Dogecoin, often known as DOGE, is a profitable cryptocurrency available in the cryptocurrency world. The structure was amusing because it was created as a portion of a prank based on a meme featuring Shiba Inu. DOGE gained fame later on and began to have genuine value as a virtual asset. The current cap has reached US$23.37 billion, making it the market’s 11th biggest cryptocurrency. The allure of DOGE is based on its widespread appeal. However, DOGE is losing its shine because of certain limitations. What are the limitations of Dogecoin? In this post, we will discuss these limitations.
The Underlying Limitations Of Dogecoin
The allure of this catchphrase and somewhat humorous cryptocurrency is based on its wider acceptance. DOGE appears to be less daunting and more approachable among the hundreds of cryptocurrencies and tokens. Dogecoin is a popular speculative crypto that has lately gained popularity. However, in recent times, these stories have resulted in underperformance. It is unclear what the price of Dogecoin could be by the end of this year. Many price predictions are created for Dogecoin. But they are stuck in something. The maximum supply of Dogecoin is said to be unlimited. That is also a risk.
DOGE was created to make fun of current virtual currencies such as Bitcoin and Ethereum. DOGE’s nature prevents it from being integrated and used as a crypto token. Inadequate technical assistance is prevalent with Dogecoin. Despite its increasing network of supporters as well as users, Dogecoin has comparatively bad technical support. DOGE’s staff is smaller than those of the top two largest cryptocurrencies in the market. It has also made no technology updates or adjustments since 2015. One should also understand that it does not have a promising proposition of sale. Because of this drawback, Dogecoin could face more problems in the upcoming years.
Pump and dump techniques have been around with this cryptocurrency for quite some time. Although it is forbidden on regulated cryptocurrency exchanges, it nonetheless has an impact on some cryptocurrencies. Pumping occurs when a significant number of coins are purchased by a group of people, causing the asset’s price to skyrocket. When the currency achieves a higher value than it was purchased for, they sell and profit handsomely. DOGE is prone to this type of manipulation. Dogecoin seems to be this type of cryptocurrency. However, the reports that described DOGE to be a pump and dump scheme do not have a piece of clear evidence.
The top Dogecoin wallets 2022 are available for Dogecoin. But, they seem to be useless because Dogecoin is not meant for transactions. Unlike certain cryptocurrencies like Bitcoin and Ethereum, which are generally employed for transactions, this meme crypto can only be utilized as virtual money. Cryptocurrencies other than Dogecoin have indicated that they have all the chances of growth because they are used for transactions.
DOGE introduced crypto enthusiasts to a world of technology they were unaware of. Regardless of its accomplishments, purchasers must forever analyze what is happening before dealing with currencies such as Dogecoin.
Trading With Dogecoin
Dogecoin’s unfettered joy began to fade many years ago as the cryptocurrency community at large became increasingly serious. The resignation of Jackson Palmer, who claimed that a “toxic community” had built up with Dogecoin and its earnings, was the first indicator that not everything is right within the community itself. Dogecoin’s valuation rose like the remainder of the crypto-verse when the 2017 boom started and then collapsed alongside the remaining portion of the crypto world. You cannot actually put your trust in this crypto. The best app to buy Dogecoin available is the Binance app. It trades with many cryptos.
Most rookie traders stumble sometimes to understand the trades and how to set their investment to thrive. Many people attempt to begin on their own and eventually wind up with a streak of losses, gradually watching their accounts drop back to where they started. You should never make such a mistake. SMAs are widely used in trading methods across meme asset classes. One reason is that they can make it easier to study the patterns and trends of crypto like Dogecoin. Following the charts is necessary because they are the trading tools to deal with volatile cryptocurrencies. Dogecoin is very volatile.
Final Thoughts
Here, you have seen some of the limitations of Dogecoin. Dogecoin slipped from its position and it is now at a lower rank. However, this rank could change if it shows some signs of growth. A number of people really have the largest Dogecoin wallets in 2022. By largest, I mean they are storing the most amount in Dogecoins only. With $100 only, you can buy and store several thousands of DOGE. Your goal should be to buy low and sell high. Also, keep yourself updated with the crypto news every single day. You should never miss out on the news.