Successdogecoin.com Review Is Success Dogecoin Scam or Should I Invest

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DogeMoon” Dogecoin Cloud Mining Investment – Review (part 1)

29.01.2020 update: this is an archived article. Learn from our mistakes! Do not take our warnings lightly!

Since we just do not learn from our mistakes and despite our own recommendations regarding never ever ever “investing” ANYTHING into “mining” websites, 99.9% of which are Ponzi schemes (you will get lucky if you jump on the train early on and you will lose all your moneys if you are late to the ball), we have come across a recommendation on (!) FaucetHub (!) forum (. ) which we followed (. ) and “invested” our entire DogeCoin savings we earned from MoonDoge Faucet into testing another “Cloud Mining” company.

Goodbye, hard-earned Doge…

We previously reviewed Tesla Mining, which boasted promising free hashpower, so we did not have to actually spend any crypto then. Now, we decided to go all in. Why?

Off-topic:

DMYF is a non-profit portal. What little we earn from referring users to Faucets (and spending hours writing guides, articles, news, etc.) we use for:

– Testing Exchanges
– Testing Faucets
– Testing Wallets (e. g. how fast Coinpot releases funds)
– Exposing scammers, – making sure a criminal does not run away with thousands of your dollars.
– Improving our Website (this is where we need your kind help, – read more)
Giving it away to you, our readers.

As you can see we are willing to spend our own crypto to test a service or expose a scam. For the sake of your safety.

We believe in our cause.

Back to DogeMoon.

So, it took about a DAY for our deposit to reach DogeMoon‘s autogenerated deposit address. We were starting to get nervous, but eventually…

A deposit of 252.18 Doge has reached the Cloud Mining service. DogeMoon offers 4.5% a day from amount of your deposit.

So, not so long ago we checked our balance to find out that…

…we have reached the minimum withdrawal.

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Not really. We want to make sure that DogeMoon pays out what it promises to pay out.

However, being careful and cautious, we go to the FAQ section to find out that…

In addition to the minimum withdrawal amount, there is a 4 Dogecoin transaction fee.

Red Alert! Warning bell!

Because Dogecoin notoriously charges very little for wallet to wallet transactions. 4 Doge commission on 50 Doge is nothing but robbery.

Coinpot.co charges nothing for Dogecoin withdrawal (50 Dogecoin minimum).

CoinExchange, a cryptocurrency exchange charges 2 Doge for withdrawal.

LiveCoin, a cryptocurrency exchange charges 2 Doge for Withdrawal.

Why is this important?

Because it is a sign that MoonDoge is a Ponzi scheme and not a legitimate operation. DogeMoon’s primary source of income should be mining, not transaction fees.

Contemplating on that, we remember another issue: it is well-known that Coinpot.co addresses often do not work for deposits. We have contacted Support about this issue (waiting for a reply). Since we do not want our Doge lost in transition, we want to change our withdrawal address. As expected, there is no such function anywhere on DogeMoon.

Our only option is to contact Support. At the very end of the FAQ page, we find the following:

Only very important questions, otherwise we will not answer. [email protected]

Oh, wow. ORLY. Do not even bother to contact the administration with a general knowledge question. Make sure your question is important. The administration is very busy trying to multiply your Doge.

Dear Readers, please note that it takes no more than a few hours to construct a website like DogeMoon for a small team of experienced web designers. Maintaining the website is not building the Great Wall of China either.

Now, why is it so difficult to reach the owners of Ponzi Scheme Cryptocurrency Mining websites.

We have sent an intro e-mail prior to depositing the Doge. Naturally, we received no response. Now we have sent an email asking whether it is possible to change the Dogecoin withdrawal address. We will be surprised if we will receive a reply, however hope dies last…

Staus quo: 50 Doge lies on DogeMoon hanging.

We are not sure we will receive the profits to our Coinpot Doge address, -previously we received an “invalid address” error when trying to transfer Dogecoin from CoinExchange cryptocurrency exchange to coinpot.co, so instead we transferred the Doge to LiveCoin cryptocurrency exchange wallet, as we thought the issue had to do with CoinExchange…. The transfers to coinpot.co wallet were intended to benefit from low exchange rates (but that is a story that deserves another article). Both LiveCoin and CoinExchange are reputable companies, unlike DogeMoon which is, pardon our French, dodgy as fuck.

Since we do not expect a reply for hours and, besides, we do not even know whether our query is important enough for the DogeMoon administration, we are choosing the worst possible option.

Since we believe that money should always be working to make more money, we decide to “reinvest” our “profits.

…only to find out that…

The minimum reinvest amount is 100 Doge.

Was it mentioned anywhere in the FAQ section?

Hell no.

Red Alert. Mayday, Mayday! Warning Bell!

What’s the panic? Well… CloudMining Websites are short-lived.

