What is Dogecoin?
Dogecoin is a cryptocurrency that was based on Luckycoin’s blockchain, which was based on Litecoin. Its creators had the vision to create an altcoin with a funny name that would attract more people than Bitcoin and could be used for microtransactions. Dogecoin can be used to give virtual “tips” on networks such as Twitter and Reddit when a user posts something that is funny, important or anything that has been deemed interesting by the community.
The History of the Dogecoin
Dogecoin, with its parodic name, was developed by Billy Markus, a former programmer for IBM, and Jackson Palmer. The coin was officially launched December 6th, 2013 and uses a Shiba (a Japanese dog breed) as its logo.
The Dogecoin didn’t take long to garner success. The altcoin quickly gained public support, who should extreme enthusiasm towards it and didn’t hesitate to find all sorts of uses for its microtransactions. Aside from offering virtual “tips” or donations on the internet, Dogecoin has also been featured in several other big projects. For example, nearly 27 million Doge were raised to help send the Jamaican bobsleigh team to the Olympic Games in Sochi. It was also part of the “Doge4water” project, which aimed to provide access to clean water in Kenya. For this, nearly 40 million Doge were collected
How Does the Dogecoin Work?
According to the cryptocurrency’s official website, “The Dogecoin differs from other digital currency thanks to its extraordinary community made of sympathetic people, just like you.”. Based on the Litecoin, created by Charles Lee, Dogecoin also uses the POW or Proof of Work method. However, unlike its predecessor, Dogecoin is an inflationary currency and does not have any limit to the number of tokens that can be issued.
As previously mentioned, Dogecoin is used primarily for microtransactions made online. Donations made by Dogecoin on Twitter or Reddit rarely exceed $0.20 since they are only used to encourage internet users who post funny, interesting or important information.
How to Use Dogecoin
Dogecoin can also be used to purchased products or services online and the process of transferring your Dogecoins is the same as with other cryptocurrencies. To send Dogecoin, you must first have the address of the wallet that you wish to send it to. Next, enter the amount of Doge that you wish to give and then click “send”. Although its transactions are meant to be instant, it may take a bit of time for the transaction to be validated and made available in the recipient’s account.
Buying and sending Dogecoin is extremely easy and fast, making it a perfect match for the high-speed world of social networking.
Why Should I Invest in Dogecoin?
As with any cryptocurrency, Dogecoin offers certain advantages that are meant to incite individuals to invest in the project. Despite the market’s cap seeming exponential, the decision to invest in any cryptocurrency carries some level of risk. The market for cryptocurrencies is extremely volatile and is often plagued by constant highs and lows. In Dogecoin’s case, one must be even more cautious since it was a cryptocurrency that was designed as a parody and just happened to surprise the market with its ascent to power. Still, this does not mean that one should not invest in Dogecoin since it is still a promising cryptocurrency based on a very powerful technology. Here are a few good reasons to invest in Dogecoin:
- Dogecoin is perfect for smaller transactions. Thanks to the network’s reduced transaction fees, it is a perfect alternative, especially in comparison to Bitcoin.
- Dogecoin offers significantly faster transactions than many of its competitors.
The Value of the Dogecoin (Doge)
It only takes a quick peek at Dogecoin’s development to see that it possesses real potential. At first, most investors would have bet on the failure of Dogecoin, but not long after its launch, it quickly found itself in a sustained upward trend. 2017 was also an exciting year for the altcoin, which saw its value beat its previous record and peak at $0.018 before entering 2018. After a few minor corrections to the market, Dogecoin now seems to be gaining steam with new promises of future improvements.
Not long after it was first launched on December 6th, 2013, Dogecoin managed to reach a record value of $0.000559 by December 15th of the same year. For the next three years, its course was nothing but stable and by December 15th, 2016, its value stabilized around $0.000215. It wasn’t until June of 2017 that the Doge reached $0.0031 and by the end of the year, its value had managed to climb to $0.00367. And, as of the beginning of 2018, a single unit of Doge was worth an impressive $0.018
How to Invest in Dogecoin
There are three recommended strategies for investing in Dogecoin.
- Buying Dogecoin and keeping it – Thanks to exchanges like Gate.io or Bittrex, users can purchase Doge. You must simply open an account on your chose platform and then make a deposit of Bitcoin or Ether so that you will be able to exchange them for Dogecoins. Once purchased, you will then wait until their value increases to sell and make a profit.
- Getting paid in Dogecoin – If you regularly use Twitter or Reddit, by publishing posts that contain important, funny or interesting information, users can be paid in Dogecoin by other internet users. You are also able to do the same for other users and donate Dogecoins to them. Equally, users can provide products or services in exchange for Dogecoins.
- Join the community – Dogecoin gained its success thanks to the support of its passionate community. The bigger this community gets, the more Dogecoin’s value will increase.