Dogecoin is a virtual currency that is used commonly in many countries around the world, including Vietnam. It is in the top 20 most developed virtual currencies today. Dogecoin is emerging as the smart investment solution for people who have a passion for digital currency enthusiasts. So what exactly is Dogecoin? Whether Dogecoin makes you a millionaire or not? Let’s find out together.
What is Dogecoin?
Dogecoin is an electronic currency or digital currency that developed based on Litecoin. Dogecoin virtual currency was created based on the idea from the meme “Doge”.
Alt: Meme “Doge”
Dogecoin was established on December 8, 2013. This coin has a faster initial coin generation speed compared to other digital currencies. At the end of 2014, there were nearly 100 billion Dogecoins in circulation on the market. After that, there will be 5.2 billion coins generated annually. As of February 1, 2014, over 40 billion coins have been mined.
Dogecoin was founded in 2013 by Billy Markus and Jackson Palmer. The coin was intended for use as a joke currency, but the community has grown large and supportive of the coin.
Dogecoin is used to trade goods on various social media platforms like Twitter and Reddit. Dogecoin can be exchanged for other altcoins or fiat currencies (USD) via exchanges like Binance.
Alt: Dogecoin
How to buy Dogecoin?
You can buy Dogecoin on cryptocurrency exchanges like Binance or Kraken. The exchanges require you to set up and fund an account with U.S. dollars or cryptocurrency. You then are able to buy and exchange cryptocurrencies, including Dogecoin.
Alt: Buy Dogecoin on cryptocurrency
Another way is to go to the SimpleSwap homepage, and do the following:
- Choose the currency you want to exchange (e.g. BTC) in the first drop-down list. Enter the amount you would like to swap.
- Select DOGE in the second drop-down list. You will see the estimated amount that you will receive after the exchange.
- Enter the Recipient’s Address. Dogecoin will be sent to this address. Be careful and make sure you use the correct address.
- Check all the information you have entered. If everything is correct click the Exchange button.
- You will see the Bitcoin deposit address. You need to transfer the necessary amount of BTC to this address to start the exchange.
What is the transaction method of Dogecoin?
Dogecoin operates based on public password encryption. Each DOGE trading address will have a private password and a public password. However, only a private password can decrypt the encrypted data along with the public password; thus the security would ensure even when the public password is widely shared. Dogecoin addresses are public passwords that are 34 characters long and begin with the letter “D”.
Advantage of Dogecoin
- Low fees: Developers wanted to create a currency that people would actually use, other than just use it as an investment.
- Friendly community: It is the only cryptocurrency that has its own community, where people support each other and make good deeds with the cryptocurrency they hold.
- Each transaction takes a little time
- Simple to use
- Name recognition – There are many people who use and transact with Dogecoin because of its name recognition, which means that DOGE can be an effective cryptocurrency for people new to the crypto world.
- Beginner-friendly – Although many people use Dogecoin because of its name recognition, it also has features that make it more beginner-friendly than other cryptocurrencies like Bitcoin or Ethereum (for example, there are no transaction fees).
- Real use-cases – Dogecoin has real use cases within the community. This means that it is useful as an actual currency and not just an investment.
- Support from the community – There is a large and active community for Dogecoin, which can help to increase its value over time.
Disadvantages of Dogecoin
- No updates: They haven’t released any updates in more than 2 years. It is impossible to survive like this in a constantly developing Crypto world.
- DOGE is not widely accepted. Basically, there are not a lot of places where you can use it.
- It cannot be considered a long-term investment. Since most of the users are looking for a cryptocurrency to invest in, it may be considered to be a disadvantage. However, it was not created as an investment.
Should you buy Dogecoin?
Glauber Contessoto, 33 years old, became a millionaire after investing $180,000 in Dogecoin and raising over $1 million. To be honest, buying any sort of cryptocurrency involves risk, and that includes Dogecoin. It’s always worth buying a few coins and familiarizing yourself with the system. However, it’s probably best to refrain from sinking more than a token amount of your hard-earned money in a cryptocurrency that started life as a joke.
Alt: Glauber Contessoto
You should think carefully before deciding to invest in Dogecoin. Maybe, there is a lot of profit from Dogecoin, but you have to know that any sort of cryptocurrency can bring many risks.
