Do you want to invest in Dogecoin, but you don't know exactly what it is? Are you simply looking for more information about it before investing? You are in the right place. Dogecoin is an intentionally plentiful cryptocurrency that is less rare than bitcoin. In this article, we tell you everything about this booming cryptocurrency.
In 2013, Jackson Palmer and Billy Markus launched Dogecoin as a joke to ridicule the cryptocurrency world.
The joke gained momentum in the following months and Dogecoin is now the tenth crypto in terms of market capitalization.
Dogecoin is easily recognized by its logo: the head of the Shiba Inu dog, the origin of a world famous meme.
It works on blockchain technology just like Ethereum and Bitcoin and also has its own blockchain based on Proof-of-Work.
The Dogecoin has several times made big publicity stunts to publicize its token, in particular by sponsoring a bobsleigh team at the Olympic Games in 2014.
Most know him from Elon Musk who has regularly boosted his stock thanks to Tweets about him.
What is Dogecoin used for ?
Dogecoin has a speculative interest like all cryptocurrencies. Tokens are bought and exchanged between users who hope to see its value rise over time.
This crypto project does not really have any other use or particular project since, as explained in the previous paragraph, it was born out of a joke.
Doge is highly inflationary: the number of tokens is not capped and many tokens are created every day, making speculation very difficult.
What is the Dogecoin technology ?
Just like Bitcoin, Ethereum, and other cryptos, Dogecoin runs on the blockchain, its own blockchain.
It is therefore a kind of digital ledger on which all the transactions carried out are recorded.
Transactions are verified as on other blockchains and blocks are added to the chain through a PoW (Proof of Work). This verification process is also used on the Bitcoin and Ethereum blockchain.
This system is based on a cryptographic principle. When a block is complete and contains all of its transactions, it is proofed.
The miners come into play and each tries to find the unique key that corresponds to the block (it is also called the hash).
This work requires enormous computing power and the purchase of high-performance equipment. This consensus is often singled out for its not very ecological side. Since the computing power is high, the energy to be used to mine doge is also quite high.
How to mine Dogecoin ?
There are obviously many ways to get started mining Dogecoin.
However, if you want to mine Dogecoin easily, here are some steps to get you started :
You must first have a wallet (virtual wallet) that will be able to accommodate all your rewards in Doge
Then go to the unmineable.com site (this is a reputable site that allows anyone to get started in cryptocurrency mining)
Download the software by clicking on “Download”
Then launch the software and start mining your Dogecoin
Once you have won 30 Doge, unMineable will send your winnings directly to your virtual wallets.
What is the evolution of the price of Dogecoin?
Ever since its inception, Dogecoin has experienced improbable events and its value, to the surprise of many, has only increased.
In 2021, the value of the DOGE token drastically increased by more than 600% and the Doge reached its ATH of $0.68 in early May.
From January until May 2021, the price of Dogecoin has been steadily increasing with meteoric rises.
Then it started losing value and stabilized between around $0.17 and $0.34.
At the end of 2021, after the golden period of the crypto market (which did not benefit Dogecoin that much), the Dogecoin price goes down until today where it has been more or less stable for several months.
Does Dogecoin have a future?
As with all cryptocurrencies, it is very difficult to predict its future. Most experts could never have bet on what happened so far or on its longevity.
Since its creation, the same corner continues to surprise, we do not know what it can still reserve for us !
Here are some things to think about regarding the future of Dogecoin :
Generally speaking, the future of Dogecoin is closely tied to that of Bitcoin. The mother of cryptocurrencies tends to have a direct impact on the global market
Dogecoin is strong with a huge community thanks in particular to networks like Reddit on which it is very successful
So far, Elon Musk has several times acted as the standard bearer of the token by pushing up its price with tweets. Who knows what he is still capable of?
Faced with these few points, caution is still in order, but given the path taken by the DOGE so far, we can imagine that his mad race is not over.
Indeed, Dogecoin has now joined the top 10 biggest cryptos and this place also means more security.
A well-placed crypto on the market does not mean absolute security, just look at the example of LUNA.
How to buy Dogecoin ?
Given its importance in the crypto market, Dogecoin is an easy crypto to buy. Most trading platforms and brokers offer the token for sale.
It is also possible to place orders through brokers such as eToro, VT Markets, Vantage, etc. To store your DOGEs, also consider the wallet solution which allows you to secure them on a decentralized wallet without taking the risks that we are familiar with centralized platforms.
⚠️ This article is published for informational purposes and should not be considered as investment advice. Crypto-currency trading involves risk and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and shall not be held liable, directly or indirectly, for any damage or loss caused as a result of using any goods or services highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
Web editor for many years and SEO specialist, Thomas became an editor for InvestX when the site was launched. Passionate about the field of crypto and Web3, Thomas has made it his mission to deliver maximum value and introduce readers to the world of blockchains, considered for him as the world of tomorrow.
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