Investments

How Much Dogecoin Should I Buy

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 4 minute read

On an episode of “Saturday Night Live,” Elon Musk dubbed himself “the DogeFather” and branded the cryptocurrency a “hustle.”

That should be all you need to know to get started with Dogecoin. Unless I’m missing anything. Although the mainstream media has made fun of Dogecoin, there is a dedicated group of people working to make it more than a joke.

Dogecoin has evolved from a joke money to a legitimate cryptocurrency, and it continues to intrigue investors. This page will explain what Dogecoin is, how it can be used, where it can be purchased, and the benefits and drawbacks of using Dogecoin.

What Is Dogecoin (DOGE)?

The DOGE cryptocurrency is an open-source project that allows users to send and receive payments directly with one another. Dogecoin was created by Jackson Palmer and Billy Marcus in 2013 as an April Fool’s Day prank; it is based on the Litecoin protocol and features a limitless quantity of obtainable coins.

Dogecoin was named after the Shiba Inu dog, the subject of a widely shared online meme. Dogecoin’s creators intended it as a joke on the success of Bitcoin and other new cryptocurrencies, but the cryptocurrency community quickly embraced it, driving up its value.
Way up.

Indeed, the value of Dogecoin has increased by more than 16,00% since it was first created. The viral nature of the content and the different publicity stunts have contributed to this. Part of the reason for this is the persistent Twitter support that Dogecoin has received from well-known business people like Elon Musk.

Dogecoin is still one of the most widely used digital currencies today, and it is rapidly expanding both in terms of its user base and its functional capabilities.

What Makes Dogecoin Unique From Bitcoin and Other Cryptocurrencies

Like Bitcoin, Dogecoin is a cryptocurrency that is mined and is based on a “proof of work” (PoW) system. Like other cryptocurrencies, it is created and traded digitally and uses Litecoin’s scrypt technology (a crypto mining method).

Nonetheless, Dogecoin was the first meme-based cryptocurrency, and no other cryptocurrency has the support of so many well-known billionaires; both Mark Cuban and Elon Musk have praised Dogecoin’s use on Twitter and in interviews with the media.

As for practicality, Dogecoin has been adopted by a number of websites and services. Dogecoin may be used with the crypto debit cards offered by Bitpay and Coinbase, allowing its holders to make everyday transactions with the digital currency. You may purchase Dallas Mavericks tickets with dogecoin. Dogecoins may be used to buy Tesla parts.

Since more and more Dogecoins will be mined in the future, it is safe to say that Dogecoin is an inflationary asset (more on why this matters shortly). The total number of coins that may be mined is unlimited. Bitcoin, on the other hand, is limited to 21 million coins and reduces the total that may be mined by half every four years (on average).

Do You Want to Invest in Dogecoin?

You may be thinking if Dogecoin is a smart investment because it is a humorous cryptocurrency. Dogecoin’s value has surged over the past few years, and some high-profile investors have become billionaires as a result.

Should you put your money into Dogecoin?

What this means, in a nutshell, is that there is no single correct solution. While it’s not wise to put all of your money into the funny dog-themed cryptocurrency, Dogecoin, it’s appropriate to see it as a speculative investment in the same way that you would view any other cryptocurrency.

Dogecoin’s inflation supply and dependence on celebrity endorsements make it a risky bet for the long haul. There will be downward pressure on the price as the supply increases by up to 5 billion new coins per year. However, there is a risk that Dogecoin will lose value and popularity among cryptocurrency enthusiasts over the long run.

Investing in Dogecoin is very risky and might result in a complete loss of wealth. However, those ready to take on the danger may find the experience enjoyable.

Where Can I Buy Dogecoin?

Most major cryptocurrency exchanges, including Gemini, Coinbase, and FTX.us, allow customers to buy Dogecoin. Users who wish to purchase DOGE with USD can do so by depositing USD and immediately exchanging it for DOGE. Dogecoin may be bought and sold for other cryptocurrencies on decentralized exchanges like Uniswap.

Dogecoin is mined in the same way as other proof-of-work cryptocurrencies, utilizing a central processing unit (CPU) or graphics processing unit (GPU) mining setup. Dogecoin miners can pool their computing resources (or “hash power”) to increase their chances of finding a DOGE block.

Bottom Line

To make light of the gravity of other cryptocurrencies while still providing practical use, Dogecoin was created. Informed investors can reap the rewards of the stock’s favor amongst bold corporate titans. Users of DOGE may spend their tokens at any online store that accepts Bitcoin or on a crypto debit card linked to an exchange.

The value of Dogecoin, like that of all cryptocurrencies, has plummeted from its all-time high in 2021. DOGE peaked in May 2021 when Elon Musk yelled it out on “Saturday Night Live,” when it was worth $0.68; now, it’s worth less than $0.07. This rapid loss of about 90% in value is expected for the meme-based coin.

In conclusion, Dogecoin is a humorous speculative investment with some practical applications. No one knows what the future holds for the price and utility of DOGE, so don’t bank on becoming a billionaire quickly.

Or, if you do, don’t let the price decrease again in 2021 like some people did when they held on to theirs.

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