🔥 Dogecoin forecast 2021: DOGE course analysis & future
It seems like there is next to that Bitcoin no other Kryptowährung. But anyone who deals with cryptocurrencies will notice that this is not the truth. There may very well be thousands of cryptocurrencies, although to be fair it should be noted at this point that of course not every digital currency has the same potential as Bitcoin.
With Dogecoin (short: DOGE) there may be a digital currency, that of the crypto currency Litecoin was derived. The name as well as the design are based on Doge, a so-called internet phenomenon.
May it be advisable to invest in the Dogecoin cryptocurrency or is it better to keep pumping your money into Bitcoin? In order to be able to answer this question, one must first take a look at the forecasts.
Speculation with future development
Dogecoin is a crypto currency that you shouldn't lose sight of under any circumstances. Anyone who is already convinced in Invest Dogecoin But first of all, you have to gain access to the crypto market. But who creates an access?
There is access to the crypto market via the crypto currency exchange. But there are also online brokers that offer speculation or the Trading digital currencies enable. However, it should be mentioned at this point that there is a major difference between investing, i.e. buying digital coins of a certain digital currency, or speculating with them, i.e. only dealing with the price movement of the crypto currency.
Because one Cryptocurrency exchange only provides access to the crypto market so that you can then invest money directly. This means that you buy digital coins in a crypto currency and transfer them to the wallet, which is the digital wallet in which the digital coins are then stored. In the end, you are happy when the price of the cryptocurrency rises, as the invested assets also rise. If the cryptocurrency then reaches the desired price level, it can then be sold subsequently. Of course, the invested capital can also decrease if the price of the cryptocurrency goes down. Ultimately, the risk you take when working with cryptocurrencies cannot be ignored.
But you can also access the crypto market via a Online Broker to get. In this case, however, there is only speculation with the price of the favored cryptocurrency. This means that in the end you don't buy any digital coins, you just bet on whether the price of the cryptocurrency will rise (you open a long position) or fall (you open a short position).
It is important that one deals with the dangers and possibilities from the beginning. Because the crypto market is very volatile and very difficult to assess. What does that mean for the trader or investor in the end? Anyone who misjudges the development of the price of the cryptocurrency here must note that there can be extraordinarily high losses. For this reason it is of course important to only invest money that is freely available. Of course, there can also be attractive profits if the market is assessed correctly.
With eToro there is a provider on the market who provides the services of an online broker and is also a classic cryptocurrency exchange. The advantage that the services of a stock exchange and a broker are offered here? You can speculate about the price development via the provider eToro, but you can also buy coins and transfer them to the internal wallet. Thus, different strategies can be used when deciding on eToro.
The broker eToro is regulated. The provider is based in Cyprus. That is the reason why the CySEC, the Cyprus Securities and Exchange Commission, is behind the provider. The regulatory authority checks whether the online broker complies with all rules and laws, so that the customer can be sure that no fraudulent activities are being pursued. Since Cyprus is part of the European Union, i.e. a member of the EU, it may be irrelevant whether eToro is based in France, Germany or Cyprus. The same set of rules must be applied within the EU.
Furthermore, eToro scores with the fact that so-called social or copy trading is offered here. This means that you subsequently take over decisions such as strategies from successful traders - so you can participate in their successes, but without having any experience of the matter in the end. However, to be fair, it should be noted that there is no guarantee of profit here. Even an experienced trader who has been successfully participating in the market for years and has already made high profits several times can be wrong. Therefore, one should also be careful here and only invest freely available money.
If you find out that the offer from eToro corresponds to your personal ideas, you can open an account afterwards.
Step 1: Register with eToro
In the course of registration, a few personal data must be provided. This includes the first and last name, a user name and a valid email address. A password must also be generated. Here you should not only use uppercase and lowercase letters, but also integrate digits and work with special characters. The more complex the password, the greater the security.
The verification process, on the other hand, does not start until the payment is requested. Thus, after entering the personal data, trading or investing can be started immediately after the money to be deposited can be found in the eToro account.
The entire registration process takes a few minutes and is ultimately self-explanatory. There are no challenges here. Even beginners who have never come into contact with such a platform will not have any difficulties here.
