Although DOGE was intended to be a fun alternative to other cryptocurrencies, it has already grown to be extremely valuable. You may learn more about what is Dogecoin? and how it operates with the aid of our explainer.
What is Dogecoin (DOGE)?
Billy Markus created Dogecoin from Portland, Oregon and Jackson Palmer from Sydney, Australia, in 2013. The idea for the project came from two internet tabs Palmer had open on his computer at the time, one of which featured a meme of a Japanese Shiba Inu dog.
In a 2019 interview, Palmer said that when he saw the meme, he thought creating a cryptocurrency based on it would be funny.
Background of Dogecoin
Dogecoin was created as a joke, but it quickly gained a following. By late 2017, participating in the cryptocurrency bubble significantly increased the values of many coins. After the bubble burst in 2018, Dogecoin lost much of its value, but it still has a core of supporters who trade it and use it to tip for content on Twitter and Reddit.
Users can buy and sell Dogecoin on digital currency exchanges. They can opt to store their Dogecoin on an exchange or in a Dogecoin wallet.
Palmer coined the phrase “Dogecoin” as a joke and posted it on his Twitter account. It immediately attracted interest from the meme-fueled crypto community. Dogecoin officially launched in December 2013 and became a hit within the community.
In 2015, Palmer and Markus left Dogecoin and the project was entrusted to volunteer developers from the DOGE community. Dogecoin has developed quickly and has become a meme coin associated with the name of the billionaire Elon Musk – who really loves Dogecoin.
How Does Dogecoin Work?
Dogecoin’s mining protocol differs slightly from Bitcoin’s. Dogecoin uses scrypt, a secure and efficient mining algorithm that was designed to exclude bitcoin miners. It also gave the meme token a block time of roughly one minute.
There is no supply cap for DOGE, so an infinite number of tokens can be minted, making Dogecoin an inflationary currency. The circulating supply is currently way above 100bn DOGE. According to Coinbase, 10,000 new coins are mined every minute.
DOGE’s price is much lower than some of the other top cryptocurrencies, sitting below $1 at the $0.10 mark. Its supply is so vast that it will struggle ever to hit $1.
What Problems Does Dogecoin Solve?
Dogecoin solves the problem of slow confirmation times and high transaction fees on the Bitcoin network. Dogecoin also has a much faster block time than Bitcoin, meaning that transactions are confirmed and added to the blockchain much faster.
The Dogecoin Team
A band of volunteers known as the Dogecoin team collaborates to maintain the cryptocurrency. They are in charge of constructing the software, running the website, and promoting the coin.
Developers, designers, and community managers make up the crew. The code that allows the coin to function is being developed. The designers make the coin’s visual identity. The community managers are in charge of upholding the coin’s online reputation and raising awareness.
A project that is open source is dogecoin. This implies that everyone can help with the coin’s growth. Anyone interested in contributing to the team is welcome to do so.
A decentralized project is Dogecoin. This indicates that there is no single entity in charge of the coin. The team supports itself and does not rely on gifts or other sources of revenue.
The Dogecoin team is dedicated to maintaining the currency equitable and open to all users. They want to ensure that the coin is accessible to as many people as possible because they believe in the potential of decentralization.
A lot of different businesses and platforms have relationships with the cryptocurrency Dogecoin. The following is a list of some of the businesses that Dogecoin has worked with:
- Reddit: Reddit is a website where users share and discuss information. Reddit has 330 million monthly users. Reddit and Dogecoin partnered to make it easier for users to tip and buy Reddit incentives.
- Twitch: Twitch is a video streaming service where users may watch others play video games live. Twitch has 3 million monthly users. Dogecoin and Twitch teamed to let viewers tip each other and boost content creators’ income.
- Twitter: Twitter is a social media site where users may exchange and discuss information on a range of subjects. About 320 million people use Twitter every month. Twitter users may tip other users and assist content creators in making more money because of the relationship between Dogecoin and Twitter.
- Elon musk & Tesla: Tesla makes electric vehicles. The company takes Bitcoin for car payments. Dogecoin’s cooperation with Tesla is a big win. Dogecoin has gained popularity due to Musk’s support.
What Is DOGE Token?
Developed in 2013, Dogecoin is a decentralized cryptocurrency. Its mining mechanism is identical to that of the Litecoin protocol. Due to its meme-like status, Dogecoin, which has a Shiba Inu on its logo, gained a lot of popularity.
On social media networks, dogecoin is frequently used for tips or donations. The community is sizable and vibrant.
Basic Information About DOGE
- Ticker: DOGE.
- Blockchain: Litecoin.
- Token type: Payment Token.
- Contract: 0xba2ae424d960c26247dd6c32edc70b295c744c43
- Total Supply: 132,670,764,300.
- Circulating Supply: 132.67B DOGE.
Price of DOGE Today
Dogecoin’s current price is $0.081075, and its 24-hour trading volume is $802,252,823. Our real-time DOGE to USD exchange rate is updated.
