About Dogecoin (DOGE)
Dogecoin, or DOGE, has been a digital currency on the map since 2013. The coin is similar to other popular currencies that have caused an immense change in the digital market worldwide. Billy Markus and Jackson Palmer, IBM software engineers, created the coin. DOGE does not have a history like bitcoin and the likes; it launched as a joke. The coin was meant to make fun of BTC; the logo was designed based on a meme.
Soon people started trading with this coin. Soon it gathered many users and a community of online traders.
Doge is built on the same blueprint as Bitcoin, Litecoin, Ethereum and the like. With some key improvements, it uses blockchain to store and process transaction records. Doge is built on the Scrypt algorithm, which makes it more convenient than most coins in the market. The transactions take a shorter time to process. Doge takes only a minute to process transactions.
In 2017, the coin hit an all time high in the stock chart, with its value skyrocketing to a significant worth. In 2018, the Dogecoin price went down as the currency lost its momentum of seizing the digital market. Doge still has a good number of users, regardless of the plummeted worth of the coin.
If you know how crypto works, you will know that the currency allows you to make anonymous transactions. Also, traders can acquire this digital currency in many ways. You can buy through peer-to-peer transactions or even mine the coin if you have the required facilities.
The price of Dogecoin is unstable, and we have seen the value peak and dip at different times.
We have seen many tech figures in the tech world pay attention to this currency, like Elon Musk and others.
How Does Dogecoin Work?
A lot of intricacies go into the creation of such currencies. Doge operates on its blockchain, just like any other coin. The dogecoin records of transactions are constantly updated to include new transactions. The Dogecoin network relies on cryptography to ensure that all transactions are protected from third-party infiltration.
The proof of work consensus set-up is what the coin utilises in allowing miners to mine the coin. Miners are saddled with the responsibility of solving complex mathematical problems to allow them to record and update transactions on the blockchain. Since nothing goes for nothing, these miners are rewarded with dogecoins. They can either store this coin or sell it on the digital market for fiat currency.
This coin can be used for different online purchases. It has been adopted by many online vendors, casinos and even educational sites. The only downside is the lack of a stable value. Well, this is normal because there is no limit to the number of Dogecoin that miners can create. The nature of the currency makes it susceptible to inflation.
About 10000 new dogecoins are mined by the minute, and there is no set limit. The coin has managed to be one of the biggest digital currencies, with a total value of $50 billion. A coin might be worth about a penny or so, but due to the sheer quantity of the coin, traders can accumulate thousands that would equate to huge sums when they convert Dogecoin to USD.
This crypto option is unlike bitcoin, designed to be scarce and immune to inflation. Doge is designed to flood the market with abundance. More than 130 billion doge coins are in the market compared to BTC, which only allows a certain quantity to be available. As we have stated, about 10000 Doges are mined minutely, whereas only 12.5BTC are mined in 10 minutes.
What makes the coin value? Well, the market graph of supply and demand offers the coin its value. This was the case in 2021 when Dogecoin’s live price skyrocketed to 7000 per cent. This was due to the influence of retail traders in Reddit who collaborated to up the Dogecoin price USD. Another contributing factor to the instant peak in worth was the tweets and statements made by Tech genius Elon Musk.
The coin is almost everywhere; you can purchase it on the open market or mine it yourself. The currency’s algorithm allows it to have shorter mining and processing time. This means you can make a transaction and get the value in a minute.
Buying and selling this coin is also easy. Traders can use the open market to find potential buyers; this process is easy and stress-free. You can store this currency as you would any other currency. Traders have the option of hot wallets and cold wallets. For a coin that started as a joke, DOGE has made a buzz in the online trading scene and has garnered a sustainable number of users around the globe.
Dogecoin Price Today
To better understand where Dogecoin is today, it’s good to step into a time machine and consider the price history. In 2017, the coin had a value set at $0.00167; a year later, it rose to $0.0060. The coin went down to $0.0018 in 2019. This should not be a surprise since the coin was initially a joke. The coin went up to $0.0023 in 2020, and in 2021, we witnessed the highest peak of the coin as it hit a staggering $0.33. The price of the coin dwindles by 5% – 10% mostly. Dogecoin and other coins such as BTC, ETH, and Litecoin experienced this plummet. As of May 8, the price is $0.07.
Many factors influence the value of Dogecoin, some of which include:
Demand and Supply
Just like with any asset, demand and supply affect the value of Dogecoin. The coin had its humble beginnings as a joke and soon gained popularity among traders. The attention it gained was something other than what the creators expected. Thus, the value of the coin greatly depends on demand and supply.
Let us go back to basic economics; we know that the more people demand a certain product, the higher its value becomes when the supply is low. If few people demand a certain product, the value decreases when the supply is high. Many people should have taken the coin seriously, so the demand was low, whereas the supply was high, which caused the low value at first.
Information and News
This factor affects the coin since most novice traders rely on such information to buy and sell their coins. The Elon Musk statement on Twitter and other platforms is a practical example. The coin’s value rose significantly after Elon Musk made a statement about investing in Dogecoin.
Some other factors that affect the price of Doge today include:
- Blind Follow
- Limited supply
- Inflation etc.
Where is Dogecoin Used Now?
The digital market is flooded with millions of vendors that prefer to receive their payments in crypto. Due to its speed and reliability, Dogecoin has become a favourite among online buyers and sellers. The coin is also in wide supply, so accessibility is also a feature of the coin. Dogecoin has not been globally accepted as countries like Qatar, China and the like have banned cryptocurrencies entirely. However, if we were to place the countries that do not accept Dogecoin and those that accept Dogecoin on a scale, the balance would tip to the side of the countries that accept Dogecoin.
