There is no denying that Bitcoin reigns supreme as the king of cryptos. However, there are other cryptocurrencies that you might be interested in investing in. Dogecoin has transformed from a “joke currency” into one of the most recognized cryptocurrencies in the world.
Our complete guide is set to give you all the information you need to know about investing in Dogecoin.
What is Dogecoin?
Its name is anything but serious, as Dogecoin – with its Shiba Inu dog logo – was intended to be something silly when it first launched. This peer-to-peer cryptocurrency was born out of an Internet meme and is “meant for Doge lovers,” so it’s safe to say that it wasn’t something that was taken particularly seriously.
The team behind DOGE shouldn’t be labeled as jokers, however, as they’ve impressed with how they’ve marketed it to the masses. Taking on an innovative guerrilla marketing campaign using the characteristics of the Doge meme, their approach put DOGE in front of thousands of traders, investors, and crypto fans. Partnering images of the famous Shiba Inu with text like “much something,” “very something,” “such something,” and “wow,” you can see that this cryptocurrency combines funny and functional as one.
The History of Dogecoin
Dogecoin was officially launched in 2013 by Billy Markus, a programmer from Oregon, and Jackson Palmer, a product manager at Adobe. The original idea for ‘Dogecoin’ was conceived through a joking tweet from Palmer. Markus was the mastermind behind the software for DOGE, which he based the code for on Luckycoin, which is itself derived from Litecoin.
In early 2020, the pair sought to use the ‘TikTok pumping challenge’ in hopes of growing the price of DOGE using the power of streamers and influencers on social media channels. The result was DOGE leaped 20% in just 24 hours, and #DogecoinTiktokChallenge began trending! While ultimately unsuccessful, Dogecoin had managed to get its name out to hundreds of millions of TikTok users.
Thanks in part to its newfound fame and the crypto bull market, in 2021, Dogecoin began seeing a surge, eventually peaking in value at just over $0.70. However, as the markets fluctuated and the crypto bubble burst, as of mid-2022, DOGE is back down to around $0.07.
How Does Dogecoin Work?
One of the biggest differences between DOGE and other crypto coins is that it is considered an inflationary coin rather than deflationary. This is due to Dogecoin’s unlimited cap on the supply of coins. The cap is also the reason why the value of DOGE remains so low, as 10,000 Dogecoins are mined every minute.
This extremely high supply of coins makes it so that Dogecoin will struggle to ever reach the $1.00 value.
Dogecoin vs. Bitcoin: Which is Better?
All crypto is inevitably compared to Bitcoin, and DOGE is no different. Both have similar mining algorithms, with the key difference coming about through the level of supply. As you’re probably already aware, Bitcoin has a finite supply, so its blocks will shrink over time to the point where the coin supply will run dry. Dubbed digital gold for a reason, you can see that Bitcoin’s finite nature is lending itself to its insane price growth.
DOGE doesn’t have the threat of a finite supply of coins to battle against. Effectively infinite, the developers decided not to cap the number of mineable coins, a fact that is an integral part of the DOGE joke.
Should I Invest in Dogecoin?
If you’re after the “next Bitcoin” or want crypto that’s going to generate a huge long-term profit, DOGE probably isn’t what you are looking for. There are simply better coins on the market for this, which offer a higher quality commodity and thus have greater potential.
Plus, DOGE is what it was designed to be – a fun project that never had any serious designs to challenge the top cryptocurrencies. This irreverence is perhaps what attracted Tesla CEO Elon Musk to the project, who in 2021 went through a spell of constantly tweeting about DOGE in a positive manner, making national news.
DOGE was never meant to be a coin that could shoot up to tens of thousands in value in a matter of months. If you’re looking to turn a small amount of DOGE into something bigger, online casinos like BitStarz are where you’re going to want to be spending your DOGE.
How to Buy Dogecoin
Since Dogecoin continues to rank in the top ten of all cryptos, the coin can be purchased at most top crypto exchanges.
Some of our favorite DOGE exchanges include:
To purchase Dogecoin on an exchange, you will need to create an account and verify your identity. You will then need to use fiat currency or trade another type of crypt to complete the purchase.
Best Crypto Wallets for Dogecoin
The type of wallet you use to secure your Dogecoin is up to you. There are primarily two types of crypto wallets: Hot wallets (software) and cold wallets (hardware).
Hot Wallets
Hot wallets are constantly connected to the internet, making them both extremely convenient to users while also more susceptible to malware and cyber-attacks. You can use hot wallets on your laptop, desktop, and mobile devices.
Popular hot wallets include:
Cold Wallets
Cold wallets are physical devices that are either never connected to the internet (like paper wallets) or only connected to the internet while in use. This makes cold wallets the most secure type of crypto wallet.
Popular cold wallets include:
Dogecoin Mining
Just as BTC can be mined, so can DOGE. Miners use blockchain technology to verify nodes by solving a series of complex puzzles. Nodes that are verified are entered into a “lottery system” where only one node can be the winner. The miner with the winning node will receive 10,000 DOGE.
Dogecoin mining requires a lot less electricity, is faster, and its mining difficulty is at least a million times less than Bitcoin’s, with a new block being generated every minute. You will still need a powerful CPU to successfully mine any cryptocurrency, though.
Other options for mining DOGE include joining a mining pool and cloud mining.
What Can I Use Dogecoin For?
Like all cryptocurrencies, DOGE can be sold, traded, or used as currency. The main problem with this specific coin is its low value, so you’ll need to have a lot of Dogecoin to make a transaction.
Popular uses for Dogecoin include:
- Crypto casino gambling
- Internet-based tipping
- Trading for physical items on online communities (Reddit, Twitter, Facebook)
The Future of Dogecoin
Dogecoin’s strength has always been in its backing from its supporters. There’s an entire community that has embraced DOGE as their preferred crypto. Last year, the Dogecoin Foundation reappeared, saying it intends to unveil new projects soon to further encourage the use and adoption of Dogecoin.
In late May, Tesla CEO Elon Musk tweeted that he was “working with Doge devs to improve system transaction efficiency.” He further added that Dogecoin would become the leading cryptocurrency since it “speeds up block time 10X, increases block size 10X & drops fee 100X.”
To stay up to date on all the latest relating to Dogecoin, be sure to check out our Crypto News space, where we work to bring you around-the-clock coverage on everything related to cryptocurrencies.
FAQ
Will Dogecoin ever be worth $100?
Because Dogecoin is an inflationary coin, its value will constantly remain suppressed. This means that it is highly unlikely that DOGE will ever be valued at more than $1 per coin.
How long does it take to mine Dogecoin?
A single blockchain will give you 10,000 DOGE and takes only about one minute to mine. Many miners prefer Dogecoin mining over Bitcoin mining because it consumes less electricity and is therefore cheaper.
Will Dogecoin make me a millionaire?
As with any investment, there are rewards and risks. Some people have certainly made money off of Dogecoin in the past, but due to its low value, you will need a lot of DOGE to churn a profit.