Updated: Sep 1, 2020
You may have seen in the news recently that Dogecoin is outperforming all other altcoins! The price has skyrocketed, going from $0.0023 to $0.0054, in a mere couple of days! That is over a 2x and over 100% return! But what is Doegcoin? Is it a good buy? And more importantly, why is Dogecoin skyrocketing?
In order to answer these questions, we need to take a bit of a history lesson and also start by defining what an altcoin is.
What is an altcoin? An altcoin is anything that is not Bitcoin. This can be large market cap players such as Ethereum or XRP all the way to small and mid-cap players like Dogecoin. Dogecoin is one of the original altcoins, as it has been around since 2013. It's creators built it by copying the Litecoin blockchain. It was intended to be a lighthearted coin, just created for fun, and to appeal to an audience beyond the hardcore Bitcoin faithful. It's symbol is of the popular internet meme Shiba Inu, a dog!
The coin gained wild popularity in it's early days, and even more so when Tesla CEO Elon Musk tweeted that
is was his favorite coin! Users today use Dogecoin to tip content creators on Reddit and Twitter. The coin trades on Binance, both with a USDT and a BTC pair.
Unfortunately, Dogecoin has a history of being P&D'ed (pumped and dumped) by whales (traders that own a large amount of BTC or Tether) and market manipulators. This means that just as rapidly as the price rises, it is often followed by a spectacular crash. Speculators must be prepared to lose their entire investment.
I am not a financial advisor and cannot make any financial advice or tell you what to do, but I wouldn't personally be buying DOGE anytime soon.
If you are a fan of the coin, or think it's cool, check out our Dogecoin Collecion to get some sweet merch!