DogeMoon Dogecoin Cloud Mining Investment Vehicle: Preliminary Summary and Part 1. Conclusion:

As sceptical we are regarding DogeMoon’s legitimacy, we do not doubt that the Dogecoin payout figure is correct. However, what one must focus his or her attention on is how many days DogeMoon has been running for. Hopefully, “why is it important” is a hypothetical question. Subjectively, we feel that our investment is in serious risk.

Circa 20% of our initial investment is ready for withdrawal on day 5.

If you have 100 Dogecoin, you can trust in goodwill of DogeMoon’s owners and “invest” the funds in their Cloud Mining operation. There is no evidence that DogeMoon actually uses the funds acquired from investments towards expanding their mining business.

All you need is a Dogecoin address ( do not use your Coinpot address as we did! ), which acts as a login. You do not need to create an account to start “earning” the advertised 4.5% ROI a day. Minimum withdrawal is 50 DOGE, minimum investment is 100 DOGE, minimum reinvestment is 100 DOGE. Your earnings are calculated in real time. Other users’ investments and payouts are demonstrated in real time.

Note: your deposit lasts 30 days.

Q: Is 4.5% daily ROI a lot?
A: It is insanely a lot. Freebitcoin offers 4.08% annual return, or 0.0109589% daily return on your Bitcoin savings, – that is realistic . What DogeMoon promises is viable only as long as new users keep registering and sending their Dogecoin to the website’s address. That is, unless the creators of DogeMoon know something about economics, cryptocurrency, investments and mining that we don’t.

Q: What is a Ponzi Scheme? You keep mentioning it in relation to mining websites…
A:
See above. A Ponzi Scheme is a financial pyramid which is sustainable as long as investments in the system grow exponentially. Ergo, the first “investors” will receive their “profits” which are generated by people who “invested” funds at a later stage. There is a timer before it all explodes. Since cryptocurrency market is poorly regulated, the amount of scammers using a century-long trick to fool people out of their money is incredible. We are doing our best to warn and educate users about a simple fact: if something is too good to be true, it is too good to be true.
Practical example: Tesla Mining.
Further reading: https://en.wikipedia.org/wiki/Ponzi_scheme

Q: If you are so sceptical about DogeMoon, why did you spend your Dogecoin?
A: To demonstrate the degree of our involvement in testing cryptocurrency services. To show that we are not lying when we state that our mission is to make the crypto world a tiny bit safer. The doge invested in DogeMoon were earned through Moon Faucets. We do not like reviewing mining businesses; alternatively we would have used the Doge to test out LuckyGames, – a cryptocurrency casino!

Q: Are there LEGITIMATE Cloud Mining operations?
A: So far, Eobot’s Cloud MIning service has not gone out of business and has been around for a long time, as these businesses go. Apart from Cloud Mining, Eobot offers a faucet and some other features. Our review of Eobot is pending. In comparison to DogeMoon, Eobot seems more legitimate.

Aside from that, the only vehicle which we would trust when depositing our funds is Freebitcoin.

Q: Is DogeMoon associated with MoonDogecoin?
A: NO! DogeMoon is exploiting the name of a popular, legitimate faucet which does pay out Dogecoin. Want to add legitimacy to your shit brand? Try to associate with something popular. CCRB’s CEO shakes V. Buterin’s hand on a summit CCRB sponsored? That photo was the reason CCRB sponsored the forum. Vitalik Buterin will NEVER appear anywhere close to a CCRB official. CCRB’s CEO signs a deal? The caption mentions “Canary Wharf offices”. Tesla Mining mentions an address? They have an office! Moreover, it is a London address! Must be legit. Disgusting, right.

…or maybe, sometimes Moon is just a Moon.

Q: If you keep repeating how risky Cloud Mining investments are and review DogeMoon negatively, why do you post referral links to their website?! Isn’t that hypocrisy?!
A: No. First of all, referral links help us track the number of people interested in our articles. Secondly, should a visitor find the article informative, decide to create a DogeMoon account and manage to make a profit, why should we say “no” to some extra income from DogeMoon? The referral income does not come out of a user’s pocket. Finally, this article is merely part 1 of the review. We will publish part 2 in five days time; a lot might change in five days.

P. S. We do not offer investment advice, we do not recommend investing in Cloud Mining operations, we do not offer financial advice. All information mentioned above is a reflection of personal experience and is published for entertainment purposes. When making a financial decision, please contact your financial advisor.

CoinEgg Review – Is coinegg.com scam or safe cryptocurrency exchange?

Trading Accounts

Account type Leverage Trading Fee Deposit Fee
Standard N/A 0.10% Free (Crypto only)

CoinEgg is a cryptocurrency exchange, based in the United Kingdom. The company only focuses on digital assets, without providing any form of fiat currency trading. While this will make them unattractive for some companies

CoinEgg Advantages

A lot of altcoins – at the time of writing of this review, 42 different assets are included on CoinEgg. While the usual suspects, such as Ethereum, Bitcoin Cash and Litecoin are present, some of the rest appear to be more exotic. You must check the details to get the full picture, but it’s safe to say these are not the top coins, in terms of market capitalisation.

