Dogecoin (DOGE) is a popular cryptocurrency regarded as a “meme currency” by most investors. The coin has pumped several times in the past, and many crypto investors trade Dogecoin against Bitcoin in hopes to accumulate more Bitcoin over the long term. While the long-term viability of Dogecoin is questionable, there has been an increasing amount of attention on the cryptocurrency after popular subreddit r/Wallstreetbets pumped the coin alongside other fundamentally poor investments like Gamestop and AMC.
Although Dogecoin doesn’t have a clear competitive or technical advantage over other cryptocurrencies on the market, the coin currently holds a market capitalization of over $70 billion dollars. This is in part due to Elon Musk’s vocal support for Dogecoin, with the Tesla founder noting on his Twitter account that “The most entertaining outcome is the most likely”. Perhaps the meme is mightier than the technology.
Musk has tweeted about Dogecoin several times, pumping the cryptocurrency’s price to new all-time highs. On March 12th, Musk encouraged Coinbase to add Dogecoin to its platform, and on April 1st Musk tweeted that he will be sending “a literal Dogecoin to the literal moon”. Although this is likely just an April fools joke, Dogecoin still pumped about 32% following Musk’s tweets.
Curiously, Musk now owns Twitter (as of November 2022) but he hasn’t done much to push cryptocurrency or anything business-oriented. Only time will tell if that might change as he takes full control of how the social network operates.
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.
Dogecoin Price
Like any other cryptocurrency, the price of Dogecoin will change on a day-to-day basis. On the morning before Elon Musk's debut SNL appearance, DOGE reached a new all time high above $0.73 as anticipation of Musk bringing the coin to a wider audience continues to grow. View the immediate pricing information for Dogecoin below. After the depegging of Terra, however, Dogecoin has suffered mightily, attempting to recover its value in the face of a massive uphill climb.
About Dogecoin
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 Litecoin. 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, in May 2021 there are 129 million. Dogecoin is currently the 4th largest cryptocurrency when measured by market capitalization with a total market cap of about $70 billion.
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 was never intended to be a investment cryptocurrency. It was designed with a much faster transfer speed than Bitcoin, which makes it better for frequent transactions. The community is strong as many Dogecoin users are in it to have fun. For an in depth look, check out Is Dogecoin a Good Investment. Remember, there is an unlimited supply, which pushes down the highest price the token could ever reach, meaning that you must take price action with a grain of salt.
Best Online Platform for Dogecoin
Dogecoin is consistently among the 10 most popular cryptocurrencies, making it the highest market cap transactional cryptocurrency over Bitcoin cash, Litecoin and others.
The easiest way to buy Dogecoin is with a cryptocurrency exchange or broker that supports DOGE. Here's a list of them
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
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 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, Dogecoin's network is fairly small, and therefore less secure. The vast majority of traditional investors believe that Dogecoin is not a good investment. That being said, the highest price ever paid for Dogecoin was $0.69 USD, which was reached on May 5, 2021. As Warren Buffet says, the market can stay irrational longer than you can stay solvent.
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. Choose the crypto exchange you prefer and remember that this token has upside, but not as much as some would lead you to believe.
Frequently Asked Questions
Does Dogecoin have long-term benefits?
Dogecoin doesn’t necessarily have long-term benefits, but it is the only meme coin that’s managed to remain above a penny and even regain value on a regular basis.
Is Dogecoin easy to spend?
Certain firms like AMC and Tesla have toyed with the idea of taking Dogecoin as tender for transactions, but it’s hard to know how far acceptance as a form of payment will reach over the next few years.
- Exclusive Crypto Airdrops
- Altcoin of the Week
- Insider Interviews
- News & Show Highlights
- Completely FREE
About Sarah Horvath
Sarah is an expert in the insurance, investing for retirement and cryptocurrency space.