The Rise of Dogecoin: A Beginners Guide to Trading DOGE/USD
05 May 2021 · 3rd Party Analysis
Contrary to being born with the strength of a God, Dogecoin was more like the little engine that could. Even so, do not be fooled by the furry face of its mascot. Dogecoin packs a punch! Its price has increased over 10000% since the beginning of the year. It’s now valued at more than global automotive manufacturer Ford and social media monster Twitter. Want to be a part of Dogecoin’s rise to the top? Trading Dogecoin has never been easier. More leading trading platforms are allowing traders to acquire and trade Doge following its massive gains in 2021.
Are you ready to embrace the crypto underdog?
The Rise of Dogecoin
How did Dogecoin Start?
Dogecoin was born out of an internet parody. Software engineers Billy Markus from IBM and Jackson Palmer from Adobe wanted to create a safe and quick payment system that could bypass traditional banking fees. What started from very humble beginnings in 2013, the rise of Dogecoin wasn’t always this fast, nor without its share of bumps. It really showed promise during the pandemic, where more investors tried their hand at supplementing their incomes through trading. Doge developed a cult following due to the furry meme-worthy mascot, the Shiba Inu, the comical design, and digging the coin instead of mining it like traditional crypto coins.
How does Dogecoin work?
Like any cryptocurrency, Dogecoin runs on the blockchain network using cryptography to secure the transactions. That being said, not all cryptocurrencies were created equal. Bitcoin transactions can take upwards of ten minutes to be confirmed on the BTC Blockchain, whereas Dogecoin transactions take only a minute. Another difference between Bitcoin and Dogecoin is their availability. Bitcoin has a lifetime cap of 21 million coins created, whereas Dogecoin has none. Five billion coins are put into circulation annually.
The Crypto with a heart of Gold
Dogecoin can be used to tip content creators and transfer payments. The Dogecoin Foundation and community members have helped various charities, including a successful campaign to build a water well in Kenya. The most notable fundraiser was to sponsor the Jamaican bobsleigh team, which qualified for but could not afford to attend the Sochi Winter Olympics.
Dogecoin Market Performance Since its Inception
The alt coin’s value has surged this year. The rise of Doge was largely due to the support of a colorful crew of Redditors and celebrity fans like Elon Musk, Snoop Dogg, and Mark Cuban. Musk, who dubbed the Dogecoin ‘the people’s crypto’, inspired hoards to try their hand at investing in an affordable cryptocurrency with growth potential. Consequently, the value of Doge has shot up 1100% since the beginning of the year, making it one of the top cryptocurrencies by market cap. Moreover, Cuban’s NBA Team, the Dallas Mavericks, and the major league baseball team, The Oakland A’s, have both accepted Dogecoin as a form of payment, further solidifying its status.
The most recent surge was a result of its launch on public platforms like Coinbase and ThorFX. Furthermore, with the Dogefather himself, Elon Musk, hosting Saturday Night Live on May 8th, fans expect Dogecoin to hit even higher highs. Is the FOMO (fear of missing out) the driving force behind the surge? Or is it simply because it’s an affordable foray into the kingdom of crypto?
Will Dogecoin Ever Hit $10.00 Mark?
There is no Asgardian magic that can define a cryptocurrency’s trajectory with certainty. While there are some naysayers, there is growth potential. Can Dogecoin rise to $10.00? If it does, it won’t be overnight. Nevertheless, with Dogecoin already on its way to $1, the sky’s the limit.
Getting Started with Doge/USD
Crypto warriors who are prepared to get into the Dogecoin game must choose a trustworthy partner. You can buy or sell the crypto sensation using another cryptocurrency or deposit fiat currency through a currency exchange or forex platform like ThorFX. To begin your journey, be prepared to deposit via Bitcoin through the exchange before buying Doge, as this is the fastest and easiest way to get started using a debit or credit card.
How to Trade Dogecoin
Once you have chosen a broker who will support you on your crypto quest, you can choose to start with a demo account. At ThorFX, a demo account will allow you to craft your battle strategy, assess the risks involved with trading crypto, and test out the various leverages.
When you have polished the tools of your trade and are ready to go live, you will need to make your first deposit. Once the funds have arrived in your wallet, you can transfer them to your trading account and make your first step into the realm of Dogecoin.
Choosing the correct leverage can be as tricky as a double-edged blade. Wield it one way, and profits are bolstered. Wield it the other, and the losses are magnified. If a trader is confident in his choice to buy or sell an asset but is trading with a small investment, he can use leverage to control a larger portion of the market. Depending on your choice of asset, you can obtain leverages up to 1:500. However, if you are new to trading and want to toe the Dogecoin waters, start small. With ThorFX, the leverages for trading cryptocurrency pairs go up to 1:100.
For example, with a $100 investment on a 1:1 leverage, you would have $100 available to trade. By selecting leverage of 1:5, your $100 investment becomes amplified by borrowed funds. Thus, giving you the power to open a $500 position. Keep in mind that to open a position, a set amount of funds will be locked down with that trade. The margin acts as collateral, or good faith deposit, for the borrowed funds. So, if you choose a leverage of 1:5, then the margin will be one-fifth of your position, and to open a $100 position will only cost $20 of your funds, freeing up the rest for other investments.
The hunger for market power needs to be controlled. It is just as easy to lose as it is to reap rewards when margin trading. Leverage should be used with caution and can be practiced on a demo account until you understand the power that it holds. With careful handling, you can use it to your advantage. You can modify the leverage at any time to suit your needs by creating a new live trading account free of charge.
Choosing the Right broker
If you are looking to line your pockets with Doge, find a broker that you can trust. At ThorFX, we have a loyal army of support staff available 24/7. We are here to help you navigate any obstacles, and guide you on your quest.
Trading Dogecoin with Thor
At ThorFX, traders can map strategies on a demo account. Otherwise, make a deposit to start trading Forex or Crypto pairs with a live trading account. Get in on the action and trade Doge/USD, or choose from other stocks and pairs. The time is now, follow the rise of the Dogecoin straight to the top!
Fellow traders, are you ready to Doge to the moon? Go forth and conquer!