Dogecoin's popularity phenomenon
Dogecoin (DOGE) is a popular cryptocurrency. Often, the decision to purchase Dogecoin is motivated by the memetic image of the Shiba Inu featured on the cryptocurrency's logo. Dogecoin investing has been possible since 2013 when the currency was created by Billy Markus and Jackson Palmer as a fork of Litecoin.
Elon Musk, the billionaire and visionary, has mentioned Doge several times in his tweets, including calling it his favorite cryptocurrency.
These social posts have contributed to the fact that DOGE has already been featured more than once in CoinMarketCap's top 10 rankings.
How much profit can investing in Dogecoin bring?
DOGE was created as a joke, but the current capitalization shows that this cryptocurrency has long ceased to be a joke and Dogecoin investments can bring wonderful profits even without using any unique blockchain technology. Of course, it is difficult to predict what the future price of any asset will be, but history shows that optimism about cryptocurrency prices in the long term can pay off.
Dollar Cost Average Dogecoin
It is not possible to buy Doge at the best price, because no one can determine the end of the price bottom. With help here comes Dogecoin dollar cost averaging (DCA). This is probably the best strategy for investing in Doge if you are optimistic about its future price.
DCA is a method of regularly buying a certain asset for a certain amount. An example DCA strategy for Dogecoin could involve, for example, weekly purchases of Dogecoin for $100.
It is known that each week the price of DOGE will be different, but by buying it at different times at the current price the average purchase price is favorable in the long term if, of course, market sentiment is positive.
The experience of investors around the world shows that the DCA strategy allows you to earn more than the traditional buy and hold.
In addition, DCA Dogecoin allows for independence from unfavorable timing, or to put it simply, buying at the top for all the investable capital. This strategy saves the time needed to carefully analyze the timing of the transaction. It is also easy to implement and conduct disciplined trading by regularly and responsibly buying more DOGE.
The Dogecoin Profit Calculator is an incredible tool for anyone interested in investing in Dogecoin. It's simple to use and can assist you in making informed investment decisions. Give it a shot right now!
Dogecoin Profit Calculator
Let's now do a small simulation using the Dogecoin Profit Calculator, which is available on our website. With the help of this tool, you will determine what number of DOGE you have in your possession, and find out the average cost of acquiring a single Dogecoin and the total cost of your investment.
The calculator requires you to enter your initial investment and subsequent investments.
How to use the Doge calculator
Let's assume that I initially bought 1,000 Dogecoins at $0.075. If I enter into the calculator Number of Shares (1) equal to 1000, Avg Buy (2) which is the average price of this purchase equal to 0.075, the calculator will calculate that my investment cost $75 (3). Of course, this was simple and quite obvious to count. Let's move on.
How to calculate multiple Dogecoin investments
Let's say that after some time I buy back 1,000 DOGE at 0.07. In the calculator in the Next Investment section, I simply enter the next transaction data stating how much Dogecoin I bought and what the price was.
By clicking the Add button I can add more investments. So I will add one more. It will be a purchase of 500 Dogecoin at 0.068. As a result, we get what our Doge calculator shows below.
As you can see, after 3 investments we own 2500 Dogecoins with an average purchase price of $0.072. The total value of the investment, or the total cost of acquisition, was $179 in total.
If we had spent the same money one time in the beginning to buy Dogecoins, this amount would have allowed us to buy about 2387 units. Breaking the investment into smaller tranches makes it possible to disperse the risks that weigh on a one-time purchase.
How do you calculate Dogecoin profit?
Now after using the Dogecoin calculator, we know that we own 2500 Dogecoins and they were bought for USD 179. If, for example, the price of DOGE rose to 0.09, then we have 2500 x 0.09 = $225.
In other words, our Dogecoin investment earned a net profit of $46 (225-179=46). In terms of the total cost of purchase, this earned us a profit of about 25.7% (46/179*100%) and this is our return on investment.
Dogecoin to Fiat Calculator
Using the Dogecoin to Fiat Calculator, which you can find on our website, you can quickly calculate the current value of your Dogecoin investment at any time.
All you need to do is enter the number of DOGE you have, and the Dogecoin calculator will calculate their value based on current exchange rates.
Where will Dogecoin be in 5 years?
