What is Dogecoin and is it a good investment in 2022?

The value of Bitcoin has shot up so much in recent years that it has made many people consider investing in cryptocurrencies, and now with its collapse, there are traders who think that it is better to change their investments to other more stable currencies. There is one in particular that has caught the attention of investors, and that is


, a cryptocurrency that started as a joke coin, but has been gaining traction in the last year. So is Dogecoin a good investment in 2022?

Ok but… What is Dogecoin?

Dogecoin is a cryptocurrency that was originally designed as a “meme coin” by

jackson palmer

, a programmer from Calgary, Albert, with whom he wanted to laugh at this economic revolution. In December 2013, she launched the coin with the image of a Shiba Inu dog named Doge. Most cryptocurrency is mined through “proof-of-work” mining. To mine a cryptocurrency, you have to perform calculations to validate the transactions. When a user uses a cryptocurrency to purchase goods or services with his funds, he also validates the transactions. In this process, users and miners compete to validate transactions by solving a mathematical problem. The more work a user or miner does, the more chances they have to win the mining process.

Dogecoin as an investment

The most compelling reason to consider investing in Dogecoin is that it is an “open source benevolent project”. That means that Dogecoin does not have a central authority that oversees its development. Instead, it’s up to the community to make decisions and update the software to ensure it continues to work. Also, as the community grows, so does the value of the cryptocurrency. In fact, last year Dogecoin went from


per coin to more than $0.70 per coin in less than two weeks. It even briefly overtook Bitcoin to become the fifth most valuable cryptocurrency in the world. But despite the huge price rise, the value of Dogecoin has not returned to its 2022 high, after which it has suffered a huge crash. Today it is worth around


per coin.

Is Dogecoin a good investment in 2022?

Dogecoin is also an interesting coin because anyone can participate as a miner – a process of making transaction blocks in a Bitcoin transaction. Bitcoin is by far the most popular cryptocurrency, but only 1 in 10 people have Bitcoin wallets. Cons: Dogecoin is not widely used. For example, according to the Dogecoin subreddit, there are nearly 100,000 coins in existence. It is not even clear if Dogecoin can be kept for more than a year or two. The value of the coin can swing wildly and seems to go up and down even faster.

How to invest in Dogecoin?

We want to warn you that investing in cryptocurrencies should not be taken lightly. The value of cryptocurrencies is highly volatile and subject to large price swings. This is because the cryptocurrency market is made up of various highly liquid and tradable digital currencies.

Another interesting strategy is to consider trading cryptocurrencies using Social Trading with NAGA. This is a way of trading where you can use an app to automatically track and copy the trades of experienced crypto traders. In a market with such volatility it can be a strategy that helps you navigate all the complexity.

Here we leave you a guide in case you want to know what Copy Trading consists of

In the short term, owning a Bitcoin or other cryptocurrencies could be a quick way to make money. In the long run, owning a small percentage of cryptocurrencies and paying fees to manage the transactions might be a better way to build wealth. We will be keeping an eye on Dogecoin as its value is subject to the comings and goings of the reddit community, something very new in these markets.

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