Dogecoin is a decentralized digital currency that was created in 2013 by software engineers Billy Markus and Jackson Palmer. It started as a joke based on the popular “Doge” internet meme, featuring a Shiba Inu dog. However, it quickly gained a cult following and became a legitimate cryptocurrency with a market capitalization of billions of dollars.
Dogecoin is based on the same technology as Bitcoin, using a blockchain to record and verify transactions. It operates on a peer-to-peer network, meaning that transactions can take place directly between users without the need for intermediaries like banks or financial institutions. Dogecoin transactions are fast, cheap, and secure, making it an attractive option for many users.
Unlike Bitcoin, which has a limited supply of 21 million coins, Dogecoin has no maximum supply. The current circulating supply is over 130 billion coins, with new coins being released through mining rewards. This means that Dogecoin has a much lower value per coin than Bitcoin, but it is still a popular cryptocurrency for people to buy and hold as a potential investment.
The best option for storing any cryptocurrency would be to use a hardware wallet. These are pieces of hardware that store the private key to your coins offline.
Today, there are two leading hardware manufacturers to choose from – Ledger and TREZOR. Both companies have different models of hardware wallets that will get the job done.
If you want deeper insights on specific models, you can read my Ledger Nano X review or my TREZOR Model T review.
Hardware wallets cost money, so if you’re not sure how serious you are about cryptocurrencies and just want to get taste of what they feel like, perhaps you would be better off starting with a software wallet.
A software wallet is a free program that lets you store your coins on your computer or mobile phone.
The easiest Dogecoin software wallets to get started with are undoubtedly Exodus, Atomic Wallet and Guarda . All wallets are very intuitive. Exodus, Atomic Wallet and Guarda is available on desktop for Windows, Mac and Linux, as well as on mobile for both iOS and Android. If you want more information you can read my Exodus, AtomicWallet and Guarda review.
Once you decide on an exchange, open an account and buy your Dogecoin . Make sure to withdraw the Dogecoin from the exchange to your personal wallet.
Never leave coins on an exchange, as you risk losing them all if that exchange gets hacked or shuts down (which has happened in the past) and always double check address before send coins because you can send the coins to wrong address .
Dogecoin, like many other cryptocurrencies, uses a Proof-of-Work (PoW) consensus mechanism, which means that it can be mined using computing power. Here are the steps to mine Dogecoin:
Set up a Dogecoin wallet: The first step to mining Dogecoin is to create a wallet where you can store your coins. There are many different types of wallets available, including desktop wallets, mobile wallets, and hardware wallets.
Join a mining pool: Dogecoin mining is often done in mining pools, where miners combine their computing power to increase their chances of finding a block and receiving a reward. Joining a mining pool allows you to earn a more consistent payout, as you’ll receive a portion of the block reward for each block that the pool finds.
Install mining software: There are many different mining software programs available for mining Dogecoin, including CGminer, EasyMiner, and BFGminer. Once you’ve selected your mining software, download and install it on your computer.
Start mining: After you’ve set up your wallet, joined a mining pool, and installed mining software, you’re ready to start mining Dogecoin. To begin, simply run your mining software and let it run in the background while you use your computer.
It’s worth noting that mining Dogecoin can be a resource-intensive process, and may not be profitable for all miners, especially if you don’t have access to specialized mining hardware. Additionally, with the increasing popularity of Dogecoin, the difficulty of mining has increased, making it harder to earn a significant amount of coins through mining.
Dogecoin, despite its origins as a meme-inspired cryptocurrency, has become a legitimate digital currency accepted by a growing number of businesses and individuals. As a result, there are many uses for Dogecoin, including:
Online purchases: Many retailers now accept Dogecoin as payment for goods and services, including online marketplaces and stores.
Donations: Dogecoin has become a popular way to raise funds for charitable causes, with some notable examples including efforts to provide clean water to people in need and to sponsor athletes competing in the Olympics.
