Finance

What Is Dogecoin and How Does It Work?

In the dizzying world of cryptocurrency, it can often feel like the value of a given asset is only as fickle as the media attention that it gets. That’s why bitcoin’s value plummeted this year, simply because Elon Musk decided he wasn’t a fan anymore.

If you wish to be a serious crypto investor, it pays to look past the noise and attempt to identify longer-term trends. One coin that arguably has some of the greatest long-term potential and viability is Dogecoin, which currently has a staggering market cap of $54 billion. But what is Dogecoin, and why should I have it in my portfolio? Read on to find out.

1. What is Dogecoin?

What is Dogecoin? First of all, it’s worth covering what Dogecoin actually is and why it matters in cryptocurrency trading. Dogecoin is branded and named after the viral “doge” meme from years ago, and it originally started off as a joke coin to parody bitcoin and other crypto assets. Dogecoin’s code is based on the script for Litecoin, another popular so-called “altcoin”.

However, unlike other altcoins, Dogecoin has a potentially unlimited number of coins, with an estimated 129 billion coins currently in circulation. This is why the Dogecoin price has never risen above $1 per coin, while bitcoin’s value has hit a high of $60,000 per coin. However, this is also why Dogecoin could be a good long-term investment.

2. Origins of Dogecoin

Dogecoin’s origins are from the original meme of a surprised-looking Shiba Inu puppy that you have probably already seen a million times. It was created by a couple of IBM software engineers in Portland as a joke back in 2013, with the intention being to make fun of the apparently nonsensical nature of crypto speculation.

However, it seems that there is now no reason to keep laughing. The meme coin has exploded just about every crypto exchange this year and has been endorsed by the world’s richest man, Elon Musk. Its value has multiplied several times over and it seems that trading dogecoin is becoming a mainstream investor activity.

3. How to Trade Dogecoin

Trading dogecoin on the open market is now simple, easy, accessible, and affordable. All you need to do is set up your own crypto wallet and sign-up for a crypto exchange of your choice. You can then use your preferred payment method to purchase dogecoins on an exchange and instantly have those coins added to your wallet.

You can then buy and sell your dogecoins at any time and attempt to take advantage of any short or long-term price fluctuations in dogecoin’s value. You can check out this page to learn more about how to instantly begin buying and selling dogecoin will minimal effort.

More Essential Tech Insights

Although the future of Dogecoin is far from certain, it’s clear that it is entering a new era. Now that you know the answer to the question “what is Dogecoin?”, you can start to make more informed and future-proof investment decisions. For this, we have got you covered. Make sure to check out our expert Tech and Finance guides to learn more.

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