With the sharp fall in prices of Dogecoin, the favourite cryptocurrency of many in recent months – and other cryptocurrencies in the market as a result of the crash, potential investors have been hesitant to join the crypto bandwagon. And rightfully so because many cryptocurrencies that dropped in value during the 2018 crash never recovered past their all-time high.
Does that mean people shouldn’t invest in it?
The answer to that is a big, fat no. You see, though its prices dropped, and trading cryptocurrencies is generally a risky prospect — just like any other investment with potentially high returns — there are more benefits to trading it than fiat currencies like the US Dollars. In simple terms, as it is an extremely volatile asset, trading crypto can give much higher returns than traditional investments, if done right.
Not only that, but it offers more security and transparency than the central bank. Even though many people still associate cryptocurrency with illegal activities and notorious scams, such as OneCoin, people still trust it because of the blockchain technology many are based on. These blockchain transactions are encrypted, signed by a private key, and verified by a public key. They are considered almost impregnable.
Can the prices stabilize?
The big question now on every investor’s mind is whether Dogecoin can stabilize. The cryptocurrency is down 6.84% in value from 24 hours ago and was trading at $0.293619 with a 24-hour trading volume of $2,437,943,186 at the time of writing this article. The CoinMarketCap chart for $DOGE is relatively linear, suggesting it has not shown big volatility since, except for one peak on May 25.
Whether the price of Dogecoin continues its downward trend over the past few days is very difficult to say, but most tend to forget that it already has a base in social media, is being hyped by one of the most famous billionaires on the planet, and addresses issues on energy consumption. Coupled with its lower fees and higher transaction speed, $DOGE has a very high probability of stabilising. More so than any other cryptocurrencies, including Bitcoin, would in its place.