Ethereum vs Dogecoin. Which one is right for you?

Cryptocurrency has emerged as a popular investment option in modern times. While cryptocurrency investments can provide you with great returns, it also has high risks attached. Investing in crypto without any market analysis can be a risky affair. When it comes to investing in crypto, the first thing that matters is the choice of the currency. 

There are a number of currencies available in the market, thereby making a choice difficult. Among all the cryptocurrencies, Ethereum and Dogecoin are very popular. In order to choose the right one among the two, it is important to understand both cryptocurrencies first. 

Ethereum

After Bitcoin, Ethereum is the most popular currency in the world of crypto. Ethereum is actually a blockchain technology, and the coin that is hosted on the technology is known as Ether. While there isn’t any way to invest in Ethereum directly, there are several other options available. For instance, you can consider buying Ether or investing in the companies that leverage Ethereum technology. If you plan to invest in Ethereum, make sure you are well aware of its price and the rate of converting ETH to INR. 

Dogecoin

Dogecoin is one of the popular cryptocurrencies that is trending on the internet right now. That is exactly the main reason why the price of Dogecoin is soaring high. Dogecoin has also been promoted by celebrities on social media platforms. Dogecoin is considered to be highly risky. It has limited utility as Dogecoin is accepted by a few merchants only. So, if you plan to invest in Dogecoin, be sure to get information relating to its price and rate of converting Dogecoin to INR. 

Deciding the Right Cryptocurrency to Invest in

Apart from the basics of cryptocurrencies, there are various other factors that will affect the choice of cryptocurrency. If you are wondering how to choose the right cryptocurrency to invest in, here are some of the important factors that you need to consider.

• Total Coin Supply

The total coin supply is one of the important factors that you must consider in order to make the right choice. The supply of the coin is also known as coin issuance. It refers to the maximum number of that specific coin entering the market. On the other hand, circulation means the total number of coins that are available in the market. Having knowledge of these factors can help you decide on the cryptocurrency to invest in.

The issuance of Ethereum is unlimited. However, the issuance has a fixed schedule, thereby slowing down the production of new Ether coins. On the other hand, Dogecoin also has unlimited issuance. But still, investing in Dogecoin remains to be risky in comparison to Ethereum.

• Community

Community is also an important factor to consider. Most of the cryptocurrencies that run successfully are mainly because of their followers. Therefore, it is important to opt for a cryptocurrency that has strong community support. It mainly refers to the interest and trust in the specific cryptocurrency. The bigger the community of the cryptocurrency, the higher will its market value. In order to gain more insights into the community, you check different platforms like YouTube, Twitter, Telegram, and more.

• The White Paper

Before investing in cryptocurrencies, it is always wise to take a look at the white papers. The white papers clearly define the purpose of the coin, the vision, the working methodology, and the technology behind it. Reading the white paper will enable you to understand the fundamentals of the coins and easily decide on the right coin to invest in. 

Investing in crypto is risky. Therefore, it is important to evaluate the pros and cons of all coins and make the right choice. Moreover, when investing in cryptocurrencies, make sure to leverage trusted platforms like Coinswitch.