Dogecoin -- what it is and how to use it for trading
This article explains what Dogecoin is, how it's used in trading, and how to manage your DOGE assets -- including how to sell Dogecoin, how to cash out Dogecoin, and trade it on Pocket Option.
What is Dogecoin?
Dogecoin is a cryptocurrency launched in 2013, originally inspired by the Doge" meme. Despite its humorous origin, it became widely used for fast, low-cost digital transactions. Unlike Bitcoin, it has no supply cap, making it inflationary. Dogecoin can be traded, invested in, or used for tipping online content.
How does the currency quote work?
In trading, a quote like DOGE/USD = 0.087 shows that one Dogecoin equals 0.087 US dollars. In this pair, Dogecoin is the base currency, and USD is the quote.
This means when you buy, you exchange USD for DOGE. A higher rate means Dogecoin strengthens against USD.
Example: If DOGE/USD = 0.087, $1 buys around 11.5 DOGE. In this case, the USD is stronger -- it takes more Dogecoins to equal one dollar.
What influences Dogecoin price movements?
- Social media trends -- Mentions by figures like Elon Musk can significantly affect the price.
- Market sentiment -- General optimism in crypto markets can increase demand.
- Regulatory updates -- Legal changes often impact market dynamics.
- Supply and demand -- As supply is unlimited, demand strongly drives the price.
- Bitcoin correlation -- Dogecoin often follows Bitcoin's trend patterns.
Example: In 2021, Dogecoin surged after viral tweets and Reddit discussions.
How to interpret Dogecoin price trends
If DOGE/USD rises from 0.080 to 0.095, Dogecoin strengthens -- it takes more USD to buy one DOGE.
If the rate drops to 0.070, Dogecoin weakens against USD.
Tip: Watching chart patterns and staying informed through news can help you create a forecast about future price movements.
Tutorial: Quick Trading Dogecoin on Pocket Option
- Search for Dogecoin in the asset list -- use "Dogecoin OTC".
- Open the chart and activate tools like sentiment indicators.
- Select your amount -- trades start from $1.
- Set trade duration -- from 5 seconds and up.
- Make a forecast -- if expecting growth, press BUY; if expecting decline, press SELL.
- Profit potential -- earn up to 92% on correct outcomes (shown before confirmation).
Even beginners can start easily. Pocket Option allows demo access, or live trading from $5 (deposit may vary depending on payment methods).
Try Without Risk -- $50,000 Demo Account
Once registered on Pocket Option, you'll receive a $50,000 demo account to:
- Practice how to sell Dogecoin and other crypto trades
- Test strategies without financial risk
- Explore features like copy trading and charts
When ready, switch to live trading from $5 (deposit may vary). Gain access to:
- Copy trading tools
- Cashback on trades
- Participation in tournaments
- Advanced charts and indicators
