If you are a fan of memecoins, you might be keen to buy dogecoin. Despite being a tad light on utility, dogecoin (DOGE) has made a mark for itself in the crypto space as one of the top 10 assets by market cap — ranking eighth as of September 2023.
Yet despite the popularity, the question remains — should you buy Dogecoin (DOGE) when there are so many other utility-packed cryptocurrencies on the market? Here’s what you need to know.
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- What is dogecoin?
- How does the Dogecoin network work?
- Why is dogecoin popular?
- Dogecoin vs. other cryptocurrencies
- Where to buy dogecoin
- How to buy dogecoin
- How to buy dogecoin anonymously
- How to sell dogecoin
- Dogecoin ecosystem
- Dogecoin wallets
- Is it possible to mine dogecoin?
- Dogecoin price prediction: Is there hope for investors?
- Dogecoin: Should you buy into the hype?
- Does dogecoin have a future?
- Frequently asked questions
What is dogecoin?
It all started in December 2013 for dogecoin (DOGE) when Jackson Palmer and Billy Markus decided to launch a fun alternative to bitcoin. Like BTC, DOGE also runs on a proof-of-work consensus and is mining-reliant.
While initially little more than a joke, over the years, dogecoin has established itself as a peer-to-peer crypto. As the first meme coin, the concept of DOGE has birthed the likes of Baby Doge, Shiba Inu, and others.
However, like any other meme coin, DOGE is prone to significant volatility and should be traded cautiously. However, other meme coin-specific risks, such as rug pulls, are less relevant, as DOGE has gained decent credibility since its inception.
Another interesting thing about Dogecoin’s origin is that the crypto itself is a fork of Luckycoin.
How does the Dogecoin network work?
Dogecoin, as mentioned, adheres to the proof-of-work consensus. Miners need to solve complex problems to validate dogecoin-specific transactions. Like BTC and ETH, Doge utilizes the blockchain network and runs its own chain. Additionally, its blockchain network boasts ultra-fast and affordable transactions.
Besides Dogecoin mining, Doge trading is also one of the go-to activities in the crypto space, all thanks to the coin’s availability across some of the leading global exchanges.
Did you know? While Bitcoin operates using the SHA-256 cryptographic algorithm, Dogecoin runs Scrypt. Litecoin also uses the Scrypt algorithm and can be merge-mined with DOGE.
Why is dogecoin popular?
DOGE is a hype-driven cryptocurrency. Unlike Ethereum, which brings an entire world of utilities, smart contracts, DApps, and more, Dogecoin’s presence, for now, is only restricted to a payment method. However, with meme coins often primed for generating rapid gains, the lack of technical utilities hasn’t slowed DOGE’s rise in the popularity charts.
Other reasons include Elon Musk’s vocal support for DOGE, with some of his tweets even pushing the price of this meme coin upwards on multiple occasions. Then, there is an active community, with members being part of the famous “Doge Army.”
Additionally, DOGE, unlike BTC or ETH, trades at a lower price, making it more accessible to investors interested in trading. And finally, if you want to buy Dogecoin, you can do so via both centralized and decentralized exchanges.
Dogecoin vs. other cryptocurrencies
Before you buy Dogecoin, it is appropriate to compare the asset with some other popular cryptocurrencies.
Dogecoin vs. bitcoin
While several differences exist, the most prominent comparison in the dogecoin vs.bitcoin conversation has to be the supply cap. Bitcoin has a 21 million cap, whereas dogecoin doesn’t have one, making it an inflationary coin.
Dogecoin vs. ethereum
Comparing dogecoin to ethereum made more sense prior to September 2022, when the Ethereum network was still PoW. Regardless, transactions initiated using DOGE are faster and more affordable than with ETH.
Dogecoin vs. litecoin
Even though both these cryptocurrencies adhere to the Scrypt algorithm and PoW consensus, litecoin has a fixed supply cap of 84 million. DOGE, as we know by now, has no supply cap.
Where to buy dogecoin
- Binance: Binance stands out as one of our top choices for buying and trading Dogecoin, thanks to its highly liquid DOGE market and large user base. You can also gradually increase your DOGE holdings by accruing interest in a completely hands-off way. The platform also ensured a seamless experience with futures trading, but more importantly, it did so while allowing us to expand our trading strategies at our own pace.
- Coinbase: Our experience with Coinbase has reaffirmed its status as a reliable portal for U.S. customers looking to buy and trade Dogecoin. The platform’s easy-to-use interface makes it approachable for newcomers. Additionally, Coinbase PRO offers lower trading fees and more advanced trading features. Coinbase PRO’s lower fee structure was instrumental in reducing costs for our team.
- Kucoin: In our experience, Kucoin has been awesome for trading Dogecoin internationally thanks to fewer restrictions and a huge altcoin selection. We’ve loved the ability to buy fractional NFTs on Kucoin. Among other things, it lets retail investors dip their toes into NFTs without a huge upfront investment. DOGE futures trading is also available, which added another powerful tool to diversify our crypto strategies.
- Kraken: With its top-notch security and U.S.-friendly service, Kraken has a proven track record as an ideal destination for buying Dogecoin. We found Kraken’s execution very reliable regardless of whether we opted for market or limit orders. We’ve also tapped into their futures trading and advanced interface to map out long-term DOGE strategies. Our overall experience was, by and large, positive.
