CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Dogecoin (DOGE) soars as Tesla to accept meme crypto for `some merch'

By Indrabati Lahiri

12:57, 14 December 2021

Image of dogecoin
Musk’s preference for dogecoin is largely due to its speed per transaction – Photo: Shutterstock

After Tesla’s recent trial with accepting bitcoin as payment for its cars, CEO Elon Musk has now tweeted that the company is looking into accepting the cryptocurrency dogecoin as payment for select merchandise.

Following the announcement, dogecoin gained approximately 20% in the course of an hour, settling on an increase of about 15.2% over the day.

The company’s shares had slumped recently after Musk announced that he would begin the process of divesting 10% of his stake in Tesla.

Image of Dogecoin chart Dogecoin gained about 20% in the course of an hour – Credit: TradingView

Dogecoin, a meme-based cryptocurrency initially intended as a joke or parody cryptocurrency, has since seen immense popularity, with celebrities such as Snoop Dogg and Gene Simmons investing in the coin. It is now considered one of the largest meme cryptocurrencies in existence. Its surge following Musk’s tweet caused its market capitalisation to surpass terra and polkadot, with speculations of it passing XRP as well.

BTS/USD

0.01 Price
-0.980% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.0005306

LUNC/USD

0.00 Price
+17.600% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.00000338

BTC/USD

38,442.90 Price
+1.730% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

XRP/USD

0.61 Price
+0.080% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

Musk’s preference for dogecoin is largely due to its speed per transaction, which he feels makes it ideal for becoming another means of payment. Bitcoin, on the other hand, is more expensive when it comes to transactions.

The cryptocurrency world has been volatile this past year following Musk’s tweets, especially when the American billionaire announced that Tesla would accept bitcoin as payment for its cars and then retracted its decision. 

Read more: TSLA down after Musk asks Twitter if he should sell shares

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading