Dogecoin is an unexpected member of the top 25 of CoinMarketCap (market cap) and it all started as a prank.
If you’re interested in the Dogecoin, here’s is a beginner’s guide to Dogecoin, an altcoin that has proven it is more than a joke.
What is Dogecoin?
Dogecoin is the most notable community cryptocurrency, being founded on the idea that as much attention and support as its counterparts can be given to a fun and ourious project.
The development was built on the premise of interacting with a meme loving community and not taking the coin too seriously because it was based on the famous Shiba Inu dog meme which gained popularity in the early 2010s.
Tipping people online with the coin is one of its key use cases, as it is worth very small amounts.
This in-depth guide from Dogecoin will help you learn all about DOGE, from its history to mining and construction.
Dogecoin has a large and dedicated user base that uses Doge as a currency instead of simply holding it as a speculative asset.
While Dogecoin can certainly be kept as an investment or traded in search of making a profitable return, like other cryptocurrencies.
What started as a little joke has now become a massive culture in the crypto space
Dogecoin is commonly referred to as and for good reason as the “hot” coin.
Dogecoin has been known for its donations of charity and other good causes since its success.
Moreover, DOGE does not have a maximum supply, which means that the currency is inflationary compared to assets such as bitcoin that are largely deflationary.
While many other altcoins are implementing an inflationary protocol, few have DOGE’s massive circulating supply that is well over 100 billion already.
What Doge Is Used For?
Dogecoin is interesting because while it was meant to be satirical and just for fun, it has become a major pillar in the world of cryptocurrency.
Some traders use it as a means of exchange because of its incredibly low transaction fees and fast transaction times, as well as its relatively stable value.
Dogecoin has also often been used by its community in fundraising initiatives, such as helping Olympians attend the Winter Olympics and raising funds in developing countries to build clean water wells.
How Does Doegecoin Work?
Well, all cryptocurrencies are based on the technology of blockchain.
Blockchains are huge digital databases that store payment information (sometimes called ledgers).
Any transaction made with Dogecoin will be held on the blockchain of Dogecoin.
Dogecoin uses the Scrypt encryption algorithm based on the LuckyCoin protocol, a Litecoin fork.
Dogecoin became immediately popular in the world of cryptography and had a market capitalization of US$ 74 million within two months of its release.
Since then, the value of DOGE has gone up and down several times, most recently in January 2018, when it reached a market cap of over US$2 billion.
It was developed by Oregon’s developer Billy Markus, and Adobe’s product manager, Jackson Palmer.
Billy Markus wanted to create a cryptocurrency that had a less intense vibe than Bitcoin during the 2013 cryptocurrency craze.
He claimed this would appeal to a broad user base as well as being a special thing that separates itself from other cryptocurrencies.
Dogecoin’s mining is like a lottery.
You’ve got to do some research to play the lottery.
Okay, your computer (or node) has some work to do!
This work involves confirming and checking the transactions.
In 2014, Litecoin and Dogecoin merged mining, both using Scrypt, which requires less power than the SHA-256 algorithm from Bitcoin.
DOGE mining can be relatively easy for you if you’re familiar with Litecoin mining.
The block reward is 10,000 DOGE for each block and each minute a new block is generated on average.
Where To Buy Dogecoin?
With some crypto exchanges, you can buy and sell Dogecoin.
So what’s the perfect exchange for Dogecoin?
It is available on almost every exchange, and a number of popular multi-asset wallets such as Bitrue and Binance support it.
So read on as we go over more about this dumb but highly effective cryptocurrency’s past, present, and potential.
Where To Store My Doge?
A crypto wallet isn’t like a regular wallet where you keep money from paper and coins from metal.
Cryptocurrencies are electronic, meaning that they exist only on computers.
Crypto wallets are where you store your cryptocurrency information that you need to use. There are public keys and private keys to this database.
For most of our guests, the most trustworthy and appropriate hardware wallet is the Ledger Nano S, which enables you to store a variety of cryptocurrencies securely, like Dogecoin.
A Dogecoin wallet called Dogewallet was hacked on December 25, 2014.
The hackers stole around $12,000 worth of Dogecoin’s 21 million.
I know what you think. Who on Christmas Day would steal cute dog coins?
However, don’t worry. The community of Dogecoin raised $13,000 to pay back users who lost money.
We also advise that you move your crypto away from exchanges if you plan to hold on to them. So you’re going to hold the keys to your wallet, so you’re going to own your coins.
The Future of Dogecoin
Dogecoin’s past has fallen on tough times more than once.
A highly divisive incident involving an exchange of cryptocurrencies followed by a massive robbery culminated in many Dogecoin fans being disaffected and quitting the currency.
Dogecoin has also been removed from the Exodus wallet because Dogecoin is not being created, claimed by Exodus, and lacks many major updates.
Continued inflation from an investment point of view is not good.
There is a high likelihood that your investment will not yield good returns.
The Dogecoin Community
Although Dogecoin initially began as a joke, it soon gained a lot of momentum, and around it was formed a very strong community, which is now one of the greatest assets of Dogecoin.
Dogecoin began with an announcement on the forum of BitcoinTalk.
It’s no longer an official communication channel, but you’ll find there the community is still very active.
You can always find some believers / non-believers from Dogecoin talking about the future of this crypto.
The members of the community, also known as “Shibes,” are renowned for numerous contributions to charity and other altruistic causes.
They even have their own language of the Shibe.
It consists of funny broken English terms and phrases such as, “such amazing,” “highly grateful” and “many works.”
There are also generators of Shibe meme that you can try.
While DOGE has come a long way from its very questionable origins to become a common digital currency, it is still ignored by some cryptocurrency enthusiasts.
The appeal of Dogecoin is significantly boosted by its extensive use in countries such as India, the Philippines, Pakistan and Nigeria.
These countries are suffering from a poor financial system, and local people are using DOGE as an alternative to official fiat currencies.
DOGE analysts are more optimistic to say that currency in the coming years has the potential to reach more than $1.
Dogecoin has one of the most thriving communities, full of helpful and friendly people, who are also working to promote the coin’s adoption.
All that said, buying a couple of Dogecoin probably won’t make you a millionaire – unless the developers put a hard cap on how many coins you can purchase.
|Disclaimer: This information should not be interpreted as a cryptocurrency endorsement or any particular provider, service or offer. With cryptocurrencies, nothing is assured. Please do your own homework before you spend and never commit more money than you’re willing to lose comfortably.|