Buying Dogecoin Using BigoMex, Is it Profitable?

Dogecoin (DOGE) is a very popular cryptocurrency in 2021. It is one of the best performing crypto assets with a large marketcap when the price went from $0,01 early in the year all the way to $0,7 during the peak in May.

DOGE grabbed the attention of Elon Musk, the CEO of Tesla. He made many tweets mentioning Dogecoin as his favorite cryptocurrency, even more than Bitcoin. His tweets pushed the price of DOGE several times, although now the price is down with the market.

Other than DOGE, other coins that are based on the dog meme also experienced a boom. If you were to simply hold DOGE, you would have made a large profit even if you still hold until now.

DOGE is one of the new cryptocurrencies tradable using options on BigoMex. With options, you can make a profit whether the price is going up or going down like in the recent weeks and months.

Right now, is DOGE a profitable trade?

Dogecoin was created in 2013 by Jackson Palmer. The idea behind the coin was a meme coin to make fun out of the cryptocurrency industry at the time. DOGE is based on the Shiba Inu meme using the face of a famous dog breed.

The technology of Dogecoin is based on Litecoin. To this day, DOGE uses Litecoin’s Scrypt based mining technology, so miners that mine Litecoin can also contribute to Dogecoin’s security.

The big difference between Dogecoin and Litecoin is that DOGE does not have a supply limit. Bitcoin has a maximum supply of 21 million coins, Litecoin has a maximum supply of 84 million coins, while Dogecoin has an infinite inflation schedule.

Though the technology is based on Litecoin, there is very little new development added to DOGE. Jackson Palmer is no longer actively involved in the project. That said, there are some developers updating the Dogecoin technology every once in a while.

Because it was made as a joke cryptocurrency and no meaningful development occurs, the price of DOGE is highly influenced by speculation. In 2021 alone, the price went up as much as 70x, giving a very profitable trade for many traders.

There were a few high profile traders who shorted DOGE when the price was high, and they made a big profit from this analysis too. You can short DOGE by using BigoMex options trading.

Interestingly, the price of DOGE/BTC shows a pattern throughout the years. There is a long term support at 20-30 sats that has become a bouncing point multiple times nearly every year since 2014.

A simple trade would be to accumulate a position when DOGE/BTC reaches 20-30 sats and then sell once the price has reached your take profit level. The price is currently around 600 sats, so any traders who accumulated at the long term support is in profit.

600 sats is currently the local support for DOGE/BTC. Traders who want to wait for the long term support at 20-30 sats may wait a long time if it ever reaches that level again.

Considering that the market is in a bear phase, it’s a good idea to wait for a clear direction before placing a long or short order on Dogecoin.

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