While 42 may be a lot for some people, if you are looking for a specific coin/token, you should first do your research on the venues, where it is traded. Bittrex, Binance and EtherDelta are very likely to have it.

Low trading fees – the 0.10% fee on all trades makes CoinEgg a very competitive exchange. While other parts of their service may not be so pleasant, you must keep in mind a lot of exchanges charge something around 0.25%, with Kraken offering 0.26%, but a more trader-friendly environment.

Has not been hacked – CoinEgg has been around since 2020 and we didn’t find any information on a successful attack around this exchange. This is not a guarantee for the future, but is always a good sign.

CoinEgg Disadvantages

Trading only against BTC – as we hinted in the beginning CoinEgg does not offer any type of fiat currency integration. Even the slightly controversial Tether tokens (USDT – a cryptocurrency backed by US dollars) are not listed.

Low liquidity on some instruments – this is to be expected given the nature of CoinEgg – fiat currency deposits are not supported and some of the tokens seem bizarre (at least to us).

Withdrawal fees up to 1% – this exchange charges withdrawal fees, which can go as high as 1% for the more exotic coins. The rates for the more popular coins are rather acceptable, with 0.001 BTC, 0.001 LTC and 0.01 ETH, respectively.

No leverage offered – CoinEgg does not allow traders to borrow money in order to speculate more aggressively. If this is what you are looking for, a forex broker may be a suitable alternative for you.

CoinEgg is a UK-based digital assets exchange. The company does not accept or send any form of fiat currencies, which puts them in the category of trading venues which are not regulated (as no legislation for them exists). This will definitely not be everybody’s cup of tea, but when it comes to exotic assets, CoinEgg offers a few of them. With such low fees, it’s not hard to see this exchange attract even more volume in the future.

Coming back to the regulatory aspect, we will reiterate what you probably know – dealing with cryptocurrencies still carries a significant level of risk. Even some of the top-tier exchanges have been hacked in the past. This is one of the topics on which the forex, brokers offering cryptocurrency trading have an edge. That being said, scammers do pop-up in the field of traditional finance. Check our list of tightly regulated forex brokers, offering Bitcoin below.

Broker Advantages

FXTM a regulated forex broker (regulated by CySEC, FCA and FSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $10 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.

Trading212 is a European broker with an excellent proprietary trading platform, which is now available as an iPhone app as well (we tried it out and we loved it). Trading 212’s customers enjoy fast execution a vast selection of trading instruments.

XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it’s EU-regulated and there’s nothing more you can ask for.

FXCM is one of the biggest forex brokers in the world, licensed and regulated on four continents. FXCM wins our admirations with its over 200,000 active live accounts and daily trading volumes of over $10 billion.

FxPro is a broker we are particularly keen on: it’s regulated in the UK, offers Metatrader 4 (MT4) and cTrader – where the spreads start at 0 pips, Level II Pricing and Full Market Depth. And the best part? With FxPro you get negative balance protection.

FBS is a broker with cool marketing and promotions. It runs an loyalty program, offers a $100 no-deposit bonus for all new clients outside EU willing to try out its services, and an FBS MasterCard is also available for faster deposits and withdrawals.

FxChoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.

HotForex is a EU Regulated broker, offering wide variety of trading accounts, including Auto, Social and Zero spread accounts. The minimum intial deposit for a Micro account is only $50 and is combined with 1000:1 leverage – one of the highest in the industry.

Dogecoin: Can You Take A Cryptocurrency That Started As A Joke Seriously? We Investigate

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Last Updated on July 29, 2020

Why Is Everyone Talking About Dogecoin?

When Bitcoin first appeared in 2009, few could have predicted the profound impact that it would have. Today, there are hundreds of new cryptocurrencies all vying for control of an increasingly crowded market space.

Dogecoin was originally born as a joke but eventually found a purpose as a more friendly, approachable alternative to Bitcoin. This can be seen most clearly in Dogecoin’s vibrant, welcoming community. This unique community has allowed DOGE to achieve something of a cult following, and the cryptocurrency is regularly used to tip users on Reddit or Twitter.

Five Interesting Facts About Dogecoin That You Might Not Know

  1. Dogecoin was originally founded as the result of a joke made by Jackson Palmer in November 2020. When he was contacted by programmer Billy Markus, they decided to turn Dogecoin into a reality.
  2. Dogecoin was designed to be a friendly, more approachable form of cryptocurrency that could reach users put off by the cold complexity of Bitcoin. Even its name is taken from a popular Internet meme.
  3. Dogecoin has one of the largest and most active communities in the cryptocurrency world. This community has come together to fund a number of charitable efforts and other projects. They even managed to sponsor a NASCAR.
  4. One of the most common uses for Dogecoin today is as a tipping service. Users will tip other users for posts or contributions that they believe deserve recognition. It’s similar to a “like” but with more impact.
  5. There have been no technical updates or developments since 2020 when Jackson Palmer left the project by declaring that he was going on an “extended leave of absence”.

