Today we’re taking another look at everyone’s favorite meme: Dogecoin.This canine currency might have started as a joke, but it has outlived a lot ofserious crypto projects. But does that mean Dogecoin can get real adoption? Crypto Briefing’s analysts took a deep dive into the Dogecoin project, and that became our Latest DARE report: an investment-grade analysis of the business and technical aspects of the project.
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Dogecoin got a lot of points for a generous, friendly community. Unlike many cryptocurrencies, people actually use Dogecoin for sending tips and small payments. People have also used it to raise money for charity initiatives, like Jamaica’s Olympic Bobsledding team in 2015. And Dogecoin is fast–even faster than Litecoin, and it has lower fees, too.
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But Crypto Briefing also spotted some trouble for this good boy. For one thing, the Dogecoin Foundation doesn’t have any financial resources: it’s run entirely by volunteers, which could mean trouble down the road if they need professional-level development. It’s also got a lot of competitors, like Nano, Reddcoin, and XRP, which are even faster and cheaper. For these reasons, our analysts had no choice but to give Dogecoin a fairly disappointing grade. You can read the full evaluation of Dogecoin and several other cryptocurrencies for free on Crypto Briefing.com.
Also, here’s the ultimate guide to Dogecoin.
DOGE/BTC Price Action Analysis
Looking at the Dogecoin chart, it’s been having a pretty cyclic price action pattern versus Bitcoin. In the past 5 years, the DOGE/BTC pair has generally been bouncing up and down between the support level shown in purple, and the resistance level shown in green. With that, medium-term traders with moderate risk tolerance could consider creating a strategy around this pattern, for example buying at support and taking profit at resistance or vice versa. Of course, any type of investing involves risk and you should only invest the money you can afford to lose in the crypto market.
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Remember that as the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. Don’t forget to complete your risk management due-diligence before developing your investment strategy.
#1 Best Selling Author. Helping you accelerate your retirement with Triple Compounding™ Former engineer on a mission to help 1 million households take control of their finances. Founder & CEO of Invest Diva.
