The much talked about Polygon MATIC cryptocurrency platform is directed and discussed to provide a thorough guide to this relatively new kid on the block
Dogecoin is a peer-to-peer, open-source cryptocurrency, much like Bitcoin, that works on a decentralized blockchain and verifies transactions to ensure the validity of data. As of September 2022, Dogecoin has a reported value of approximately $8 billion. The name is based on a meme, Kabosu, a Shiba Inu dog that appears with broken English, written in colorful Comic Sans text.
Well, believe it or not, Dogecoin began life as a spoof. Seriously, its first purpose was to poke fun at Bitcoin. In 2013 software engineers Billy Markus and Jackson Palmer were suspicious of the rapid rise in Bitcoin's value. Moreover, they were skeptical of a digital currency, especially one not backed by assets or fiat cash flow. So, as computer fizz kids do, they built their own Altcoin. Digital currencies other than Bitcoin, which was the only one at the time, are called Altcoins.
Dogecoin has a history of altruism. For example, in 2014, the Dogecoin community funded the Jamaican bobsleigh team's entry into the Sochi Winter Olympics to the tune of $30,000. In addition, they gave $11,000 to build a well in Kenya. They then sponsored NASCAR driver Josh Wise with $55,000.
2015 saw Jackson Palmer leave the company. He stated at the time that the community that had grown around the cryptocurrency was toxic. Also around this time, Alex Green, also known as Ryan Kennedy, created Moolah, a Dogecoin exchange. Convincing people to donate large sums to help fund the project, it turned out that he had used the money to buy $1.5 million worth of Bitcoin. In 2016 Kennedy was convicted of multiple rape counts and is currently serving an 11-year prison sentence.
Dogecoin is a proof-of-work cryptocurrency, which means coins are minted rather than validated. At the time of writing, approximately 132.7 billion Dogecoins exist, with new coins minted every minute. Dogecoin has no market cap on the number of coins that can be minted. However, new coins are limited to 5 billion every year in perpetuity.
In 2021, Multi-billionaire Elon Musk openly supported Dogecoin. He Tweeted (of course he did) that he was working with Dogecoin's developers to improve the coin's efficiency. He then ran a social media poll to see how much support there was in accepting Dogecoin as payment for Tesla. Because of this, A.M.C. Entertainment Holdings, the cinema chain, announced that they would accept Dogecoins as payment for gift cards. This added utility to the digital currency.
The timing of the Dogecoin cryptocurrency was fortuitous, to say the least. The creators marketed it as a fun version of Bitcoin at a time that grabbed the imagination of the crypto world. Furthermore, the market saw its script tech and unlimited supply as faster, more user-friendly, and more adaptable than the already-established Bitcoin.
Bitcoin has a cap on the number of coins that can be minted, making it a deflationary cryptocurrency. Every four years, Bitcoin halves the number of mined coins, which cuts its inflation rate. However, Dogecoin does not have a ceiling on coins and is, therefore, inflationary.
In addition to spending on Elon Musk's SpaceX project and the Dallas Mavericks, many holders of Dogecoins use their currency to tip creators on social media platforms such as Reddit. As a result, the currency has built up a loyal following who trade and use it for tipping.
If you want to buy Dogecoin purely to speculate, use an online brokerage like Robinhood, Webull, and eToro. These brokers allow trading and are perfect for the job. If, however, you want to speculate and actively use your coins, then you need to use a crypto exchange like Coinbase or Binance.US.
1. Choose your wallet
Many wallets support Dogecoin cryptocurrency. Users strongly favor Ledger and Trezor. These crypto wallets add an extra layer of security to that offered by exchanges. You may choose more than one wallet. Dogecoins have almost no fees, so transferring between wallets is inexpensive. Many people keep more than one and use them for different purposes.
2. Configure your wallet
Once you have chosen your wallet, you must set the permissions and launch it as OpenJDK Java. There are many instruction videos available to show how this is done. Then you just install the wallet, and you're ready. A cold wallet is a piece of hardware not connected to the internet. Most people believe these to be the safer option. Hot wallets are connected to the internet but are generally considered safe enough for day-to-day expenses and holding small amounts of crypto.
3. Get some Dogecoin
The most common way people get their coins is through exchanges. You can buy Dogecoins at any time at the going rate. This is known as a market-taker transaction. Alternatively, you can set a rate you will buy at, and if and when the price hits that valuation, you get the deal. This is called a market-maker transaction.
Of course, you can also receive dogecoins as tips for services rendered. Check out projects like Dogecoin Folding @ home here.
The best exchanges for trading Dogecoin are:
Kraken
U.S.-based Kraken launched in 2011 and is the 4th biggest crypto exchange. The exchange accepts the U.S.D., Euro, Canadian Dollars, Australian Dollars, British Pound Sterling, Swiss Francs, and Japanese Yen. In addition, it supports major credit cards and accepts many other cryptos.
Binance
Binance is one of the largest exchanges outside the U.S. It doesn't allow trading for U.S. residents but created Binance US for this purpose. There are still regulatory problems, though, and citizens of Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont, still cannot use it.
Coinbase
Coinbase was a late comer to the Dogecoin scene. It only added support in 2021. It is the biggest exchange in the U.S.
eToro
Although this company was founded in 2007, it only added Dogecoin in 2021. Users can trade with credit or debit cards, PayPal, Neteller, Skrill, or bank transfers.
For those wishing to mine Dogecoins, it works similarly to Bitcoin. It is an incredibly expensive process in terms of computing power and, therefore, electricity. Dogecoin is released by a preprogrammed protocol and not by pre-mining. The rewards are handsome for anyone who has the computing power to mine.
Dogecoin is a funky fun way of getting into the crypto world. Since Elon Musk's involvement, they have grown in popularity and value. However, they are still considered a risky investment at the moment in time. Despite recent drops in price, Dogecoin is still a success story. Unlike stablecoins, it derives no value from other assets. Nor does it add value to any financial system as Ethereum does. Apart from its entertainment value, Dogecoin's best asset is its community.
As always, we remind you not to take this article as investment advice. Instead, we suggest that readers do as much research as possible. There is plenty of material out there to read. However, it would be cool if you follow us on Twitter to get updates, weekly news bulletins, guides, and much more. So keep it sensible and happy trading.
The much talked about Polygon MATIC cryptocurrency platform is directed and discussed to provide a thorough guide to this relatively new kid on the block
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