If you want to invest in Dogecoin but are not sure where to begin, we’ve got you covered. If you have arrived here just now, then you have arrived at the correct place. There is a lot of risk involved in cryptocurrency properties. But on the other hand, it is becoming increasingly popular among investors.
Crowding up has increasingly escalated in the crypto industry. Though Dogecoin started out as a fun joke, it has now turned into a viable investment opportunity. Think about the vibrant culture of people it represents and you can see why.
In this Article:
What Is Dogecoin?
In December 2013, a new, decentralized, open-source cryptocurrency known as Dogecoin was released. The root of Dogecoin is credited to programmers Billy Markus and Jackson Palmer, who created the currency in Portland, Oregon, and Sydney, Australia. Dogecoin’s original aim was to give the public a more memorable and enjoyable cryptocurrency to raise public knowledge of blockchain technology.
The Shiba Inu is based on the famous “Doge” internet meme, and Dogecoin is named after it. Dogecoin initially began as a joke, but it has established a dedicated online community due to its increasing popularity.
Other early cryptocurrencies, including Bitcoin and Ethereum, are based on the same basic technology as Dogecoin. Blockchain is used to provide an irreversible and safe way to pass value that does not require a centralized intermediary framework. It varies from other cryptocurrencies in that it is mined without restriction. Since Dogecoin doesn’t have a cap on the number of coins that can be in circulation, this implies that there are no limitations to how many Dogecoins may be used or circulated. This is also why people rush to invest in Dogecoin.
Dogecoin circulation peaked in December of 2020, with over 127 million tokens in circulation. At the time of publishing, dogecoin (DOGE) has a market capitalization of $402 million, positioning it as the 49th largest digital currency in the world.
How to Use Dogecoin
Although the initial intent of Dogecoin was to be used as a type of joke, it has now found a home on social media sites like Reddit. Some users offer small amounts of Dogecoin to other users in order to say “thank you” for creating noteworthy or interesting content. And some companies, including 97Cents Web Hosting and SuchList.com, have started accepting Dogecoin as a payment form.
You can also speculate on DOGE and make a profit by capitalizing on DOGE’s price fluctuations. Let’s assume that you’re planning on buying DOGE at some point in the future when you think the price will increase. As the price of each DOGE grows, you can use DOGE to buy other cryptocurrencies like Tether or USD Coin. DOGE will drop in price again, so you can use your stablecoin to buy more DOGE by converting them back to DOGE. Even a minor price movement has the ability to influence investor income with Dogecoin, which is a volatile cryptocurrency.
How Does Dogecoin Work
A fair argument may be made that a significant portion of Dogecoin’s source code is a nearly exact copy of Bitcoin’s source code. Billy Markus, one of the coin’s creators, says that Dogecoin can be made in three hours. In a very detailed and fascinating way, he explained how he navigated to the control F feature in the Bitcoin program and substituted all instances of Bitcoin with Dogecoin.
To complete the idea, he made some other alterations, such as changing the word mining to digging. We can see from this that Markus chose a block time of 1 minute. The block time is the period of time from when the network “sends” (or “receives”) a new block of transactions to the rest of the network.
What Problems Does Dogecoin Solve?
Dogecoin is a simple cryptocurrency like all the first-generation cryptocurrencies. The digital currency environment of the time did not feature smart contracts, staking, or the many other features that are now widely seen. These coins’ primary aim was to build a stable network from the beginning. Dogecoin: To that extent, it was a great success, but it also had its share of difficulties.
One of the key characteristics of Dogecoin is that the creators wanted the coin to be as fun as possible. While it was not made to help the poor and marginalized like Bitcoin was, Dogecoin was developed with the main purpose of raising money for charity. The Litecoin Foundation never developed Litecoin as a real alternative to Bitcoin. To spread goodwill and fun, this coin was made.
Benefits of Dogecoin
It has many advantages for the marketplace that why people invest in Dogecoin. Another advantage is that you can easily and safely transfer value to everyone globally using this coin just like Bitcoin. More vendors today than ever embrace this specific token, thanks to the growth of the coin’s network.
Many technological characteristics found in the world’s first cryptocurrency, Bitcoin, are also found in Dogecoin. This means that the network is secure and consensus is reached in real time. The rules of the blockchain state that hackers would need to control 51% of the network’s hashing power in order to change the chain’s state. Dogecoin hashrate is less than or equivalent to 203.97 TH/s, which makes this situation impossible.