- YouHodler: YouHodler has carved out a niche platform within its broader ecosystem to cater specifically to Dogecoin users. It offers a suite of unique financial products tailored to their needs. This includes crypto-backed loans, which allow users to borrow against their DOGE holdings without selling them, and Earn products that generate passive income on DOGE deposits. Our early experience with YouHodler has been mostly positive, particularly when it comes to leveraging DOGE holdings through crypto-backed loans.
Why we chose these platforms
When it comes to acquiring DOGE, the platforms listed above are all solid options to consider. All offer decent liquidity, collectively possess a widespread international presence, and prioritize customer protection and security features. While cryptocurrency transactions inherently carry risks, relying on these reputable choices is a sound decision. Of course, be sure to be prudent during any interaction with decentralized ecosystems. Move your crypto to a wallet after purchasing, choosing ideally a hardware or at least non-custodial option.
How to buy dogecoin
1. Firstly, open the Coinbase app and select “Trade.”
2. Secondly, select dogecoin, press “Buy,” and choose the amount you would like to purchase.
3. Select “Place Order” to complete your purchase.
How to buy dogecoin anonymously
For those looking to maintain privacy in their cryptocurrency transactions, here are three methods to buy DOGE anonymously:
- In-person trade: The most anonymous method is to meet a seller face-to-face and pay with cash. However, risks include potential scams and price volatility of DOGE during the transaction.
- Dogecoin ATMs: Like traditional ATMs, you scan your wallet QR code and insert cash to receive DOGE. Note that some may require ID, and their availability is limited outside North America.
- Decentralized exchanges: Use privacy-focused exchanges for anonymous transactions.
How to sell dogecoin
Again, let’s use Coinbase. Here’s the easiest way to sell your DOGE.
1. Open the Coinbase app and select “Trade.”
2. Secondly, select “Sell” and choose the amount you would like to sell.
3. Lastly, select “Place Order” to complete your purchase.
The DOGE ecosystem comprises the active dogecoin community, the dogecoin foundation, and other elements. Termed as an open-source, peer-to-peer digital currency, dogecoin keeps things simple and minimalist.
For starters, there is a network of computers or nodes to keep the network secure. Additionally, there are wallets compatible with DOGE and supporting exchanges that make the better part of the DOGE ecosystem.
Another lesser-known element of the ecosystem is DogeChain, an Etherscan-like explorer for Dogecoin.
If you want to buy DOGE, you will also need to choose a place to store it. The DOGE ecosystem opens doors to a wide range of wallets, including MyDoge — a wallet with built-in two-factor authentication, a tipping bot, and more. Or, you can go for Guarda, Trezor, or Ledger options — or any other supported wallet.
Is it possible to mine dogecoin?
Dogecoin, unlike ethereum, still supports mining. You can use ASICs or even GPUs to mine DOGE, but the latter has become less favorable due to increasing mining difficulty. As for the timeframe, the block duration is now one minute. Other elements associated with dogecoin mining include the need for a DOGE-supporting wallet and the right mining software module like MultiMiner, CGMiner, or more.
While individual mining rigs are useful, you can always join a mining pool or work with a cloud mining service to keep mining DOGE.
Dogecoin price prediction: Is there hope for investors?
If you look at dogecoin’s price history, you will see that its all-time low came in at $0.00008574 — two years after its launch. However, the 2021 bull market pushed the price to an all-time high of 73 cents. As of Sept. 27, 2023, DOGE is trading at close to 6 cents, down 92% from its ATH. As far as a dogecoin (DOGE) price prediction goes, the coin has already beaten the 2021 expectation of $0.0087. The price history of DOGE, especially the all-time high in 2021, might be more than enough to persuade investors to buy the crypto.
Dogecoin: Should you buy into the hype?
Before you decide to buy into DOGE hype and purchase Dogecoin, looking at the previous price surges, you should consider a few angles. One of the pro-price angles has to be the impact Elon Musk’s tweets have on the price of DOGE. Now, with Musk in charge of X (previously Twitter), it shouldn’t be difficult for any future relevant tweet from the social network’s owner to result in a DOGE rally. However, this remains a speculative angle. Other pro-DOGE arguments include its low price and passionate community.
Dogecoin is the people’s crypto.Elon Musk, CEO of SpaceX: Twitter
But then, its unlimited supply, minimal utility, and increased volatility at the counter are all clear drawbacks that might make you think twice about going long on DOGE.
Does dogecoin have a future?
If you want to buy dogecoin and hold the crypto for years to come, you should have some clarity about its future. Based on the current state of the crypto market, previous price surges at DOGE’s counter, and the state of meme coins, the next five to seven years might be steady for this crypto. A price of 50 cents by 2030 is more like a realistic prediction. Ensure to do your own research before proceeding to buy dogecoin or any other crypto.
Frequently asked questions
Where can I buy dogecoin?
Is it okay to buy Dogecoin now?
Will dogecoin go to $1?
How much will DOGE be worth in 2025?
How do I buy dogecoin in the U.S.?
Is dogecoin legal in the U.S.?
Is doge worth buying?
Is it too late to buy dogecoin?
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