Cryptocurrency Dogecoin DOGE: What It Is, History, and Uses

This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn moreCopy Trading does not amount to investment advice. They also sponsored a NASCAR Sprint Cup Series driver, Josh Wise, with about $55,000 in 2014. As always, do your own research into prospective investments.

  • The digital currency is currently priced at $0.077 per coin, down slightly from highs of $0.087, making it the 10th largest cryptocurrency in the world by market capitalization.
  • But cryptocurrencies aren’t just digital assets, they can be communities, too.
  • In contrast, Bitcoin has gained social trust over the years and enjoys a first-mover’s advantage.
  • does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency.

Users can also make transactions semi-anonymously, even if a record is available publicly on the blockchain. And they can do it without going through a traditional intermediary such as a bank. Dogecoin is a kind of cryptocurrency that began as a spoof on Bitcoin — yes, a joke! Now it’s one of the most highly valued cryptocurrencies, thanks in part to a plug from Tesla CEO Elon Musk that jolted the digital currency into popular consciousness and then the stratosphere.

What Will Dogecoin Be Worth in 2025?

Miners are rewarded for their mining operations by earning Dogecoins, which they can sell on crypto exchanges or hold in their wallets. At its heart, Dogecoin is the accidental crypto movement that makes people smile! More than this, though, is the ethos of Dogecoin, summarised in the
Dogecoin Manifesto
, and its amazing, vibrant community made up of friendly folks just like you! Since the introduction of Dogecoin to the cryptocurrency market, it has gradually gained popularity.

Think of a blockchain like a long -running receipt of the transactions in the currency. The computer network verifies transactions and ensures the integrity of the data, and then records that data (nearly) indelibly on the blockchain. Despite its origins as an attempt to poke fun at the crypto arena, Dogecoin has captured the fancy of the investing, or speculating, public. It’s popular with traders on Robinhood, and the reported total value of all Dogecoins in existence is about $8 billion, as of September 2022. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.

As Dogecoin’s popularity has increased, so its availability has widened. Some online providers including eToro have recently confirmed that Dogecoin can be bought via its platform, thus expanding the potential number of investors who may decide to get on board. More significantly, a 2019 Twitter poll decided Elon Musk should be Dogecoin’s chairman.

Dogecoin’s Supply is Unlimited

Some seek to establish themselves as money, while others aim to fuel smart contract platforms like Ethereum. In that way, traders could win regardless of which individual cryptocurrency wins, without having to pick a winner. Bankrate follows a strict
editorial policy, so you can trust that our content is honest and accurate. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. Bankrate’s editorial team writes on behalf of YOU — the reader.

Its fun nature contradicts any real innovation

One thing for sure is that there is too much hype on cryptocurrencies reliance, and more upgrades are done to ensure there is finance decentralization for boosting price substantially. Dogecoin shares many similarities with the most famous crypto bitcoin, and it gives it similar benefits characterized with bitcoin. This ensures that you can use it to send or receive value internationally, just like bitcoin. Dogecoin coding is almost identical to that of bitcoin, which makes it secure and easier to transact. Another advantage of using Dogecoin is that, unlike other cryptocurrencies, Dogecoin can be mined infinitely, which means there is no limit for mining doge. This gives you unlimited opportunity to trade with Dogecoin inconsiderate you are drilling for fun or as a serious investment.

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Before long, however, Application-Specific Integrated Circuits for Scrypt emerged. One major difference between Bitcoin and Litecoin is that the latter doesn’t use the SHA-256 hash function for mining. This was an intentional decision – Litecoin instead relies on Scrypt, an ASIC-resistant Proof-of-Work algorithm. Dogecoin is based on a fork of Litecoin (LTC) called Luckycoin. However, notable changes have since been made to the protocol.

Reasons You Should Sell Dogecoin and Why You Might Keep It

The UK’s financial watchdog, the Financial Conduct Authority, is at pains to point out the risky and speculative nature of cryptocurrencies. Once all is in place, the DOGE mining operation can be launched. The mining software application should be capable of tracking your earnings per hour or per day. However, when you join a mining pool or cloud mining service, the process is much easier. There are two major types of wallets, i.e., hot software wallets and cold hardware storage wallets. Hot software wallets are generally free, but you’ll need an internet connection to access your DOGE investment.

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This is another reason why it has become so popular as a quick online tip or donation. Imagine that Jackson wants to send Billy money without using a bank or paying any exchange fees. This means that there is an endless amount of Dogecoin and so the price will not increase as much as other coins like Litecoin and Bitcoin which have limited supplies.