Dogecoin started as a joke to mock the frenzy surrounding online gold rush. Since its creation, however, it has evolved into a global meme currency with millions of supporters around the globe.
Like Bitcoin, Dogecoin relies on a decentralized network of computers that verify transactions and record them (nearly) irreversibly on its blockchain.
At times, Facebook is also used for serious fundraising projects – like providing drinking water to Kenyan villages.
What is Dogecoin?
Dogecoin is a digital asset created through blockchain technology that uses its blockchain ledger to verify and record transactions. Like other cryptocurrencies, it serves as a medium of exchange that can be shared among users via the internet without needing an intermediary authority to oversee transactions.
Dogecoin was developed in late 2013 by software engineers Bill Marcus and Jackson Palmer as an open-source cryptocurrency, taking cues from its predecessor Litecoin which itself had forked off of Bitcoin. Like its counterparts, Dogecoin utilizes blockchain network with Scrypt technology for transaction verification.
Dogecoin may not be as secure or powerful as other cryptocurrencies, yet its memetic charm has propelled it into prominence. Many use Dogecoin to tip other users on Reddit or Twitter sites or make purchases at retailers who accept its tokens.
However, it is essential to keep in mind that Dogecoin should not be considered an asset that stores value or serves as an investment vehicle. While its price can fluctuate wildly and no central bank backs it directly; thus it cannot offer as much security than traditional currencies.
Dogecoin has experienced significant growth over recent years despite its modest market cap and limited acceptance, thanks to both increased interest in cryptocurrency trading as well as an upward swing in wider stock market performance.
Dogecoin may seem risky as an investment due to its high degree of price volatility and absence of regulatory oversight, but analysts believe that its widespread adoption could make it a mainstream cryptocurrency. While its use as an exchange medium may still be relatively novel, Dogecoin has already proven effective at raising funds for charities and other causes.
Jackson Palmer, one of the original co-creators of Dogecoin, left its project in 2015 due to too many people taking it too seriously and missing its true purpose; nevertheless, Dogecoin has continued its steady rise ever since then and gained many celebrity supporters like billionaire Elon Musk who started tweeting about it as early as 2020.
Why is Dogecoin popular?
Early this year, as crypto prices reached unprecedented heights, Dogecoin saw its value skyrocket 600%. Since then it has since declined slightly but its fans remain committed to this meme coin.
Dogecoin communities have earned themselves a favorable image due to their welcoming and helpful atmosphere; its rise has contributed significantly to this. Where Bitcoin was widely known for illegal activities like money laundering and drug sales, Dogecoin brought lightheartedness with its focus on charity, fundraising, and meme-creation.
Just like its fellow cryptocurrencies, Dogecoin relies on blockchain technology. This distributed ledger allows it to operate without an authoritative authority and is maintained by a network of miners – individuals that validate transactions by solving complex mathematical equations using computer processing power and are then rewarded with coins as rewards for doing so.
Many Dogecoin owners hold onto their coins as an investment vehicle, though many also use them for tipping others online or showing support on social media. Dogecoin can be bought and sold on several popular exchanges across the U.S.; its price can fluctuate quickly so investors should exercise extreme caution when investing or trading this asset.
Dogecoin stands out among other cryptocurrencies in that its circulating supply is relatively stable, meaning most tokens are owned by small investors who do not hold enough for market manipulation to significantly affect price movements or trustworthiness for people new to cryptocurrency space. This makes the coin less susceptible to manipulation while remaining trustworthy for newcomers entering this arena.
However, members of the cryptocurrency community have voiced concerns over its high concentration of wealth in few hands. It’s believed that 20 or so Dogecoin wallet addresses control over 50% of the coin’s circulating supply; should any one of them suddenly decide to sell off their holdings this could send its price plunging. As an answer, Dogecoin team developed a bridge that will share their blockchain with Ethereum (and potentially others in future) blockchains for easier trading.
How do I buy Dogecoin?
Buying Dogecoin offers several avenues. One option is purchasing it directly from a cryptocurrency exchange; to do this, you will require both a digital wallet that supports Dogecoin as well as enough funds for purchase. Once completed, your coins will be sent straight back into your wallet.
Another way of buying Dogecoin is using a crypto ATM, or vending machine dedicated to cryptocurrency transactions. To use one, all you need is a smartphone equipped with QR code scanning capabilities and sufficient funds for the purchase – much like withdrawing cash from an ordinary ATM machine. To find one in your area, check out websites such as Coin ATM Radar or search Google for listings of local crypto ATMs.
Buy Dogecoin using a virtual currency trading platform such as eToro to ensure you don’t incur fees for account setup and verification, including providing an ID document or selfie for identity confirmation. Once that step has been taken, deposit money into your account and begin trading – when ready to buy Dogecoin select its currency and enter an amount to purchase.
Once you’ve acquired Dogecoin, it’s essential that it remains safe. Digital currencies are highly volatile and easily lose value; for your own protection it is wise to store it in a multi-sig wallet app; these exist both desktop and mobile versions and should be regularly backed up as part of regular backup routines.
Dogecoin, or Doge, is a form of cryptocurrency renowned for its memetic appeal and peer-to-peer nature. Transaction records are verified via decentralized computing networks and then recorded onto an open ledger known as blockchain.
How do I sell Dogecoin?
If you no longer wish to hold onto Dogecoin, selling it on a crypto exchange may be the solution. When selecting one, make sure it supports your preferred deposit method and has reasonable trading fees; also verify if there are security features like 2-factor authentication or other mechanisms in place to safeguard your account.
Before selling your Dogecoin, make sure that the exchange provides a double-check address for deposit. Doing this will prevent clipboard malware, which could alter the original address with that from scammers. Once double-checked, follow the steps on the exchange to complete your sale using either market order for current price or limit order to set specific selling price.
Once you have sold your Dogecoin, ensure to withdraw and store the funds privately to protect yourself if the exchange experiences any hacking attempts or temporary value fluctuations. Otherwise, keep it in an exchange’s wallet, although be mindful of any associated risks.
Before selling your Dogecoin, another consideration to keep in mind is taxation. As different countries have differing rules and regulations regarding cryptocurrencies, consult a tax expert or use software available through exchanges to assess how much tax will be due when selling the coins.
Timing is of the utmost importance when selling Dogecoin. Your investment strategy should determine when is an optimal time, as selling too soon could mean missing out on potentially large gains and potentially increased volatility as its price fluctuates daily.
