Every dog has a day, and the luckiest dog in the world of cryptocurrency recently is Dogecoin. From Elon Musk to Mark Cuban, everyone has expressed their enthusiasm for the real meme cryptocurrency, which grew by more than 7,000% in the first half of 2021. As its value plummeted to an all-time high of 70 cents per coin in mid-2021, Dogecoin continues to be a popular crypto alternative. If you are wondering how to buy Dogecoin, here is what you need to know.
What is Dogecoin?
Of buying a digital asset that is not supported by any asset or cash flow. Now the table is turned, and Dogecoin is worth the money. Everything about the origin of the currency points to its humorous nature: Dogecoin is one of the thousands of cryptocurrencies that have recently come into existence. But unlike other digital currencies created to solve problems, Dogecoin was created to literally make fun of Bitcoin and the folly. Dogecoin was created in 2013 by software engineers Jackson Palmer and Billy Marcus after the rapid the rise in bitcoin prices.
The creators based it on the Doge meme, a Shiva Inu dog that speaks broken English. Despite its origins as an attempt to have fun in the crypto arena, Dogecoin has the fancy of investing or speculating. It is extremely popular with Robinhood merchants, and the total reported value of all existing Dogecoins as of February 2022 is approximately $ 19 billion. As Doug himself might say, “Wow.”
Where do the coins come from?
Like other cryptocurrencies, Dogecoin is “mined” by the computer’s decentralized network that runs the currency. Networked computers perform complex mathematical calculations that effectively unlock coins or currency fractions as a reward for processing transactions.
As of February 2022, approximately 132.7 billion dogecoins existed, although new currencies were literally being created every minute. And unlike Bitcoin – which has a tight cap on the total issue -Dogecoin has no cap on the number of coins that can be mined. Literally, an unlimited number of coins can be made. However, the annual issue of the new currency is limited to 5-5 billion and that issue may continue indefinitely.
Is Dogecoin a good investment?
Like most cryptocurrencies (for example, static coins are not included), Dogecoin is not supported by any assets or cash flows. This means that its value is determined solely by what other people are willing to pay for it. This is in contrast to a stock, where long-term valuation is driven by the underlying business performance. Appreciation of Dogecoin depends on speculators becoming more optimistic, or as the so-called “greater foolish theory of investing”.
That’s why great people like Warren Buffett and Charlie Munger of Berkshire Hathaway move away from investing in cryptocurrencies and advising investors to do the same. None of this means you can make money trading Dogecoin, but it is unlikely to have a lasting value overtime.
Is Dogecoin great for crypto novices?
The mountainous volatility of Dogecoin over the past year has been a stumbling block for some investors. In fact, investing a significant amount of money in something that can skyrocket or shrink in short order requires an iron belly and the right mentality. However, investors looking to enter the crypto game may want to consider Dogecoin as a great alternative. For what?Well, holding Dogecoin for an extended period can give investors a glimpse of crypto investing.
Investing in cryptocurrency requires a firm belief that a technological transformation is taking place, and that crypto will soon reshape the world as we know it. Still, the same goes for waves and deep courses driven by restless feelings. Investors need to be willing to weather as soon as the storm comes.
I see Dogecoin as a more speculative, and therefore volatile, cryptocurrency. Accordingly, those who want to go on an incredible journey may want to save a few dollars to work on Dogecoin. This cryptocurrency will undoubtedly provide a roller coaster ride that is fun at some points and scary for others. Of course, investors should only invest in what they are willing to lose in such speculative assets.
How to buy Dogecoin?
You can buy the coin through a variety of sites, and your choice of which one to use depends on your purpose: If you only want to buy this coin for speculation, you can choose an online brokerage like Robinhood that allows cryptocurrency trading. Webul and Ito also allow you to trade coins, but many other brokers do not support crypto trading. The broker will hold any part of you in the coin. If you want to buy Doge coin to guess or actually use it, you can choose an exchange like Coinbase or the US. Exchanges can allow you to secure an asset, allow you to send or spend it.
If you want to use your crypto holdings, having a crypto wallet can add an extra layer of security The usually given through the exchange process is outside of it. (Here are some of the top cryptocurrency wallets and what they can give you.)
What does anyone love about the coin?
The first thing I like about the coin is its ancestry. It is based on Luckycoin, which is forked from Litecoin, which is forked from Bitcoin! Second, Dogecoin uses a special version of “proof-of-work” that makes it expensive for hackers to attack its network. Third, the Dogecoin Foundation includes Vitalik Buterin, co-founder of Ethereum. And fourth, Dogecoin can be used in a ton of space.
What does anybody hate about Dogecoin?
The first thing I hate about this coin is its “bloated” nature. Originally Dogecoin’s maximum supply was 100 billion coins. But this limit is remove. Thats why today we can create an unlimited number of Dogecoins. Did you know that 10,000 Dogecoins are created every minute? Compare Bitcoin’s current creation rate to 6.25 per 10 minutes! The second thing I hate about Dogecoin is how easy it is to move the price for Elon Musk’s tweet!
What does anybody fear about Dogecoin?
In the last 12 months, Dogecoin has seen a low of 00 0.002452 and a high of 0.7376. Some people have made a lot of money from Dogecoin. It is almost certain that Dogecoin will eventually be destroyed. And many speculators are going to lose big time. And it will give crypto-haters another chance to hit the cryptocurrencies.
Dogecoin is one of the most speculative cryptocurrencies out there. Of course, it is making headlines right now, but in recent years headlines have led to outperformance. But investors need to be aware of the risks. It’s great to buy a small partnership in DOGE with other cryptocurrencies in a well-diversified portfolio. However, it is not advisable to go into everything. For those who are able to cope with the volatility, this cryptocurrency can be worth a look.
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