Dogecoin has received strong media attention and attracted headlines calling it a popular cryptocurrency. While it may not be a household name, Dogecoin is still among the top recognizable cryptocurrencies, even among people who aren’t involved in crypto.
SpaceX and Tesla CEO, Elon Musk, tweets about Dogecoin regularly, which might lead you to wonder what the hype is all about. We’ll go through the pros and cons of Dogecoin and how to buy and sell Dogecoin below!
Table of Contents
What is Dogecoin?
As the most popular cryptocurrency that is based on an internet meme, Dogecoin features the Japanese dog breed of Shiba Inu as its logo. The original intent was to create a currency that could have a more widespread appeal.
Even though it started out as a joke, it has managed to create a cult following, and Elon Musk has tweeted that it’s his favorite coin. As of August 2021, Dogecoin has a market capitalization of just under $40 billion, and it has consistently ranked in the top 10 of all cryptocurrencies. Its popularity has left everyone wondering how to buy Dogecoin.
How does Dogecoin work?
Dogecoin was forked from Litecoin, meaning that the creators, Billy Markus and Jackson Palmer, essentially copied the code from another cryptocurrency to create Dogecoin in December 2013. The cryptocurrency processes transactions quickly and it is often used for tipping or rewards on networks like Reddit and Twitter.
Pros of Dogecoin
Blockchain technology involves the use of a secure transaction record that cannot be easily hacked or manipulated. The data is not owned by any centralized authority, and it is also publicly verifiable as well as transparent. Dogecoin offers the security and transparency of other cryptos because it uses blockchain technology.
Higher transaction speed
One of the biggest complaints users have about the most popular cryptocurrency, Bitcoin is that it can only process a maximum of seven transactions per second. Dogecoin offers even faster transaction processing on its blockchain, which allows about thirty transactions per second. This marks Dogecoin as a highly usable cryptocurrency, which is one of the reasons it has so many fans.
As one of the older cryptocurrencies, Dogecoin was an experiment in the power of a dedicated global community. In fact, back in 2014, the Dogecoin Foundation, a non-profit that supports the development of the Dogecoin ecosystem, sponsored the Jamaican bobsled team in the Olympics and then sponsored a NASCAR driver who sported the icon. Elon Musk, as mentioned, has repeatedly tweeted his support of Dogecoin, and the coin consistently makes headlines.
Smart contracts are automated programs that take place via the blockchain when pre-specified conditions are met. Dogecoin is looking to develop smart contracts that would involve the coin with the decentralization of financial markets. That means Dogecoin could cut out banks as the middleman and allow its users to potentially lend or borrow Dogecoin as well as receive interest.
Cons of Dogecoin
As with many cryptocurrencies, Dogecoin prices can swing wildly. Alongside the constant mentions of Dogecoin by the media, the price of Dogecoin is often subjected to the public response to Elon Musk’s tweets as prices change accordingly.
Unlike Bitcoin, which has a limited supply of coins, there is an unlimited supply of Dogecoin, meaning that more and more Doge is printed every single day. If the demand does not keep up with the supply, Dogecoin can suffer from inflation, which means each coin will be worthless and less over time.
5 steps for buying Dogecoin
As with many cryptocurrencies, you can buy and sell Dogecoin at any time of the day. Follow these easy steps to understand how to buy Dogecoin!
1. Find an exchange
Before you get started, you might be wondering, “Where can I buy Dogecoin?” All you need to do in order to get started is find out what exchanges sell Dogecoin. Dogecoin is available on many exchanges and trading platforms, like Coinbase, Gemini, or eToro.
MoneyLion Crypto will be available soon, giving you another option for buying, selling, and earning cryptocurrency like Bitcoin and Ethereum. Sign up to get exclusive access through the MoneyLion app, where crypto will be accessible to newbies and seasoned pros when it launches.
2. Open an account
Open an account with your preferred exchange. When registering, you’ll need to supply personal information, and most exchanges will ask you to verify your identity with photo identification. Be aware that it may take a few days to fully set up your account.
3. Fund your account
By opening an account, you will have a digital wallet that is tied to the exchange of your choice. You can transfer fiat money or other cryptocurrencies into the account in order to fund your crypto purchases.
4. Buy shares of Dogecoin
After you’ve transferred funds, you can place an order and buy Dogecoin instantly. You can choose how many dogecoins you’d like to buy either at the current market price or at a specific price limit.
5. Buy a hardware wallet
While exchanges can store your Dogecoin for you, the safest way to store your own doge is actually in your own cryptocurrency wallet. A hardware wallet that connects to your computer via a USB is often the safest way to keep your coins offline. Keep in mind that this method renders you responsible for keeping your own private keys safe.
Invest in a meme coin or traditional markets
Dogecoin has proven that it has staying power, even though it started off as an internet meme coin. Given its transaction processing speed and popularity, it has a good chance of continuing to grow and gain respect as a cryptocurrency.
New to investing? No problem! If you’re not quite ready to take the plunge into cryptocurrency, MoneyLion has made investing easy with no minimums or requirements. For just $1 per month, you’ll have a fully managed investment account with personalized portfolios designed to match your investment risk levels–even if it’s $5!
Frequently Asked Questions
Is Dogecoin on the blockchain?
Yes, Dogecoin uses blockchain technology to offer transparent and secure cryptocurrency transactions.
Can you convert Dogecoin to cash?
Yes, Dogecoin can be converted to cash on an exchange. Sign up for MoneyLion Crypto to buy, sell, and earn crypto!
Who created Dogecoin?
Billy Markus and Jackson Palmer created Dogecoin in 2013.