Is It Worth Buying Dogecoin And Other Cryptos Simply Because They Trade At Low Price Points?
A single Dogecoin (DOGE) trades below $1 but a Bitcoin (BTC) will set you back more than $50,000 as of press time. Is it worth buying any cryptocurrency simply because of its price?
Cheap And Steep: There are a number of cryptocurrencies priced steeply like BTC, Yearn.Finance (YFI), Maker (MKR), and Ethereum (ETH).
BTC traded 3.67% higher at 54,801.50 at press time, YFI 20.41% lower at $44,881.05, MKR 0.45% higher at $3,348.25 and ETH was down 6.99% at $2,097.66.
See Also: How to Buy Dogecoin (DOGE)
On the other hand, there are several currencies with significant market capitalization, which trade below the $1 mark.
These include DOGE — a cryptocurrency frequently tweeted about by Tesla Inc (NASDAQ:TSLA) CEO Elon Musk — Stellar (XLM), Tron (TRX), and Crypto.com Coin (CRO).
At press time, DOGE traded 16.89% higher at $0.38, XLM traded 12.24% lower at $0.48, TRX traded 17.51% lower at $0.12, and CRO traded 12.42% lower at $0.18.
Price And Gains: Take into account medium-term gains — say from January onwards — there is no correlation between price and gains.
BTC, which is the dearest of all cryptocurrencies has risen 87.65% on a year-to-date basis. DOGE has skyrocketed 8000.12%.
See Also: $1,000 Dogecoin Investment On Jan. 1 Could Buy You A Tesla Model S — But Holding This Crypto Would Have Gotten You 4
Maker, despite its high price, has soared 465.17% in the same period, while CRO, priced in pennies, has shot up 207.6%.
Fractions, The Key: Cryptocurrency investors are not obliged to buy one whole unit of a coin. They can opt to purchase most of their favorite coins in fractions.
For example, $10 worth of Bitcoin is represented as 0.00019 BTC at press time. In fact, a Satoshi is the smallest unit of BTC and is named after the coin’s pseudonymous creator Satoshi Nakamoto. Each Satoshi is equal to one hundred millionths of a BTC.
1 BTC can be split into 1,000 millibitcoins (mBTC), 1,000,000 microbitcoins (μBTC) or 100,000,000 Satoshis.
This fractional availability means investors do not have to necessarily use price as a chief factor for buying cryptocurrencies. They could buy $10 worth of BTC or $10 of DOGE with the same ease.
Think Above The Price: As with all investments, due diligence is the key. Investors should consider the demand and supply of a coin, its market capitalization, use cases, underlying technology, and most of all their risk appetite before investing in any cryptocurrency. In short, it is not worth buying any cryptocurrency simply because it trades at a low price.
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