Dogecoin is one of the largest and most popular cryptocurrencies today. Just as the name ‘Doge’, Dogecoin is a Japanese Shiba Inu dog-themed token.
Crypto investors always look out for an option to diversify their portfolios. Dogecoin, which is influenced by the cryptic tweets of the world’s richest man, Elon Musk, has been largely considered.
Although dogecoin came to be a parody of another cryptocurrency, it has since grown to be one of the top crypto assets today.
In this post, we’ll get to know more about dogecoin, its features, and its investment opportunities.
What is Dogecoin?
Dogecoin is a cryptocurrency created as a ‘joke’, to make fun of the wild speculations of crypto at the time it was created. Billy Markus and Jackson Palmer are the two engineers that created the dogecoin. It is a hand-fork of Litecoin, a project labeled as ”Bitcoin’s silver”.
Also called the meme coin, Dogecoin promotes the currency as the “fun and friendly Internet currency”. Dogecoin was initially designed to be “as ridiculous as possible,” in keeping with its parody theme and to prevent people from actually using it over the long term.
Fortunately, dogecoin has grown popular over time, most especially after it found the interest of Elon Musk and other influencers. Dogecoin trades by the symbol DOGE.
The dog-themed token has enjoyed a level of success since its creation. DOGE also has its meme coin, which is the Shiba Inu token.
Although there have been questions about the value of dogecoin and has also been classified as a ”shitcoin”, it is however top on investors’ list.
Dogecoin in the Crypto Market Today
As of publication, Dogecoin is ranked tenth among thousands of crypto assets by CoinMarketCap. It trades by the symbol ”DOGE” in the crypto market. The price of DOGE is $0.058285 with a 24-hour trading volume of $228,615,524.
Dogecoin has a live market cap of $7,732,666,134. It has a circulating supply of 132,670,764,300 DOGE coins.
Dogecoin is available for purchase on most of the world’s crypto exchanges among which are Binance, Coinbase, OKX, ByBit, and so on.
What to Know Before Investing in Dogecoin
Here are important things to know before investing in a crypto asset like Dogecoin.
Dogecoin’s high volatility is considered the first feature to understand. Cryptocurrencies are naturally volatile but DOGE is more volatile when compared to some other assets.
Although the value of Dogecoin has tickled the interest of crypto enthusiasts to learn and invest in it, a price crash has always been imminent as a result of an increase in the number of investors incessantly cashing out from the coin.
2. Bubble-Like Feature
Dogecoin can be broadly described as a bubble with the propensity of crashing soon. Therefore, it is much of an issue to not put into consideration the fluctuating feature of the coin which is largely dependent on how it is being held by people and also its circulation coverage across the crypto market.
Investors need to be very cautious while investing in Dogecoin due to constant cashing out that might later burst the bubble.
3. Big Influencer
Dogecoin became popular and has since grown due to the hype of influencers. Elon Musk, who has been tagged as the ‘‘DogeFather” has tweeted and posted memes about DOGE which has attracted many to it.
Reddit influencers as well as celebrities such as Snoop Dogg, Mark Cuban, and so on have also made DOGE popular today. Dogecoin lacks real value like Bitcoin and some other assets but has soared with hype.
4. Fear Of Missing Out (FOMO)
As Dogecoin takes its marketplace to social media and its investment is munched on by people, there is the possibility of Fear Of Missing Out (FOMO) on a potential investment opportunity. It is important to note that it is not everyone that will make fortune from investing in Dogecoin.
How to Mine Dogecoin
Dogecoin uses the proof-of-work like its model, Bitcoin. However, its proof-of-work consensus mechanism is different from that of Bitcoin in several ways, one of which is by using Scrypt technology.
The meme coin has a block time of 1 minute, and the total supply is uncapped, which means that there is no limit to the number of Dogecoin that can be mined.
You can mine Dogecoin either solo or by joining a mining pool. A Doge miner can mine the digital currency on Windows, Mac, or Linux, and with a Graphics Processing Unit [GPU].
Why Investors Consider Dogecoin
1. Dogecoin is best for beginners- DOGE is regarded as a great asset for crypto beginners. Its enormous volatility will help new investors to know what crypto investment is all about.
It helps them to know that it can skyrocket or dive within a matter of minutes. This is required to have a strong mindset which will help to weather the storms in crypto investment in the long run.
2. Dogecoin has a feature that makes it faster today- DOGE has a brilliant feature called the Scrypt algorithm. This facilitates much faster block creation, making it solve one of the shortcomings of its model, Bitcoin.
3. It is a more credible store of value than other meme coins- DOGE has a more credible value. Its mechanism is rooted in its intended usage as a highly accessible P2P method of exchange. It also prevents long-term holding diminishes circulation & minimizes transaction fees.
The developers behind the Shiba Inu coin have taken a much different and less sophisticated way when it comes to the token’s supply mechanism.
4. Dogecoin is becoming more mainstream– Dogecoin is becoming more popular and has been widely accepted as a medium of exchange in our world today. Several businesses including Elon Musk’s Tesla company are now accepting Dogecoin as a form of payment.
What Dogecoin Can Be Used For?
1. Dogecoin is being used as a tipping system on Reddit and Twitter to reward the creation or sharing of quality content. You can get tipped Dogecoin by participating in a community that uses digital currency, or you can get your Dogecoin from a Dogecoin faucet.
2. Dogecoin is being used as payment for goods and services. e.g. Tesla accepts Dogecoin for some of its products which include merch. NBA merchandise, Dallas Mavericks also accept DOGE as payment for match tickets and other services. Other top companies that accept DOGE include AMC Theaters, GameStop, Twitch, Newegg, airBaltic, and Easy DNS.
3. Dogecoin is available for purchase on crypto exchanges and trading platforms where it can be traded for profit making.
Is it Risky to Invest in Dogecoin?
Yes, just like every other crypto asset, it is very risky to invest in Dogecoin. Its high volatility makes one careful before investing. This has made critics label it as ”useless”.
Nevertheless, Dogecoin has been one of the top crypto markets in the current bearish market.
The Bottom Line
Dogecoin belongs to the category of cryptocurrency known as ”meme coins”. This is because it was created as a meme of Bitcoin, the first and biggest cryptocurrency.
Dogecoin has grown to be the most popular cryptocurrency today and has made giant strides in the industry. It is however one of the most crypto assets to invest in due to its high volatility even with the fact it soared through the social media hype.