Step 2: Deposit with PayPal, credit card or instant transfer
Depending on the chosen deposit method, the money is available in the eToro account after two to four working days or immediately. It's particularly quick with a credit card or PayPal. You need a little more patience if you decide to transfer the amount by bank transfer.
Compared to many other providers, eToro offers a wide range of various payment options. For example, you can use the bank transfer, but you can also top up your account with your credit card. eToro also provides eWallets as a deposit option as well as PayPal.
The online payment service PayPal might get an extra mention at this point. This is because PayPal is very popular and is available in many online shops, but is still a real rarity in the brokerage industry. So if you are looking for a broker who accepts PayPal as a deposit method, you have come to the right place.
Whereby PayPal should not be the only argument if you are looking for an online broker who can then establish access to the crypto market.
Step 3: Buy and sell Dogecoin
Due to the fact that eToro is an online broker and a cryptocurrency exchange, there are different accesses to work with Dogecoin.
You can specify the desired amount that you want to invest, and you already get the information about how many coins you get from the crypto currency. But you can also specify the number of coins you want to purchase and eToro then calculates how high the amount to be invested should be. Now, after the transaction has been confirmed, the coins will be transferred to the internal wallet transferred. However, you don't have to use the eToro wallet, you can also choose your own provider.
By clicking on the X2 button, you do not invest directly, but opt for price speculation. The big advantage of price speculation? You can also bet on falling prices here. However, the market is volatile and difficult to assess, so that one should be particularly careful with short-term speculations.
Dogecoin uses scrypt in the Proof of Work algorithm. The same algorithm is used here as with Litecoin. However, there is one essential difference compared to Litecoin: Litecoin takes around 2,5 minutes to create a new block, while Dogecoin takes around 60 seconds. Another difference becomes noticeable when you look at the number of coins that you can generate. The Litecoin is limited - just like the Bitcoin. While there can only be 21 million Bitcoin coins, the number of Litecoins to be mined is 84 million. Dogecoin was initially designed for 100 billion coins, with the information coming from Jackson Palmer, the founder of Dogecoin, on February 2, 2014, that the limit was lifted.
The crypto currency Dogecoin is traded on some crypto exchanges. A few crypto exchanges even offer the option of trading Dogecoin with national fiat currencies without going through the crypto currency Bitcoin. That means, you exchange your euro or US dollar directly for Dogecoin.
The Dogecoin saw the light of day on December 8, 2013. Even if at the beginning it was a pure parody of the crypto currency Bitcoin, over time the number of complement currencies grew faster than expected. Thus, the price of the cryptocurrency rose rapidly in the first 14 days. On December 19, you already got 1 Dogecoins for 1.050 US dollar - at that time, the crypto currency, based on market capitalization, was already in ninth place in the ranking of the largest digital currencies. The market capitalization at the time was 8,79 million US dollars.
Four weeks after the cryptocurrency was published, on January 10, 2014 to be precise, 25 percent of all Dogecoins had already been created. On January 19, 2014, the community raised funds for Jamaica's bobsleigh team, which wanted to take part in the Olympic Games again - a total of 30.000 US dollars was achieved. As a result, the price of Dogecoin rose by 50 percent - the market capitalization also increased: 51,54 million US dollars. The crypto currency Dogecoin was suddenly the seventh largest crypto currency in the world and reached fifth place in the ranking on January 31, 2014, when it was 61 million US dollars. With Litedoge, the “little sister” of the crypto currency appeared in June 2015.
Elon Musk then ensured a further rise in the price of the crypto currency in December 2020 and January 2021 after the electric mobility and internet pioneer announced on Twitter that it was a big fan of this currency. Suddenly the price of Dogecoin rose from 0,007 US dollars to 0,070 US dollars - a little later it was 0,083 US dollars (February 8, 2021).
The goal? Skipping the US dollar mark. There are forecasts of Analysts like expertswho think this is possible in the foreseeable future. But whether it will work out in 2021 cannot be answered.
While Dogecoin was only supposed to be a parody of the crypto currency Bitcoin at the beginning, the crypto fans quickly became enthusiastic about it. If you look at the price development, the Dogecoin - starting from the beginning of March 2021 - posted an increase of around 1.934 percent last year.
Buying Dogecoin can be very promising if you pursue a long-term strategy. The price can continue to rise in the foreseeable future - sometimes even leaving the cent range and advancing into the US dollar range.