Dogecoin is a cryptocurrency. It’s not equity or a share. That’s why Dogecoin is not traded on the stock market, such as NASDAQ or NYSE. Cryptocurrency trading is similar to forex trading.
It is, however, traded on the crypto exchanges such as Binance, Kraken, Bittrex, or Crypto.com. You can also purchase Dogecoin on Robinhood. Coinbase does not support Dogecoin.
When we purchase a share of a company, we own a piece of that company. It’s a document that gives us ownership of that business.
On the other hand, Dogecoin is money. So, if we buy a few Doge, we are buying currency. Not company share nor a technology. For example, when we exchange the US dollar for Euro, we are not purchasing any shares. We are buying Euro in USD.
Like the money exchanges (USD-EURO) we encounter at every international airport, crypto exchange companies allow us to purchase Dogecoin through various means, such as USD, Bitcoin, Litecoin, Ethereum, etc.
Calling Dogecoin a share is wrong. Sometimes Dogecoin buyers say that “I bought 100 shares of Dogecoin.” This statement is not correct. It’s a digital currency, not equity.
When we purchase a company’s share, those shares stay in our brokerage account until we sell those or transfer them to another brokerage account.
We, however, never recommend you to keep your purchased Dogecoin on the crypto exchange wallet. Please transfer those to your personal wallet for security purposes.
Cryptocurrency is entirely deregulated. If an exchange gets hacked, you will lose your coin forever. There’s no way to reverse those hacks. Besides, Cryptocurrencies are not FDIC or SIPC insured.
Furthermore, if you have options, don’t use Robinhood to purchase Dogecoin. Robinhood does not give you access to your wallet. They will not allow you to withdraw those coins. What’s the point of owning a currency if you can’t spend it anywhere because of Robinhood restrictions?
If you want to invest in Dogecoin, please remember that Doge does not have a supply limit. Each year 5 billion coins are added to the Dogecoin network. On the contrary, Bitcoin has a supply cap of 21 million.
Bitcoin is deflationary, whereas Dogecoin is inflationary. Here is a table of Dogecoin’s total supply and inflation rate until 2100.
|Year||Estimated Dogecoins||Inflation rate|
Can Dogecoin rise like Bitcoin? We believe so. If Bitcoin grows from $60,000 to $100,000, the total price increase is 66.67%. On the other hand, if Dogecoin rises from $0.06 to $1, the total price increase is 1,566.67%. Moreover, the market cap would increase from $8 billion to $130 billion.
Similarly, when Bitcoin hits the $100,000 price mark, its market cap would be approximately $2,100 billion. $130 billion for a crypto market cap is not unimaginable. It’s easily achievable. It’s why we believe Dogecoin can rise like Bitcoin.