Dogecoin became famous when its price rose over 10,000% between mid-April and early May. Dogecoin now has a market capitalization of over $24 billion. It is a cryptocurrency that was created in 2013 as a parody of Bitcoin. Since early May, the price has dropped approximately 73%. So what exactly is Dogecoin? And is it worth investing in?
What is Dogecoin?
Dogecoin started as a joke. A satire of cryptocurrencies. Its name is the combination of the Japanese term “doge” (which means a lot or many) and the word “coin,” hence “DogeCoin.”
Dogecoin is no longer a joke. Dogecoin has grown a very large following because of its uniqueness and its community-focused nature. Dogecoin has embraced the internet culture.
Like Bitcoin, Dogecoin is a fully functional cryptocurrency, although it was made for smaller transactions. All transactions are recorded on the blockchain. And the coin has been used for payments since its launch.
You can purchase Dogecoins using Bitcoins or through money-service businesses; visit here for more.
You can store your Dogecoins in online wallets such as the Doge Vault, a popular, web-based wallet. This allows you to spend your coins from anywhere in the world.
The easiest way to earn Dogecoins is by participating in the massive, global “shibes” community. In the community, you can find people who will send you random tips in the currency for “shibes” (the term Dogecoin users use to refer to themselves). You can also participate in giveaways or gather Dogecoin from mining.
There are hundreds of Dogecoin-related memes online, which you can use to spread the word about your favorite coin. You can also tip people who are creating news and quality content on various sites such as Reddit.
You can keep up with the latest Dogecoin news by using a cryptocurrency news site such as CoinDesk.com
What’s the Difference Between Dogecoin and Bitcoin?
Bitcoin is a digital currency that allows you to store your money online for free or pay for goods and services in a safe and secure way without needing a bank account. Dogecoin offers the same advantages but with a little extra fun.
Dogecoin is based on a system that is used by Bitcoin. However, some important changes have been made to make it different from Bitcoin. For example, there will be a limited supply of coins.
To make sense of the difference between Bitcoin and Dogecoin, think of Bitcoins as gold coins and Dogecoins as silver dollars, or vice versa.
Crypto experts tend to agree that the underlying technology of Dogecoin and the coin’s overall usefulness is not on the same level as Bitcoin.
Should You Invest In Dogecoin?
Since the beginning of 2021, the Dogecoin price has become highly volatile. Anyone thinking about investing in Dogecoin should do so cautiously.
At the end of the day, Dogecoin’s value lies in its community, its entertainment value, and traders hoping to benefit from future volatile price rises, not the underlying technology and as a means of exchange.
Any investment is speculative, but if you believe in its community and your ability to trade smartly, then Dogecoin could be the investment for you. If you enjoyed this post, check out the rest of our investment blog.