What is Dogecoin and why is the price rising?

DOGECOIN has been considered by many as a “joke” cryptocurrency, but interest in the coin has exploded recently.

The cryptocurrency has dropped significantly earlier this year, having hit levels below $0.20, but what is its price now?

We explain what you need to know about Dogecoin and its recent rise in value


We explain what you need to know about Dogecoin and its recent rise in valueCredit: Alamy

But first, a word of warning: you may lose all the money you have invested in Dogecoin and other cryptocurrencies, as well as the investments associated with them.

Buying cryptocurrency, like any investment, is a very risky business and earning is never guaranteed.

You should make sure that you know the risks of investing in cryptocurrencies and that you can afford to lose any money you put in.

Cryptocurrencies are highly volatile, so the value of your investments can go down as well as up in the blink of an eye.

What is Dogecoin?

Dogecoin is a cryptocurrency and was first launched in 2013.

Dogecoin takes the image of a Shiba Inu dog as its symbol.

This image became a popular internet meme called doge, and it featured a dog surrounded by text in a sans comic font with words like “much wow”.

Software engineers Jackson Palmer and Billy Markus originally created Dogecoin as a joke based on this meme.

It was marketed as a “funny” version of bitcoin but has increased in value and attracted more interest since then.

Two weeks after its initial launch, its value jumped 300% after China banned banks from investing in cryptocurrencies, according to Investopedia.

Dogecoin then skyrocketed along with other cryptocurrencies during the bubble that peaked in 2017, and it fell along with the rest of them in 2018.

In May of this year, Dogecoin peaked at $0.7, according to crypto data firm CoinMarketCap.

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Why is the price of Dogecoin falling?

The price of Dogecoin jumped by as much as 30% yesterday after Elon Musk, one of the biggest supporters of the coin, said that his company Tesla will start accepting the coin as payment for goods. its own.

However, that does not include the company’s cars.

It rose to $0.2175, up from $0.1576 at the close of trading a day earlier.

Since the news, the value of Dogecoin has dropped to $0.1741 – but it is still higher than it was earlier this week.

Dogecoin has received support from celebrities, which has helped push the price up.

But Dogecoin has also experienced lows.

Mr. Musk’s appearance on Saturday Night Live in the US earlier this year saw the price of Dogecoin plummet in a short period of time.

The price of Dogecoin was over $0.70 on Saturday of the show, but as soon as Musk mentioned the cryptocurrency, the price dropped, hitting $0.47.

Dogecoin then hit a low of around $0.25 on May 23.

Dogecoin then surged over the summer after it was announced that a popular cryptocurrency platform would accept the coin.

Customers using eToro – and there are around 20 million of them globally – will be able to buy and sell Dogecoin.

The online trading platform got users locked out of their accounts earlier this year after the crypto market crashed.

Users have been unable to sell their holdings in bitcoin and ethereum because of technical issues.

How has the Dogecoin price changed?

Dogecoin has experienced a spike in trading this year and its value has skyrocketed, according to crypto data firm CoinMarketCap.

Tesla businessman and CEO Elon Musk often posts on Twitter about cryptocurrencies This has attracted interest and pushed the price up.

Other celebrities including Snoop Dogg and investor Mark Cuban have also tweeted in support of their Dogecoin.

Dogecoin initially surged in January, up a staggering 972% from $0.007 (less than 1p) a day earlier.

It was the back of a bunch of Reddit threads calling for it to hit $1 per coin.

The goal is an effort that reflects an increase in market share in companies that are understaffed as much as GameStop.

Shares in GameStop spiked 700 percent in early January after an army of amateur traders targeted the game retailer, causing professional hedge funds that shorted it to lose billions of dollars.

But for amateur traders, the rise has made them a significant amount of cash.

In a nutshell, “short selling” is when professional investors borrow shares of a stock to sell, and then buy them back at a lower price.

5 Risks When Investing in Cryptocurrencies

The Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.

  • Consumer protection: Some crypto-based high-return promotional investments may not be subject to regulation beyond anti-money laundering requirements.
  • Price volatility: Significant price volatility in cryptocurrencies, combined with the inherent difficulties in valuing cryptocurrencies reliably, puts consumers at high risk of loss.
  • Product complexity: The complexity of some crypto-related products and services can make it difficult for consumers to understand the risk. There is no guarantee that cryptocurrency can be converted back to cash. Converting a cryptocurrency back into cash depends on the demand and supply available in the market.
  • Fees and charges: Consumers should consider the impact of fees and charges on their investment, which may be more than the impact of fees and charges on managed investment products.
  • Marketing materials: Companies can overstate product returns or minimize the risk involved.

Following GameStop’s surge in shares, Reddit users on other topics referenced WallStreetBet’s attempt to squeeze Wall Street hedge funds and urged people to also buy into Dogecoin.

One thread, titled “Dogecoin is the next GME/Bitcoin” (GME is GameStop), said bringing Dogecoin to $1 a coin would be “an incredible achievement.”

It added that it will “completely change the crypto market…Dogecoin to the moon.”

Dogecoin also received a boost after it was tweeted by an account named “WSB Chairman”, asserting that it is not affiliated with the Reddit group.

Britons are being warned that they risk losing all their money if they invest in bitcoin and other cryptocurrencies.

It comes after a ban on certain crypto-related investment products.

From Dogecoin and Litecoin to Bitcoin – here are the different cryptocurrencies explained.

The viral video of ‘Elon Musk’ sent the Internet into a frenzy… but can you see why?

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