In order to keep the network stable, the Dogecoin network uses a Proof-of-Work consensus algorithm. Bitcoin uses the SHA-256 hash algorithm, but this PoW method is not the same SHA-256 hash algorithm as Bitcoin. Instead, the network uses a scrypt algorithm in its Proof-of-Work (PoW) operation. To avoid the use of costly Bitcoin mining machines, this decision was made. Only dedicated FPGA and ASIC mining devices will mine Dogecoin.
Dogecoin has no hard limit, rendering it absolutely uncapped. The initial supply of coins for the project was 100 billion coins. As a result, both of these coins had already been mined by 2015. The developers thought issuing another 5 billion would be acceptable at that time. One of the notable things about Dogecoin is that each year, five billion coins are to be made.
Why Should I Invest in Dogecoin?
Investing in Dogecoin is all about entering a community, and this is where the value lies. A prime example of this is the horrific tragedy that struck mere weeks after its initial release in 2013. On December 25th, 21 million DOGE (approximately $12,000) was stolen by a hacker.
As soon as the community figured out that the coins had been stolen, they quickly launched a fundraising drive to replace them. It was only February of 2014 that the group supplanted the money absolutely.
People in general are curious about learning how to invest in Dogecoin. In contrast to other cryptocurrency cultures, it’s quite approachable. In a way, however, Dogecoin started as a joke. Jackson Palmer created a digital currency by taking the appearance of an internet meme and converting it into a likeness.
As far as most people are concerned, the Shiba Inu dog meme was all over the internet and media the next day. When Bitcoin became famous, this was right about the same time. In order to build the “joke currency,” developer Palmer and musician Marcus merged the two and launched it on December 6, 2013.
It has undergone several price jumps, and its market capitalization is now approximately $340 million. This new status makes it one of the most important cryptocurrencies currently in existence.
If you intend to keep Dogecoin for the long term, it can be a good investment. It transfers at a level that is considerably greater than that of bitcoin. Many Dogecoin users are in it to have fun, so the community is solid. You no longer have to think about hyperinflation due to mining ending.
How To Buy Dogecoin Stock
It’s time to find out the answer to the big question: how do you invest in Dogecoin? Tipping is the most common way to donate to the service. People can give each other tips if they like a message. it is somewhat equivalent to “likes” on social media.
This is one of the most active and sizable crypto groups. Many customers don’t know how much an impact tipping can have, which is why tipping plays such an important role.
You can only buy Dogecoin at a limited number of cryptocurrency exchanges. Furthermore, few of these businesses have an outstanding reputation to begin with.
To acquire Dogecoin, use these top-tier exchanges: Changelly, Kraken, and Bittrex. Some have unique advantages, but there are separate fees associated with each.
A perfect example of this is Changelly. The only prerequisite to sign up is an email address, but there are also costs associated with it. You can swap Bitcoin for Dogecoin using Kraken and Bittrex.
To invest in Dogecoin, you will also need a special wallet. And if you don’t have a cryptocurrency wallet yet, you already have a blockchain wallet and all would be straightforward.
When choosing between a digital wallet or a hardware wallet, you have the choice to go with either. With Dogecoin wallets, you can keep your funds secure without having to use a service like Mycelium. The only reason hackers would want to hack it is that it is more vulnerable to hacks.
It costs as much as $120 to buy a hardware wallet up front. They hide your Dogecoins in cold storage, but allow you to use a mobile application to administer your funds. Hardware wallets are among the most common forms of cryptocurrency wallets. You should expect to pay about $60 for the most simple wallet.
You make your investment in Dogecoin by making a digital exchange with other users on the Dogecoin network. This type of peer-to-peer digital cash transfers, or “peer-to-peer transactions,” is facilitated via a public ledger known as the blockchain.
The mining system manages this blockchain. Due to the fact that this currency is not being tracked by banks, each transaction needs confirmation.
Blockchain plays a key role in this situation. Dogecoin miners get paid in Dogecoin for validating new transactions. When all goes smoothly, every transaction transforms into a new block on the blockchain.
In this scheme, Bitcoin is equivalent. The algorithm is different, but the resource being mined is still the same. Dodgecoin uses Scrypt, while Bitcoin uses SHA-256.
