How often can you believe that something that started as a joke is now worth millions? Ideally, no one would believe that. However, that is what happened with Dogeco-in. What started as a cryptocurrency spoof of Bitcoin is now one of the highest value cryptocurrencies in the market.
The fate of Dogeco-in might not have been this big if it weren’t for the plug and boost from the Tesla founder, Elon Musk who popularized the advent of this coin on his social media profile. That is what brought the coin to the foreground, making people more interested than before.
However, we understand that the concept of cryptocurrencies is complicated, to begin with. While we are reeling from understanding the basics of Bitcoin, we have a new one on the horizon.
Don’t worry though because this article highlights everything that you need to know about Dogecoin, its significance and the investment journey associated with the same.
What is Dogecoin (Dogeco)?
Let us start with the basic definition.
Dogecoin is a type of cryptocurrency amidst all the other available options that we have flailing in the market. However, the incidence of this cryptocurrency is what sets it apart from the rest of its competitors.
Other cryptocurrencies like Ethereum and Bitcoin started off to support the market. However, Dogecoin was the complete opposite. The cryptocurrency was introduced as a form of a joke and somehow, it managed to stick around. While the creators started it off to mock the people buying “digital currencies”, somehow, with Elon Musk’s assistance, Dogecoin shot to fame and is a worthy digital currency now.
Some quick facts about Dogecoin:
- The term and incidence of Dogecoin were done by two software engineers – Jackson Palmer and Billy Markus back in 2013.
- The Dogecoin was introduced as a joke to mock Bitcoin by the engineers in 2013, especially when bitcoin’s value shot to great heights.
- The Dogecoin was designed and released based on the popular ShibaInu dog meme that was floating around at the time.
- The issuance of this coin is unlimited.
So, how influenced are you now to make a good chunk of investments on Dogecoin now? Despite its kickstart on a fun note, Dogecoin has now managed to tickle the senses of many investors, thanks to its sudden peaked growth after Musk’s contribution.
What is the Significance behind Dogeco-in?
Now, you must be sitting here wondering, “If Dogecoin started as a joke, why it is valuable now and what kinds of significance do it hold?”
Well, Dogecoin, like all the other cryptocurrencies, is a form of digital currency that can be used as a mode to transfer money between people. It can be done to either pay for goods or services of the companies or individuals.
Like other cryptocurrencies, Dogecoin also allows the users ow owners to send their money semi-anonymously for better privacy while transferring the money. They don’t hold the record publicly as you’d find in the bitcoin blockchain, which is where things are different.
Dogecoin functions with a bunch of decentralized networks of computers under a blockchain, like most of the other cryptocurrency’s functions. The blockchain is responsible for verifying the transactions and ensuring the integrity of the exchanged data in the network before confirming the transaction between two or more people in the network.
Where is the Inception of Dogecoin from?
Now that you have a basic understanding of Dogecoin and how it functions, the next thing worth looking into is where it comes from. Unlike most of the other cryptocurrencies, Dogecoin is mined using a decentralized network that runs the currency.
Much like in other cryptocurrencies like Bitcoin and Ethereum, these networked groups are responsible for doing the complex mathematical calculations that are responsible for the coins that are part of the transactions.
The latest statistics of 2021 suggests that there was a total of 131 billion Dogecoins available in existence. So, this should give you an idea of how high the valuation of the coin is. That said, new coins are being created every minute, so you can be assured that the number of the coins are being consistently mined. The annual issuance of Dogecoin is limited to 5 billion coins now.
This is being done to ensure optimal safety and security of the transactions. So, if you were confused about where Dogecoin came from, this is where it stems from.
Where can one buy Dogecoin?
Since the incidence of Dogecoin started as a joke, it isn’t surprising that Dogecoin is not as widely available as the other cryptocurrencies like bitcoin, Ethereum or even Litecoin.
However, where can you buy Dogecoin? There is indeed a range of popular platforms like Coinbase and BlockFi that allow the easy purchase of cryptocurrencies. However, these platforms don’t allow exchanges of Dogecoin. For that, you’d have to deal with platforms like Kraken and Crypto.com.
