What Are the Advantages of Owning Dogecoin vs. Trading Dogecoin?

Like most cryptocurrency markets, or at least among the major cryptos, dogecoin is quite volatile now. The price of dogecoin has fluctuated since its meteoric ascent hit an all-time high of 74 cents.

It can be challenging to pinpoint where the meme coin is heading at this stage in the market.

Trading vs. Wallet Value

Some people want to own dogecoin in their digital wallets, and others want to trade the altcoin on a trading platform or crypto exchange. Either way, the valuations do not change. Whether you hold one dogecoin or 10,000 tokens, they are still subjected to market value.

However, whether it is trading or just owning, the method of ownership is crucial to shielding your digital asset from loss or theft.

Shielding Your Asset

So, let's say that you own dogecoin and transfer it to cold storage. It is protected from the many possibilities that could threaten your capital. However, if you trade dogecoin on Robinhood, Webull, or another platform, and the company goes bust or is hacked, you could lose all your investments.

In Conclusion

Remember, many outlets do not offer protection for cryptocurrencies, so it is imperative to check out the different features others have to offer.

As long as you do your due diligence and research, you should be fine either way.