Dogecoin, a “DOGE” meme-based cryptocurrency, which recently became a sensation in the crypto world after surpassing the value of 10 billion USD last week. Software engineers Billy Markus and Jackson Palmer are responsible for introducing Dogecoins to the world. It was invented as a joke when Billy Markus attempted to create a payment system that could be absolutely out of the traditional banking pattern and fun to use. Introduced on December 6, 2013, it instantly gained prominence and, within 30 days, received almost a million visitors.
History of Dogecoin & its underlying technology
Jackson Palmer bought the Dogecoin.com domain and created the landing page with the logo of a smiling dog called ‘Shiba Inu’ from the meme called “Doge.” Dogecoins blockchain technology is based on Litecoin’s proof-of-work technology. Its creation started when Palmer began the site, and after seeing it, Billy Markus reached out for Palmer to help build around its blockchain technology.
Together they designed the protocol for Dogecoin, where they used scrypt technology for its creation instead. Miners could not use SHA-256 Bitcoin mining equipment with scrypt technology but instead had to use FPGA and ASIC devices, which were far more complicated.
The building of scrypt technology into it primarily bifurcated it from the contradictory history of other contemporary coins in the market. With its use, they also wanted to bring in a standard digital currency that could have a far wider reach than Bitcoins.
What is the use of Dogecoin?
Dogecoins have many uses, including the ones mentioned below:
- Being an altcoin, it can be used as a reward and tip. It is used as a tip for generating engaging content over social media.
- Physical items are exchanged online via Reddit and Twitter for DOGE.
- Their use can be frequently traced back to the industries of poker and pornography.
- Dogecoin is also used to support good causes all across the world.
- There are several dogecoin charities that can utilize the Reddit platform for DogePizza and Socks For the homeless.
How does Dogecoin work?
Dogecoins are open-source altcoins that work through the system of mining.
When Person A desires to transfer a certain number of Dogecoins to person B, the computer nodes on the blockchain ensure Person A has the requested Dogecoins. More than half of all the nodes have to agree to ensure sending of Dogecoins from Person A to Person B. Every time a set amount of Dogecoins is transferred to the other person’s account, the nodes transmitting the Dogecoins get rewarded per transaction. This reward system is known as mining.
The current value of Dogecoin
The value of Dogecoin reached a price of $0.05 today, with a market cap of $6,368,964,883.92. Its value skyrocketed last week to an all-time high price of $0.07. Click here to know more about the future price prediction of Dogecoin for upcoming years.
In the past, Dogecoin’s value decreased when China decided to ban its banks from investing in dogecoins. Three days into the decision, the Dogecoins hit their lowest, with their value going down by 80%.
Further, a successful hacking in 2013 made a negative impact on the image of Dogecoin. On January 29 this year, a 900 percent jump was observed when the trading volumes of Dogecoins exceeded those of bitcoins.
How to invest in Dogecoin?
When the project came up, it began with 100 billion coins. Every year, Dogecoin notably issues almost five billion coins into the market. Below we have provided a few tips to buy Dogecoins and initiate trading with DOGEs.
Tips for buying DOGE:
- To buy dogecoins, you must find a cryptocurrency exchange.
- Binance and ChangeHero are two of the most common exchange platforms.
- Sign up and create a new exchange account.
- Start adding funds to your account. The type of funding you choose will largely depend on the kind of exchange you choose.
- Once you’re all set, buy your share.
- If you are looking at having more security, ensure you take a wallet, mostly suggested when planning to have more DOGEs for an extended period in your account.
Trading using DOGE:
- To trade Dogecoins, you would need to find a broker.
- Deposit a certain amount of money either as fiat currency or using methods like spread betting and contracts for differences.
- Once you have adequately funded your trading account, you’re all set to begin the journey.
- You can either invest in short or long trading.
- Short trading is when you believe your investment might not benefit much since you find a high chance the value of the Dogecoins might come down rapidly.
- Long trading is when you are somehow sanguine. Your money will shoot up when adequately invested.
- Using the leverage technique can also help to invest in more significant trades by depositing a small amount of this particular trade value.
Is Dogecoin secure?
Dogecoins are exceptionally safe blockchain technology, and except once, Dogecoin technology has never been hacked. However, there is always a 51% risk of being hacked. A 51% hack is when the Dogecoins come under one person, and that is when a lot of things in the system can be manipulated.
To conclude, we can say that Dogecoin is a low-cost, good community-driven society, and unlimited supply ensures a good platform for beginners. But due to its high volatility, caution must be expended when trading with Dogecoins.