Using Dogecoin to Diversify Your Cryptocurrency Investment Portfolio: Yes or No?

Many investors choose to keep their cryptocurrency portfolios diversified to reduce the risk of losses when specific investments do not yield the desired results. As the saying goes, it is better to put eggs in more baskets than to keep them in just one, ensuring that if the container falls, the owner will not suffer the loss of all the eggs. Simply put, you increase the likelihood of seeing returns. Therefore, when it comes to cryptocurrency holdings, choosing the biggest and oldest – Bitcoin and Ethereum – is a strategy that represents perfection. how? By adding other cryptocurrencies to your wallet.

There are more than 11 types of cryptocurrencies, including altcoins, stablecoins, security tokens, utility tokens, DeFi tokens, etc. Among these currencies, meme coins have risen to unparalleled popularity in recent years, with the category architect – Dogecoin – leading the pack, as you can mine them from live currencies. Dogecoin price. These coins started out as a mockery, as the name suggests, and then evolved into one of the hottest niches in the cryptocurrency space over the years. Leveraging just the right amount of publicity and community support, they now boast a track record of millions of dollars in transition. At the time of writing, the market cap of memecoins reached $125 billion. It’s worth noting that celebrities like Elon Musk continue to support Dogecoin, which is just a small indication that the asset isn’t going to die anytime soon.

DOGE’s beginning is anything but humble

By now, the bulk of investors are aware that Dogecoin started as a joke to mock the king of cryptocurrencies, Bitcoin. Now, something has happened since it broke into the market in 2013 and along the way, namely in March 2017, when its trading volume rose strongly. Dogecoin’s initial price of $0 needed a few days of trading to reach $0.0004 and two weeks to increase by 300%, specifically after China banned the use of cryptocurrencies in banks. Moving forward, Assets began to have a growing support community in 2014 despite lacking something as usual as a whitepaper – never mind other use cases.

During those times, the coin was popular in the underground cryptocurrency spheres. Only after the launch of DogeTipBot, a micro-tipping app that can allow users to tip content creators and other types of online service providers, did the token begin to see increased adoption. Moving forward, Dogecoin has created a channel to transfer over $170,000 worth of assets to charity through its passionate community. If you thought Dogecoin was just starting to ride the wave at that time, think again. This was when the asset fell the most, falling to $0.0000869 after the community became indifferent to it – but not for long. Between 2017 and 2019, the price of the meme coin will break one record after another, paving the way for the entry of one of the most famous self-made tycoons of our time.

The richest man in the world stepped in and changed the game forever

Associating cryptocurrencies with the wealthiest individual can only benefit the former, as history has proven. Elon Musk explained that he endorsed Dogecoin at the beginning of 2022 through a tweet, after the price rose by $0.20 after the asset gained 5,859% compared to the previous year. The so-called “Dogefather” then went on to show his endorsement with a series of tweets that would portray Doge as “the people’s cryptocurrency” or as the only cryptocurrency, only to see the entrepreneur declare that his posts were just “jokes,” i.e. words. I was thrown around.

Regardless of any statements made over time or media interpretations, the entrepreneur’s stance on the Shiba Inu themed meme remains as positive and supportive as ever. The technology expert divided the Dogecoin era into a “before” and “after” era, as he did with the market as a whole. His statements and assertions about Chiba Coin via television channels and social media have pushed the asset over 400% in the first month of 2024 alone, pushing it to a notable level of $0.32.

Furthermore, when it comes to the broader cryptocurrency market, the Tesla CEO has been equally influential. For example, the rise of DOGE after Elon Musk’s “adoption” laid the foundation for a wave of new dog-related coins. An unparalleled contribution, the entrepreneur took it to the next level by announcing that he would collaborate with DOGE developers to improve several properties of the coin, such as infrastructure efficiency and transaction speed. From this point on, it looks like DOGE is ready

DOGE is set to take off

Everyone knows that DOGE appeared as a joke but it has turned into one of the fiercest players in the cryptocurrency market. The already strong community behind the Doggo coin is only getting stronger – with Elon Musk’s endorsement turning the asset into a force to be reckoned with. As expected, the hype around cryptocurrencies is only getting louder.

When it comes to growth, the asset’s price has risen by 150% in the past month. Some market experts state that the asset is on track to set a new ATH, partly encouraged by price changes that have only been positive recently. With the ATH at $0.73, hitting $1 per coin would mean the market capitalization of the asset rose to a value of $147 billion – a far cry from its current value of $62 billion. However, taking into account that the entire market is worth $3.35 trillion and… Bitcoin With Dogecoin dominating 61.39% of the entire market, it is safe to say that the number of Dogecoin competitors to beat is rare.

Reasons why you should invest in Dogecoin

The future of Dogecoin is not bright at all. First, its 1-minute block time exceeds the bulk of proof-of-work cryptocurrencies, placing it high among microtransaction methods. Secondly, Dogecoin outperforms heavyweight Bitcoin in terms of mining and energy consumption, meaning its environmental footprint is a goal for the ruler to establish and achieve.

The meme coin is making all the headlines as traders and analysts express their bullish sentiments towards its performance and price. Dogecoin remains one of the most attractive cryptocurrencies for newcomers or skeptics who just want to test the waters without expanding into high-cost cryptocurrencies like Bitcoin.

Invest consciously!

Despite its attractive price, it’s not too late to dip your toes into the DOGE waters. However, there are several recommendations that you should remember when you decide to invest in it, such as limiting yourself to an amount that will not hurt your budget if the scenario does not go as expected. Play safe!