Branding itself as the “fun and friendly” internet currency, Dogecoin (DOGE) is an open-source, peer-to-peer digital currency that allows you to quickly transfer money between accounts and users. Though not the most popular cryptocurrency, Dogecoin has garnered media attention from cryptocurrency enthusiasts around the world thanks to its inviting and passionate community. Tesla CEO Elon Musk once tweeted that “Dogecoin might be [his] fav cryptocurrency.”
Interested in learning more about Dogecoin and how it works? Our guide will teach you a little more about the history of Dogecoin, how you can start investing in DOGE and how you can use Dogecoin after you invest.
Like any other cryptocurrency, the price of Dogecoin will change on a day-to-day basis. Dogecoin in particular can be exceptionally volatile, as the price of the cryptocurrency remains consistently low. Keeping up to date with the current price of DOGE can help you determine the best time to place your buy and sell orders. View today’s pricing information for Dogecoin below.
Dogecoin is a decentralized, open-source cryptocurrency introduced in December 2013. Dogecoin was created by programmers Billy Markus from Portland, Oregon, and Jackson Palmer from Sydney, Australia. The original idea behind Dogecoin was to create a cryptocurrency that would be fun and more memorable to the public with the goal of increasing awareness of blockchain technology.
Its mascot, the Shiba Inu, features the likeness of the popular “Doge” internet meme, from which the cryptocurrency draws its name. Though the coin was originally introduced as a joke, Dogecoin has gained a large amount of attention and a devoted online community.
Dogecoin is built on the same basic technology as other early cryptocurrencies like Bitcoin and Ethereum. It uses a blockchain to verify transactions and prevent double-spending attempts, providing a secure way to transfer value without the use of a centralized intermediary system. Unlike other cryptocurrencies, Dogecoin is infinitely mineable. This means that there is no limit to the number of Dogecoins that can be in circulation. In December 2020, there were over 127 million Dogecoins in circulation. Dogecoin is currently the 49th largest cryptocurrency when measured by market capitalization with a total market cap of about $402 million.
Dogecoin’s community has been involved in a number of public news stories, beginning with the 2014 Winter Olympics. The Dogecoin community launched a fundraising effort to collect $50,000 for the Jamaican Bobsled Team, which had qualified to attend the Olympics in Sochi but could not afford to attend. Dogecoin users were successful in their goal, and eventually extended their fundraising efforts to sponsor another athlete, luger Shiva Keshavan from India.
On March 25, 2014, the Dogecoin community successfully raised 67.8 million Dogecoins (a value of about $55,000 at the time) to sponsor NASCAR driver Josh Wise. In exchange for the sponsorship, Wise competed in the Aaron’s 499 at Talladega Superspeedway in a vehicle with a Dogecoin-themed paint job. Interest in both Wise and Dogecoin spiked immediately after the event.
How to Use Dogecoin
Dogecoin was created mostly as a joke, but it has gained use on social media communities like Reddit. Some users donate a small amount of Dogecoin to other users who produce interesting or noteworthy content as a way of saying “thank you.” A few businesses have also adopted Dogecoin as a payment method, including 97cents Web Hosting and SuchList.com.
Like any other cryptocurrency, you can also day trade DOGE and earn a profit by capitalizing on volatility. Here’s how it works — you’ll purchase DOGE when you believe the price will rise in the future. As the price of each DOGE increases, you can convert your DOGE to a stablecoin like Tether or USD coin. When the price of DOGE falls again, you can convert your stablecoin back to DOGE, accumulating more coins in the process. Because Dogecoin is a volatile cryptocurrency, even a small price movement has the potential to impact investor profits.
Is Dogecoin a Good Investment?
Dogecoin can be a good investment. It’s transfer speed is much faster than bitcoin. The community is strong as many Dogecoin users are in it to have fun. And because the mining period is over, you don’t need to worry about hyperinflation like other cryptocurrency coins.
Best Online Platform for Dogecoin
Dogecoin is currently the 49th most popular cryptocurrency, which means that it’s not a very popular choice among investors. This makes it more challenging to invest in Dogecoin because there are few platforms that support the direct purchase of DOGE.
Though a few smaller exchanges offer direct conversion of fiat currency to Dogecoin, these options typically only support funding through wiring services (like Perfect Money, Payeer and Capitalist). These smaller exchanges are also completely unregulated and less trusted options than larger exchanges like Coinbase and Binance US.
The easiest way to buy Dogecoin using a bank transfer, credit card or PayPal in most cases is to 1st open an account with a crypto broker offering access to a major cryptocurrency like Bitcoin, Ethereum or Tether. Some of the factors you might want to consider when you choose a broker may include:
- Investing platform. If this is your 1st time buying cryptocurrency, you might want to choose a crypto broker that caters to new investors with a simple buying process.
- Access to other coins and investment opportunities. If you only want to buy Dogecoin, you can use any broker offering access to the crypto market to purchase an intermediary currency like Bitcoin or Ethereum. However, if you want to invest in altcoins beyond Dogecoin, be sure to choose a broker that offers access to all of the opportunities you’re interested in.
- Accepted payment methods. Most major cryptocurrency brokers support bank transfers and wire deposits. If you’d like to buy cryptocurrency using a credit card, debit card or PayPal transfer, be sure that your broker accepts this payment method before you open your account.
- Fees and commissions. Most cryptocurrency brokers charge some kind of fee or commission in exchange for carrying out orders on your behalf. Be sure to consider fees when you choose where to open your account, as high fees can quickly cut into your profits.
After creating your account, place an order for an intermediary currency. Popular choices include Bitcoin, Ethereum and Tether, which are accepted on a wide range of exchanges.
Once your order is complete, you’ll create an account on an exchange that supports Dogecoin purchases. You’ll then transfer your intermediary currency to your new brokerage account, where you can convert that cryptocurrency to Dogecoin.
Not sure where you can buy DOGE? Consider a few of our favorite options below.
How Will Dogecoin Scale?
Dogecoin offers a number of benefits over other cryptocurrencies like Bitcoin and Ethereum when it comes to scaling. Dogecoin expands on blockchain technology, adding 1 block once every 60 seconds. By comparison, Bitcoin adds 1 block once every 10 minutes, while Litecoin adds 1 block once every 2.5 minutes. This allows Dogecoin to process transactions faster, which also limits vulnerability to hacks and fraud. Dogecoin users also pay a single flat-rate fee when transferring coins, which can be beneficial for users transferring large amounts of crypto.
Despite these features, charts show that not many investors believe that Dogecoin is a good investment. The highest price ever paid for Dogecoin was $0.018773 USD, which was reached on January 7, 2018, along with a spike in Bitcoin’s price.
Add Dogecoin to Your Portfolio
There are thousands of cryptocurrencies on the market, and each offers its own unique use cases. When investing in crypto, it’s important to remember that Dogecoin was not created to offer a practical use-case. Instead, it focuses on using internet memes and crowdfunding efforts to help the public learn more about how cryptocurrency works as a whole.
If you do decide to invest in Dogecoin, we recommend using it as only a minor percentage of a highly diversified portfolio.
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