If i bought dogecoin calculator
In addition to investment purposes, DOGE is used for tips on Reddit and Twitter. Thus, it is an asset that has found real use in micropayments. Dogecoin's total supply is uncapped, so there is no limit to how many coins can be mined.
The mining itself is available to anyone. However, it is difficult to assess where DOGE will be in 5 years. By the way, the same is true of all cryptocurrencies and other assets not necessarily related to blockchain technology.
What is the ATH of Dogecoin?
ATH stands for All Time High which means it is the highest price an asset has reached. Dogecoin's ATH took place on May 8, 2021, and the price of DOGE at that time was $0.731578.
What is the ATL of Dogecoin?
ATL or the lowest price that Dogecoin has recorded is $0.000087. That's how much DOGE cost on May 6, 2015. This alone, together with the relatively high ATH, indicates the high volatility of this cryptocurrency.
Will Dogecoin ever reach $1?
This, of course, no one knows. For Dogecoin fans, $1 is such a dream target level. DOGE was already close to $1 in 2021 when DOGE hit its ATH. Nothing prevents it from returning to this area someday. Crypto-optimists believe that the next bull market could make the price of DOGE reach $1 or even more. The gain if the price rises to one dollar will, of course, depend on the purchase price.
How to invest and trade Dogecoin
Dogecoin is available on the most popular cryptocurrency exchanges. Due to its popularity, many traders trade it. It is an asset used by scalpers, day traders and long-term investors. High volatility means that profits from speculating on DOGE can be very high. Of course, losses as well.
DOGE is a highly liquid asset, so there is no problem when you want to buy or sell it. The other side of the transaction will always be found.
Calculation of long-term investment in Dogecoin
History shows that long-term investment in Dogecoin can be very lucrative. Just imagine what would happen if you bought DOGE at $0.00009 near the 2015 bottom. In 2021 with ATH near $0.7 you would have a very large profit.
Such a change would make $1 invested a sum of $777 (0.7/0.00009=7777.77...). Amazing return on investment, isn't it? Of course, there is no guarantee that history will repeat itself. It is also very difficult to achieve such precise timing. It is practically impossible to buy at the bottom and then sell at the price peak.
Invest in Dogecoin smartly using the DCA strategy
Crypto is becoming more popular by the day. The movement initiated by the creation of bitcoin is steadily gaining a crowd of new supporters.
As we indicated earlier, investing in crypto can pay off. The previously calculated ROI is impressive, and multiplying capital with cryptocurrencies seems easy. However, in order to properly invest in Dogecoin, you need to be aware of the risks associated with the cryptocurrency market. The aforementioned volatility is the driver of potential profits, but the same mechanics are responsible for serious losses experienced by some investors. So keep in mind that your initial investment will not necessarily result in a big profit. Invest only the money you can lose without hurting your household budget.
With the DCA strategy, however, it is possible to invest in Dogecoin wisely.
Dollar Cost Average Dogecoin strategy
Let's say that after some time I buy back 1,000 DOGE at 0.07. In the calculator in the Next Investment section, I simply enter the next transaction data stating how much Dogecoin I bought and what the price was. By clicking the Add button I can add more investments. So I will add one more. It will be a purchase of 500 Dogecoin at 0.068. As a result, we get what our Doge calculator shows below.
DCA is all about creating a favorable purchase price. It is known that the price of Dogecoin fluctuates, sometimes it is more expensive, sometimes it is cheaper. Using DCA, you don't pack all your money to buy a coin in one transaction. You gradually buy in so that you don't risk buying at the top.
Dogecoin calculator for DCA strategy
On our site, you will find a Dogecoin calculator that will allow you to simulate a DCA strategy on historical data.
The calculator allows you to select a coin for investment (1). You also need to enter what amount (2) and at what frequency (3) was deposited. The Dogecoin accumulation time (4) and when the strategy started (5) must also be specified.
In addition, you can see the performance of the strategy on other coins and compare the ROI with the Dow Jones Index. You can also share the results of the Dogecoin profit calculator simulation by sharing it on Twitter or on other social media by copying the direct link.
Dogecoin Dollar Cost Averaging Automation
If you want to learn about automated DCA investing with 3commas DCA bots, we have a free course that can teach you everything you need to know. This course will teach you how to set up your account, configure your settings, and begin trading.
You will also learn about the various types of bots and how to use them to your advantage. You will have a solid understanding of how to use 3commas and other similar bots to make money from your investment by the end of this course.