Dogecoin seems like it’s been everywhere this month! It’s been on the news, in people’s homes, and probably even on your own computer.
With the rise in popularity of cryptocurrencies, it only makes sense that Dogecoin has gained so much attention over the past year.
It currently ranks as the 6th highest valued Crypto in the world, with an overall market cap of $723 million at time of writing.
But what exactly is Dogecoin?
How does it work?
Is it even worth investing in? Read on to find out!
What Is Dogecoin?
Dogecoin (DOGE) could be a peer-to-peer, ASCII text file cryptocurrency. it's thought of associate degree altcoin and was launched in Dec 2013 with the image of a Shiba Inu dog as its brand.
Dogecoin's blockchain has advantage with its underlying technology derived from Litecoin.
Notable options of Dogecoin, that uses a scrypt algorithmic program, area unit its low value and unlimited provide.
- Dogecoin is associate degree ASCII text file cryptocurrency established in 2013 by Jackson Arnold Daniel Palmer and Billy Markus.
- Dogecoin options a Shiba Inu, a Japanese breed of dog, as its brand.
- It is supported Litecoin and uses identical proof-of-work technology.
Dogecoin features a loyal community of supporters United Nations agency trade it and use it as a tipping currency for social media content.
Is Dogecoin a good crypto to invest?
Although there are some really excellent investments in Cryptocurrency (like Litecoin, Monero, or Dash), other coins may have slipped your radar. In particular, do you know much about Dogecoin (DOGE)?
If so, does it seem like a good cryptocurrency to invest in?
As with any investment, make sure you understand what you’re getting into before you jump on board. Here’s everything you need to know about Dogecoin. Dogecoin: What You Need to Know:
The idea behind Dogecoin was conceived by Billy Markus from Portland, Oregon who hoped to create a fun cryptocurrency that could reach a broader demographic than Bitcoin.
He teamed up with Jackson Palmer from Sydney, Australia who helped design the currency logo and branding. One of their primary goals was to appeal to newcomers without scaring them off with technical jargon or overcomplicated features that require advanced computer knowledge to use properly.
Unlike most cryptocurrencies, which use complex algorithms for mining new tokens, all you need is a powerful computer and internet connection in order to mine Dogecoins—and even those are optional if you buy DOGE directly from an exchange like Bittrex or cryptoclub24.
Is Dogecoin a good crypto to invest?
Based on bitcoin, Dogecoin is a decentralized, peer-to-peer digital currency that enables online payments.
Like other cryptocurrencies, Dogecoin relies on encryption techniques to generate units of currency and verify fund transfers.
The project was officially launched on December 6, 2013. There are currently over 100 billion Dogecoins in circulation with an additional 5.256 billion coins every year thereafter through 2024.
As of February 2014, more than 65 billion coins have been mined (and thus there is no realistic way of obtaining any single coin other than trading for it). As such, inflation will not be an issue for some time.
Does Dogecoin have a future?
Based on its present market capitalization of nearly $2 billion (according to CoinMarketCap), there is no denying that Dogecoin has a bright future.
Right now, there are more than 100 billion coins in circulation and more are being added every second!
As more people get involved with Dogecoin, we can expect even more coins to be in circulation.
This will drive up demand for DOGE against fiat currencies across exchanges. Hence, it could be great time for crypto-traders looking forward to invest in DOGE.
Is Dogecoin safe?
The safety of your investment is important, which means you should make sure that it’s stored safely. For example, if you’re storing your coins on an exchange or platform, then security is no longer in your hands—which could mean trouble down the line if it gets hacked.
Storing coins in a cold wallet like Trezor or Ledger Nano S are some of your best bets for keeping crypto safe. If you want more info on how to keep crypto safe while storing it yourself, check out our guide: How to Store Cryptocurrency Safely & Securely.
Does Elon Musk own Dogecoin?
There are lots of rumors about Elon Musk, especially when it comes to cryptocurrency. But is he really invested in Dogecoin? And if so, why would he invest in such an under-the-radar coin when Bitcoin is making waves around the world?
We’re going to dig deeper into Musk’s crypto profile and look at how much money he has actually made on various crypto investments—and whether or not there's anything unique about his choice of altcoins. (Spoiler alert: there is!)
Should you buy Dogecoin 2023?
