What is dogecoin

 What is Dogecoin?

Software engineers Billy Marcus and Jackson Palmer created Dogecoin in late 2013. Palmer branded a cryptocurrency using the then popular meme that included the deliberately misspelled word "doge" to describe the Shiba Inu dog.

"Doge started making fun of Bitcoin," said Pat White, CEO of Bitwave. In its early days, the enthusiastic community organized advertising events to boost Dogecoin's profile, raising funds to send the Jamaican Bobsleigh team to the 2014 Olympics, for example, or to sponsor a NASCAR pilot.

In early 2021, Dogecoin secured a program position on Reddit's WallStreetBets message board — the main instigator of the GameStop issue in January — with enthusiasts promising to increase its "monthly" value (that was before banning all crypto chat on subreddit). ).

Today Dogecoin is no joke, as it exploded in value and gained more than 5,000% by 2021. Among its boosters is Tesla CEO Elon Musk, who called Dogecoin his favorite cryptocurrency. Musk also called Dogecoin "human crypto," and promised to invest a visible Dogecoin token on the moon.

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How does Dogecoin work?

Dogecoin is a cryptocurrency that uses blockchain technology, similar to Bitcoin and Ethereum. Blockchain is a distributed, secure digital logger that stores all transactions using a separate digital currency.

All owners carry the same copy of the Dogecoin blockchain ledger, which is usually updated with every new transaction in cryptocurrency. Like other cryptocurrencies, the Dogecoin blockchain network uses cryptography to keep all transactions secure.

The so-called miners use computers to solve complex mathematical calculations to process transactions and record on the Dogecoin blockchain — the so-called “proof of work” system. In exchange for processing transactions and supporting blockchain ledger, miners receive additional Dogecoin, which they can seize or sell in the open market.

Dogecoin may be used for payments and purchases, but it is not the most efficient store of value. This is because there is no lifetime limit on the amount of Dogecoins that can be generated by mines — meaning that cryptocurrency is rising sharply, by design. The blockchain rewards miners for their work by creating millions of new Dogecoins every day, making it extremely challenging to get Dogecoin price points to hold on to over time.

Dogecoin vs. Bitcoin

Dogecoin has a few significant differences when compared to Bitcoin. First, it is faster and easier for miners to complete statistical calculations that complete and record transactions in transactions, which makes Dogecoin very effective in processing payments.

"When it takes 10 minutes to process the new blockchain in the Bitcoin blockchain, it only takes one minute in the Dogecoin blockchain," said Gary DeWaal, chairman of Katten's Financial Markets and Regulation team.

Another important difference is the absence of any lifetime cap on the amount of Dogecoins that can be created, as noted above. There is a lifetime value of Bitcoin at 21 million which limits the maximum number of coins that can be created. This means that miners are forced to work harder and longer to get new Bitcoin, and to some extent it helps to ensure Bitcoin’s ability to hold and increase its value over time.

How to Buy Dogecoin

You can buy Dogecoin on a cryptocurrency exchange like Binance or Kraken. Trading requires you to set up and fund an account in U.S. dollars. or crypocurrency. You will be able to buy and exchange cryptocurrencies, including Dogecoin. Significantly, the leading crypto exchange Coinbase does not support the purchase of Dogecoin.

Other online traders, including Robinhood and TradeStation, also allow you to purchase Dogecoin — in addition to common commodities such as stocks, shares, and bonds. They do not offer as many cryptocurrencies as trading, but Dogecoin is generally available.

Like other cryptocurrencies, once you have purchased Dogecoin it is best to transfer your coins in a crypto wallet. Wallets come in many forms, from online trading services such as Coinbase (while you can't buy Dogecoin on Coinbase, you can store it in your Coinbase wallet), to apps on your mobile device or even a physical hard drive . You protect the wallet with a secret password. Since your coins are held without trading, there is an extra layer of protection on hacks.

Before Dogecoin went into regular levels and went up in price, you were able to earn free coins by doing basic online activities.

"For many years, you could do jobs on Dogecoin 'tap' to get Dogecoin instead of buying it," C said. Neil Gray, partner of fintech practice centers at Duane Morris LLP. “Jobs included things like looking at an ad or doing research. Lately, it's hard to find a job. ”