Categories: DogecoinNews

Dogecoin [DOGE] : a safer bet for investors in bear markets than stablecoin

Cryptocurrency markets are highly volatile. One day you are up by 15% and the next day down by 20%. To combat this, a new breed of tokens knowns as “Stablecoins” were created. Stable coins are cryptocurrencies who’s value remains constant. USDT was the first such stable coin, which has a constant value of 1 USDT = $1.

Stable coins are good to hold in the bear market, but miss out on the bull market. Let’s take for example, cryptocurrency markets suddenly shoot up by 20% (it happens a lot). As an investor, you would most likely miss out on the bull market as your USDT value will stay the same. Sure you can argue, that trading bots would easily convert stable coin to the respective cryptocurrency, but in general, bots are slow. They usually enter when the market during the middle of an uptrend.

But what if I tell you there is a cryptocurrency, that is relatively stable in a bear market (has tested the toughest waters) and also reaps the benefits of a sudden bull run. Enter internet’s second favorite cryptocurrency (after Bitcoin of course) – Dogecoin.

Created as a joke in 2014, the token has become a serious contender in the cryptocurrency market. If past data has shown something, it is that Dogecoins value remains relatively stable in the range of $240-$270 million. And the reason is that most people don’t want to trade Dogecoin but rather tip content creators (after all this is what it was created for). And, this is a very important factor.

Due to the above reason, Dogecoin community members aren’t affected by the price of the cryptocurrency, and Dogecoin remains relatively stable. But since the price of Dogecoin is not stable, Dogecoin reaps the benefits of a sudden increase in the price.

Investors have already started to notice this pattern around Dogecoin. More and more investors are testing the stability of Dogecoin, a fact evident by looking at the number of people joining the carefree community of Dogecoin. How long will this pattern is yet to be seen, but in the short term Dogecoin looks like a really great bet.


Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity

Did you like the news you just read? Please leave a feedback to help us serve you better

Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.

Ishan Garg

Ishan is a cryptocurrency trader and a journalist. He joined the cryptocurrency space in 2017. He is the founder of Blockmanity. He is a HODLER and is holding BTC, ETH & UGT.

Share
Published by
Ishan Garg
Tags: DogecoinNews

Recent Posts

Bullish Signals for Sui Blockchain: Top SUI meme projects of 2024

Macro guru and Real Vision CEO Raoul Pal shone the spotlight on a rising layer-1…

2 months ago

AI Companions: A New Era of Digital Relationships and Virtual Experiences

As the technology landscape transforms at lightning speed, AI Companions has positioned itself as a…

2 months ago

zkCross Network: Simplifying DeFi Complexity and Achieving Fundraising Success

Did you know that 85% of DeFi value is concentrated in six blockchains?  DeFi is…

2 months ago

Don’t Miss Out: Get $CLP Tokens in the Exclusive RWA IDO Now!

CLAPART - a groundbreaking RWA platform has launched its much-anticipated $CLP token IDO on Gempad…

3 months ago

Step into the Future of Web3 at Blockchain Futuristic Conference 2024, August 13-14

Join us at BFC 2024 to explore the future of Web3. Use a special discount…

4 months ago

WebX Asia 2024: Web3 Innovation Ignites in Tokyo

Catch all the updates with Altcoin Observer, official media partner of WebX Asia 2024. Gear…

4 months ago