Growth is propelled by the benefits of compliance-free peer-to-peer transaction, cross-border remittance transfer, increase in use cases, volatility in the stock market, fluctuating monetary regulations in different countries, transparency, and immutability of the distributed ledger technology and benefits such as faster transaction and reduction in total ownership cost.

Despite Dogecoin’s robust community, some, such as Lewis Tuff, chief platform engineer at Revolut, are worried that it represents a dangerous trend in cryptocurrency investment:

The recent surge in Dogecoin’s price illustrates the huge demand for cryptocurrencies, but ultimately those altcoins that survive long-term will be the ones that provide utility beyond speculation.

Jackson Palmer – Creator of Dogecoin – Image via YouTube

Even Dogecoin’s own creator, Jackson Palmer, believes Dogecoin’s success demonstrates how far cryptocurrency has strayed from its original goals:

I have a lot of faith in the Dogecoin core development team to keep the software stable and secure, but I think it says a lot about the state of the cryptocurrency space in general that a currency with a dog on it, which hasn’t released a software update in over 2 years, has a $1B+ market cap.

A Brief History of Dogecoin

On November 27, 2020, Jackson Palmer made a joke that would lead to the birth of of a new cryptocurrency he said: “Investing in Dogecoin – pretty sure it’s the next big thing.”

The joke caught the interest of many users, including the programmer Billy Marcus who contacted Palmer to discuss the possibility of turning his joke coin into reality. Just over a week later, on December 6th, it was possible to mine and trade Dogecoin. What had begun as a joke about the state of cryptocurrency had become a serious project.

Dogecoin was based on the popular Internet meme featuring a Shiba Inu – Image via coinSquare

Unfortunately for Dogecoin, it did not take long for disaster to strike. On December 25th, a hacker gained access to the file system of Dogewallet and manipulated its send/receive function to steal an estimated 21 million DOGE, then worth $12,000. The community quickly rallied together with the “Save Dogemas” fundraiser and by February 2020 users had donated enough coins to replace those stolen by the hacker.

This act of generosity would prove to be typical of the Dogecoin community. 2020 marked the beginning of a number of Dogecoin-driven charity drives. In January 2020, $25,000 in Doge was raised to send the qualifying Jamaican Bobsled team to the Sochi Winter Olympics. The Doge4Water drive was also able to raise over $30,000 in order to provide clean drinking water in the Tana river basin.

The Dogecoin community was generally known for being more open and friendly to newcomers than other cryptocurrency communities. Dogecoin’s ease of use combined with a welcoming Reddit community allowed a culture surrounding tipping users for interesting or amusing posts to flourish. Unfortunately, this friendly nature occasionally bordered on the naive, allowing one of the darkest periods of Dogecoin’s history to take place.

The most notorious example is the Moolah incident. In 2020, Ryan Kennedy (using the pseudonym Alex Green) became involved in the Dogecoin community. He rapidly became very popular with users thanks to his generous DOGE giveaways. He even spearheaded the community effort to raise $55,000 to sponsor the Nascar driver Josh Wise.

Kennedy used this popularity to convince the community to invest in a new exchange to make trading Dogecoin easier – Moolah. Kennedy managed to raise over $750,000 for his idea. After receiving emails regarding Kennedy’s past scams, Jackson Palmer attempted to warn the community but he was ignored and even pushed out by the community he had helped nurture. This event largely prompted Palmer’s departure from the community that he felt was making the same mistakes as Bitcoin.

It would soon become apparent that Jackson Palmer’s concerns about Kennedy were entirely correct. Moolah collapsed and many users lost their funds. It later became apparent that Kennedy had been involved in a number of previous scams and sexual assault cases, and he was eventually prosecuted over the Moolah incident. Rather than say “I told you so” Palmer seemed genuinely upset by the incident:

What saddens me the most is that Moolah took their funding from random Internet-goers as opposed to rich venture capitalists who can afford to take the risk and financial hit. These ‘traders’ are now in a position where they’ll never see their money again, and have minimal legal recourse.

To the credit of Dogecoin’s community, they kept going and their Reddit is still active to this day, despite the fact the cryptocurrency hasn’t seen a major update since 2020.

In 2020, Dogecoin saw a surge in value as traders poured money into the meme-based cryptocurrency. An event that was (somewhat unfairly) held up by much of the media as an example that the cryptocurrency bubble was becoming increasingly unsustainable.

None of these doubts seem to have worried the Dogecoin community, though, as they are steaming ahead with their plans to get a golden physical copy of a Dogecoin to the moon by 2020.

What Is Dogecoin?