Tipping: Dogecoin’s low transaction fees and fast processing times make it an ideal currency for micro-transactions, such as tipping content creators on social media platforms.
Investment: Dogecoin, like other cryptocurrencies, can be bought and held as an investment, with the hope of profiting from its appreciation over time. However, it’s important to note that like any investment, there are risks involved, and prices can be volatile.
Overall, the growing acceptance of Dogecoin as a legitimate digital currency means that its use cases are likely to continue expanding in the future.
You can buy Dogecoin from cryptocurrency exchanges, such as Binance, Kraken, and Coinbase, that support trading in DOGE. The process generally involves creating an account with the exchange, verifying your identity, adding a payment method, and then placing an order to buy DOGE. You can also buy Dogecoin using fiat currency, such as USD or EUR, or other cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH). Additionally, some online marketplaces and peer-to-peer trading platforms, such as LocalBitcoins, may facilitate the purchase of Dogecoin directly from other users. It’s important to conduct thorough research before choosing a platform to buy Dogecoin and ensure that you understand the fees and any associated risks.
The success of Dogecoin is closely intertwined with Elon Musk’s passion for it. Musk began tweeting about Dogecoin in early 2021, sharing a Lion King DOGE meme. That kickstarted a furious DOGE rally — with temporary dips — that culminated in Musk’s appearance on Saturday Night Live.
After the SNL appearance, DOGE crashed despite Musk’s promises to moon its price. In the following months, Musk seemed to lose interest, and the price of DOGE has tumbled over 70% from its all-time high. However, Musk still wields power over Dogecoin, as occasional tweets indicate.
In 2014, a not-for-profit foundation was formed by members of the Dogecoin team to provide support, advocacy, trademark protection and governance for the cryptocurrency project. However, the foundation was dissolved over time.
After several years of being inactive, the foundation was relaunched in 2021 with a “renewed focus on supporting the Dogecoin Ecosystem, community and promoting the future of the Dogecoin Blockchain.” In addition to some of the original core team, the project now has some seasoned industry players as part of its board of advisors.
According to the foundation’s website, members of the board will meet monthly to discuss issues relating to Dogecoin.
In regards to its advisors, the group is made up of Dogecoin founder Billy Markus, the project’s core developer Max Keller, Ethereum founder Vitalik Buterin and Elon Musk as represented by the head of the Musk’s family office, Jared Birchall.
Members of the Board of Advisors will function in various capacities. While Keller will serve as the project’s technical advisor, Markus will be in charge of the community and memes. Meanwhile, Buterin will function as the blockchain and crypto advisor for the foundation, and Birchall will represent Elon Musk as legal and financial advisor.
As a first assignment, the Board of Advisors will be working to secure three-year funding that would allow it to employ a small, dedicated staff to work on Dogecoin full-time. Up until now, the work on the ecosystem has been done by volunteers.
Weeks after the release of Dogecoin Core version 1.14.6, core developer Michi Lumin announced the launch of Libdogecoin, a C-library of the network’s building blocks.
Libdogecoin would allow developers to build Dogecoin-compliant products “without needing to worry about the deeper specifics of the crypto functions.” This means that less technical members can easily design products that comply with Dogecoin standards.
Since the update is a pure library, it will not provide a “runnable” node facility. However, Libdogecoin will support multiple languages, including Python, Node.js and Ruby.
Due to its low transaction fees and constant patronage from Elon Musk, a number of traditional companies have moved to make Dogecoin a payment option.
Here’s a list of some companies that currently accept Dogecoin payments:
Dogecoin has gained a lot of popularity in recent years, and as a result, many businesses and organizations have started to accept it as a form of payment. Some of the companies that currently accept Dogecoin include:
This is just a small sample of the many businesses that accept Dogecoin as a form of payment. As the popularity of Dogecoin continues to grow, it is likely that more companies will begin to accept it as well.