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Select examines meme cryptocurrencies, which have become a mainstay of the crypto economy to sell bitcoin in Dubai. The cryptocurrency community enjoys memes, and one of the industry’s faves is Doge, which combines the Shiba Inu dog Kabusu with bright typefaces and childish phrases like “such awe” and “extremely care.” With the debut of Dogecoin, which was founded as a joke in December 2013, a whole new crypto category was born: meme coins, which are cryptocurrencies that are associated with an online joke or pop cultural reference.
Following the introduction of the Doge meme, Dogecoin spawned an avalanche of coins sporting the likeness of the adorable canine, making it the most often used meme for these sorts of cryptocurrencies. As a result, a more particular subcategory of meme coins has emerged: dog-themed coins.
Most retail investors will be acquainted with them, as considerable amounts of speculation on the new subcategory of meme coin, Shiba Inu and Dogelon Mars, occurred in 2021. After tweeting about his interest in and support for Dogecoin, Tesla creator Elon Musk was a crucial reason why this cryptocurrency soared and grew last year.
Other meme currencies outside of the dog-themed coinage niche include Pepe Cash, which is based on the Pepe the Frog mascot, and “HODL” (hold on for dear life), which is derived from the crypto rallying cry to keep your coins at all costs, especially during a market slump.
Dogecoin’s Brief History
Dogecoin is widely regarded as the original joke coin, and while it was initially intended to mock the reckless speculation that thrives in cryptocurrency markets, it swiftly grew into its own community and will also be easy to sell BTC in Dubai. Dogecoin was seen by crypto fans as a means for new investors to learn about and play with the technology without having to worry about the greater stakes that come with Bitcoin, which had recently broken $1,000 per coin at the time.
Dogecoin was therefore marketed as a “fun and friendly online money.” In comparison to the Bitcoin community, the Dogecoin community was less concerned with the cryptocurrency’s price and more interested in seeing the coin used in the use cases advocated as critical for cryptocurrency in general.
For example, a number of Dogecoin-tipping bots were developed on social media networks, allowing users to transfer modest sums of the cryptocurrency to someone if they liked their post. Dogecoins were also used to collect funds for various noble causes, like assisting Charity: Water in the construction of a well in Kenya and sending the Jamaican Bobsled Team to the Sochi Olympics after they qualified but could not afford the trip.
The dangers of investing in meme coins
While Dogecoin may appear to be a lighthearted initiative, investing in this form of cryptocurrency or other meme currencies like it entails some risk.
Some meme coins have a significant market capitalization, however in other situations, the price per coin skyrockets hundreds of percent in a matter of days, making some investors wealthy and effectively communicating to others that they, too, may be able to do so.
It’s also worth mentioning that these meme-based cryptocurrencies aren’t normally genuine, meaningful initiatives, as they’re frequently established by copying and pasting code from another sort of coin. They also lack strong development communities, which aid in keeping them safe and technologically current.
Furthermore, many meme currencies are owned by tiny groups of people who have huge, market-moving amounts of it to sell or buy cryptocurrencies as well as thin liquidity pools. As a result, their prices are very variable, heavily affected by social media attitudes and “FOMO” (fear of missing out). As a result, meme currencies are particularly vulnerable to pump-and-dump scams, in which a single or group of significant coin holders hypes up the currency, convincing others to purchase and inflate the price before selling all of their holdings on the market.
While that specific individual or group will end up making big returns, a hasty sale might tip the market into the negative, leaving everyone else “carrying the bag,” as they say in crypto. Unaware investors who expected the price of their coins to grow wind themselves with tokens worth significantly less than what they bought.
Purchasing meme coins
Even though meme coin markets can be quite unpredictable, some investors prefer to invest in them regardless. Investors may acquire meme coins on many of the same platforms they’d use to purchase more serious cryptocurrencies like Bitcoin and Ethereum, whether they’re interested in timing market surges to earn money or just want to participate in a goofy, crypto-insider market.
Dogecoin, the oldest and most well-known meme coin, may be purchased, sold, and traded on leading cryptocurrency exchanges such as Coinbase, Gemini, and Binance. Traditional stock investing and trading companies, such as Robinhood, WeBull, and SoFi, have begun to allow its customers to trade in cryptocurrency, including Dogecoin.
Slips of paper carrying private keys containing hundreds, if not thousands, of Dogecoins were distributed at crypto events and parties when Dogecoin was originally introduced in order to encourage more people into the community. If you got a paper wallet with 500 Dogecoins in December 2013, valued at roughly 20 cents at the time, and the cryptocurrency reached an all-time high of around 70 cents in May 2021, the wallet would be worth around $353.
Shiba Inu, another dog-themed cryptocurrency, is also available on similar controlled trading sites, although more esoteric meme currencies cannot be easily obtained this way. Instead, to purchase these lesser-known currencies, prospective investors will need to join up for additional exchanges or learn how to use decentralized exchange systems.
Dogelon Mars, for example, is available on Crypto.com, KuCoin, and OKX. On the decentralized exchange Uniswap V2, there is also a wrapped ether pair.
Should you buy meme coins?
Make sure you have a sound financial foundation before investing in cryptocurrency, particularly meme coins. You should have set up an emergency fund that can cover three to six months of living expenses as well as pay off any high-interest debt, such as a credit card. Furthermore, if you have a 401(k)-retirement account with an employer match, you should focus on contributing enough to receive the match.
Investing in meme coins may be advantageous depending on your risk tolerance to sell Bitcoin in Dubai with cash. Meme coins can provide a minimal initial investment and large rewards to investors that trade on a regular basis and have the leisure to constantly monitor the markets. Nonetheless, investors should be aware of the hazards involved and conduct their own research regarding any individual meme currency they choose to trade. Consider the possibility of losing virtually all of your initial investment.
Meme coins are not suited for people who want to engage in cryptocurrencies as a hobby or store money long-term, and it may make more sense to go with more solid cryptocurrency investments such as Bitcoin or Ethereum. Even these more established cryptocurrencies, however, are subject to significant volatility.