Dogecoin is a cryptocurrency based on Luckycoin (which is, in turn, based on Litecoin). Dogecoin was originally designed to be a more approachable alternative to Bitcoin, Litecoin and other cryptocurrencies. As such, there aren’t any groundbreaking features that set Dogecoin apart from the pack.

The cryptocurrency hasn’t seen any major updates since 2020 (although it is able to benefit from improvements to the Litecoin code). The true value of Dogecoin lies in the strong and vibrant community that sprung up around it.

The main thing that separates Dogecoin from most other cryptocurrencies is that it is an inflationary, rather than deflationary, cryptocurrency. Bitcoin and many other cryptocurrencies are designed with a hard supply cap of coins. The potential problem with this is that once the cap is reached it may no longer be profitable for miners to continue to sustain the system. This would either lead to unacceptably high fees in order to encourage miners or very long transaction times as there would be no incentive to process network transactions.

Dogecoin’s creator sought to solve this problem by ensuring that miners would always be rewarded with new Dogecoin and so there would always be an incentive to mine more coins. An inflation-based approach was also designed to replace lost coins and keep Dogecoin at a stable 100 billion coins.

The Dogecoin community hopes their coin will go to the moon – Image via Nemcd.com

As mentioned previously, the main asset of Dogecoin isn’t the technology behind it but the community that has built up around it. Many of the community members don’t even regard Dogecoin as an investment but rather as a currency in its own right, often repeating the refrain “1 Doge = 1 Doge”.

Much of the community, particularly older members, are skeptical of speculation about Doge’s potential prices. Although this skepticism doesn’t stop users from hoping that Dogecoin goes to the moon!

Dogecoin vs Bitcoin

How does Dogecoin compare to the leading cryptocurrency Bitcoin? What are the key differences? See below for our head-to-head comparison:

Dogecoin (DOGE) Bitcoin (BTC)
Purpose Started out as a joke but quickly became a community-based crypto Decentralized digital currency
Founded 2020 2009
Founder Jackson Palmer Satoshi Nakamoto (alias)
Market Cap Over $500 million Over $250 billion
Current Price
All time High $0.17 (Jan 2020) $19,908 (December 2020)
All Time Low $0.000087 (May 2020) $0.06 (July 2020)
How long did it take to hit $100? N/A 51 months
Notable Supporters Jeff Currie (Goldman Sachs)
Peter Theil (Venture capitalist)
Christine Lagarde (IMF)
Marc Andreessen (Early internet Pioneer)
Supply Cap None (Current Circulating Supply: 114,473,409,520) 21,000,000
Initial Distribution Mining Mining
Mining Method GPU ASIC
Consensus Method Proof of work Proof of work
Network Hash Rate* Nearly 300 TH/s Over 40 BTC per hour
Difficulty 3,405,638 4,143,878,474,754

How Is Dogecoin Made?

A government or bank is a centralized institution that is able to physically print its own money. In contrast, cryptocurrencies, like Dogecoin, take a decentralized approach to producing new tokens and DOGE is created by its community.

The basic technology behind Dogecoin is based on Litecoin and LTC miners are even able to mine Dogecoin using Auxiliary Proof of Work (POW). The switch allows Litecoin miners to process Dogecoin transactions by using their computing power in order to solve complicated equations. Once the equation is solved, a new block is added to the Dogecoin network and the miner is rewarded with DOGE.

This reward system serves two purposes. The first is to encourage miners to devote computing power in order to complete transactions on the Dogecoin blockchain, while the second is to regulate the creation of new DOGE, which is then distributed by miners.

What Is the price of Dogecoin?

What Drives the Price of Dogecoin?

Dogecoin is a cryptocurrency, and like all cryptocurrencies, it is highly volatile and prone to large surges and big dips. Dogecoin, in particular, has experienced a fairly turbulent history and is prone to quite abrupt price changes.

Like other cryptocurrencies, the primary price driver for DOGE is media attention. The meme-based coin saw a surge in value in early 2020 as a number of media outlets began to pick up the story that Doge had hit a market cap of over $2.0 Billion dollars.

These kinds of stories tend to lead to new traders pouring money into a currency. However, these surges are often followed by sharp crashes as traders engage in profit-taking. It can be possible to try and predict those crashes but it is risky and it may result in you losing money, rather than making it.

Dogecoin has not seen any major updates since 2020, so any rumour of new features could well lead to an increase in prices. You should keep your eye on the Dogecoin Reddit account in an attempt to anticipate any new features or services of Dogecoin that plan to utilize Dogecoin as a payment method. These kinds of announcements tend to lead to an increase in a cryptocurrency’s value.

With Dogecoin, in particular, it is worth keeping an eye on their active (and often hilarious) subreddit. In between all of the memes and jokes, the community occasionally attempts to organize serious events such as fundraisers. If Dogecoin users successfully complete a fundraiser, it will garner media attention which is likely to result in a positive price rise for DOGE.

