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Top Things to Consider before Purchasing Dogecoin

Top Things to Consider before Purchasing Dogecoin

Dogecoin is taking the cryptocurrency industry by storm. As one of the most popular crypto, Dogecoin offers you an opportunity to trade without any difficulties. Available in different countries, Dogecoin looks set to change how crypto trading is done. However, don’t just rush into purchasing Dogecoin. Get all the basics right. Know the right tips. Apply the right strategies. Consider the following key aspects.

Check the Price

Before purchasing Dogecoin, take time to check its price. The digital token’s cost is typically overvalued. Research shows that its market price is twelve-percent more than its real value.

It’s always imperative to note that Dogecoin is overvalued. But this hasn’t prevented people from purchasing them. Many investors have reaped huge profits from Dogecoin trading.

Research shows that people have continued to purchase Dogecoins despite knowing that they’re overvalued.

FOMO Will Backfire

Don’t follow what others are doing. Instead, try being smart and innovative. Most people tend to believe that there is safety in numbers. If you fail to do your own research, then you won’t be able to make viable purchase decisions.

Understand the Digital Asset’s Fundamental Value

What’s its true value? Take your time to understand the digital asset’s fundamental value. Check the price-to-earnings ratio. This will help you determine if a Dogecoin is over or undervalued.

Research First

Conduct your research. Dogecoin is an entirely new concept. Plus, it’s one of the most volatile cryptocurrencies available in today’s digital market. If you aren’t careful enough, you might end up losing all your money on it.

Don’t rely on other people’s opinions. Instead, you should conduct your research. Find out if the website is genuine and if it offers a better chance for you to make substantial profits. Go to website to find out more about Dogecoin.

Dogecoin Cannot Be Bought with Cash

You can’t buy Dogecoin with cash. With this type of crypto, you can only make payments by trading one cryptocurrency for another. Once you connect your crypto wallet to the right app, you can readily pick which crypto you would like to trade for Dogecoin.

Consider Slippage Tolerance

Another important aspect to take into consideration is slippage. This typically refers to a price swing between the time you initiate a transaction and when it’s executed. For your trade to go through, you’ll need to set your slippage tolerance.

Being a highly volatile cryptocurrency, Dogecoin might not function well with a low slippage tolerance. So, it’s always advisable to set your slippage tolerance to twelve percent.

Never Overspend

Don’t overspend. Be cautious about how much you invest in Dogecoin. If you want to stay safe, start by investing a small amount of money. And as you do so, don’t get your hopes high about making anything. Just give it a shot and let nature take its course.

How to Choose the Right Cryptocurrency

Currently, the cryptocurrency industry houses more than six thousand cryptocurrencies. This makes it overwhelming for new traders to identify the best investment option. Still more, the high number of cryptocurrencies increases the risks of being scammed. However, this shouldn’t kill your dream of becoming a great crypto trader. The following guide contains top characteristics good crypto should have.

Security

Security is an important aspect when it comes to online trading. A good cryptocurrency should be secure. Its native design should be secure, keeping scammers at bay from preying on unsuspecting traders. Thus, look for a cryptocurrency coin with extra security features. The security protocols should be strong and advanced. For instance, it should come with a two-authentication procedure. It should prompt you to input strong passwords. This is aimed at keeping hackers at bay.

Stability Is Key

Of course, the cryptocurrency industry is highly volatile. Prices keep on changing. However, good crypto should come with a certain degree of stability. Look at the past performance of that crypto. What about its past performance? Over time, good crypto should be stable.

Scalability Matters a Lot

Defined as the number of successful transactions that can be undertaken per second, scalability is an important aspect of crypto trading. Good crypto should come with a high level of scalability. This means that customers won’t have issues going around their trading ventures. It should be easy, quick, and secure to deposit, trade, and withdraw coins. Thus, go to forums. What are other traders saying?  Choose a cryptocurrency that processes transactions quickly.

Look at the Supply

Cryptocurrency coins are fixed. The number of coins that can exist has been predetermined. Unlike hard currency, which is often prone to inflation, crypto coins come with a limited supply.  This means that the supply of crypto coins is limited. The limited nature of crypto coins makes them more valuable. Thus, cryptocurrency coins are unlikely to lose value. So, choose a cryptocurrency that enacts measures to control its supply.

Decentralization

Cryptocurrency is all about giving power back to people. This time around, the power isn’t in the hands of organizations. For instance, it’s difficult to know who created crypto coins like Bitcoin. On the flip side, other cryptocurrencies tend to take away this aspect of decentralization. Mostly, manipulation of their currencies can take away this aspect of decentralization from people. Stay away from such cryptocurrencies. Choose a cryptocurrency that supports decentralization.

High Demand

Trading is all about demand. Likewise, it’s important to select a cryptocurrency that has a high demand on the market. The crypto coin should dominate the news outlets. It should have a high media presence. Still more, it should be available in major exchanges. This will guarantee you better profits.

Additional Features

Here are additional features of a good cryptocurrency:

  • Should solve problems
  • Easy to use

The Bottom-Line

Scalable, Dogecoin is the newest hit in the cryptocurrency trading industry. Available in different countries, Dogecoin is genuine and easy to use, giving you the perfect opportunity to kickstart your trading venture. Use the above guide when purchasing your Dogecoin today.


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by Marissa Collins //

Opinions expressed by contributors are their own.