No cryptocurrency has had a wilder 2021 than dogecoin. For a few months in early spring, the headlines were full of stories of newly-minted Doge millionaires. Dogecoin’s value increased 1200% in the first half of 2021.
Commodities with volatile valuations like dogecoin are hard to predict. If you asked experts in 2020 what they thought about doge, the most optimistic would say that it could maybe hit $0.10. At its peak, the dogecoin to USD conversion rate reached $0.70.
Dogecoin value has cooled significantly since then. As of early August 2021, the currency sits at around 23 cents per token. That amounts to a more than 70% decrease during the span of a couple of months.
These dramatic swings in value make knowing when to sell dogecoin difficult. The token’s rapid decline in value has some analysts predicting its demise, but other cryptocurrencies have rebounded from even worse crashes before.
Should you sell now, or is another bonanza just around the corner?
If this whole article has seemed like nonsense so far, you might be asking “what is dogecoin?”
Two crypto enthusiasts, Billy Markus and Jackson Palmer, created the currency in 2013 as a humorous send-up of cryptocurrencies like Bitcoin. They named it after the popular doge meme, taking the iconic Shiba Inu photo as their logo.
Dogecoin went viral right when it was released, increasing in value and getting shared around the internet and news media. After the initial wave of popularity died down, the token’s value plunged under one cent, where it has stayed for the majority of the coin’s lifespan.
Historically, the two things that tend to increase doge’s value are media coverage and celebrity endorsements. In the years between 2013 and 2020, the coin went through several cycles of hype-fueled mini rallies and crashes.
The great dogecoin boom in 2021 was a larger version of this same media cycle, as mentions by celebrities like Elon Musk and Gene Simmons caused demand to skyrocket. This buying frenzy inflated Doge’s value, but once the excitement wore off, the price started to sag again.
When to Sell Dogecoin
When you should sell dogecoin depends on your investment situation. One classic piece of investment advice is that you should sell any commodity once it reaches the goal you set for it. If you bought doge in early 2021 and made the payout you hoped for, now would be a good time to sell.
Finding a more appealing cryptocoin is another good reason to sell your dogecoin. Doge is inflationary and easy to mine relative to other cryptocurrencies.
This means that the supply of doge increases every day, which has a dampening effect on value. Other cryptocurrencies are much more difficult to mine, which means they have more potential to quickly gain value.
Dogecoin Prediction 2021
Dogecoin’s biggest fans hope that the coin could someday reach a $10 value. The organization behind the currency announced that they were forming a Dogecoin Foundation to help the coin grow. The billionaire Etherium co-founder Vitalik Buterin will take the helm and steer doge through its transition from joke currency to serious commodity.
With serious leadership, doge might be able to recover from its recent struggles and gain value again. If you’re wondering when to sell dogecoin, you might want to wait and see what happens!
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