In the past day, Dogecoin’s price has decreased by 6.26%. With a live market cap of $10,756,253,875 USD, CoinMarketCap now has a ranking of #10. The maximum supply is unavailable, and there are 132,670,764,300 DOGE coins in circulation.
What is DOGE Used For?
As utility becomes an increasingly important factor for cryptocurrencies, Dogecoin was designed without utility. Instead, it was developed to be a value store with mass appeal. However, there are some uses for the Dogecoin cryptocurrency.
- It is mainly used as a tipping system on Reddit and Twitter for users to gift money to posts they enjoy.
- DOGE is also being used as a means of payment. Tesla has recently jumped on this trend, allowing customers to purchase accessories with the meme token.
Dogecoin, the meme token, has had a successful year in 2021, despite criticism for its lack of utility and for only taking advantage of the virality of memes.
How to Buy DOGE Tokens?
If you’re looking to buy Doge Token, which isn’t currently listed on Binance, you can follow the step-by-step guide below. It’ll show you how to buy Doge Token by connecting your crypto wallet to a decentralized exchange (DEX) using your Binance account to buy the base currency.
- Download a cryptocurrency wallet
- Establish a cryptocurrency wallet
- Purchase Stellar as the Base Currency.
- Send Stellar from Binance to your cryptocurrency wallet.
- Select a Decentralized Exchange (DEX)
- Integrate Your Wallet
- Exchange Your Stellar For the Coin You Want.
- Locate the Smart Contract for DOGE Token if it does not appear.
- Apply the Swap
How to Store DOGE Coins?
There are several wallets you can use to store Dogecoin (DOGE), including MultiDoge (Light Wallet) and Dogecoin Core (the full version of MultiDoge) for popular platforms like Windows, Linux and macOS. You can also store DOGE on wallets that support Binance Smart Chain tokens (BEP20) such as Metamask, Ledger, Trezor, or directly on an exchange.
Goals of Dogecoin
Dogecoin was created with the Litecoin codebase to provide an alternative to Bitcoin. It was meant to be a more approachable and friendly cryptocurrency, with its most distinct feature being its mascot.
Prospect Of DOGE
DOGE may be a meme coin with almost zero applicability, but it has received the attention of billionaire Elon Musk. It is associated with each time the market has new money inflows.
Elon Musk’s constant tweets about DOGE have driven it up with a record ROI of 7,600%, a record capitalization and a top 5 in CoinMarketCap ranking in a short time. Moreover, it also created an animal coin trend effect that made the whole market turbulent in 2020 & 2021.
How to earn DOGE tokens?
To be able to own DOGE, you can:
- Buy directly on exchanges.
- Join the community of DogeCoin to get free DOGE coins.
Here are 2 websites that give away DOGE for free for you to join:
Should you invest in Dogecoin?
Although Dogecoin started out as a joke, investors are now taking it much more seriously. However, experts still recommend only investing 3-10% of your portfolio in cryptocurrencies due to the high level of risk involved.
Is investing in DOGE risky?
Blockchain technology is used by Dogecoin, much like it is by Bitcoin and other cryptocurrencies. Hacking blockchain technology is thought to be exceedingly difficult but not impossible.
Dogecoin is comparatively safe because it is one of the cryptocurrencies with the highest market capitalization and widest acceptance rate.
Why is Dogecoin popular?
Dogecoin is popular because it is a fun and friendly alternative to other cryptocurrencies. It has a strong community that is active and supportive.
Is it the right time to buy DOGE?
It is difficult to say whether it is the right time to buy DOGE since cryptocurrency prices are highly volatile. However, if you are interested in investing in DOGE, you should do your research to determine if the current price is a good deal. You should also be aware of the risks associated with investing in cryptocurrency, as prices could drop suddenly, and you could lose money.
What can I buy with DOGE?
These days, you can use Dogecoin to pay for almost anything online via crypto cards, P2P transfers, gift cards, and online shopping.
Can DOGE pumps again?
In 2023, Dogecoin will be able to continue to exist, according to the prediction made by experts and watchers in the crypto industry. Given all the anticipated growth, 2023 might prove to be more important for Dogecoin.
How is Dogecoin different from other blockchain projects?
The first-ever meme token was Dogecoin, a cryptocurrency characterized by humor and social media chitchat. Its lighthearted attitude, devoted community, and merger with online culture give it distinctiveness.
Can I convert Dogecoin coins to other currencies?
How can I find more information about Dogecoin?
The Dogecoin website is a great place to start. You can also find information about Dogecoin on Reddit and Twitter.
Covemarkets hope that this article has helped you understand the basics of Dogecoin and the DOGE token. If you have any questions or suggestions, please don’t hesitate to leave a comment below, and the Covemarkets team will be happy to help you out!
Disclaimer: The information provided in this article is not investment advice from Cove Markets. Cryptocurrency investment activities are yet to be recognized and protected by the laws in some countries. Cryptocurrencies always contain financial risks.