What Is the Price Outlook for Dogecoin and What Do Experts Say?

Even by cryptocurrency’s standards, Dogecoin has experienced particularly pronounced price shifts. The cryptocurrency market is still developing and in the short-term, you should expect an unstable market with lots of peaks and troughs.

On a medium- to long-term basis, Dogecoin has been on a general upward trend, like many other cryptocurrencies. As more mainstream traders become involved in cryptocurrency trading you should expect to see prices broadly moving upward with some slightly rocky periods. That being said, you should not bet on Dogecoin reaching $1 any time soon.

Despite the community’s broad optimism, experts are generally more bearish toward Dogecoin’s future prospects. Even Dogecoin’s own creator, Jackson Palmer, has expressed his concern about the forces driving Dogecoin’s success. In January, he argued that, while Dogecoin is technically sound, it shows that traders aren’t doing their due diligence:

Others have argued that Dogecoin could be one of the few cryptocurrencies capable of being used as a practical currency rather than simply as a speculative asset. The fact that Dogecoin is fixed inflationary currency it allows it to more closely mimic real-world currency. This discourages users from holding onto the asset and encourages high liquidity as users actively trade and use their coins, or as James Angel summarized:

In order for a currency to survive, it’s got to be useful. One of the problems we learned with gold standard was that it’s too inflexible—it takes too long for gold miners to dig it up out of the ground. Having a nice, steady, predictable money supply is actually a good thing.

John McAfee is also bullish about the prospects of Dogecoin in his coin of the week Tweet:

John McAfee Coin of the Week – Image via Twitter

Dogecoin Market Sentiment

We’ve gathered data from leading exchanges to determine the general feeling in the Dogecoin market. Its calculation is simple; using data from the exchanges listed below, we gather buy and sell volumes for a given time period and weight this against the total transaction volumes.

3 Reasons To Invest in Dogecoin

  1. Inflationary currency
  2. Vibrant strong community
  3. 1 DOGE = 1 DOGE

Unlike Bitcoin, Litecoin and many other cryptocurrencies, Dogecoin is an inflationary currency. It may seem counterintuitive to call inflation a good thing as it makes individual DOGE worth less than if there was scarcity; however, it is a feature that may well ensure Dogecoin’s survival into the future.

A large number of coins can be lost or damaged as a result of users losing hardware, forgetting wallet passwords etc. This is especially true for a cryptocurrency, like Dogecoin, where users regularly spend their coins. An inflationary coin can help ensure a constant supply and that mining will also be at least semi-profitable.

Vibrant Strong Community

Dogecoin undoubtedly has one of the best communities out there. They are approachable, friendly and helpful. They have also raised money for charities, are trying to put a physical Dogecoin on the moon and regularly send Dogecoin as tips to other users as a reward for entertaining or informative content.

This community is what has allowed Dogecoin to survive this long and it means that the cryptocurrency is unlikely to die anytime soon, so you are unlikely to ever lose your entire investment.

A common refrain among the Dogecoin community is that no matter what the price increases to in dollar terms, 1 DOGE will always be equal to 1 DOGE. In essence, they are saying that they want to use the coin as a transactional currency, rather than a speculative asset. This is actually a very good thing from a trader’s point of view. It means that even though Dogecoin might not have cutting-edge technology behind it, it is being treated as a proper currency by many users which means that it has a utility purpose.

2 Reasons Not To Invest in Dogecoin

  1. Very few recent updates
  2. High supply means that the coin will be unlikely to hit $1 in the near future

Very Few Recent Updates

Dogecoin has not seen a major update since 2020. While the security behind the coin is still strong, lack of updates could well leave the cryptocurrency behind as newer coins bring new features to the table. There are reports that the Dogecoin Dev team is considering coming back and making changes, but there are no guarantees as they essentially work on the cryptocurrency in their spare time. A lack of updates could well find Dogecoin being left behind.

High Supply Means That the Coin Will Be Unlikely to Hit $1 in the Near Future

While being an inflationary coin improves Dogecoin’s chances to be used as a proper currency, it does slightly limit its potential as an investment. Dogecoin is designed to maintain a constant supply of around 1 billion tokens, this is excellent for liquidity and makes it easy to obtain coins but it also means that there isn’t much incentive to pay in large sums of money of the coin. This limits its potential as a realistic long-term hold.

How To Buy Dogecoin

So, after weighing up the pros and cons, have you decided that Dogecoin might be able to go to the moon? The next step is to figure out how to go about actually purchasing some. There aren’t many ways to easily purchase Dogecoin with fiat currency, so your best way is by trading it for Bitcoin using an exchange.

Most traders trade for Doge using an exchange like Bitfinex. This involves buying cryptocurrency with fiat currency and storing them in a virtual wallet. While this approach is common it carries a number of risks and it’s important that you do your research and select a reputable exchange.

