Dogecoin (DOGE) started as a joke cryptocurrency, created to poke fun at Bitcoin and its users.
But now it’s widely used by people all over the world, and has become an important part of the digital currency revolution that many are calling the future of money.
But how exactly does Dogecoin work?In this article, we break down what Dogecoin is, why it was created, how it works, and where it can be used.
In addition to an overview of Dogecoin, you’ll also learn about some of the newest developments in this exciting industry.
What is Dogecoin
If you are a nerd, or follow online news or current events in any way, you have most likely heard of cryptocurrencies by now.
You may also have come across Dogecoin.
The good news is, there is no such thing as too much information when it comes to cryptocurrency.
Especially because the more we learn about this emerging currency type, the better equipped we are to make wise decisions about which ones we should spend our money on.
There are currently thousands of cryptocurrencies out there and some people think that Dogecoin is one of the best.
It was invented back in 2013 by Billy Marcus and Jackson Palmer, who created a fun instant payment system free of traditional banking fees.
They wanted to create something that would be an effective tipping system for social media users.
What makes this so great for someone like me who uses Twitter daily is that I can send some small amount of money (anywhere from $0.10-$100) with just 140 characters! There’s even a Dogecoin wallet app called Dogetipbot which helps keep track!
Why do we need dogecoins?
The best way to invest in Bitcoin is through mining. Bitcoins are mined using a specific amount of power that requires money, so the easiest way to start with investing in bitcoin would be to buy a certain amount of coins that you could afford.
Mining can become expensive and more complicated depending on how much bitcoin you want.
The best way to invest in Ethereum would be by trading ethers for other tokens on exchanges or cryptocurrency marketplaces like Poloniex or Bittrex.
Ethers are not transferable but instead allow users access to an array of decentralized services including for example, intelligent contracts or smart applications on their platform called the Ethereum Virtual Machine (EVM).
Trading ethers for other tokens will require you to do research, because the information provided on these websites can change often.
Other cryptocurrencies also may offer new and exciting opportunities for investments in the future. One such cryptocurrency worth looking into is Dogecoins.
Investing in dogecoins has been shown to be a very lucrative opportunity due to its value increasing significantly since its creation less than two years ago.
You should think about investing your hard-earned money into Dogecoin if you have high expectations for future investments as well as some patience and willingness to learn about this emerging technology
How does Dogecoin work?
Dogecoin is a joke cryptocurrency invented by software engineers Billy Marcus and Jackson Palmer, who decided to create a fun instant payment system free of traditional banking fees.
It was introduced on December 8th, 2013. Dogecoin distinguishes itself from other altcoins by using the Shiba Inu dog's face logo which looks like a popular meme called Doge.
Unlike Bitcoin, which has become too expensive for small transactions such as buying lunch or coffee with debit cards, tiny fast transactions in dogecoins are possible.
On average, one bitcoin transaction can take more than 10 minutes to process and cost more than $5 in fees.
A single dogecoin transaction can be processed within 30 seconds at no cost.
With this increased affordability for microtransactions, dogecoins have become an excellent way to tip people online without the use of Facebook likes or Twitter followers.
Can I mine Dogecoin like other cryptocurrencies?
|
| mining Dogecoin |
Dogecoin can be mined using a home computer. Unlike bitcoin, there are no specialized graphics cards to buy;
with dogecoins, you use your own CPU (central processing unit) power to extract them.
And unlike bitcoin, there's plenty of easy-to-find online information about the best type of software to mine dogecoins.
One site I found said that mining solo without a pool would take 2 days, which is way too long for me!
DogeCoins are found using the Scrypt key derivation function as they require 2 million times less memory than bitcoins.
Is there an official Dogecoin wallet?
This cryptocurrency doesn't yet have an official wallet, but there are some online wallets that you can use to safely store your coins.
Some notable ones include: Coinbase - Coinbase is the best option for beginners, as they can store Dogecoins with ease.
Electrum - This wallet has the advantage of being open-source, which means anyone can look at the code and make sure everything is secure.
However, this does mean you need to be careful about downloading a fake app when you're setting up your wallet for the first time on a new device.
How to invest in Dogecoin
Dogecoin, a joke cryptocurrency invented by software engineers Billy Marcus and Jackson Palmer, has found success as a type of digital tipping system on the internet.
Tipping isn't for everyone.
If you're going to invest in anything, consider ether or bitcoin.
But if you want a few giggles from your friends on Facebook or Reddit and have some spare money in the budget that you might like to lose.
well, here's how to buy Dogecoin. First, head over to an exchange website (such as Poloniex) and create an account.
Next, deposit cash into your account via wire transfer or credit card (you'll need at least $10 worth).
Then search for Dogecoin in the trading box at the top of the page and click on Buy DOGE.
Enter your desired number of coins in the $ field (the current price will be listed next to this), click buy, then confirm that you understand what you are doing before confirming payment details.
The process may take up to 24 hours before coins appear in your wallet.
Where can I buy and sell dogecoins online?
Dogecoin is a bit more complicated to buy and sell than other cryptocurrencies because they use two types of coins:
Dogecoins (DOGE) are basic unit of the currency, while Doxcoins (DTC) are used for transactions with other cryptocurrencies.
One place you can buy dogecoins online is on an exchange like the dogecoin market.
This online marketplace offers two trading modes; Doge/Bitcoin or Doge/U.S. Dollar.
There are some advantages to using this type of cryptocurrency, because dogethough it's less popular than Bitcoin or Ethereum, it's safer due to its peer-to-peer structure that doesn't rely on banks or trust between individuals.
However, one downside is that if your wallet goes offline then you won't be able to access your funds.