Cryptocurrency is just like a hot air balloon, you will encounter both highs and lows. And that is what has happened to our beloved meme-based cryptocurrency as its current price is reduced to 0.60 cents and a low of almost 9% can be observed. So let’s dissect the situation to know Why Dogecoin is going down?
Yesterday it closed on a reliable price of 0.65 cents and saw a record hike to 0.69 cents. The token which was developed as a joke, then became popular is showing a downfall. There can be a number of reasons behind the contraction in prices. The most logical one is that more and more investors are selling out their tokens due to yesterday’s record-breaking hike in the prices. According to basic economics, due to excess selling supply increased, hence now Dogecoin is going down.
Why the price of Dogecoin is lower than other tokens?
The cryptocurrency market is highly volatile and there will be sudden fluctuations in price every single day. Sometimes Dogecoin is going down and sometimes it is going up. Traders are wishing Dogecoin to reach the $1 mark but have you ever wondered that why Dogecoin’s price is much lower than its other fellow tokens? Currently, Dogecoin is floating between 0.60 cents to 0.70 cents whereas other tokens like Bitcoin and Ethereum are floating at $57980 and $3467 respectively.
Dogecoin was developed as a joke, not aimed at investors to make a profit. Hence, they are infinite in number. One can mine as many Dogecoin as he wants. Their supply is way much more than their demand, thus it has a low price. Whereas, other tokens like Bitcoin are finite in number and floats at a much larger price than Dogecoin.
Is it safe to invest in Dogecoin or other Cryptocurrency?
It is very important to know the merit and demerit of the security you are blocking your money in. From the little bit of experience that we have with cryptocurrencies, we know that volatility is their prime characteristic. And Dogecoin is no different. There is a huge risk in investing in any crypto. And there has not been much technical development when we talk about crypto so there can be a huge gap between security and transaction. On the other hand, Dogecoin has its own advantages. As we talk about Dogecoin, it has the lowest transaction fees among all the cryptocurrencies plus it can be used in daily life transactions like in restaurants.
Cryptocurrency is still under-observed and there is a lot left to learn about the same. So it is advisable that one should not invest in cryptocurrency for a long-term period as it is quite a volatile market.
Keep on Investing
Study about different securities, know your risk appetite, take suitable guidance and gain experience in investing because it is very important to learn about making money from money.
Stay With The Global Coverage For More Updates