The 2021 bull run of Dogecoin left hodlers with over 1000x their investment, and ever since, many other crypto enthusiasts have kept a close watch on the meme coin that started as a lighthearted joke in 2013 and went viral after social media attention from celebrities like Elon Musk and Snoop Dogg.
The Dogecoin craze has since died down, and its price has been relatively stable for the past year with no sudden price movements. However, while many traders have cashed out, new traders are still looking to invest in Dogecoin in 2024.
What is Dogecoin? An Overview of the Dogecoin Token & Ecosystem
Dogecoin is a peer-to-peer, open-source cryptocurrency. It is a fork of the Litecoin fork, LuckyCoin. Similar to Bitcoin, it uses the Proof of Work (PoW) consensus mechanism to mine and validate transactions.
Dogecoin uses the Scrypt hash function, which lets users mine with fewer lower-end machines. This has a direct effect on power consumption, negative environmental impact, and faster transactions compared to the SHA-256 hash function used in Bitcoin.
Dogecoin’s Price History
For the first couple of years after its launch in 2013, Dogecoin traded for less than a cent, initially at $0.00026 per Dogecoin. Its lowest price was recorded on May 6, 2015, at $0.0000869.
The first major price change came during the 2017 and early 2018 bull run, which saw many cryptocurrencies experience a considerable price increase before crashing in the 2018 bear market. Its price then remained virtually stable until 2021, when it gained traction and eventually rose to an all-time high of $0.7316 on May 8, 2021.
Since then, it has eventually dropped and maintained a price range of $0.07 – $0.18 in 2024.
Current Market Analysis and 2024 Price Predictions – Expert Opinions.
For most of the year, Dogecoin has been stuck around the $0.10 mark. Here are some of the price predictions for Dogecoin in 2024 from industry experts.
Different sources predict varying price ranges for Dogecoin for the rest of 2024. CoinMarketCap predicts it could move between $0.1194 and $0.1443, while CryptoNewsZ expects a broader range, from $0.085 to as high as $0.26.
CoinPriceForecast suggests that Dogecoin could reach $0.1077 by the end of the year, with a mid-year dip to around $0.0810. DigitalCoinPrice forecasts a peak of $0.17 and a low of $0.0713, and Coincodex expects prices between $0.078 and $0.106.
Meanwhile, Coinjournal has a more optimistic view, predicting it might jump to $0.45. These varying estimates highlight just how unpredictable the crypto market can be in 2024.
Factors to Consider Before Investing in Dogecoin in 2024
Here are the most important points to consider before investing in Dogecoin:
- Market Volatility: It’s vital to first understand that Dogecoin, as a cryptocurrency, especially one with no fixed supply, can be prone to very drastic price changes.
- Price History: As the saying goes, “History repeats itself.” Study past price movements to understand how Dogecoin’s price has changed over time and gain insights into future price movements. However, past performance does not always guarantee future results.
- Government Regulations: Governments around the world are still experimenting with laws regarding cryptocurrency, and they may change from time to time, so it’s also important to keep tabs on the current regulations in your region.
- Personal Financial Goals: Before diving into buying or mining Dogecoin, it’s important to set your own financial goals clearly. Consider how much time and money you want to invest, for how long and when you want to sell your DOGE.
Risks Involved in Dogecoin Investments in 2024
- High Volatility: Dogecoin’s price is mainly driven by market sentiment and can experience huge gains or drops in price in a very short time.
- Lack of Value: Since it was created solely as a meme or a fun concept, Dogecoin has no intrinsic value and depends on trends. It purely rises in price with a corresponding rise in popularity, and similarly, the price drops when it becomes less popular.
- Prone to Hacks: Like many other digital assets that live online, your Dogecoin can be stolen from your wallet by hackers who gain access to your private key or secret phrase either through phishing techniques or sophisticated malware.
- Indefinite Supply: Due to its inflationary model, Dogecoin’s supply will continue to increase yearly. More supply may eventually lead to inflation and devaluation.
Risk Mitigation Strategies
While investing in Dogecoin comes with undoubted risks, especially in 2024, there are still strategies to manage your risk and safeguard your capital from complete liquidation. Some of these are:
- Diversify: It’s important to diversify your portfolio, especially with meme coins like Dogecoin. Spreading your funds to other assets can help cushion the impact of a sudden price drop.
- Cold storage: Store your Dogecoin in cold storage solutions for the long term. This provides better security for your funds against online hack attempts.
- Set Clear Investment Goals: Having clear, well-spelt-out investment goals helps to avoid panic sales or buys that will lead to huge losses.
- Dollar Cost Averaging: Rather than going all in at a certain price point, consider buying Dogecoin in small amounts regularly at different prices to manage risk.
Frequently Asked Questions About Investing in Dogecoin in 2024
Can Dogecoin Reach $1 in 2024?
While it’s possible because of cryptocurrency’s extremely volatile nature, it is highly unlikely that Dogecoin will hit the $1 mark in 2024. This is due to its current market cap, price range throughout the year, and unlimited supply.
Is Dogecoin a Safe Investment?
No. Dogecoin, like other cryptocurrencies, is a very volatile asset and is considered high-risk. While it has shown in the past that it has the potential to give massive returns on investment, Dogecoin investments can also lead to huge losses.
It is, therefore, safer to consider Dogecoin investments as a wildcard or a moon bag.
Can I Stake Dogecoin For Passive Income?
No. Dogecoin, like Bitcoin, uses the Proof of Work (PoW) consensus mechanism, which doesn’t allow for staking to earn Dogecoin.
You can, however, lend your Dogecoin for interest on lending platforms or contribute to Dogecoin mining pools to earn rewards.
Is Dogecoin Mining Profitable in 2024?
In 2024, mining Dogecoin has become much less lucrative. Profitability depends on the cost of electricity in your area and how efficient your mining hardware is. Considering increased competition and mining difficulty, it has become difficult for individual miners to turn a profit.
Where Can I Buy Dogecoin?
You can easily buy Dogecoin from either a centralised exchange like Binance with fiat or a decentralised exchange like Pancakeswap with other cryptocurrencies.
Conclusion
Years after going viral in 2021, many crypto investors and enthusiasts still consider Dogecoin a valid investment. With a history that shows extreme price fluctuations. While a repeat of Dogecoin’s 2021 run is unlikely, it still attracts interest from cryptocurrency traders.
However, it is necessary to proceed cautiously, as several risks are still associated with investing in Dogecoin in 2024. These risks include price volatility, susceptibility to online hack attempts, and problems associated with an unlimited supply. These risks cannot be fully eradicated, but they can be mitigated by diversifying your portfolio, using cold storage solutions, and dollar cost averaging.
While the question of whether Dogecoin remains a good investment in 2024 is rather complex and dependent on your use case and financial goals, evaluating the recent market history will allow you to make informed investment decisions that align with your goals.
