How can Dogecoin be used as a store of value?
Jan. 24, 2023, 2:23 p.m.
Dogecoin has been gaining traction as a store of value, due its low cost and ease of use. The coin is becoming more popular among investors looking for an alternative form of investment that can potentially yield high returns over the long term. Dogecoin is a decentralized digital currency based on the popular ‘doge’ meme featuring a Shiba Inu dog. It was created in 2013 by Billy Markus and Jackson Palmer as a fun cryptocurrency project with no real purpose other than to provide entertainment.
Despite its initial lack of purpose, Dogecoin has become increasingly attractive to investors because it can act as an effective store of value. As with any form of investing, there is risk involved but storing some funds in Dogecoin could be beneficial in various ways:
Firstly, dogecoins are relatively easy to buy compared to other cryptocurrencies like Bitcoin or Ethereum and require very little technical knowledge or prior experience when purchasing them from exchanges such as Binance or Coinbase Pro. This means that anyone can purchase doges quickly and easily without needing too much knowledge about the crypto market first - thus making it more accessible for smaller-scale investments which may only need small amounts capital involvement (such as $5-$10). Furthermore, since doges are so cheap ($0.0035 per coin at time writing), they are perfect for those who want to invest without risking large sums money on volatile assets like stocks or options trading; this makes them ideal for novice investors who have limited funds available but still wish to diversify their portfolio into different asset classes.
Another advantage of using Dogecoin as a store value is its potential growth potential over time due rapid development on the network: developers continue work hard create innovative solutions help improve usability accessibility & scalability - all while keeping transaction fees very low (under 1 cent per transaction currently). This creates strong incentives both users businesses adopt DOGE technology instead traditional payment methods like credit cards debit transfers; therefore increasing demand supply dynamics associated with coins' price movements ultimately resulting higher ROI's longer periods when held onto securely wallets such Ledger Nano S hardware wallet Trezor One cold storage device etc... Additionally external factors such news updates regarding new developments upcoming projects related DOGE also play role contributing towards these gains overtime if investor chooses not liquidate immediately upon receiving desired return rate after certain period holding period determined prior entering position initially (buy/sell trade).
Finally another reason why people may choose invest their money into doges rather than altcoins / traditional forms investments lies within stability factor itself – unlike many other currencies out there whose prices tend fluctuate wildly depending current events geopolitical landscape etc., DOGE remains largely stable most times even during bear markets where majority coins suffer downturns sharp declines values across board...this allows holder benefit from lessened levels volatility overall thereby providing cushion against sudden losses should market take unexpected dips suddenly unexpectedly causing panic sell offs happen amongst traders speculators alike!
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