Many online platforms utilise Doge as a means of payment; some of these platforms include:
- Twitch: This platform is one of the most popular streaming platforms in the world. This platform allows users to transact in Doge, which goes back to 2014, before the coin became popular.
- Newegg: this platform has a progressive vision, so in 2021, it integrated Dogecoin into its payment system.
- Tesla: Elon Musk is closely associated with Doge, so it should be no surprise that Tesla accepts Doge as a payment method.
- AMC theatres: You can now catch a movie by paying with DOGE as AMC has recently included Doge as part of their payment system
- Casinos: gamblers can also fund their account via Doge, as many online gambling providers include it as a payment method.
Who Created Dogecoin?
Dogecoin has one of the most interesting origin stories. First off, we have mentioned that the coin started as a joke. It was an attempt to poke at BTC by making a coin that was available and low-valued compared to BTC. The coin owes its creation to two genius software engineers, Jackson Palmer and Billy Markus. The coin made it to many memes and was also the first dog coin. Even though it started as a joke, it soon gained the interest of investors. Traders soon considered this coin as a legitimate digital asset.
The coins logo features the Shiba INU dog from a ‘doge’ meme. It was also from the meme that the coin got its name. The online market warmly accepted the coin, leading to the development of forums and blogs all dedicated to Doge. Even though the plans for its development were satirical, it reached a market capitalisation of $85 billion or even more. The coin was designed on the Scrypt algorithm, and this allows transactions to be processed faster than most coins. There is no centralised control of the coin. Thus, the value depends on certain factors. The coin has enjoyed support from big names like Mark Cuban and Elon Musk.
How to Buy Dogecoin (DOGE)?
Dogecoin is quite a popular option among cryptocurrencies; for this reason, many people want to trade with this coin. Unless you are mining the coin, the most reliable option is to buy the coin. If you have never bought DOGE, this is how to go about it:
- Check the coin’s value and decide on how much you want to invest: many traders jump into buying coins without knowing the coin’s value or even knowing how much they want. Even though some people have invested small and profited in millions, that is only sometimes the case. Ensure that you check the charts and know the current Dogecoin price before settling to buy
- Select a Cryptocurrency exchange: the digital market is swarmed by crypto exchanges; this is where buyers and sellers link to do trade. There are many options that potential buyers can consider, including Binance, Coinbase and Kraken. These cryptocurrency exchanges are easy to use.
- Choose a payment method: You must fund your exchange to trade on the platforms. You should select a method that aligns with your transactional needs and expectations. Some platforms offer bank transfers and even PayPal payments. Some platforms provide options for credit and debit cards as well.
- Place an order: if your account is funded, you can now place an order for Dogecoin. You can easily search for the coin and click on its symbol to place an order. Select your type of trade and enter the desired amount you want to invest. You can also just input the number of coins you want.
- Store your coins: securing them in a safe wallet is important. You can leave your coins in your exchange wallet, but that is not advisable. You can opt for a cold or hot wallet, depending on how much security you want.
Is Dogecoin Using Mining?
Mining allows people to solve complex mathematical equations to create more space for storing transactional records. Anybody can do this. The reward of mining is the coins.
The proof of work mechanism allows miners to strive for permission to create new blocks so that pending transactions can be stored in the ledger. This process requires the use of special technological tools. The miners create a hash, a code with a specific length. Any successful miner gets the right to add new records to the blockchain and is thus rewarded with minted coins.
The hash is a random combination, so the process depends on chance. It is a trial-and-error process. The reward per block is about 10000 dogecoins, and the supply is infinite. This means that the coin does not have a specified market cap. There are three ways to mine this coin:
- Solo mining
- Mining pools: options like Prohashing, AikaPool, and LItecoinpool are used to mine
- Cloud mining: poplar options like Nicehash and Genesis Mining can be used here
To be able to mine this coin, one must have the following:
- CPU: the central processing unit is something you’ve heard of already; you need a robust CPU that will not overheat for this process
- GPU: to mine Doge, you need a strong graphics processing unit
- ASIC stands for an application-specific integrated circuit, which creates hashes that play an important role in the mining process. These are more expensive than CPUs and GPUs and are more effective. To enjoy the best value, opt for an ASIC that is scrypt-based.
- Wallets: it is essential to have wallets when mining. It would be best if you had a secure place to collect the coins minted from the mining. You can opt for online wallets, software wallets and hardware wallets.
How to Safely Store Dogecoin
After successfully purchasing or mining this meme coin, you will need to store it securely and safely. The options for storage are hot and cold wallets. Some wallets are designed especially for Dogecoin as well.
Hot wallets: This wallet allows you to store Dogecoin on the internet. The wallet is connected to the internet on your mobile device or computer. Some options for this wallet type include:
- Dogecoin Core: this wallet is free to download and ideal for hardcore traders. The platform runs a copy of the coin’s blockchain on your computer. This is termed a full node; it takes up a lot of space and can be run on Windows, Linux and macOS. This software supports only Dogecoin. When using this wallet, you must be acquainted with encrypting and backing up the wallet.
- Trust wallet: you can store different assets in this wallet. It is specially designed to offer seamless services to traders; this software is free to download. The platform connects the exchange with the Dapps directly. It is localised to support over 400 currencies.
Cold wallets are more secure when storing Doge and any digital asset. The cold wallet operates on an offline basis which makes it safer. Some of the popular options include:
- Trezor: this hardware wallet costs around $70 – $250, depending on the model you opt for. You can connect the hardware to your computer using a USB-C, allowing you to store more than 1000 currencies.
- Ledger: The hardware is shaped like a flash drive and can store more than 5000 currencies, including DOGE. The price now is about $79 – 149$, depending on the model you go for.