10 Things You Should Know About Dogecoin Before Investing Money

Dogecoin, like other cryptocurrencies, runs on blockchain technology. Blockchain is a distributed, secure digital ledger that stores all transactions made using a decentralized digital currency. All holders carry an identical copy of the Dogecoin blockchain ledger, which is frequently updated with all new transactions in the cryptocurrency. Like other cryptocurrencies, Dogecoin’s blockchain network uses cryptography to keep all transactions secure.

It can be easily purchased at any cryptocurrency exchange platform like Coinbase, Kraken, or Robinhood. One must have a cryptocurrency wallet, which can be made/accessed on these platforms. To buy the cryptocurrency in small quantities, faucets – websites that dole out a small amount of free cryptocurrencies – can be a good option. For this you just have to click a button and put a captcha code every three hours, in order to earn Dogecoins.

Unlike Bitcoin, Dogecoin does not have an upper limit. Bitcoin’s maximum possible number is fixed at 21 million (a figure that is estimated to be reached by 2040) while on the other hand, Dogecoin has no hard cap. Initially, Dogecoin began with 100 billion coins in circulation. Due to the 1 minute block times, by 2015, all of these coins had been mined. The developers decided to issue another 5 billion at that time. Notably, Dogecoin now has 5 billion coins scheduled for issuance every year.

The main asset of Dogecoin isn’t the technology behind it but the community that has built up around it. Many of the community members prefer to think of Dogecoin as a currency in its own right, often repeating the refrain “1 Doge = 1 Doge”. In fact, Dogecoin has one of the largest and most active communities in the cryptocurrency world. This community has come together to fund a number of charitable efforts and other projects. They even managed to sponsor a NASCAR.

The basic technology behind Dogecoin is based on Litecoin and LTC miners are even able to mine Dogecoin using Auxiliary Proof of Work (POW). The switch allows Litecoin miners to process Dogecoin transactions by using their computing power in order to solve complicated equations. Once the equation is solved, a new block is added to the Dogecoin network and the miner is rewarded with DOGE. This reward system serves two purposes. The first is to encourage miners to devote computing power in order to complete transactions on the Dogecoin blockchain, while the second is to regulate the creation of new DOGE, which is then distributed by miners.

Since Dogecoin is very cheap, an investor can buy millions of units without burning a hole in their pockets. They can gain when the coins increase its value, big time if they purchased a lot of units. Yes, it is cheap in all aspects of the word. It is cheap to buy Dogecoins same as with its transactions. Those who do not have too much money to spare can invest in this currency. They have been in the industry for quite a long time already and to that you know they can be trusted. The price of 1 Dogecoin currently is $ 0.36.

Dogecoin is widely available to almost all exchanges and can be traded on almost all platforms. The number of Dogecoin is enough for everyone to have a share of the currency’s unit. The more coins you buy, the higher the chance you will earn from it. Since Dogecoin is cheap, losing will not hit you hard unlike other types of currencies. Hence, beginners are highly recommended to invest here as losing, same as winning is not as much compared to other existing currencies. Needless to say, this is a good choice for people who have limited money to invest.

The high hashrate is a general indication of a healthy cryptocurrency mining environment. It means a growing number of miners are using the most efficient mining hardware they can afford and competing with each other to process transactions and solve the block reward puzzles. This proof-of-work makes the Dogecoin blockchain secure and immutable. From an investor’s point of view, the hashrate is an interesting metric to follow as it shows that miners are investing in and deploying new equipment, possibly in anticipation of a rising Dogecoin price. Currently, Dogecoin has a hashrate of 203.97 TH/s, which is surprisingly pretty high considering it started as a joke.

One of the reasons why Dogecoin is preferred over other cryptocurrencies is its fast transaction. Transactions and confirmation are sent in a very fast manner, hence you do not need to wait too long before you can withdraw your money, or buy or sell the currency. Also, Dogecoin is a first-generation cryptocurrency that can be used to transfer value globally in a secure manner. It can be used on any platform that supports it for any goods and services. It can also be used to trade fiat currencies like the US dollar. It’s value is volatile, like any other cryptocurrency, since it has no government backing. For one, you can use this coin just like Bitcoin to quickly and securely send value to anyone internationally. Over the last few years, the coin’s network has increased, and now, more vendors than ever accept this unique token.

After witnessing its’ incredible journey in the past few years, it won’t be difficult to admit that Dogecoin is the new Bitcoin. In the upcoming months, Dogecoin may emerge as the cryptocurrency of 2021. It’s already on path, witnessing a massive surge since the start of the year. Dogecoin has given nearly 1900 per cent returns since January 2021. There was a time when one coin was worth less than a cent, but the recent surge has taken its value to $0.122680 or almost 12 cents. That’s incredible for a digital currency started as a joke. The jump is significant given that Bitcoin has seen a surge of 117.47 percent during the same period.

Hope you enjoyed our list of 10 Things you should know about Dogecoin before investing money. Tell us in the comment whether you found this video useful and do not forget to give this video a big thumbs up!

*Please Note – None of this is meant to be construed as an investment advice, these are our views only.*