Should I Sell or Hold My Dogecoin – Top Tips

Dogecoin is one of the most popular types of cryptocurrencies, which is used on various platforms (for example, on Binance, Robinhood, or the DogeDao staking resource). This cryptocurrency, named after a popular Internet meme, is open source. Currently, it has a fairly active community. In addition, it is supported by the vast majority of multi-currency wallets and almost all active exchanges.

Many owners of digital currency have a completely logical question – should I hold or sell Dogecoin? To answer it, you will need to understand the features of this coin, as well as understand the main reasons why ‘should I cash out Dogecoin or vice versa?’.

What Is Dogecoin, And How Does It Work?

Before moving directly to the question ‘When should I pull out of Dogecoin’, it’s worth understanding the mechanics of how it works, its key features, and the price of Dogecoin.

Previous Performance of Dogecoin

This cryptocurrency appeared on the market as a kind of joke, which later became something more significant. Dogecoin was once actively supported by Elon Musk, which became one of the key factors in its growth. The large number of transactions that the director of Tesla supplied, to a large extent, influenced the price of the cryptocurrency.

Reasons to Sell Dogecoin Now

Anyone can purchase Dogecoin digital currency through a reliable crypto exchange. A buyer who has purchased this digital coin has a question – should I hold or sell my Dogecoin? Will the purchase of such a cryptocurrency in the future be at a loss? In this regard, it is worth paying attention to some key factors that will determine whether it is worth doing and what is its best time.

Market fluctuations

Should you sell or hold Dogecoin? One of the main reasons is the price history of this cryptocurrency. Specifically, from 2013 to 2016, its cost remained within the initial price and amounted to $0.0002. During this period, short bursts were observed, but they turned out to be insignificant.

In 2021, the price reached an all-time high of $0.73, and in 2022 the cost was about $0.14. In general, this digital currency is notable for its instability.

Lack of long-term investment potential

Experts express their doubts that this coin will retain its value in the long term and will remain relevant in the future. Since Dogecoin is a meme-cryptocurrency, its level of development is much lower than that of other types of digital money.

Lack of technical innovations

Unlike other well-known cryptocurrencies (such as Bitcoin, for example), Dogecoin lacks innovative technologies. This can also be a reason to sell or exchange an existing digital coin.

Unlimited coin supply

The low cost of Dogecoin leads to the fact that many investors want to buy the corresponding shares. At the same time, you can buy it in any quantity – as low as 1 dollar. And this has negative consequences.

Limited utility

Although meme cryptocurrencies can be used to pay in various areas, the range of their use is currently quite limited. This is also the reason why it is worth selling at a profit.

Reasons to Hold Dogecoin

There is another side to the question ‘Should I hold or sell Dogecoin?’. Consider the main reasons why this stock of this cryptocurrency should not be disposed of.

Community support

The community of Dogecoin supporters is actively growing and continues to develop to this day. This, in particular, has a positive effect on the increase in the value of the digital currency, as well as on the unwinding of the meme coin price movement.

Potential for future growth

Dogecoin is described by experts as a stable cryptocurrency that can withstand the disruptions and instability that are observed in the crypto market. In addition, forecasts indicate that the price of the currency will increase in the future. In particular, this is due to the growing interest of investors in the coin meme.

Partnerships with major companies

Perhaps one of the largest companies with which Dogecoin cooperates is Tesla and its head, Elon Musk. In particular, its director promises to allow its consumers to purchase Tesla electric cars, paying for this purchase with this coin. In addition to Tesla, many other e-commerce stores accept Dogecoin for payments.

Transfer to Proof-of-Stake

Some experts argue about plans to switch Dogecoin to Proof-of-Stake. Such a phenomenon would bring significant advantages to the environment.

Best Tools to Sell Dogecoin with Profit

Having decided when you should sell Dogecoin, it is also extremely important to choose a reliable and proven platform for investment. There are several tools you might need to sell your digital coin:

• various trading platforms – online markets available to investors;
• DogeDAO – an alternative way to earn money through staking coins;
• platforms for exchanging this coin for other assets;
• the use of cryptocurrency wallets (such as Ledger and Trezor, which are designed specifically for the secure storage of cryptocurrencies);
• the use of effective market analysis tools that allow you to make informed decisions regarding the sale of existing assets in Dogecoin;
• the ability to track cryptocurrency transactions through tax preparation tools (for example, these include CoinTracker and CryptoTrader.Tax).

Explore the features of each of the presented platforms to choose the tool that you can effectively use to sell your Dogecoin assets and receive potential profit from them.