Despite its price, Dogecoin remains a popular cryptocurrency project, even though it was initially perceived as a joke. However, Dogecoin is more than just a meme; it has its own blockchain and network security through a Proof-of-Work algorithm, similar to other digital coins. Moreover, Dogecoin rightfully holds a place in the top 10 cryptocurrencies by market capitalization.
What is Dogecoin?
The startup was first introduced to the market in 2013 by Billy Markus and Jackson Palmer. The name itself was inspired by the popular meme featuring the Shiba Inu dog, known as “Doge.” Although this meme is no longer as popular, the cryptocurrency project has achieved significant success in the crypto industry, surprising both the public and its founders.
The Dogecoin blockchain is based on the open-source software of Litecoin. Analyzing the factors contributing to the startup’s success, one can note its popularity among crypto enthusiasts and its low price compared to other digital assets.
How Does Dogecoin Work?
The project shares some similarities with Bitcoin: it has its own blockchain, and miners use computer power to create new coins. Users who receive DOGE and support the network’s operation by tracking and recording transactions can expect to be rewarded with a certain amount of Dogecoins. Depending on the price of DOGE, users can either hold their cryptocurrency for future sale or start trading immediately. However, the project also has distinct characteristics:
- The process of creating coins is much simpler and faster than with Bitcoin.
- There is an unlimited supply of DOGE. While this could lead to inflation, it was intended from the start. The Dogecoin ecosystem continues to operate steadily, even though the price of individual DOGE may decrease as the availability of the asset increases. Therefore, there are some limitations to the price development of a single coin.
To prevent your investment portfolio from declining, it is advisable to add other popular cryptocurrencies to it. For instance, you might be interested in the prices of Solana, Ripple, Polkadot, etc.
Where to Get DOGE and What Can You Buy with It?
You can acquire cryptocurrency in several ways. You can also mine the coins yourself or receive them as payment for goods and services online. However, the simplest method to obtain DOGE remains purchasing it on a cryptocurrency exchange. To do this, you will first need to buy Bitcoin or another well-known asset and then exchange it for DOGE.
When exploring what you can buy with Dogecoin, you will find that it is used like other assets, as long as shops accept it as a payment method. Additionally, you can store the coin in a wallet, exchange it for other cryptocurrencies, or use it to purchase goods. Another way to use it is by sending it to users as tips.