Dogecoin price: Three things you need to know before investing in Dogecoin cryptocurrency

Dogecoin's meteoric rise in the cryptocurrency market has staggered analysts across the world. It's now the fourth most popular crypto available, behind market leaders Bitcoin and Ethereum.

The so-called 'memecurrency' is currently trading at slightly over $0.60, which is close to its all-time high.

DOGE peaked at $0.70 on May 5, and is likely to continue rising.

It's risen by more than 1,200 percent over the past month, catching the eye of numerous investors.

But if you're looking to invest in Dogecoin going forward, it's essential that you really think about the risks.

READ MORE: Altcoins like DOGE are 'first to drop 95%' when markets crash - expert

You'll also need to be "on the pulse", added the crypto expert.

If the currency drastically dips in a short space of time, you'll need to be available to cash out while you still can.

But, it's also important that you assess whether it's worth investing in Dogecoin, compared with some of the more long-standing cryptos, he said.

For example, it's likely that Ethereum will keep rising and hit an all-time high later in 2021.

"The reason people like investing in cryptocurrencies like Dogecoin is because they feel they can turn their investment into a much larger amount in a short period of time," said Morris.

"While it's one of those investments that could go well short-term, this gambling mentality makes for poor long-term investment decisions.

"But, when it's risen by 1260 percent in the last month you can see why retail investors would be attracted to invest.

"If you're investing in coins like this you need to be on the pulse and understand the level of risk you are taking on."

Dogecoin started out in December 2013, and has since been valued at £12.5billion ($17.7billion).

Creators Billy Markus and Jackson Palmer invented the cryptocurrency as a joke, hoping to make an online payment system that was free from traditional banking payments.

Over the past year, Dogecoin returns have increased almost 3,000 percent.

Dogecoin's value could rise even further over the next few months, it's been predicted.

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