What Is Baby Doge?
Baby Doge is a decentralised meme project inspired by Dogecoin. Its improved transaction speeds and rewarding token economics have seen it attract a strong following, gaining more than 250,000 holders and a market cap of over half a billion dollars in its first three weeks.
There is a 10% fee for every BabyDoge transaction, half of which is sent to PancakeSwap in the form of BabyDoge and BNB to ensure there is always sufficient liquidity for the BabyDoge/BNB trading pair.
The other half of the fee is redistributed to all BabyDoge holders, incentivising long-term investment in the project. Also, some of the redistributed tokens are burned (permanently removed from circulation), making the token deflationary.
The project has partnered with CoinPayments.net to enable online payments in BabyDoge, and there is a dedicated BabyDoge charity wallet for supporting good causes. There are also plans for a Baby Doge credit card, a decentralised swap feature, and a non-fungible token (NFT) marketplace.
Ways to Invest in Baby Doge
BabyDoge may be suitable for both short-term and long-term investors. Which path you choose will come down to your level of experience and your investment goals. We’ll look at what each option entails below.
Buy and hold Baby Doge
As you might have guessed, this strategy involves buying Baby Doge Coin and holding onto it. The benefits are that it doesn’t require much skill, time, or effort, so anyone can potentially make a profit from buying and holding.
Another benefit of buy and hold is that the redistribution of BabyDoge means that you will accrue more tokens in your wallet simply by holding BabyDoge.
Best Baby Doge wallets
Self-custodying tokens in a private wallet is a popular storage solution among long-term holders. It can be more secure than the alternatives and means you don’t have to rely on a centralised service to access your tokens.
Hardware wallets like Trezor, BitBox, and Ledger are the most secure place to store your tokens, but you will have to pay for this level of security. Software wallets provide a less secure alternative but are free, user-friendly, and can be downloaded for PC or mobile.
Trade Baby Doge
Traders can take advantage of BabyDoge’s volatility to generate more frequent profits by buying and selling BabyDoge more often. This will require a greater commitment in terms of time and effort, while skills in technical analysis would also be valuable.
If you are going to be trading your tokens regularly, a private wallet may not be the most suitable storage option as regular transfers can be cumbersome and costly. Though less secure, web wallets provided for free by exchanges may be the most convenient option.
Should I Buy Baby Doge Now?
This is something you will have to decide for yourself once you have done the necessary research. BabyDoge has a capped maximum supply and more than 40% of it has already been burned. With every BabyDoge transaction, 5% is redistributed to all BabyDoge wallets, which includes the burn wallet. This means that the supply reduces over time, which could increase the value of BabyDoge.
The redistribution of tokens also creates an incentive to buy and hold BabyDoge for the long term. This could mean a smaller supply available on the market and could potentially drive up BabyDoge price.
BabyDoge has the attraction and strong community spirit of a meme coin, but its plans for a credit card, decentralised swapping, and e-commerce partnerships give the coin real utility and could help the project achieve longevity.
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