. Fiat currency markets, on the other hand, barely move 1% in a day.
On the downside, crypto prices can move in the opposite direction with as much percentage as they can rise. The volatility is two-way, so investors must spend much time analyzing the markets. While crypto trading can be your full-time job and make you huge profits, it’s always good to hold on to the adage and invest only what you can afford to lose.
So, Is DOGE a Fad to Short term Trading?
Well, for a coin that has been in the crypto industry since 2013 and is yet to hit a $1 value, including it in your long-term portfolio doesn’t sound quite promising. Dogecoin came to be a joke but quickly found a purpose, to be a friendlier and more approachable alternative to the crypto giant, Bitcoin, and altcoins like Litecoin. DOGE hasn’t made any remarkable growth and is nowhere in comparison to Bitcoin. For instance, Bitcoin took 51 months to hit $100, and Dogecoin is still below $1 years on.
Surprisingly, some investors made huge profits with the meme coin a few months ago during the Dogecoin rally. In 2021 it’s all clear that Dogecoin is nothing but a fad to short-term crypto trading fashion.
The Rise and Tumble of DOGE
In general, the value of altcoins tends to rise whenever Bitcoin’s value jumps high. Many investors view the smaller altcoins as an alternative to the crypto giant and thus want to take advantage of the peaks. 2021 started with a Bitcoin rally which saw the value of most coins increase. Dogecoin’s worth was still insignificant, having started the year at $0.005.
The meme coin was still growing insignificantly with the crypto wave in January 2021. However, things took a twist in late January when Elon Musk made a tweet about DOGE. In his first tweets, the Tesla CEO tweeted ‘DOGE,’ then followed with ‘Dogecoin is the people’s crypto.’ His tweet saw the price of DOGE spike more than 50% in early Feb.
What followed were his frequent tweets that pumped the price of DOGE. The coin was trading at around 70 cents in early May but came tumbling down after Elon Musk joked about the currency on Saturday Night Live (SNL). Dogecoin’s price fell about 30%, down to 49 cents.
Dogecoin’s price began rebounding following Elon Musk’s fallout with Bitcoin over Bitcoin mining being energy-intensive. SpaceX’s founder took a U-turn against Bitcoin, and he has thrown all his support behind Dogecoin. Musk withdrew from Bitcoin, and his company now plans to accept Dogecoin as payment to replace Bitcoin. However, his move is not bearing that significant impact on the coin’s value this time around. As of this writing, Dogecoin is selling at an unimpressive 31 cents.
Is Dogecoin Worth Investing Now?
While many people would anticipate that Dogecoin’s price will rise after Tesla accepts it as payment, it’s pretty hard to tell this time. Elon Musk recently lost his favor from the crypto community after being blamed for Bitcoin’s crash. As a result, his moves may not have much positive impact on Dogecoin’s prices.
In any case, Dogecoin is not the cryptocurrency investors can rely on for their long-term investments. The coin’s value is speculative and largely dependent on the community around it, and this may not result in any significant growth. Besides, Doge lacks groundbreaking features, and no important updates have ever happened about it since 2015. The community can only speculate price changes and take advantage of a positive change in the short term.
Elon Musk has actively impacted the crypto space through his tweets about the industry and specific coins. His major impacts have been on Bitcoin since his car company bought $1.5 billion worth of Bitcoin. For Doge, he has also pushed the prices back and forth, although not with remarkably high and lasting margins that can paint Dogecoin a worthy long-term investment. Furthermore, Dogecoin is an inflationary coin, and this makes it mimic fiat currencies. Users are discouraged from holding on to the coin and encouraged to trade them actively. As long as the meme coin’s actual value remains in the hands of its vibrant community rather than its fundamentals, Dogecoin will stay a fad to short-term crypto trading.