Dogecoin is a cryptocurrency which started out as a joke. The Dogecoin logo is the Shiba Inu dog which was a popular meme on the Internet. Despite the original intention as a silly joke, Dogecoin rapidly gained an online community.
Computer programmer Billy Markus created Dogecoin intending to simply have fun and also reach a wider demographic than Bitcoin was able to reach. Also, Markus was attempting to differentiate Dogecoin from the controversial reputations garnered by other cryptocurrencies. During this same time Jackson Palmer, a member of the marketing department at Adobe Systems in Sydney, Australia, decided to try and help make Dogecoin into a real, viable cryptocurrency.
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Palmer bought the dogecoin.com domain and featured the Dogecoin logo. When Markus saw the site posted in a chat room, he started to make serious efforts towards launching the cryptocurrency. Markus contacted Palmer and began the development of Dogecoin, intending to release it to the public. At the end of 2013, Dogecoin was officially launched.
Within just a couple of months, Dogecoin reached $60 million in market capitalization. In comparison to other tokens, Dogecoin’s initial coin production had a faster schedule, with 100 billion coins circulating by the middle of 2015. Every year afterwards, more than 5 billion coins have been added into circulation. The number of Dogecoin tokens circulating reached 100 billion by the end of June 2015.
Dogecoin was also able to benefit from the overall appreciation of the broader cryptocurrency market. DOGE reached a historical high of $0.017 per coin at the beginning of 2018 which is right after Bitcoin reached its peak of around $20,000 at the end of 2017. Dogecoin had $2 billion in market capitalization at this time.
Adopters of Dogecoin commonly use DOGE for various types of transactions. Dogecoin quickly became popularly used as a system to give and receive tips over the Internet. Users would give DOGE tips to others for providing content which they found unique, useful or interesting.
DOGE has also been utilized for fundraising for a variety of causes, such as raising $50,000 for the 2014 Winter Olympics Jamaican Bobsled Team. By the fundraising campaign’s second day, users had amassed $36,000 worth of donations in Dogecoin. This resulted in Dogecoin’s value skyrocketing by more than 50 percent. Since the Winter Olympics 2014 fundraiser, Dogecoin has been used for a variety of notable fundraising activities.
Is it Worth It To Start Trading Dogecoin (DOGE)?
- Community support – The Dogecoin community is quite supportive of DOGE. The enthusiastic support from the community has played a significant role in keeping Dogecoin alive during turbulent times and challenges. This support has also helped Dogecoin in maintaining its market value.
- Availability – Part of what makes cryptocurrencies valuable is how available to most people a cryptocurrency is. Dogecoin is offered on a wide variety of exchanges and broker platforms, making DOGE quite accessible for most people when compared to many other more obscure cryptocurrencies in the market.
- Charitable Fundraising – Dogecoin is popular for fundraising for various charities and causes. Some of these causes include the Jamaica Bobsled Olympic Team, drinking water access for Kenya and even sponsoring a NASCAR racecar driver.
- Fast Transactions – Dogecoin has a block time of only one minute which is much faster than many other cryptocurrencies such as Bitcoin or Litecoin.
- Potential for future appreciation – The broader cryptocurrency market has come off its historical highs, including Dogecoin. This means there is plenty of room for future appreciation before these historical highs are reached again. Now might be a perfect time to buy Dogecoin.
- Supply – There is no limit to how many Dogecoin tokens which can be mined. This means the supply of Dogecoin can continue growing infinitely. However, this can be disadvantageous for those looking to invest in Dogecoin for future growth, since the higher supply of an asset there is, the lower the value.
- Security Concerns – Shortly after Dogecoin was launched, Dogewallet, the wallet platform for DOGE, was a victim of a major theft. A hacker accessed Dogewallet’s system and was able to send all the Dogecoin tokens to a specific static address.
- Lack of Future Development – The potential of development and improvement of the technology underlying the Dogecoin blockchain is not likely. Palmer stated that there will be no new features and no further development. In 2015, Palmer left the Dogecoin development team. Without future development, it may be difficult for Dogecoin to compete with other cryptocurrencies in the market. Therefore, it may be a good idea to also consider other cryptocurrencies for investment.
Where To Buy Dogecoin (DOGE)?
It is important to choose a safe source to buy Dogecoin. Whether you choose to buy DOGE through a cryptocurrency exchange or a cryptocurrency broker, you should make sure advanced security measures have been implemented. This will help keep your invested capital protected from fraud.
Buy Dogecoin (DOGE) From Exchanges
One option to buy Dogecoin is through a cryptocurrency exchange. This is a platform which facilitates the ability of users to buy and sell cryptocurrencies, such as Dogecoin, directly between each other. Users can utilize either other cryptocurrencies or fiat currencies to purchase Dogecoin, depending upon the rules of the specific exchange.
Exchanges can be centralized or decentralized. Centralized exchanges are operated by one firm or organization which sets the rules for and governs the functioning of the cryptocurrency exchange. This means, deciding the limits on withdrawals and choosing which assets will be facilitated for trading through the platform. Centralized exchanges have been in use in the financial markets well before cryptocurrencies were first introduced to the financial trading markets.
Now, decentralized exchanges have presented themselves as another option for investors and traders to trade financial assets, such as cryptocurrencies. This type of exchange lacks a single governing entity which sets rules for trading on the platform. Instead, the rules of making transactions on decentralized exchanges are articulated via smart contracts.
Buy Dogecoin (DOGE) From Brokers
On the other hand, you can also purchase Dogecoin through a cryptocurrency broker instead of through an exchange. In contrast to an exchange, a brokerage is a firm facilitating the buying and selling of Dogecoin. The broker will choose the price the firm will sell DOGE, while also setting fees charged for providing a platform for trades to be completed. Also, brokerages will often earn profit via a margin spread.
A cryptocurrency broker creates a marketplace for traders and investors by partnering with buyers and sellers who hold vast pools of cryptocurrencies The broker will bring these holders of large amounts of cryptocurrency in order to provide liquidity for trades on the broker’s platform. This results in faster settlement times for completing trades. Additionally, with high levels of liquidity and trade volumes, you can expect more advantageous price fills.
Choosing to buy Dogecoin through cryptocurrency brokers can be preferable for many. Here you are not actually purchasing Dogecoin, but instead, you are simply predicting the price movement of the asset. This is referred to as CFD, or contracts for difference, trading. Since you are not actually buying the cryptocurrency, it is much cheaper and can be more profitable to trade Dogecoin this way. In addition, with crypto brokers, the process for withdrawals and deposits tend to be more straightforward with brokers compared to exchanges. Also, exchanges tend to charge higher fees. However, no matter how you choose to trade Dogecoin, it is undeniable that there is some real profit potential for DOGE.
Although there are some disadvantages, it is definitely a good idea to consider trading Dogecoin if you are looking to invest in the cryptocurrency markets to earn a profit. The support from the Dogecoin community is impressive and will help keep the value high in the future. Also, the usage of DOGE for charitable causes will help with increasing demand for Dogecoin. This will result in upward pressure on valuations for DOGE. Therefore, Dogecoin should be considered by anybody who is seriously looking to build a profitable cryptocurrency portfolio.