Everything You Need to Know About Dogecoin
Dogecoin is a cryptocurrency founded by two software engineers in 2013. Although it was originally created as a joke, the digital currency gained popularity in 2021, experiencing notable price increases.
Before investing in Dogecoin or any other cryptocurrency, it is important that you fully understand this. In this guide, you will learn the history and important features of Dogecoin, how it is mined, and what you need to know about investing.
What is Dogecoin?
Dogecoin is an open source peer-to-peer cryptocurrency founded in 2013 by software engineers Billy Markus and Jackson Palmer. Like other cryptocurrencies, Dogecoin is powered by blockchain technology.
Dogecoin actually started out as a hoax and existed for many years with little public attention. In the five years between May 2015 and May 2020, the price of Dogecoin on average was close to a fifth of a penny. Its rise in popularity coincided with a surge in retail investment during the pandemic, as well as frequent attention on Twitter from well-known businessman Elon Musk. In fact, the price of Dogecoin rose to 74 cents on May 8, 2021, an increase of more than 15,700% over the previous year's levels.
Dogecoin special features
Dogecoin has some important features that distinguish it from other digital currencies. First, there is no finite number of Dogecoins that can be mined. This is quite different from Bitcoin, the most popular cryptocurrency to date, which has a lifetime limit of 21 million coins. The infinite number of Dogecoins can make it highly inflationary.
The other feature that sets Dogecoin apart from other popular cryptocurrencies like Bitcoin is the way it is mined. Because it is mined with Scrypt technology, Dogecoins can be mined significantly faster than other digital currencies.
Cryptocurrency mining occurs by people completing mathematical and algebraic formulas. This can be done individually or in a group (known as a mining pool). Due to the necessary equipment, mining Dogecoins can be very expensive.
Dogecoin is different from other popular cryptocurrencies in the way it is mined. These coins are mined using Scrypt technology, which is generally faster than other forms of cryptocurrency mining.
Total supply of Dogecoin
When Dogecoin was originally created, it was announced that there would be a maximum supply of 100 billion coins. Since then, the founders decided to remove the limit, allowing an infinite number of coins. As of June 14, 2021, there was just over $ 130 billion in Dogecoins in circulation.
How to buy / invest in Dogecoin
You can buy Dogecoins from any brokerage site that currently sells Dogecoins. Some of the more popular options include crypto exchanges like Binance and Kraken and traditional brokerages like Robinhood.
You can buy Dogecoins using a credit or debit card or a bank transfer. Depending on where you buy your Dogecoins, you may have to pay some trading fees.
Robinhood offers commission-free cryptocurrency trading, while Binance and Kraken have an established fee schedule. Transactions typically take 40-60 minutes to process, but the time may vary depending on the trading platform where you buy your currencies.
When buying Dogecoins, or any other cryptocurrency for that matter, you'll also want to buy a crypto wallet to keep it safe. An encrypted wallet contains the private key to access your coins on the blockchain.
There are many digital crypto wallets on the market, but you can also use an external hard drive. These external hard drives are generally considered more secure than digital wallets because they store your keys offline, preventing hackers or unauthorized access.
Other popular physical and digital Dogecoin-compatible wallets include:
- Coinbase Wallet
- Binance Chain Wallet
- Trust Wallet
2021 was a record year for Dogecoin. The digital currency started the year with a price of half a cent. In early May, its price soared to 72 cents. The price began to fall throughout the month of May, but still hovered around 30 cents a coin.
The Dogecoin price surge in 2021 can be attributed to a variety of factors. First, investment in retail increased significantly during 2020 and 2021, according to research by Charles Schwab. This increase is not directly related to Dogecoin, but it certainly could have contributed to the increase in trading activity.
Finally, many attribute Dogecoin's rise in popularity to Elon Musk's frequent online attention. The entrepreneur frequently tweets about this digital currency. He especially drew attention to Dogecoin on May 11, 2021, when he tweeted a survey asking if Tesla should start accepting Dogecoin.
Later in the month, Musk shared that he is working with the Dogecoin developers to make improvements and create efficiencies with the coin and invited people to share his comments with him and the developers.
We hope you enjoy watching this video about to Dogecoin
Source: The Crypto Analyst
Did you find this post useful or inspiring? Save THIS PIN to your Finances Board on Pinterest!
Ok, That is all for now…
If you enjoyed this article please, Share and Like it. Thanks.
See you in the next post, Have a Wonderful Day!