(DOGE) Guide for 2021
- Dogecoin started as a ‘joke,’ and is named after the popular meme of a Shiba Inu dog. (Keep in mind, Elons – The Boring Co. started out as a joke too)
Dogecoin embarked on an impossible rally, drawing attention to the growing power of the decentralized markets. Even more popular, is the Doge meme, a founding symbol of the cryptocurrency. Doge has been Tweeted and mentioned by Elon Musk multiple times, which has sent the interest and the price (percent wise) soaring. On 2-4-21 @elonmusk posted…
Which sent it up 76%!
What is Dogecoin?
Dogecoin, an open-source code digital asset, was launched on December 6th, 2013 by founders Billy Markus and Jackson Marker. The original idea the creators of Dogecoin had was a payment system that is instant, fun, and free from traditional banking fees.
Although Dogecoin is one of the oldest cryptos around, the project was referred to as the ‘joke coin’ mainly because the name ‘doge’ was adapted from the internet meme Doge – a popular meme of a Shiba Inu dog (the smallest breed of dog from Japan.)
The ticker DOGE is used in the same way BTC is used for Bitcoin and ETH is used for Ethereum’s native currency, Ether.
Why is Dogecoin (DOGE) Unique?
What started out as a simple tweet, has grown to become one of the world’s most highly valued cryptocurrencies. The crypto did actually start out as a joke, with the founders, Markus and Palmer admitting that they didn’t pre-mine any Doge because they weren’t serious about launching a cryptocurrency.
One of the greatest strengths of the project lies in its community. Supporters of the Dogecoin (Shibes as they like to call themselves) are popular for their fundraising and donations to the public.
For example, in 2014, the Shibes raised $50,000 to help send the Jamaican Bobsled Team to the Sochi Winter Olympics. The community also bought a Nascar for a driver named Josh Wise, and started a clean water project in Kenya called Doge4Water.
Who are the Founders of Dogecoin (DOGE)?
Founders of Dogecoin, Billy Markus, and Jackson Palmer started the project mainly for the fun of it. Both did not anticipate the kind of rapid growth they have seen. They wanted to draw positive attention to cryptocurrencies and encourage innovators to use blockchain technology.
Palmer, worked as the director of product management, growth & data Science at Adobe.
Markus, a programmer and lead developer of Dogecoin previously worked as a member of the marketing team of Adobe Systems. After letting out their idea on Twitter about a fun version of Bitcoin, they received lots of inspiration from a Twitter follower who encouraged him to make the idea a reality.
After a lot of encouragement, they purchased the Dogecoin domain and set to work on their ‘Joke Coin’ or a fun currency.
Going through the source code of Bitcoin, Markus freely admitted that he found large chunks of the original programming codes incomprehensible but knew enough to change a few core elements for Dogecoin.
The base codes for Dogecoin were modeled after the codes of Luckycoin. in turn, Luckycoin was based on Litecoin.
Dogecoin Vs Bitcoin
Dogecoin was created to act as a form of digital money that enables peer-to-peer transactions across a decentralized network. This means that transactions can be performed on the network without a central server or authority to confirm the transaction.
While Dogecoin is generally seen as a fun coin, in many ways the crypto is remarkably similar to Bitcoin. They also have the same approach to blockchain technology. Both coins are built around proof of work.
Dogecoin, however, implements the Scrypt algorithm which has a faster block generation time and transaction speed on the network.
Dogecoin is a lot easier to mine than Bitcoin. Their supplies are another important place where these coins differ. While there will only ever be 21 million Bitcoins, the supply of DOGE is unlimited. It was initially set to 100 billion but moved after the coin experienced explosive growth.
Currently, there are over 128 billion DOGE coins in circulation. This limitless nature of the crypto makes Dogecoin a perfect tool for small transactions, which is why it is used for tipping and donations.
How to Buy Dogecoin (DOGE)?
In three simple steps, here is how you can start buying DOGE.
1. Choose a Dogecoin (DOGE) Wallet
If you are thinking about investing in DOGE, the first step would be to choose a secure wallet to store your coins. Dogecoin is ranked as the 16th largest crypto which means there is no shortage of options for secure wallets.
There are different types of wallets, each offering a using combination of features, usability, and security. The most popular wallets for storing DOGE can be grouped;
- Hard wallets: without a doubt, these are the most secure type of wallets you can use for storing your Dogecoin. However, they require an initial investment. They are safer than soft wallets because your private key will be stored in an offline device that will be held with you.