Also, exchanges are often quite easy to get hacked into, so it isn’t surprising that you should store your Dogecoin securely yourself so they are safe and won’t put your money at risk. Crypto wallets are thus the best way to buy and exchange Dogecoin if you are interested.
The crypto wallets are also very easy to integrate into the available mobile applications and investment apps that you can find online. So, this enables safer and faster investments and buying of the Dogecoin without needing to rely on external factors.
How can you Buy and Invest in Dogecoin?
Now that you have a fair idea about buying Dogecoin, let us explore the modes of purchase. From where can you buy and invest in Dogecoin? This is hands down one of the most common questions that beginner cryptocurrency investors have in their minds.
While we wouldn’t recommend exchanges are the first line of investment, there are other ways in which you can successfully invest in Dogecoin without any complications at all.
- Using credit card
Credit cards are versatile and offer multipurpose use. However, did you know that you can use them to buy cryptocurrency? Well, that is actually where the majority of the people started with their cryptocurrency journey, including that of Dogecoin. However, good things come with a price. Although credit cards are indeed an easy way to purchase Dogecoin, it is also true that they charge the highest for making investments. You might have to pay flat 2-3% fees for these investments.
- Using bank transfer
If you don’t wish to pay such a hefty transaction or investment fee, the next way you can kickstart the investment option is by using a bank transfer. Direct bank transfer is safe and charges you a fraction of the amount but it is also the slowest of them all. The investment transaction can easily take between 2-3 days to complete, which is one of the lowest rates of exchange.
- Using cryptocurrency
Yes, you can trade your existing cryptocurrencies for Dogecoin under the crypto exchange. The process is a little tedious and requires you to have a basic understanding of the process and the exchange involved, especially if you want the transaction to go smoothly without any complications. Investing via a crypto trader is easier, more effortless and the involved investment or transaction fees are less than 1%, making them feasible too.
Once you have purchased for the investment of Dogecoin, you then need to move or shift the bought cryptocurrency from the exchange to the wallet that you handle. We’d recommend that you do this immediately to reduce the risks of tampering and hacking which is very prevalent with the majority of the cryptocurrencies that we have available in the market now.
Is Buying a Wallet for Dogecoin mandatory?
Once you are done buying the Dogecoin from the exchange, the next question that many people have in their mind is about its security. Is it mandatory for one to buy a wallet for the purchased Dogecoin?
And, the answer is NO. It is an optional step. However, we’d recommend that you most likely go that extra mile and invest in a separate wallet to secure your purchased Dogecoin. Why do you ask?
When you store the purchased Dogecoin in a wallet, only you have the key to the wallet. It also keeps the DOGE off of the exchange, ensuring better security. Having a personal wallet for your cryptocurrency ensures that your investment stays safe instead of a targeted hack or digital theft, both of which are very common in today’s world.
Several platforms like Coinbase and eToro offer their users free access to the wallets that they can purchase to secure their digital currency investments. You can do the same for Dogecoin as well.
Also, when it comes to wallets, there are two primary types worth knowing. You have the staple hot software wallet and the cold hardware wallet.
What is the Future of Dogecoin in the coming years?
Cryptocurrency is a very volatile form of investment, which keeps rising and falling over the years. So, to ascertain its fate five years down the line would be impossible. However, we can speak for the current year of 2022.
The first two quarters of 2022 is going to see massive growth in the Dogecoin investments if the recent reports are anything to go by. Dogecoin is currently trading at $0.17, which is quite at its all-time low from peaking at $0.70 just a few months ago. However, this is where the volatility of cryptocurrency rises.
Some investors and firm believers of Dogecoin are still sure that it will soon reach the $1 mark shortly. However, if the Doge has to reach the $1, a lot of transformations have to follow. The biggest of them all is the fact that the other cryptocurrencies like Bitcoin and Ethereum have to be at their peak to push Doge to the $1 mark.
Whether or not the same happens shortly is something that we’d have to wait and look out for.
Dogecoin, although it started as a joke, has now cemented its place in the top 10 digital currencies across the world. However, it is still an extremely volatile digital asset that comes with a lot of complications and shortfalls. We’d recommend that you familiarize yourself with the concepts of Dogecoin, understand its implications before you consider investing in it.