Coinbase

If you want to acquire Bitcoin to trade for Dogecoin, one possible choice is an exchange called Coinbase. There’s several other choices but Coinbase is one of the most newcomer-friendly. It comes with a large number of currency pairs and you even have the option to buy BTC using your credit or debit card. Coinbase has a competitive fee rate. Purchasing BTC will typically result in a 3.99% fee if using a credit or debit card and a 1.49% fee for most kinds of bank transfers.

Coinbase requires your ID and address when registering. This kind of verification is standard procedure and considered best practice for many exchanges. It’s designed to prevent the exchange from being used for money laundering and other criminal activities. Privacy-conscious traders should consider a different exchange, however.

LocalBitcoins

Rather than buying DOGE directly, you can first buy Bitcoin through a peer-to-peer Bitcoin Exchange that does not require an ID. One of the best options is LocalBitcoins which allows users to buy Bitcoin with almost any currency.

Once you have the Bitcoins, you will be able to trade these for Dogecoin at another exchange. If you choose to use LocalBitcoins, make sure you vet other users thoroughly. There is a review function and you should make sure you use it. Some unscrupulous users have been known to scam new traders. If you get a bad feeling or see poor reviews, it is generally best not to make the trade. Some users even meet in person to exchange their currency.

Tux Exchange

Tux Exchange is a relatively young exchange and it doesn’t yet have many pairs but it is one of the best places to trade BTC for DOGE. The exchange offers a 0% maker and 0.3% taker fee on all trades. In order to use Tux Exchange, you will first need to transfer your Bitcoin to the Tux wallet.

Always ensure that you transfer to the exact address listed or you may lose your funds.

To do this, you first need to go to the “Wallet” section and scroll down until you find your Bitcoin wallet. You then transfer the funds from your own wallet to this address and wait for the transaction to process. When your Bitcoin transfer has been approved it will appear in your wallet and you’re now ready to buy DOGE.

Next, you need to click the market tab and scroll down until you see DOGE. You will see charts detailing current price trends. If you continue to scroll down you will eventually see options to buy and sell. Simply enter the amount of DOGE you want to buy and how much BTC you are willing to pay for it and Tux exchange adds the total up for you. Once you’re happy with your trade, click “buy” and the order goes onto the exchange.

Now you simply need to wait for your order to be fulfilled and you will have successfully figured out how to buy DOGE!

Simply enter the amount of DOGE you want to buy and the cost in BTC will appear in the total.

Keep in mind that exchanges are not safe and you will need to be serious about your security. Always enable two-factor authorization and avoid keeping all of your coins in a single wallet. Also, remember that you should never leave your coins in an exchange wallet unless you are planning to exchange them. If you don’t own the keys to your wallet then you don’t own the tokens inside it. The best way to secure your Dogecoin is in a hardware wallet or by putting them in cold storage.

Cold storage involves keeping your cryptocurrency in an offline wallet that only you have access to. Remember that you are entirely responsible for your own security. If you don’t own the keys to your wallet, you don’t own your tokens. You will also need to take extra care to ensure that your computer is secure and password protected. Any breach could result in your coins finding their way into the wallet of a hacker.

Managing your own Dogecoin isn’t an easy task. Not only do you have to navigate the exchanges but you will also need to take extra care to keep your computer secure. You will need to take extra precautions to protect yourself against phishing scams, viruses, and other risks. You will also need to keep very careful track of your wallet’s access codes. If you misplace those then your DOGE investment will be trapped in a wallet you can no longer access.

On top of this, there are risks that you have no control over. Whenever you use an exchange you are relying on them to protect you and your DOGE. The problem is that they sometimes fail to do this properly.

The most well-known example is the MtGox debacle. In 2020, MtGox was by far the largest Bitcoin exchange with control over 70% of the market. The cracks started to show in May 2020 as FinCEN seized their accounts. This led to many users losing the ability to withdraw USD from the exchange. The situation continued to deteriorate as hackers attacked MtGox and stole around $500 million worth of Bitcoin, forcing MtGox to file for bankruptcy.

Sadly, it seems as though exchanges have not learned their lesson. In August 2020, Bitfinex was hit by a similar hack. The attackers emptied random wallets and stole around $72 million worth of cryptocurrency. In order to prevent individual users from losing everything, Bitfinex decided to spread the losses, reducing everyone’s account balance by 37%.

Many traders find this level of uncontrollable risk to be unacceptable and you’re probably asking yourself whether there is a better way to trade DOGE. Unfortunately, the answer is no, not at the moment. However, there is a safer way to trade many other cryptocurrencies by using a regulated broker such as Plus500. The Plus500 platform gives you the ability to trade contracts for difference (CFDs) for a wide variety of cryptocurrencies and they are regularly adding new ones.

How to Trade in Cryptocurrency CFDs

Our preferred method is to not buy cryptocurrencies at all but instead, trade Contracts for Difference (CFDs) through a regulated broker.

