Meme coins have always been an exciting part of the crypto industry, offering high-risk, high-reward opportunities. But not all of them are the same in terms of performance and popularity.
Some meme coins have succeeded in capturing enthusiasts’ hearts, and they are so well-established that it’s just too hard for other coins ever to take their place. For example, Dogecoin succeeded in standing the test of time, surviving many bull and bear markets throughout the years – although it was initially intended as nothing more than a joke.
Dogecoin has gained widespread recognition, and for many investors, it is the go-to meme coin. There’s, however, another meme coin that is getting the headlines these days: the $trump coin, launched by Donald Trump, which saw massive success in a very short time.
This meteoric rise has positioned the coin as a contender to challenge the dominance of Dogecoin in the meme coin industry, so investors cannot help but wonder which of these two meme coins is a better investment. Let’s take a closer look at the two meme coins and their potential in the market.
Dogecoin: The first meme coin with robust community backing
Dogecoin is the first meme coin that has successfully become a top 10 cryptocurrency and multibillion-dollar asset. Its appeal comes primarily from its historical performance, which often correlates with Bitcoin. When Bitcoin’s price goes up, extra liquidity also triggers a positive momentum for Dogecoin, making it a predictable meme coin investment.
Dogecoin stands out for its unique features, including unlimited supply, which guarantees a steady rate of coin creation, thus preventing the scarcity associated with digital assets.
Furthermore, it has low transaction fees, making it suitable for microtransactions and small payments. Dogecoin’s cost-effectiveness provides a great advantage over other payment methods and even many of the other crypto projects, which makes it ideal for tipping a content creator or donating to charity. This efficiency has contributed to its popularity, particularly for online communities.
But perhaps the most defining feature of Dogecoin is its supportive and vibrant community, which embodies the ethos of the coin by doing all sorts of philanthropic activities.
This robust social backing is one of the primary reasons why Dogecoin has long been the reigning champion in the meme coin space, and continued to maintain its relevance even in times of high volatility.
Official Trump Coin: A novel meme coin with strong branding
The Official Trump meme coin launched on January 17, catching the attention of market enthusiasts and becoming one of the largest meme coins, as it achieved an impressive market cap.
Its biggest strength is that it is tied to Donald Trump, a globally recognized political figure, and given that Trump is known to be pro-cryptocurrencies, some investors believe that this coin is here to stay – particularly if the regulations of digital assets will loosen.
While the Official Trump coin may not benefit from Dogecoin’s years of viral marketing, it distinguishes itself because it bears the name of the president of the U.S. During a pro-crypto administration, having the support of the president means that it wouldn’t be possible for Trump’s coin to go to zero.
In fact, it could catch a significant tailwind provided that the actions of the president cause meme coin enthusiasts to buy the coin, and this is a dynamic that could last for the four-year term.
However, politics can be volatile, and just as Trump’s influence could boost the price of the coin, his actions could also lead to a dramatic decline in price. Moreover, many investors prefer to stay away from politically driven assets, so this could limit the long-term scalability of the Official Trump meme coin.
While TRUMP ETFs are currently under consideration for approval, there are no guarantees that they will actually be approved. Ultimately, the growth of the coin relies solely on Trump‘s influence, which makes it a riskier bet than other meme coins.
So, which of the two meme coins should you buy?
Between Dogecoin and Trump’s Official coin, the former is likely the better option if you want to avoid political risks and seek a coin with an established price action pattern.
However, if Trump’s official coin appeals to you regardless of the risks involved, you could gain an early entry advantage and potentially yield substantial returns if the value of the meme coin rises further.
It only remains to be seen how things will unfold in the meme coin space, but it is clear that the debut of this meme coin marks a significant moment in the evolution of the crypto market, and it will likely influence discussions about political branding and regulation.
When deciding which of the two meme coins you should buy, it’s essential to assess your risk tolerance and investment strategy, as these factors are fundamental in making an informed decision. Risk tolerance is different for every investor; while some may be comfortable with high-risk coins such as Trump’s official meme coin, others may prefer a safer option, such as Dogecoin, which is more well-established.
There are a few factors to help you determine what your risk tolerance is, such as the time you want to lock your investment without needing that cash for expenses, your current financial situation, your skills, experience, and knowledge, your investment goals, your age, and emotional factors.
If you’re the type of person who can’t handle uncertainty, this means you have a low-risk tolerance, and in this case, investing in Trump’s Official coin is likely not the best choice for you.
Ultimately, every investor is different, and deciding whether to buy TRUMP coin or DOGE depends on a personal choice that depends on various factors, and there won’t be a general answer.
If you do decide to invest in the TRUMP coin, make sure that your portfolio is sufficiently diversified with safer investments beforehand, as this will help you mitigate potential losses if the value of the coin goes down.
The bottom line
TRUMP coin has garnered significant market attention, raising the question of whether it is a better option than Dogecoin. As seen in this article, this novel meme coin has its appeal, but it also comes with significant risks, which you need to be aware of before investing.
If you’re looking for stability, Dogecoin is a safer option, although it is slow-growing. Take the time to research and assess your personal circumstances before you put your money into any of these two meme coins, and remember to diversify.