If you believe that Dogecoin’s value will increase in 2019 or 2022, now is an excellent time to buy it. There are no major barriers of entry; anyone can get started right away.
And if you believe that Dogecoin’s value will continue increasing, then buying low and selling high would be a great way to maximize your investment.
But as always, don’t invest more than you can afford—in both money and time—to lose.
Even with all its positive characteristics, there are plenty of risk factors that could make investing in cryptocurrencies like Dogecoin 2023 quite risky. So only invest what you feel comfortable losing!
Understanding Dogecoin
This is not an official price prediction. This is our educated guess based on market research. The first chart shows how much you might earn if you bought $100 worth of each cryptocurrency, including $100 of Bitcoin in 2013 or $1,000 of Ethereum in 2016.
The second chart shows how much you’d have made if you bought some cryptocurrencies at their peak prices in January 2018—when Bitcoin was around $19,000—and sold them when their prices were down by about 80%.
As always with cryptocurrency investing: Be very careful about buying something just because others are buying it (fool me once...). It’s OK to do your homework before making an investment decision.
How Dogecoin Works
Released in 2013, Dogecoin is a cryptocurrency similar to Bitcoin. Like Bitcoin, it also functions as peer-to-peer electronic cash system that allows users to make payments with an acceptable level of privacy.
There are some differences between Dogecoin and Bitcoin, such as faster block generation times (1 minute), higher supply (100 billion coins) and an increased block reward during initial launch phase ($0.50 per block).
However, they both can be used for making international wire transfers at low cost without requiring users to provide private information (non-anonymous)
History of Dogecoin
The idea of creating an altcoin based on doge was announced on December 8, 2013. The intention was to use doge's image as a way to bring cryptocurrency closer to a mainstream audience while at the same time making fun of more serious projects that were popping up at that time.
Subsequently, an individual from Vancouver Island named Billy Markus from Portland, Oregon released Dogecoin through an online chat room. Dogethereum bridge: The Dogethereum bridge allows transfers between any two cryptocurrencies without an exchange or counterparty risk.
Any Ethereum token can be converted into any other Ethereum token (including ETH) without trust or reliance on centralized exchanges or Clearinghouses / Central parties with full atomicity guarantees through smart contracts governing dogecoin blockchain .
Why Should I Buy or Mine Dogecoins
Interested in cryptocurrencies but don’t know what you should buy?
There are a few factors that can help determine which crypto is right for you. Here are some key things to consider when making your decision: Market cap: This is one of the most important aspects of any cryptocurrency.
Simply put, market cap is calculated by multiplying the number of coins in existence by their value; that gives you how much money is currently invested into that coin. The larger your potential return, generally speaking, as long as you don’t expect gains overnight.
So if one crypto has a $20 billion market cap and another has $10 million, it’s very likely that $1 will get you more bang for your buck with X coin than Y coin—all else being equal.
Where Can I Spend Dogecoins?
Most crypto enthusiasts who’ve been around for awhile have heard of Doge. The meme-themed crypto gained popularity after its creators reached out to Reddit users, who promoted it on their social network.
From there, demand for DOGE surged and its price soared. But despite being so well-known in crypto circles, most people don’t understand what it is exactly.
To be clear, unlike Bitcoin (BTC), Litecoin (LTC), or Ethereum (ETH), dogecoin isn’t meant as a universal currency replacement; rather, it was built with fun in mind—and that shows in its use cases. Dogecoins can be used for tips on certain social media sites like Reddit, Twitter .
Dogecoin vs. Bitcoin
There are many differences between these two cryptocurrencies. For example, Dogecoin has a higher block generation time (1 minute) versus Bitcoin's 10 minutes. In addition, Dogecoins have 100 billion supply limit compared to 21 million for Bitcoin.
Finally, while there are no transaction fees with Bitcoins, they are required when dealing with Dogecoins.
Should You Invest in Dogecoin
Let’s answer that question with another question: Why do you think you should invest in Dogecoin?
A lot of people seem drawn by its fun name, which was inspired by a meme from Reddit (more on that later). But there are other cryptos whose names are even more silly—for example, Pepe Cash, Bat Coin and Moon Coin.
So if having an amusing name isn’t enough for you to buy into a crypto, then what else should you be looking for?
