Dogecoin is a cryptocurrency, and it was created in 2013 as a joke by a couple of software engineers who decided to make a payment method other than traditional banking and is free of all costs associated with it. Dogecoin had a difficult last month with value falling well below the 20 Rupee mark and went down to 16 rupees at its worse. As the news spread that Elon Musk backed up Dogecoin, its value surpassed expectations growing close to 50% in value within the last few days. It is a cheaper and safer bet if one want to get into cryptocurrency and are not having huge capital to support the giants like Bitcoin and Ethereum.
The Robinhood app is one of the top ten downloads at the apple app store, and its popularity can easily be linked to the success of Dogecoin and other cryptocurrencies that this app lets trade. The surge has captured the attention of many investors from Wall Street and all across the globe. As more and more investors are now inclined towards trading cryptocurrencies, the value of individual cryptocurrencies like dogecoin, ether, and bitcoin are all at record highs. This sudden splurge of traffic on the Robinhood trading app resulted in the app collapsing the trading division completely. In recent reports from the Robinhood development team, they reported that they are working on fixing the trading division as soon as possible.
Due to the increasing institutional interest, investors are trying not to miss out on the momentum built up due to the recent discussion on Dogecoin by Elon Musk on Saturday Night Live. This leads to a rise in the value of Dogecoin significantly because the buzz is created by recent critics. Experienced crypto traders have warned that the surge is unsustainable, and the highs may be short-lived as the prices of cryptocurrencies depend on the investments and the rallies that may or may not be in favor of a particular trade currency. Cryptocurrency has become a new asset category, but the sudden surge and drop in the value of these currencies suggest that the hike in prices is short-lived, and investing in these can be a very expensive gamble.
Even though stakes are high, and investments in new-age cryptocurrencies can be very rewarding, at the same time, it can be the cause for significant losses if not handled smartly. Investors who are trading cryptocurrencies look for any momentum that is happening in the market and strategize their purchases on various trading platforms, including the Robinhood trading app.