Dogecoin has been one of the most popular cryptocurrencies since its release in December 2013. It was created by Jackson Palmer and Billy Markus as a joke but is now worth millions. The currency is based on two key principles: simplicity and fun.
With an inflation rate of 5 million coins per year, Dogecoin can be used for microtransactions or tipping content creators on social media sites like Reddit or Twitter with ease. The community also organizes “tipping parties” to help introduce new people to the cryptocurrency scene and make their first transactions with DOGEcoins!
In this blog post, we will explore whether you should invest in Dogecoin, how you buy it, and what its future looks like?
Let’s get started!
What is Dogecoin?
Dogecoin is a cryptocurrency that was created in 2013. It started as a joke but quickly became serious and has been growing steadily since its inception. Dogecoin is based on the Litecoin protocol and uses Scrypt-based mining proof of work algorithm to decrease the ability for ASICs to mine coins.
The currency itself does not limit supply or inflation rate like Bitcoin has, though transaction fees are slightly higher than what you would find with other cryptocurrencies such as Bitcoin due to the increased block size (1 MB).
Billy Markus created Dogecoin from Portland, Oregon, and Jackson Palmer from Sydney, Australia; both had access to programming skills to create their own version of an online cryptocurrency after seeing what happened with Bitcoin.
Jackson Palmer initially created the joke on Twitter to mock the prevalence of the Doge meme, which had grown in popularity around the Internet. Billy Markus, working with an engineer friend at Adobe Systems Inc., saw an opportunity to build a cryptocurrency based on fun and decided to work together with Jackson and transform his joke into reality.
In 2014, the community of Dogecoin created its own social media platform called DogeAPI that enables users to send and receive tips with a variety of different coins. The service was available at dogeapi.com.
Its creators believed that “Social Media has been saturated with financial self-promotion and advertisements.” They did not have any advertising and ultimately shut down. The service had amassed 220,000 users as of May 2017.
The Rise of Dogecoin
In 2020-2021, the Robinhood phenomenon led to a gang of Reddit and Twitter users buying the coin. The modest price of $0.02 is attractive to many, and everybody is hoping to see the Dogecoin reach $1!
Although unlikely, anything is possible in the world of cryptocurrencies! Since there are so many Dogecoin in circulation and no limit to how many can be created, the price is much less than other cryptocurrencies.
Elon Musk has been a very vocal advocate for Dogecoin, making the price fluctuate on many different occasions. After reaching its peak on May 10th, Dogecoin took a slight hit. But compared to the 12,800% it rose over the past 12 months, this 45% hit seems like a peanut.
It’s impossible to say what will happen in the next few months or years, but it’s a gamble many are willing to take.
Should You Invest in Dogecoin?
Investing in any cryptocurrency is not a decision to make lightly. The market is volatile and unpredictable. Dogecoin might be the next Bitcoin, or it might fade into obscurity. There is no way to know at this time, but there are a few things you can do to increase your chances of profiting from an investment in Doge.
Dogecoin has one of the most active communities around any cryptocurrency, and its fun-loving users are always willing to help newcomers. If you’re thinking of investing in Dogecoin, start by going online and joining the community.
The #dogecoin channel on IRC (Freenode) is very active; it’s a great place to get help or just talk about Doge meme! Reddit and Twitter are also great ways to get involved in the community.
If you’d like to invest in Dogecoin, you mustn’t buy more than you can afford to lose. Many people have lost thousands of dollars investing in cryptocurrencies because they invested more than they could afford.
Educate yourself about the risks involved by reading forums such as r/cryptocurrency and following thought leaders in the cryptocurrency space on Twitter.
Just like traditional currencies, Dogecoin will appreciate if more people use it. The best way to invest is to participate in the community and invite others to join!
Although Dogecoin may seem like a funny joke, it has gained legitimacy as a real currency that you can use for all sorts of online purchases. Given its low price, high volume, and quality community, Dogecoin seems like a great investment.
How to Invest in Dogecoin?
To invest in Dogecoin, you’ll need to register an account at Coinbase and Kraken. If you’re looking for a simpler way to get started, Bitit is also worth checking out; they offer instant delivery of Bitcoin and other cryptocurrencies.
Before deciding on a platform, it’s important to consider the location of your exchange. Some exchanges are based in The United States, which means you (as a US citizen) will need to apply for an account using your real name and other personal information.
Other platforms are based outside the US and allow users to trade cryptocurrencies anonymously, though it’s very difficult to make bank transfers without an official bank account.
While it might seem tempting to cash out as soon as you buy Dogecoin, it’s important to remember that cryptocurrencies are still very new and volatile. It might be better to hold on to your Doge for a while!
Now that you’ve made it through the post, you might be wondering how many Dogecoins you should buy. After all, nobody wants to waste their hard-earned money!
The answer to this question is entirely dependent on your personal finances. The price of Dogecoin can increase or decrease rapidly, so it’s important to keep some money in USD or another stable currency. If you plan on using Dogecoin for payments online, it might make sense to invest a little more than you would with Bitcoin or another cryptocurrency.
One thing is for sure: the demand for Dogecoin will only increase if more people buy into the cryptocurrency! Investing in Dogecoin may seem like a risky move, but it might be one of the best decisions you’ve ever made.
By learning about Bitcoin and Dogecoin, joining their communities, and pushing to make cryptocurrencies more accessible, you’ll help Dogecoin gain legitimacy and increase in value.
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