To see which currencies are currently available to trade as CFDs on Plus500, visit their site here. They regularly add new cryptocurrencies so check back here occasionally for updates.

A CFD is a contract between you and the broker. Instead of directly buying cryptocurrencies, you would buy a CFD and take a short or buy position. If the market moves in your favor then you will receive money based on your CFD. If it moves against you then you will have to pay. This allows you to take advantage of cryptocurrencies without ever having to take on the risk of owning a single token.

There are lots of brokers out there and picking the right one can be a challenge. The first rule when deciding how to get cryptocurrency CFDs is to always use a regulated broker. These brokers have to follow a strict code of conduct which makes them much safer than ordinary unregulated brokers. You also need to compare the different fee structures and should take advantage of the free demo accounts many brokers offer before you commit to a platform.

Trying to find the best regulated broker can be a daunting task. Thankfully, we are here to help and have already done the heaving lifting for you. After investigating the available options we’ve found that for the vast majority of traders, Plus500 is probably the best way for you to trade cryptocurrency CFDs.

Plus500 – Our Top Recommendation For Trading In Cryptocurrency CFDs

Plus500 is a safe and secure way to trade Cryptocurrency CFDs. Plus500 subsidiaries are individually regulated by the following agencies; Financial Conduct Authority (FCA), Cyprus Securities Exchange (CySEC), Australian Securities and Investments Commission(ASIC).

See the table below for exactly which regulator covers you in your country and what protection is offered:

Regulator Countries Covered Protection Offered Additional Protection Offered
Financial Conduct Authority (FCA) UK, Ireland and Germany All client funds are held in a segregated client bank account Clients of Plus500UK Ltd would fall under the ‘investments’ claim category, whereby the cover is £85,000 per person per firm.
Cyprus Securities Exchange (CySEC) Andorra, Argentina, Austria, Bahrain, Belgium, Bulgaria, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Gibraltar, Greece, Hungary, Iceland, Isle of Man, Israel, Italy, Kuwait, Latvia, Liechenstein, Lithuania, Luxembourg, Malaysia, Malta, Mexico, Monaco, The Netherlands, Norway, Oman, Poland, Portugal, Qatar, Romania, Saudi Arabia, Slovakia, Slovenia, Spain, South Africa, Sweden, Switzerland, United Arab Emirates and Uruguay. All client funds are held in a segregated client bank account
Australian Securities & Investments Commission (ASIC) Australia, New Zealand and South Africa All client funds are held in a segregated client bank account

How Much Does It Cost to Trade Cryptocurrency CFDs with Plus500?

Plus500 has a very competitive fee structure. Unlike some other brokers, they charge zero commission. Instead, users are only charged on the spread of their CFD trades. You should keep in mind that there are premiums for holding an overnight position and you might be charged an inactivity fee if you do not use your account over a 3 month period.

CFD Service. 80.6% lose money.

The Plus500 platform also provides some of the best risk management tools out there. Not only do you have the ability to set close at loss or close at profit limits but you also have a rare and useful tool known as a trailing stop. This allows you to set your stop position to grow with the market. Using a tool like this means you can increase your profit without having to manually adjust your stop positions and if the market turns against you, you’ll still be protected. This feature is not available with every broker and it helps cut out a lot of micromanagement.

Plus500 has gone out of its way to make its platform accessible to traders around the world. The interface is simple to understand and should help newer traders ease into trading in cryptocurrency CFDs. The platform is also available in over 31 languages and has been localized in 50 countries. This allows traders from all over the world to feel comfortable using Plus500.

Many of us spend a lot of our time away from our computers so another useful addition is Plus500’s mobile app. This functions very much like their desktop app and can help you trade while you’re away from the desk. One feature that we found particularly useful was the inclusion of the demo mode on the app.

Other brokers might suit traders with very specific needs but Plus500 is probably the best choice for the vast majority of traders and we would find difficulty in recommending anyone else.

One of the leading CFD brokers for trading cryptocurrency CFDs is Plus 500. Here’s why:

  • Convenient, safe access to cryptocurrency CFD trading
  • Easy sign-up, compared to the cumbersome process of enlisting in a cryptocurrency trading exchange
  • Guaranteed execution at a fixed price, without having to wait for another trader to agree to a buy or a sell transaction
  • Allowance of credit or debit cards, a service generally not allowed on cryptocurrency trading exchanges
  • Allowance to trade 10 or more cryptocurrency CFDs, including Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and IOTA – with more being added all the time.
  • Free real-time quotes and 24/7 trading availability
  • Intuitive charting tools

Important: 80.6% of retail trader accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Trading in cryptocurrency CFDs is the same as any other instrument. Make sure that you follow the golden rule. Only spend what you can afford to lose. If you stick to this and use a regulated broker to protect yourself then your cryptocurrency CFD trades will be off to a good start.

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