Dogecoin is a cryptocurrency just like any other crypto coin. It came as a joke coin and mainly used to tease new traders who want to trade but are confused about how they are going to trade right and make returns. Dogecoin was launched in 2013. Now it is one of the most highly valued cryptocurrencies in the world today. It has become popular today because of Elon Musk’s comment about it and how his company will start accepting it as mode of payments for some of its merchandise.
The electric car maker disclosed this on Twitter Friday. The value of the coin soared high after the announcement. The items eligible for purchase on Tesla website include branded belt buckles and children’s all-terrain vehicles.
What is Dogecoin?
It is one of the many coins that have come into existence. Many coins were created to solve problems but Dogecoin was created to make Bitcoin and the foolishness in buying a digital currency that was not backed by any asset. Now Dogecoin has worth and it is a cryptocurrency which can be used to transact business.
Brief history about Dogecoin:
Dogecoin was created by two software engineers, Jackson Palmer who is an Adobe software engineer and IBM software engineer Billy Markus in 2013 following the high price of Bitcoin and it was designed in about two hours. The designers of the “altcoin” based it on the Doge meme which was a Shiba Inu dog who speaks in broken English. It started as a joke on Reddit years ago. It was the product that people started using immediately when it was launched. Within the first month of its release, over a million people visited the dogecoin website.
Palmer, who had been following developments in the crypto world thought about coming out with a unique coin that’ll challenge the big ones in the system and tweeted “Investing in Dogecoin, pretty sure it’s the next big thing”. After his tweet, he received encouragement from friends to put his ideas into reality. Not wasting much time, he bought the domain Dogecoin.com.
Meanwhile, Billy Markus was also thinking about how to create his digital currency that would appeal to a huge demographic. But his thoughts were with him after not making any headway. But he came across Dogecoin after a day or two of the site going public. Markus immediately tweeted Palmer and explained the plans he has for the site. Before Palmer could respond, he started reconfiguring Bitcoin’s source code which was publicly available. He sought to turn its user-facing elements into dogecoin memes.
Both went into partnership and after a week and some days after Palmer birth the idea to create a unique coin which can challenge Bitcoin and other big coins saw his idea come into fruition.
What can Dogecoin be used for?
Dogecoin can be used to transfer money between people as a means of transacting business or just sending cash. Payments can be done without going through an intermediary such as the bank and it is quick and reliable because records of payments are available on the blockchain.
The coin runs on a decentralized network of computers which means that it distributes workloads among several machines instead of relying on a single server machine. The work thus becomes very simple for the programmers of the cryptocurrency because it has several other networks to discharge its duties.
How to buy Dogecoin
Dogecoin has been widely accepted and if you want to buy it, there are some factors you need to consider before venturing into the dogecoin space. Below are some of the guidelines that will help your thoughts in purchasing the once-joke coin which has become the most sought after coin in the world today;
- Do not invest more than you’re willing to lose: When planning on how much you want to invest, do not invest more than what you are willing to lose since the coin is volatile and no one will be faulted when all your investments go down the drain. And so you should consider the amount you want to invest which will not affect your finances so much when in any unforeseen circumstances you lose everything. This is because cryptocurrencies are risky investments. For dogecoin’s prices to increase, those investing need to buy more coins on a regular basis otherwise the value of the coin will go up and fall within the shortest possible time. The limit of the number of coins was removed by one of its holders to discourage people from holding onto it for a long while. This is in contrast with other major cryptocurrencies like Ethereum or bitcoin which have caps on how many coins can be issued and help retain the coins value when it is in scarcity.
- Decide on a Crypto Exchange: To invest in dogecoin, you have first open an account with a crypto exchange which is reliable and has been in the system for a while now. The cryptocurrency should also have options for buyers and sellers to exchange the digital currency for dollars. You have to decide on the best cryptocurrency exchange that will not squander your sweats. Consider some beginner-friendly apps that you can transfer your coins to when you desire another app. Looking at an app like Robinhood, it becomes very difficult to transfer your investment and for you to gain your investment, you have to sell the coins and rebuy them on an exchange to move them to a separate wallet.
- Select a payment option to trade with: To trade in the forex market, you need to make a deposit into your exchange account and in most instances you will be allowed to send the money through your bank account or Paypal. Some brokerages also accept wire transfers. You basically get instant access to the money deposited for trading. But large sums of money ranging from $1,000 and above need to take time for transfer to clear before the full deposit can be used. One thing you need to take into consideration is that not all exchanges allow the use of credit cards for you to buy dogecoin and other cryptocurrencies.
- Place an order for dogecoin: After choosing your payment option and being sure there is enough funds in your account, you can purchase dogecoin. On the trading platform, search for the Doge symbol. Pick your trading type and input the amount of dollars you want to invest. After placing the order, it should go through immediately without any hitches. Dogecoin is not limited by trading hours and as that, you can buy Dogecoin 24hours a day and seven days a week.
The piece has delved into dogecoin and I have touched on many important factors: the cryptocurrency which has become the most sought after coin currently. The focus of the piece was about the meaning of dogecoin, its history, what the cryptocurrency can be used for and how to buy dogecoin.