2021 has been an amazing year for cryptocurrency. This year alone, many things have happened – from the large upswings to more cryptos coming to the mainstream, more businesses accepting them, and also the wide adoption of NFTs. And in between all of these, one notable thing that happened to the crypto world is the amazing growth of Dogecoin.
This is one of the coins 2021 has blessed so much. This year, the coin gained huge popularity and acceptance, making many investors and crypto enthusiasts jump on the Dogecoin bandwagon. If you have been hearing about Dogecoin and wondering what is Dogecoin, there is no need to puzzle your mind with so much crypto jargon about cryptocurrency. Here is everything you need to know about Dogecoin in the simplest terms.
What Is Dogecoin?
Dogecoin is a type of cryptocurrency like some others you probably know, such as Bitcoin, Ethereum, Litecoin, etc. Even though the coin has a rough origin and sounds like it is a currency for dogs, Dogecoin is just like any regular cryptocurrency you buy and sell. You can either buy Dogecoin as an investment or use it as a form of currency like real money.
The coin was created in 2013 as a joke. But even though it started as a joke, it is currently one of the hottest things in the crypto world. Back then, during its creation, that was the time the Shiba Inu meme was popular – that was a meme about a kind of dog. The creator of Dogecoin decided to ride on the already established popularity of the meme and named the coin after the “Doge” meme, and it later became their mascot. Of course, that move was one of the contributing factors to the growth of Dogecoin.
Bitcoin vs. Dogecoin: What Is the Difference?
Well, the two are both digital currencies called cryptocurrency, but there is a little difference between them. While one of them is the alpha of cryptocurrency, the other is more like the underdog in the crypto world. Everyone today who knows about cryptocurrency will know Bitcoin. It is more like a household name. But Dogecoin is more like a runner in the Olympics who is just trying to find its foot because no one had ever heard of it before but just swooped in and won the race. And because of that, many people now want to know about them. They want to know who they are.
Why Is Everyone Talking About Dogecoin?
It is not strange to ask how a cryptocurrency that started as a joke managed to become so popular, going up in price by 500% in just 24 hours. Even though the crypto world is a place where anything can happen, the growth of Dogecoin still comes as a surprise to many people up till today.
Well, while there are many factors behind the sudden popularity of Dogecoin, the influence of celebrities and big names is a major one. And that brings us to Elon Musk. The Tesla CEO is one of the major forces shooting Dogecoin to the moon. In fact, he is considered the unofficial CEO of Dogecoin. Through a series of tweets, the billionaire celebrity was able to garner more interest for the coin and so helped increase its value.
In April 2021, Dogecoin increased in price to hit an all-time high of $0.43 from $0.0099 it was at the beginning of the year. Compared to what its price was this time last year (around $0.0026), it is obvious that Dogecoin has made good progress during the year. And this is one of the reasons people are talking about it and trooping to invest in it.
What’s the Technology behind Dogecoin?
If you wonder what the technology behind Dogecoin is, you will be glad to know that it is also based on blockchain technology, just like other cryptocurrencies. That means every transaction made with the DOGE coin is stored on the Dogecoin blockchain, which is a huge digital database or ledger on which transactions are safely stored.
Blockchain information is very secure since it is not stored in one single place. Instead, it is stored across thousands of computers called nodes. And that is the reason blockchains are referred to as decentralized networks; they are not operated from one single or centralized server. And this is contributing largely to its security.
What is Dogecoin worth?
Well, Dogecoin is not worth much. As of the time of writing this post, one Dogecoin is worth only $0.266! Furthermore, Dogecoin has no supply limit, which means there is no limit to the amount of the coin that can be in circulation, and so the price may not increase as much as other coins like Bitcoin and Ethereum that have limited supplies.
Presently, there is only about 21 million Bitcoin in circulation white Dogecoin is already about 114 billion. That makes Dogecoin coin a perfect option for small transactions, and that is one reason the coin is used for tipping and donations.
However, even though the price of Dogecoin is less than a cent, that doesn’t mean the coin is worthless. In fact, according to some experts’ predictions, Dogecoin has a high potential of getting to great price values in the few months to come and even reaching the $1 mark.
What’s Dogecoin Used For?
There are different ways you can benefit from joining the Dogecoin bandwagon – which is referred to as its use case. You can buy Dogecoin as a form of investment. Here, you will buy and save it so you can sell it later in the future when the value increases. You can as well use it as a form of payment. Many businesses today accept Dogecoin as a form of payment for their products and services.
You can as well use the coin as tips and donations. Some businesses today use Dogecoin as a form of reward for their customers for taking particular steps. This could be signing up for a survey, buying a certain amount of products, or referring a friend to the business. And the coin has been performing excellently in that field.
How Do You Buy Dogecoin?
Again, there are a couple of ways by which you can get your Dogecoin. You can decide to buy from someone you know that is willing to sell. You can buy from a crypto exchange platform or a broker. All of these processes come with their unique pros and cons. For instance, if you will be buying in person from another seller, you will need to be sure of the authenticity of the person you are transacting with, so you won’t lose your hard-earned money.
Buying from an exchange platform seems to be the most secure and easiest option for buying Dogecoin. If you will also be taking that route, here are the steps to follow:
- Find a preferred exchange you would like to use. Double-check the security and reliability of such a platform before opting for it. Also, check their mode of payment and be sure it fits your need.
- Once you found an exchange, create an account with them
- Purchase your Dogecoin by selecting how much of it you want to buy and depositing the equivalent in your account.
- The Dogecoin will be sent to your crypto wallet
- Now, you can do whatever you like with the Dogecoin you have purchased.
Should I Invest In Dogecoin?
This is a personal question that only you can answer. Before you invest in any cryptocurrency, you need to check and ensure it fits into your portfolio. If it does, then you can now weigh the pros and cons of the currency. As for Dogecoin, if it fits into your portfolio and the coin continues to enjoy support from celebrities, it will make a good investment everyone should consider.
In the past few months, its growth has been bullish, and predictions say we should expect more from it before the end of the year. So if you are considering investing in Dogecoin, this might just be the right time to substantiate that decision.