The Dogecoin community is made up of miners and diggers. New transactions and new blocks are checked by network nodes, and these nodes receive Bitcoins as a reward for this work. While mining Dogecoin is less competitive than Bitcoin, it is noteworthy that Dogecoin mining is especially easy. Most importantly, the coin’s creators did not pre-mine this cryptocurrency. Developers have a strong preference for pre-mines due to the fact that they give them the option of producing a supply of currency until the network is available to the public.
A Well-Knit Community
This would have ended several projects. Dogecoin, on the other hand, offered a rare opportunity to highlight why this project is unlike many others. Shortly after the robbery, the SaveDogemas donation campaign began to collect funds to replace the stolen coins. To everyone’s amazement, these losses were paid for by this scheme.
Back in early 2014, the group raised money to help sponsor the Jamaican bobsled team, and it resulted in $25,000 being raised. The active donations rally started here. The group then turned its attention to water-delivery efforts in Kenya. When another successful event had been completed, Dogecoin used the funding to train dogs to support autistic children.
How to Store Dogecoin
Dogecoin can be securely stored in a number of locations these days. One of the easiest ways to use Jaxx is by putting some funds in the Jaxx wallet. You can download this wallet on both Android and Apple devices for free. Using this app, you can store Dogecoin and several other cryptocurrencies. What makes it impressive is that you can exchange your coins without ever leaving the pocket.
If you are planning on HODLing this crypto for long periods of time, or if you intend on making a big investment in DOGE, a hardware wallet is the best choice. Offline hardware wallets store your cryptocurrencies offline, essentially “protecting” your digital assets from any online attacks. You can use the Ledger Nano S to store and submit Dogecoin (DOGE).
Best Online Platforms for Dogecoin
In fact, dogecoin ranks only 49th in terms of market capitalization, which means that it’s a very underwhelming option for investors. Owing to few resources promoting the direct purchasing of Dogecoin, it is more difficult to invest in Dogecoin. Dogecoin (DOGE) trades on the following cryptocurrency exchanges:
Binance is a major cryptocurrency exchange, internationally recognised as such. Higher trading fees are followed by increased liquidity, and by doing so, you are able to quickly buy and sell to take advantage of market-moving news.
Kraken is a well-known name in the cryptocurrency exchange community.
Though they started out with modest means, DOGE went on to become one of the most widely recognised brands in the cryptocurrency industry by providing a wide variety of digital assets for trading, such as DOGE.
We have managed to improve our trading prices, so we sell both futures and margin trading.
Poloniex was founded in the United States in 2014 and has experienced steady growth since. This makes it an excellent option for traders interested in gathering a wide range of assets with excellent value and want to invest in Dogecoin. Over the last year, they have continued to broaden their asset selection, now featuring over 100 separate pairs to trade. The exchange has offered itself a fresh and more professional look, and now features trading in futures and leverage of up to 100:1.
Coinberry – Canadians Only
With Coinberry, having Dogecoin in Canada is fast and simple. Buy or sell the asset with just a few clicks on their easy-to-use website. This Singapore-based cryptocurrency team has been around since 2017 and has a range of highly-trusted partnerships that create them as a trustworthy cryptocurrency business. FINTRAC registered them as a Money Services Company, which is why they are very reliable in this regard.
How Will Dogecoin Scale?
When it comes to scaling, dogecoin provides many advantages over other cryptocurrencies including Bitcoin and Ethereum. 1 new block is added to the Dogecoin blockchain every 60 seconds. With Bitcoin, you can only see one block added to the blockchain every 10 minutes. On the other side, Litecoin blocks are added to the blockchain every 2.5 minutes. This results in better transaction handling for Dogecoin, which also cuts down on the probability of theft and fraud. A major advantage of Dogecoin users is that they only pay a single fee while exchanging cash, even though the amount of money being transferred is significant.
However, surveys have shown that despite these characteristics, the majority of investors have dismissed the idea that Dogecoin is a decent investment. Dogecoin has had the largest market cap ever: on January 7, 2018, along with an increase in Bitcoin’s price, the value of one Dogecoin hit $0.018773 USD.
So should you invest in Dogecoin? Mainly it is up to you. Do your proper research and look at the trends. It is a tremendous achievement for Dogecoin to have endured such a long journey from launching as a fun idea to contributing $100,000 to different charities, to being an important participant in the WSB Reddit fundraiser. We simply cannot know for sure when the next Dogecoin run-up will occur, but in general, events of this magnitude appear to be significant. It appears that it could be set off by a single Elon Musk tweet, as recent history shows.
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