Dogecoin, although initially designed as a meme, has since gone on to become a viable trading token for many investors. Its cheap, entry-level price, high demand and wide range of uses have even been backed by Elon Musk. With very little return on investment based on historic records demonstrating a slow performance, could DOGE be worth investing in, and would $500 be enough to provide a substantial return on investment (ROI) for new and experienced traders alike?
What is Dogecoin?
In the simplest of terms, Dogecoin, or DOGE when used as an abbreviation, is a type of cryptocurrency. It wasn’t developed in a serious manner, instead being created as a meme. As briefly mentioned above, what started as a semi-serious token went on to become a viable trading asset, with millions of dollars (USD) transacted with each day and DOGE being responsible for high levels of trade across a variety of crypto exchanges. The current Dogecoin price is $0.065 USD, which is less than a cent.
Dogecoin Viewed Historically
The token has only been in digital circulation for 5 years and in that time, its value has never climbed over $1 USD. At its peak, the price for a single token was $0.64, which is 100 times its current value. Even with celebrity endorsement, branding and a wide level of availability, this token has struggled to find itself being valued at all.
Experts expect this to change, however, with some estimating the value of a single token to climb to over $2 USD by 2032, or in roughly a decade. To most, this might not seem like an appealing opportunity, but for those that understand the mathematic potential, they will likely see the possibility of making a huge return on their initial investment.
Investing $500 in Dogecoin
For just $1 USD, roughly 16 tokens of DOGE could be purchased. For $10, 160 DOGE could be bought and for $500, about 8,000 could be received. If the historic index of DOGE is considered, there can be a chance to identify the likelihood of a profit, and if so, an estimate of when. For instance, Dogecoin’s peak was in 2021, and dropped by more than half by 2022.
Things then worsened for the token in 2023, whereby the value reached its lowest outside of when the coin was first introduced to the world.
If this data is anything to go by, the likelihood of DOGE climbing again is very small – at least that is what the charts would indicate. Studies undertaken by experts have revealed one interesting characteristic about DOGE that charts simply can’t identify, however, and that’s the ability of this coin to remain present within a market that it never belonged to.
The DOGE NFT ranks within the top 1000 cryptocurrency NFTs. Given its low cost, the position of 996 is still quite impressive. As it has been entered into global databases as a non-fungible token type, it will remain there and cannot be removed. This entry alone can help to secure the presence of DOGE, but it also goes even further than that.
As Dogecoin has been endorsed by Elon Musk, it also has the benefit of being vintaged. Over time, any tweets, comments, media and publications that Elon Musk made will act to add to the value of DOGE, even if it is only in a metaphorical sense. As collectors are keen to get their hands on anything worth keeping, there will undoubtedly be a day when Dogecoin finds itself in demand by an entirely new generation of traders.
The Potential for Profit
In the long-term, I.e. within the next decade, Dogecoin may not increase by value too extensively, but it will still undergo a rapid improvement to where it is currently situated. And even a small increase to its value could yield great results for a trader – especially if they followed the above example, or a similar one and invested $500.
What may have initially cost $500 could see a huge return on investment, especially if 8,000 tokens were purchased. Even if their value was to double to $0.12, this would result in a profit of $500 when sold for $1000. If this amount climbed back to its peak of $0.64, this would provide a profit 5 times over, or roughly $2,500.
As experts believe that Dogecoin could even climb to $10 in years to come, the return on investment could be even higher. Of course, there are other options than spending $500, but this is a good ball-park figure according to experts, some of which even recommend spending $1,000 on DOGE, because it combines a low investment budget, with a high-yield should it bring home a return.
Most investors will have $500 to play with, and even those that don’t could stand to benefit by investing a lower amount. The key is to find an amount that suits a particular budget, whilst ensuring that should Dogecoin increase in price, the return on the initial sum used to purchase the tokens is substantial enough.
According to leading experts and traders, Dogecoin is still a viable option to invest in, although most will recommend doing so for the long-term. As a short-term solution, there isn’t much to be made from trading DOGE as the current value is under a cent (USD), and so even high volumes of tokens would only amount to a relatively low profit. On the other hand, if the low cost is taken advantage of right now, then when the inevitable price increase does occur, which experts predict to happen in the next 10 years or so, the return on investment will be much greater. When planning a long-term investment strategy, many traders have turned to DOGE, Cardano and Ripple as these low-cost, high-probability tokens will likely return an appealing amount when it comes time to sell them, and even if they don’t they are so affordable that the loss should be fairly minimal.
