If you are new to the crypto world, you may be curious to know about Dogecoin being one of the leading altcoins in the market presently. Dogecoin was created as a joke but has rapidly grown to become one of the top giants in the crypto world. For the past few months, Dogecoin has overtaken many alternative currencies and is now worth more than a billion-dollar, with a market cap of above $1.5 billion.
Interested in what Dogecoins are? You should keep reading this post. Here, we will show you important things you need to know about this meme coin and how to start investing in it right away.
What Exactly Is Dogecoin?
Dogecoin was created in 2013 by Billy Markus and Jackson Palmer, two software engineers only looking to create some fun. The coin was created as an internet joke at the time and named after the popular Shiba Inu meme dog at the time. However, even though Dogecoin was initially created to be a joke, it has now turned into a multibillion-dollar project with a thriving community behind it.
Dogecoin now has lots of crypto investors and celebrities throwing their support at it. Popular among them are Elon Musk and Snoop Dog. Elon Musk has been instrumental in the coin’s success in the past few months. He is one of the people that drove Dogecoin’s popularity and caused it to soar to new heights. In fact, the Dogecoin community affectingly named him the CEO of Dogecoin.
What Problem Does Dogecoin Solve?
Unfortunately, there aren’t many functionalities to talk about Dogecoin. It is merely an internet joke created to bring some kind of fun to the crypto space. So don’t expect to see Dogecoin pack such a huge functionality as Ethereum or other similar cryptocurrencies. However, Dogecoin offers a secure network that makes peer-to-peer transactions easy without having to involve any third party.
Even though Dogecoin is not created to do so much, you can be sure no other cryptocurrency can match it when it comes to spreading goodwill and fun throughout the crypto community.
How Many Dogecoins Can Be in Circulation?
Dogecoin started with having 100 billion coins in circulation, but there is presently no limit to the number of the coins that can be in circulation. However, there can’t be more than 5 billion DOGE that can be issued every year.
What Are Some Benefits of Dogecoin?
Dogecoin provides a means for a quick and secure transaction across the globe – just like Bitcoin. Recently, Dogecoin increased its adoption across the globe. More stores and merchants now accept it as a means of payment.
It is a decentralized network. This means Dogecoin also provides a secure network that provides real-time consensus. This makes it almost impossible for hackers to gain unauthorized access to the blockchain.
How Are New Dogecoins Gotten?
After hearing so much about cryptocurrencies like Bitcoin and Ethereum and their mining activities, you may be tempted to want to ask where new Dogecoins also come from. Interestingly, like these two cryptocurrencies, new Dogecoins are also mined. However, instead of having miners here, what you have are diggers. But like miners, they also solve some complex mathematical problems to add new blocks to the Dogecoin blockchain.
Doing this helps secure the blockchain. As a reward for their hard work, the diggers get new DOGE. But another thing unique to Dogecoin mining is that it is less competitive compared to that Bitcoin and Ethereum.
How Can One Buy Dogecoin?
If you have learned some amazing things about Dogecoins and are thinking of buying some to add to your portfolio, you will be glad to know that buying Dogecoin is not as difficult as most people think. Dogecoin is one of the most popular cryptocurrencies right now, and so it is listed on most crypto exchanges together with other cryptos like Bitcoin and the rest.
At the same time, you can buy Dogecoin from crypto brokers if you find exchanges a bit too complex for you. Crypto brokers also provide a faster way of getting the cryptocurrency.
Why is Dogecoin Referred to As an Altcoin?
Well, you need to first know what an altcoin is. Altcoins are other cryptocurrencies other than Bitcoin. It is a collective name used to qualify every other cryptocurrency that is not Bitcoin. And since Dogecoin is not Bitcoin, of course, it is safe to refer to it as an altcoin. Some other altcoins include Ethereum, Ripple, Litecoin, Uniswap, Cardano, etc.
How Do You Store Dogecoin?
DOGE is the native currency on the Dogecoin network. When you buy some DOGE, you need to keep them in a safe place where you can be sure of their security. These places you keep cryptocurrencies after buying them are called crypto wallets. There are different types of crypto wallets out there, and most of them support Dogecoin. Examples of crypto wallets you can get for your DOGE are Exodus, Jaxx wallet, Nano S, etc.
Final Note
Thinking about adding Dogecoin to your portfolio but lost on many things about the meme coin? This post should help. We have provided useful answers to most questions people do have about Dogecoin. Go over them again and find the right answers to your heartfelt questions too.
