In this article, I hope to provide some insight on some of the intrinsic value of the initially 'joke' cryptocurrency, namely, the now media sensation, Dogecoin.
Disclaimer: I'm not a professional investor or finance advisor and therefore I'm only providing my personal insight. Please always do your own research and only ever follow your own full analysis, evaluations and intuitions.
Whenever I set to carry out any investment, whether long term or as a day trader, I always do my research first. However, with Dogecoin I didn't because I was aware of its origins and that it was never developed as a serious cryptocurrency whether as a beneficial currency or as a utility token, but all in good humour and a way of in essence 'flipping the bird' to those who do not view Blockchain and Cryptos as the next disruption in both the tech and financial sectors (not to mention a plethora of other sectors that they are now used in) hence the inclusion of the popular meme. The backend code is somewhat outdated in comparison to many of the other cryptos. Thus, when I made the spontaneous decision to purchase some Dogecoin, I was following more intuition and humour than actual business sense. There is no real value that I can derive from fundamental analysis, but more following news events where clever marketing and social media as well as the influence by Elon Musk and Mark Cuban etc help drive the appreciation in Dogecoin as well as its adoption now in more stores and crypto exchanges. More than that, it is us the people, that are driving its value which is what makes it such an exciting endeavour. It always puts a smile on my face whenever I read the news and see our adorable Shiba Inu breaking records especially against the disbelievers. Who can resist our beloved dog meme particularly as a dog lover myself.
To be fair, I only invested a very small amount in comparison to the stable coins and altcoins that make up my portfolio. I ensure that I maintain diversification and that I hedge the high risk choices with lower risk options as I knew that Dogecoin is very high risk and highly volatile compared to my main go to Cryptos. But as we all know, with high risk, even though there is the possibility of high losses - there is also the potential of high profits.
Now my goal with Dogecoin isn't high profits since the small amount invested will not make me rich anytime soon even if Dogecoin continues to outperform all expectations, but perhaps with consistent dollar cost averaging together with compounding interest as well as staking and yielding my coin may make a tidy little sum or I could even go the other route and use it as part of my day trading following the technical analysis and candlestick charts very closely and applying stop order limits as contingencies.
In the short time that I have invested in Dogecoin, it has earned me an extra 30% of what I have put in a single day which from my years of experience in investing has hardly happened before (or when it did, it would be consumed by commissions or fees) which is another reason I love cryptocurrency compared to the usual fiat, shares and stocks. I was able to use the profits to treat my dogs and in the process have learnt a lot which I would say is more valuable than just the monetary profits. Therefore, if you haven't already taken the leap, it may be an option to place a small amount on this coin and it could be a great way to learn more about cryptocurrency and investment with a bonus cherry if it does continue to do well, but always maintain caution as it is extremely high risk and highly volatile. From my technical analysis, candle charting and intuition, I expect it to currently be a strong buy signal, but don't wait too long as things can turn very quickly.