As an investor, you have a larger responsibility to check market trends, which is an important part of investment decisions. For example, in 2023, the crypto market trends highlighted the demand for bitcoin and many others. One such cryptocurrency that witnessed much popularity around it is Dogecoin. It is popularly known as the DOGE. It skyrocketed from having a fraction value in the market to $0.70.
But do you know the plot twist?
Before witnessing an increase of the greater percentage, the prices of this currency fell.
While reading this, could you recall any other type of cryptocurrency that witnessed a similar trend?
If yes, you are on the right track. And if not, you should try and go back to when bitcoin’s demand was miraculously high before it witnessed a hit and the prices fell.
When you know both trends, it will be easier to draw comparisons related to the price increase and decrease.
If you dig more into the trends, you’ll be able to easily conclude that bitcoin has been the biggest crypto that has also witnessed the maximum popularity. When it comes to Dogecoin, you can relate its popularity to the form of the common household Shiba Inu logo.
So, with such a huge degree of commonness in these cryptocurrencies, are there any ways of drawing comparisons between them?
Purpose Of Bitcoin And Dogecoin
The basic thing to understand is that all cryptocurrencies have been formulated with different ideas and concepts in the mind.
The creators of the most famous cryptocurrency, the bitcoin, have made this friendly, and the idea behind it is to help it emerge as digital gold. Bitcoin can handle 7 transactions within a second. You will be surprised to know that the total value transacted on the network exceeds the trading numbers of any other coin. So, it won’t be wrong to say that this is the chosen and reliable form of payment for transactions involving a large amount of money.
Also, it is common in the form of an investment in some groups of traders. This is an emerging view, and it has gained momentum in recent years. There has been a spectacular increase in its value in the recent past. If some statistics come into the picture of the period from March 2020 to July 2023, you will see an 800% rise in the market value of this currency, and the people who have invested in this have seen incredible returns.
However, in 2023, the market witnessed a downfall, but currently, the market is recovering.
Now, coming to Dogecoin, which entered the market in 2014. Apart from its popularity, its value has not seen dramatic hype since its introduction into the market. But still, the investments keep coming in as you can buy DogeCoin on eToro quickly without any hassle.
What is the reason behind it?
All the potential and new crypto market investors saw this as a fun way of coming across the terminologies and the transaction process of cryptos. People recognize it, and now, it is being used by online merchants as a form of payment, too. However, the use is not as wide as bitcoin.
If you compare these coins, let’s take the market cap related to them in the future. Let’s take another statistic to understand this one. In August 2023, bitcoin’s market cap stood at $413 billion. As far as Dogecoin is concerned, the market cap stood at $9 billion. Currently, bitcoin holds the largest cap while the latter stands at the 10th rank.
But this is not where it ends. The speculations don’t seem to rest. If the recent interviews are to be considered, the famous billionaire Elon Musk, the CEO of Tesla and Twitter, has a stronger belief associated with Dogecoin, its growth, and its popularity.
He believes that Dogecoin has potential and it serves as a better source for transactions at a large scale. It can beat its competitors and serve a better experience to the traders. The Times Magazine interview with the SpaceX chief has been famous because of his interest in and statements about Dogecoin. It is a better option for doing different transactions within a day.
Two reasons support this statement. They are as follows:
- The transaction value of bitcoin can be low, but the cost that the trader incurs on a per-transaction basis is high.
- Bitcoin fails to emerge as the appropriate substitute for transactional currency.
Also, it is suggested that Dogecoin has better suitability and potential. However, please learn about both and try trading in them before drawing any conclusions. If you are wondering how to spend them, you can explore them at newsbeezer.com.
Which One Should You Choose?
The trading process has numerous risks. Risk tolerance is important if you want your journey to be full of experiences and learning. Once you ace this, it will help you determine the cryptos you should invest in and purchase. You will learn whether to invest in different cryptocurrencies or a single one.
Here are some factors that can help you with clarity related to risk tolerance:
- The trends will suggest you play safe around cryptocurrencies. But you should note that even if you play around with the safest cryptocurrencies, the volatility will still be prevalent. If you are a risk-averse investor, you might be better off avoiding the cryptos entirely.
- It would help if you understood whether Dogecoin is built as a financial asset. The endless supply capitalization degree should be considered if the answer is yes.
- The confirmation for a dogecoin stands at 33 transactions. It is more than that of a dogecoin and hence, preferred.
There are various kinds of cryptocurrencies that are made because of various reasons. They are connected to different aspects of the crypto world. Each currency has its purpose and quantity. The options are limitless. You will find one opportunity or another that will help you establish your trading career. Hence, you should choose the one that suits your trading idea the most.