How To Invest In Dogecoin With Credit Card
Why Should You Invest in Dogecoin?
You’re likely wondering if Dogecoin is worth an investment. If you’re a traditionalist with your investments, you might be skeptical about Dogecoin. This is a fair observation, but if you’re thinking of cryptocurrency investments, then it might not be such a bad idea.
You should know that if it’s a concept that you’re looking for, then Dogecoin fits the fun investment criteria. Yet, it’s considered very risky if you want to do it as a long-term investment. The thing that makes Dogecoin worth investing as a risk is that it doesn’t have any added value in any of the known financial systems such as Ethereum.
In fact, it mainly depends on the community as its biggest asset while Dogecoin also relies on entertainment value more than anything. This means that its intrinsic value is placed on how popular it is at that particular time. As a result, you’ll have more short-term gains in contrast to doing it for the long haul.
Dogecoin: Investing vs Trading
If you want exposure to Dogecoin you have two options that you should consider. Firstly, you can decide to own or invest the coin and wait for its value to appreciate. Or, you can trade your Dogecoin while you speculate the price.
Dogecoin highly rests on the market and its popularity. This is why its real-world demand isn’t so high yet. Moreover, there’s significance that’s placed on the Dogecoin transfer fee and Dogecoin transaction fee when you’re trading it that impacts your decision to keep it for longer or not.
Reasons to Trade Dogecoin
Dogecoin trading is similar to every other trading strategy. Ideally, you focus on stocks to help build your wealth, and you always watch the markets to give you an idea of when you should sell to make profits. There have been cases when Dogecoin has been valuable enough to jump above ETH.
Yet, these aren’t enough reasons for you to focus on Dogecoin trading. These are the following reasons why trading Dogecoin isn’t the most advisable choice.
- It doesn’t have a competitive edge.
- Its sustainability relies on social media popularity.
- It has very limited utility when you place it in the real-world.
How to Analyze Dogecoin’s Price Movements
If you want to be successful in trading, you should know more about the trends and patterns that make it easier for you to attain a more successful trading strategy. For instance, with Dogecoin price prediction, you should utilize certain primary tools that ensure ideal fundamental and technical analysis. The technical aspect requires a study of the Dogecoin price chart over a period of time.
This is a valuable resource that ensures that you know which trends and patterns are available to make more accurate predictions for the future. You still need to rely on the holistic approach that the fundamental analysis provides you. It enables you to have extensive knowledge of what your assets are worth.
Moreover, you can easily understand when to trade appropriately according to whether your investment has been overpriced or underpriced. The following are some of the essential sources that you rely on when you’re using the holistic approach to trade Dogecoin.
- Macroeconomic factors
- Financial statements
- Changes in Dogecoin leadership
- Dogecoin events
These are the main factors that have the potential to affect the short and long-term prices of this cryptocurrency. Take for instance the legislative changes in China with cryptocurrency that also had an impact on Dogecoin pricing. Another consideration is the Dogecoin transfer time.
Dogecoin Trading Strategies
If you want to have a successful run while trading Dogecoin, you should consider having an effective Dogecoin trading strategy in place. The Dogecoin CFD trading strategy is one of the most important ones that you should be familiar with. When it comes to trading in anything, you should understand that what works for someone else might not work for you.
Find a style that works for what you want to achieve. Here are a few Dogecoin trading strategies that you should know.
The Single Simple Moving Average Cross
This is commonly known as the SMA trading strategy. It works best if you’re handling multiple asset classes. With Dogecoin you have movibh asset indicators that make it easy for you to learn the patterns and trends of each new asset that you’re dealing with.
There’s a line of single moving average on your Dogecoin chart that allows you to plot. If the price of Dogecoin crosses this line, it gives you an indication to either buy or not.
The RSI Divergence Strategy
This strategy can be helpful when the Dogecoin plummets or goes up. You can use the RSI Divergence indicator to understand when your asset has been overpriced or underpriced. The indicator uses margins to show you when the prices will change soon.
Pound Cost Averaging
Using the pound cost averaging investment criteria helps you to rely on a simple strategy. You can apply it to any currency even though it’s broadly defined as a splitting of your pounds. You do this by speculating the amount and value of your assets without putting all your investments into a single trade.
It helps to spread out your investments while delivering your profit average of everything from one trade. It’s one of the strategies that are ideal for long-term trading because it focuses on gains more than losses.
How To Trade In Dogecoin
Trading in Dogecoin isn’t as difficult as you might think. You can use CFDs to buy and own Dogecoin. If you want to trade in Dogecoin, you should follow these steps.
Choose a Trusted Broker
You can use a cryptocurrency broker or cryptocurrency exchange to interact on the platform on your behalf. Know what the requirements are before you choose your broker, it’ll help you to understand the rules better.
Open a Trading Account
Once you’ve identified how you want to trade, you should go on the Dogecoin trading platform to open an account. You can open your account on either Coinbase, eToro, or Robinhood.
All you need is to provide your personal details and to verify your account before you can start using the platform.
Every trading platform requires you to have money in your account and the same goes for Dogecoin. You need to have funds in your account before you can use any of the platforms to buy Dogecoin. You can either link your account with your bank account to deposit funds, or you can wire transfer the funds and wait for confirmation until you can buy your Dogecoin.
Choose Dogecoin (DOGE) Trading Market
When your funds reflect, you need to go to the virtual Dogecoin market to choose your coins. It’s important to start slowly if you’re a beginner so that you can understand how things work. It also depends on the Dogecoin availability.
Place Dogecoin Trade
This is when you can start to trade. The great news is that you can use several approaches to find the best one for your trading needs. It helps if you’ve equipped yourself with sufficient knowledge before you start trading because you’ll be aware of what risks lie ahead of your Dogecoin journey.
Risks of Investing In Dogecoin
As previously mentioned, investing often comes with many risks. It’s always crucial for you to tread with as much caution as you possibly can because there are many risks of Dogecoin that are both known and unknown. The volatility of Dogecoin remains a very common concern.
There are many investors who believe that this coin is not only undervalued, but that the price can still plummet further. Taking precaution is important before you take a leap into buying any Dogecoin. In addition, there are systematic risks that affect the entire cryptocurrency market.
On the other hand, Dogecoin has unsystematic risks such as tax concerns. Something else that should be considered is the high level of cybercrime.
How to Trade Dogecoin Guide – The Verdict
You’d be surprised to find that Dogecoin started out as a joke amongst friends. It wasn’t until investors took it seriously that it grew to dominate one of the fastest growing financial markets. However, as with every other trading investment, investing in cryptocurrency remains a high risk.
Is Dogecoin a good investment? It always depends on the financial position that you’re in and if you have a high risk tolerance or not. This is why it’s always a great idea for you to keep up-to-date with what’s happening in the crypto market.