Dogecoin is an open-source peer-to-peer cryptocurrency based on the Litecoin codebase. It was launched in 2013 by Jackson Palmer, a former Google employee and Bitcoin enthusiast. The name “Doge” refers to the Shiba Inu dog that has become a popular internet meme.
What is Dogecoin?
Dogecoin was created in 2013 by Billy Markus, Jackson Palmer, and Jed McCaleb as a joke. They wanted to make an alt-currency that would be fun and easy to use for the masses. Doge is short for ‘dogethereum’ which is what they called their cryptocurrency. The first-ever transaction with Dogecoin took place on January 1st 2014 when one of the founders bought two pizzas from Papa John’s using them for payment. A few days later, they sold those same pizzas for $1 each! This was all done on a testnet version of the coin, but when it went live a month later, the team had made about 50 million dollars worth of transactions.
In August 2015, the total market capitalization of Dogecoin reached $2 billion.
In November 2015 the price hit its highest point at over $0.01 per coin. Unfortunately, this is also where things started going downhill. The price dropped steadily until April 2016 when it crashed below $0.00005. It has since recovered somewhat, reaching around 0.00025 today. With such low prices, many people have been wondering if there will ever be another crash like this again.
Dogecoin Pros and Cons
• Fast transactions with low fees
• Very easy to use
• Scales very well
• Not as widely used as other cryptocurrencies
• No real reason for users to invest their money into it
• Few exchanges
• Poor security
How Does Dogecoin Work?
The developers at Dogecoin decided that instead of making coins, they would just add more money. So every time someone wants to buy something or send someone some Dogecoins, they are given new ones.
When you look at the blockchain on your computer, it looks very similar to Bitcoin’s. You can see how much money is being sent out and who received it . But the difference between Dogecoin and Bitcoin is that Dogecoin doesn’t have a fixed supply of coins. Instead, the amount of Dogecoins in circulation is controlled by the network itself.
This means that even though miners are trying really hard to find blocks, they won’t always succeed. There will only ever be 21 million Dogecoins ever produced. As soon as that limit is reached, no further Dogecoins will be created.
That’s not to say that mining Dogecoin is impossible. In fact, we get paid for helping to verify transactions on the network. However, because of the way the algorithm works, it’s difficult to mine large amounts of Dogecoins So why do people still keep mining Dogecoins? Well, because they want to be part of history. If you have mined 1000 Dogecoins then you could potentially receive 10,000 Dogecoins in return. That’s a lot of free money!
There is also a slight chance that a block might contain a reward greater than 100 times the normal reward. If this happens, then everyone gets extra Dogecoins. These rewards occur every four years. And while they don’t happen often, they can give you a nice boost.
Why Is Dogecoin Popular?
One thing that makes Dogecoin so popular is how cheap it is. At less than half the cost of Bitcoin, it’s perfect for sending small amounts of money quickly. Plus, unlike other cryptocurrencies, it’s completely decentralized. Since there is no central authority controlling the creation and distribution of Dogecoins, the value cannot be manipulated by anyone.
Another reason Dogecoin is so popular is because of its community. Unlike many other cryptocurrencies, Dogecoin does not try to compete with Bitcoin in terms of technology. Rather, it just tries to copy everything else about Bitcoin. This is why Dogecoin is so friendly towards newcomers. Anyone can join the Dogecoin community without having any technical knowledge needed.
If you’re looking for a cryptocurrency to invest in, Dogecoin is one of the best options available today. Even if you don’t know anything about cryptocurrencies, using Dogecoin is easy. Simply use the website to create an account and start buying Dogecoins. Once you’ve got enough Dogecoins, you can sell them on exchanges like Bittrex or Poloniex. For those looking to learn more about Dogecoin, check out our guide here.
A note on security: Like all digital currencies, Dogecoin uses public-key cryptography. This means that each user has their own private key and public key. Only the owner of the private key can spend the funds from their wallet. When you sign up to a crypto exchange, you need to enter your private keys along with your email address. Make sure that you never share these keys with anyone else. Otherwise, hackers could steal your money.
Where To Buy Dogecoin
Dogecoin is traded on several different websites including; Bitfinex, Coinbase, Kraken, CEX and HitBTC.
BitPanda: Buy & SellBitcoin directly with €€ – FreeShipping on purchases over €20 and fees of 0%.
CEX.IO: Buying Bitcoin, Ethereum & Litecoin. Deposit via Credit Card or SEPATransfer. Safe and Secure!
CryptalDash: This is a full node service where users can store their bitcoin, eth and other alt coins through email. It is the only platform I know of that allows you to buy these cryptocurrencies using your credit card in just 2 clicks. TREZOR: Hardwarewallet for Bitcoin, Litecoin, Dash, Monero, ZCash and many more. Registration needed.
Buy Bitcoins online at Over 200,000 locations worldwide. Use PayPal, Western Union, Wire Transfer, Sofortuberweisung, CashU, GreenPay, debit cards, and other methods like Apple Pay, Android Pay, WebMoney, Klarna, and even Amazon Payments.
Exrates: Earn interest daily on cash deposits, receive payouts via SEPA-transfer, contactless, wire transfer, check, and ACH bank deposit. Stay safe by choosing an address from one of our supported countries and keep control of your funds with the help of your private keys.
Localbitcoins: Trade bitcoins within your local area, no verification required. Be sure you understand how this works before you use it. You might find yourself dealing with scam wallets and fake money as the owners try to avoid being caught. Always carry out transactions manually.
Is it Safe to Buy Dogecoin?
DOGE is not a scam. The total supply of dogecoins will NEVER exceed 21 million dogecoins. That means, theoretically, there will never be more than 21 million dogecoins available for purchase. This makes the digital currency extremely secure against theft of coins since there won’t ever be enough coins to create a “run” on the network where people try to sell their coins before someone else buys them.
There’s no way anyone can steal from you as long as you keep your private keys/wallets separate from your main account. And even if someone steals your private key/wallet, they still don’t get the dogecoins. They would simply end up with something useless like bitcoin cash.
Another thing to consider is that the value of dogecoins always remains relatively stable when compared to other currencies. In fact, as of writing this post, one dollar equals 0.001371 dogecoins. So if you were to purchase $100 worth of dogecoins today, you’d actually receive $1.3125 instead of $1.
So, yes, it’s safe to purchase dogecoins. It’s also safe to purchase other types of cryptocurrency as well.