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Dogecoin 101 – Understanding The Basics

Dogecoin 101 - Understanding The Basics

Introduction

Dogecoin (DOGE) is a cryptocurrency that is one of the fastest-growing currencies. It is the sixth oldest cryptocurrency since 2013. From January 2014, the market capitalization of dogecoin is more than $60 million and it is increased to $327.62 million by 2018 June. By that, dogecoin has given 46th highest rank out of all cryptocurrencies.

The Dogecoin is compiled as DOGE, which is one of the digital coins that acquire traction in the crypto world. The funniest thing about dogecoin is that it begins as a joke, only to become a usable cryptocurrency.

At the time when it is launched, the source code of the coin was taken lightly by most users. The name doge was taken from the doge meme and people thought it was a “joke coin” nothing else. Within a few months, dogecoin became the largest digital community and also upraise its funds fast, placed it in the middle of the world’s fastest-growing value markets.

History Of Dogecoin

In 2013, two software engineers “Billy Markus and Jackson Palmer” develop this cryptocurrency to make fun of the bitcoin and other cryptocurrencies to boast grand plans to take over the world.

When Billy Markus and Jackson Palmer launched this dogecoin, they did not imagine this type of rapid growth which they have seen. The logo of this dogecoin is taken from the internet “doge meme” and it is taken funnily.

When it was launched, The open-source coins were not taken seriously by many users and people took dogecoin as a joke coin. Maybe in order to keep the joke rolling, many people purchased the Dogecoin. The coin became popular through social media like Twitter and Reddit. The owners of DOgecoin were dedicated Redditors.

Just after a few months of launch, Dogecoin gained the largest online community and raised funds rapidly, and became one of the fastest-growing crypto coins.

The Dogecoin production increased and by June 2015, more than 100 billion were circulated worldwide.

How does Dogecoin Work?

It will not be too complicated to argue that dogecoin’s coding is a direct copy of Bitcoin. To talk over the idea, one of the dogecoin’s founders, Billy Markus stated that it only takes 3 hours to make this dogecoin. Billy describes that how exactly he used the control F function to scroll through Bitcoin’s code and replace all examples of Bitcoin with dogecoin.

Dogecoin 101 - Understanding The Basics

Billy Markus also made some other adjustments to know another concept like changing the term mining to digging. Particularly, Markus decided on a one-minute block time. A network of blockchain is a reference of how frequently a new “block” of a transaction is added to the “chain” of transactions.

Advantages of Dogecoins

  • According to the Doge price prediction, as we compare Dogecoin to Bitcoin, the transaction amount for Dogecoin is pretty low and the transaction is also very quick where it hardly takes around a minute.
  • Due to the low price of dogecoin, it is generally used as a surmount system and it is an ideal way of payment for online casinos and cryptocurrency gambling
  • Because of dogecoin’s writing documentation agreement, unlike the variant of Bitcoin that is SHA256, dogecoin can be removed via FPGA and ASIC devices with less utilization energy against Bitcoin’s high power mining rigs.
  • The uniqueness of dogecoin is allocating it a strong and energetic community, making dogecoin dissimilar from the other cryptocurrencies.

Disadvantages of Dogecoins

While considering dogecoin is to be a preferable alternative, it is always in its immaturity where ordinary applications are concerned. However, with the millionaires like Elon Musk and celebrities like Gene Simmons and Snoop Dog showing their interest in the crypto, and it may find it more actual applications.

Even though dogecoin has a very big and dynamic community since 2015 there have been no vital developments and technological updates in dogecoins. And this may be well thought out as another disadvantage. Because of the lack of upgrading, dogecoin grows in its value and reaching an all-time high in February 2021.

How Do you Buy Dogecoin?

If you want to buy Dogecoin (DOGE), first of all, you need to generate your cryptocurrency wallet. You can select hardware or desktop wallets. Once you have the wallet, you can have a view of selling your coins. On the other hand, you can see Reddit subreddits that are always there to help you regarding dogecoin.

There is another exceptional mode of buying or selling coins through the exchange such as Binance, Poloniex, Bittrex, and Kraken out among others. One more thing you need to know about this platform is that payments are received through traditional payment services like Paypal, credit cards, or other cash transfer services.

You can also trade the coins with another cryptocurrency. Because of this interesting thing about coins or cryptocurrencies,  dogecoin is so popular. This exchanging property of dogecoins makes it different from other cryptocurrencies.

Is It Beneficial to Invest in Dogecoin?

It would be very tough to say that if a cryptocurrency or anything that is started as an internet meme would be beneficial for investment or not. Truthfully said, these digital currencies are a duplication of Litecoin, as its coding is based on their latter’s. The price of these currencies always getting high flown, depending on the behavior of the market.

Dogecoin 101 - Understanding The Basics

1-Year Dogecoin Price Chart – Source: EtherDesk

Although, the investors or financial experts cannot foretell or anticipate the market trends. Litecoin has been blocked in 2.5 minutes, while dogecoin blocks are generated every one minute and this adds 5.2 billion coins more every year. However, the shorten block time of dogecoin results in generating large numbers of coins which boosts the market by reducing the value of the cryptocurrency.

The Digital currency is the same as Litecoin because its coding was also based on letters. The price of Dogecoin always keeps on inflating according to market trends.

Conclusion

Dogecoins are launched as a joke but their rapid growth demonstrates that you have to need to develop a sound-free currency that is attentive. In the opinion of cryptocurrency specialists and examiners, they believe that dogecoin to be an underestimated currency. One can also say that dogecoin makes a name to become known these following tweets of Elon Musk supports the crypto. Aside from that, dogecoin truly has huge potential as a practicable and fast-moving alternative to Bitcoin. The dogecoin was considered to be a generally accepted cryptocurrency with a touch of fun. At the same time, dogecoin has come out as a feasible alternative to both Bitcoin and Litecoin.

The dogecoin developer is making their platform forward by upgrading them. This upgraded platform gives you the preferable environment to conduct live money tests on the network. This will allow the business tycoons to find out that how to combine best dogecoins. Overall the adoption of dogecoins may have a better survival chance to start with these critics’ thoughts.

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