Dogecoin is a cryptocurrency based on the Doge meme, a Shiba Inu dog. At first it was created as a mockery of cryptocurrency, but has since risen to fame having been praised by the likes of Tesla CEO, Elon Musk.
In this guide we will cover the ins and outs of Dogecoin and how you can get involved in 2021.
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Dogecoin was a cryptocurrency created as a bit of a joke. It was inspired by a popular meme known as Doge, which has since been used billions of times online. It was launched at the end of 2013 where the concept of cryptocurrency was still relatively new. People were just starting to understand the applications it could have in the future. It was created by programmer Billy Markus and marketer Jackson Palmer as a silly project, it was never meant to be anything big. However, since the meme coin became famous, the developers have taken the project more seriously. They have tested several cryptocurrency designs and have made more effort into bringing personality to the brand.
Unlike many other cryptocurrencies, which are only looked into by serious investors, the Dogecoin creators enjoy a vibrant, fun online community. The community consistently makes memes about the coin “taking DOGE to the moon”. This has received so much attention that celebrities such as Elon Musk have praised the coin and as a result, it’s now taken seriously by investors.
Prior to becoming a big hit, Dogecoin was used to highlight the importance of community in the crypto market. Its users have been behind several high-profile crowdfunding efforts. In 2014, they raised $50,000 to send the Jamaican Bobsled Team to the 2014 Olympic Games.
Today, Dogecoin is used like any other cryptocurrency. It offers users the opportunity to exchange value online without the need for any financial gatekeepers.
As of August 2021, Dogecoin has a market cap of $35,811,638,827 with 130.94 billion DOGE tokens in circulation. It has already maxed out its supply and market cap. One DOGE token currently costs $0.32 and reached highs of $0.68 in May 2021.
There’s no debate as to whether or not DOGE has the best community in crypto. It has a global fanbase who are continuously publishing DOGE memes and information all over the internet. With so much traction, it’s hard for the coin to be overlooked.
Tesla CEO, Elon Musk, has personally praised DOGE which has brought it to fame. Even if you’re not interested in crypto, you’ve likely heard of Dogecoin. This has made it more legit in the eyes of investors and has also spiked the value of the token.
The biggest drawback of DOGE is that it doesn’t really have anything unique about it. Despite being a means of transferring funds, it has little actual value. Should the hype around the token decrease, it’s possible that it may lose its value. This makes it volatile and risky for investors.
How does Dogecoin work?
The code behind Dogecoin was originally based on a now-defunct cryptocurrency called Luckycoin, a fork of Litecoin. Dogecoin used a Scrypt-based consensus to enforce how computers running on its software came to an agreement on its transaction history. Much like Bitcoin, individuals with a computer can dedicate their computer power to provide this service through mining. Through this process, they’re awarded new cryptocurrency. What makes this unique for Dogecoin is that there’s no limit on how much Dogecoin can be minted by the software.
Initially, Dogecoin supply was capped at 100 billion DOGE, however developers scrapped this after launch to make the money supply inflationary. They did this to disincentivize mines from securing the Dogecoin blockchain. In 2014, its mining process was integrated with Litecoins. Anyone who mined Litecoin would receive Dogecoin without any additional costs.
How to buy Dogecoin online
Due to its popularity, Dogecoin can be found on most popular exchanges. The most popular options include Coinbase, Binance, Kraken, eToro and SoFi. Here’s how you can buy.
Set up an account with any of the exchanges listed above. If you already have one, log in.
Make sure your account is funded and search for DOGE in the exchange.
Select the amount you would like to spend. The number of DOGE you can buy will be available. Select “Buy” and your purchase will be complete.
Head to your wallet and make sure the transaction went through.
How to trade Dogecoin
Dogecoin is one of the most commonly traded cryptocurrencies in the world. It’s traded by investors and normal people, who want the opportunity to profit. Here’s how you can trade your DOGE.
Follow the steps above to buy DOGE on an exchange of your choice.
Search for the cryptocurrency you want to trade it with. Then select the amount of that currency you want to buy.
Click “Trade” and you’ll trade your DOGE for your chosen currency. You can view this in your wallet.