Some of the best hard wallets you can get at a physical store for storing your DOGE are available on Amazon Ledger Nano S, Nano X, TREZOR ONE. These devices can also be used to store more than 1000 other digital assets, which make them a good purchase on the long run.
- Soft wallets: unlike hard wallets where you get to store your DOGE and private key in an offline physical wallet, these wallets use either your mobile device or desktop computer to store your Dogecoin.
Dogecoin can be stored on Doge-specific soft wallets like Multidoge which is available on Windows or Mac. Or you can store your DOGE on multi-currency wallets like Exodus and Coinomi. Mobile users can opt for the official Dogecoin Mobile Wallet.
Once you have chosen a wallet, the next step would be to get your Dogecoin address. After signing up on the wallet, you would be issued a string of letters and numbers that starts with a capital D. It is with this address you would be able to send and receive Dogecoin.
Here is what a Dogecoin address looks like; DBXu2kgc3xtvCUWFcxFE3r9hEYgmuaaCyD
2. Choose an Exchange
As a leading digital asset, Dogecoin enjoys support from over 50 crypto exchanges. While many of these exchanges may not support Dogecoin against fiat currency, you can buy DOGE against other cryptos like Bitcoin and Ethereum.
One of the most highly recommended platforms for buying Dogecoin against USD is Binance (Visa/Mastercard, wire transfer, ACH bank transfer, SWIFT, SEN). Kraken, Changelly, Exrates, YoBit, and Livecoin are other exchanges you can buy Dogecoin directly with USD.
The best exchange to buy Dogecoin with other cryptos is Coinbase, Bittrex, LocalBitcoins, BKEX, VCC Exchange, Robinhood, and Gate.io. You would need to buy Bitcoin or Ethererum first, then wap it for DOGE using the BTC/DOGE or ETH/DOGE or LTC/DOGE trading pairs.
In choosing an exchange, make sure to check for country support, some exchanges can be limited to certain countries because of regulatory policies. Also check for the payment methods and exchange rates used for each, as it would determine the final amount you pay for the Dogecoin.
3. Storing or Withdrawing Your Dogecoin
The best way to store your DOGE remains the wallets, not on exchanges. This drastically reduces the risk of them getting lost or stolen through a hack or a bankruptcy.
The exchanges are best used for buying and trading coins, after which they should be sent back to the wallet to be stored. Using the wallet address given to you, transfer your DOGE from the exchange to the wallet.
Remember to keep your private key as safe as possible because if they get lost, it is almost impossible to retrieve your Dogecoin.
Mining Dogecoin (DOGE)
Mining Dogecoin is quite similar to mining on the Bitcoin network. Each block of transactions has to be checked by all the nodes on the network before being added to the blockchain.
Every minute, a node attempts to confirm a block of Dogecoin transaction, the computer or mining device that guesses the correct line of code for the newest block (of transactions) is given a reward of 10,000 DOGE.
There are two ways to mine Dogecoin. Solo mining, where a single person gathers all the computing power he can to get the block rewards. Or joining a mining pool that involves a group of miners pulling their computing powers to confirm transactions (mine.)
As earlier mentioned, Dogecoin base codes have their root from Litecoin (a crypto designed to be a lite version of Bitcoin,) as a result, mining Dogecoin is much easier than Bitcoin. While Bitcoin has a block time of 1O, Dogecoin has a block time of 1.
The most basic thing you can use to mine Dogecoin is the graphics card of a computer and a Dogecoin wallet. While mining with a desktop computer will be slower than mining with a graphics card, the operation is quite simple and does not slow down the performance of the PC.
Mining majorly takes place when the computer is idle. To mine faster, you can decide to use a GPU like SAPPHIRE Pulse Radeon RX 580 ($426.98), Nvidia GeForce GTX ($579.99), or the ASUS RX Vega 64 ($945)
A Scrypt ASIC Miner is a dedicated device used for mining. Although they are more expensive and use up more electricity, they offer more mining power. The Bitmain Antminer L3 ($1,649) and BW L21 Scrypt Miner ($7,700) are some of the popular ASIC mining devices.
While Dogecoin may not offer any significant advantage over other payment-focused digital assets, it is an already established cryptocurrency that has been around since 2013. Also, the passionate following of the coin, along with all the internet and Twitter hype make it stand out from many other cryptocurrencies.
Personally if I were to buy any I understand it is just speculation, I wouldn’t put in more than $1000-2000. It is extremely volatile and when buying just remember you can lose it all, it is a speculative bet, and not really an investment.