What is Dogecoin
Dogecoin (DOGE) is an open-source peer-to-peer cryptocurrency that distinguishes itself from the majority of the digital currency market with its jokey nature and Shiba Inu dog logo. Notable features of DOGE, which uses the scrypt algorithm, are its low cost and unlimited supply.
Dogecoin History
Jackson Palmer, a product manager in Adobe Inc.’s Sydney, Australia office, created Dogecoin in 2013 as a way to satirize the hype surrounding cryptocurrencies. After receiving positive feedback and interest on social media, he bought the domain dogecoin.com.
Billy Marcus, a software developer at IBM, wants to create a digital currency but is having trouble promoting his efforts. Marcus teamed up with Palmer to create the software currently behind Dogecoin.
In early 2021, Dogecoin gained cult status in the WallStreetBets section of Reddit – the main instigator of the GameStop affair in January of that year – where enthusiasts promised to shoot up its value significantly (this was before all cryptocurrency discussions were banned in that subreddit).
By May 2021, Dogecoin reached its highest value of $0.68, compared to a value of just under 1 cent at the beginning of the year. Tesla CEO Elon Musk was at least partially responsible for the huge rise after calling Dogecoin his favorite cryptocurrency. By mid-2021, Dogecoin consistently ranked among the top five cryptocurrencies by total market capitalization
Functionality
Marcus based Dogecoin’s code on Luckycoin, derived from LTC, and originally used a randomized block mining reward, although in March 2014 it was changed to a static reward. Dogecoin uses Litecoin’s scrypt technology and is a coin that is mined using the proof-of-work (PoW) mechanism.
Through the mechanism in question, miners use computers to solve complex mathematical equations to process transactions and record them on the blockchain. In exchange for maintaining the blockchain, miners earn additional tokens, which they can then hold or sell on the open market.
Dogecoin can be used for payments and purchases, but it is not a very efficient store of value. This is mostly because there is no limit to the number of DOGE tokens that can be created through mining – meaning that the cryptocurrency is highly inflationary by design.
How to buy Dogecoin?
1. Choose a crypto exchange
There are numerous cryptocurrency exchanges and marketplaces that range from easy-to-use systems to complex dashboards for advanced traders.
Since Dogecoin is so popular, you will be able to purchase the token on most cryptocurrency exchanges, but it is advisable to stick to a few of the more popular exchanges such as Binance, Kraken, Coinbase, etc. Different platforms come with different fees, security measures, and may include other features, so it’s a good idea to do your research before signing up.
2. Create an account and confirm it
Start with account registration, which is completely free on the aforementioned platforms. For added security, 2FA – two-factor authentication – is also enabled. This way, you and your device are the only ones who can grant access to the account.
You are then taken through a KYC process, which is providing personal information – ID card/passport/driving license details, proof of address (e.g. bank statement or utility bill).
After completing these steps, you are ready to buy, sell and trade Dogecoin (DOGE), as well as take advantage of various services such as steaming.
3. Fund your account
Once your account has been registered and verified, you need to fund the account to start taking advantage of the platform’s buying and trading services.
The main deposit options are:
- Credit/Debit Card
- Bank deposit
- Peer-to-peer (P2P)
Where to buy Dogecoin?
On Binance, the world’s largest cryptocurrency exchange, deposits are absolutely free.
