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Dogecoin – Advantages and Disadvantages, Buying Guide, Wallets, History, Price, Trend and Mining

Published by April 12, 2021

KEY TAKEAWAYS

  • Dogecoin is a cryptocurrency invented by software engineers Billy Markus and Jackson Palmer
  • The goal was to create a payment system that works instantly, is fun to use, and is free of traditional banking fees
  • Dogecoin has the face of the Shiba Inu dog from the “Doge” meme as its logo and namesake.
    The cryptocurrency was launched on December 6, 2013, and quickly developed its own online community.
  • Dogecoin can be purchased on many popular crypto exchanges such as Binance.com
  • A Dogecoin wallet can be created on the official website Dogecoin.com
  • The altcoin’s block time is one minute and there is no limit on the number of Dogecoins that can be mined
  • The Dogecoin community regularly hosts fundraising events and has, for example, ensured that the Jamaican bobsled team was able to participate in the 2014 Winter Olympics

Dogecoin is a cryptocurrency that was originally created as a joke. However, its popularity has been steadily increasing and it is now a legitimate source of cryptocurrency. Similar to other cryptocurrencies, Dogecoin can be bought on an open exchange or mined for.

The main pros are the low cost of transactions and the fractional value of each coin: one millionth of a single dollar USD. The downside is how easy it can be to lose your private key if it gets corrupted.

Dogecoin

What is Dogecoin? Where can I buy it and how does mining work?

Dogecoin started as a joke on December 8, 2013. However, the community has since grown to include people of all ages and backgrounds. Dogecoins are traded for fiat currencies or other cryptocurrencies on cryptocurrency exchanges.

If you want to buy Dogecoin, then you have to look for an exchange that lists Dogecoin. There are currently several exchanges that list Dogecoin like Binance, Upbit, Poloniex, OKEx and others.

What is Dogecoin?

Dogecoin is a decentralised, peer-to-peer digital currency represented by a picture of a Shiba Inu dog, which is known as “Doge” in the community. Doge was originally meant to be a “joke currency,” but instead it has grown in popularity on social media sites like Reddit, Twitter and Tiktok.
The Dogecoin logo was created by Billy Markus and the face of Dogecoin is known as “Doge”.
The official Dogecoin website is Dogecoin.com.

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.

The logo was based on a comic by Billy Markus from 2011 titled “Dogie Onesies”.
The picture of the dog on the coin’s website was found by Jackson Palmer in an old Internet meme featuring pictures of dogs.

Dogecoin is the first cryptocurrency to be based on an Internet meme. Dogecoin is a peer-to-peer digital currency, which means transactions take place between users directly through the use of cryptography, without an intermediary.

Pros of Dogecoin

  • Dogecoin was created to be a currency for “people on the Internet” and was designed to be easily exchanged for other cryptocurrencies or fiat currencies (USD).
  • Dogecoin is very cheap to use and can be transferred between users for very little fees.
  • Dogecoin has a very large supply of coins (100 billion) and the inflation rate is quite low.
  • Dogecoin mining offers many “easy pickings” for users with spare computer processing power because ASICs are not able to mine DOGE efficiently.
  • Dogecoin has a low transaction fee.
  • Dogecoin can be bought from an exchange. However, exchanges can sometimes be difficult to use and there are no mobile wallets for Dogecoin.

Advantages

  • 1. Low transactions fees – Dogecoin does not offer low transaction fees. The fee for sending Dogecoin from one user to another is usually around 2 percent, and this is much higher than the size of the transaction.
  • 2. Inflation control – Dogecoin uses a block reward system to manage the amount of new coins that are created every year. This means that as more people use and transact with Dogecoin, its value increases.
  • 3. Easy to send – Sending DOGE between users is easy because there are no transaction fees involved (unlike for example Bitcoin).
  • 4. Availability – Dogecoin is available on more exchanges than most other cryptocurrencies. This means that there is a constant supply and demand, which can help to increase the coin’s value.
  • 5. 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.
  • 6. 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).
  • 7. Real usecases – Dogecoin has real use cases within the community. This means that it is useful as an actual currency and not just an investment.
  • 8. Support from the community – There is a large and active community for Dogecoin, which can help to increase its value over time.

Cons of Dogecoin

  • There is no mobile wallet for Dogecoin and it is not available on some hardware wallets.
  • It is not possible to recover lost funds with a private key from an exchange. (This problem can be resolved by using a paper wallet.
  • Dogecoin can be stolen by hackers if the keys are not safely stored on your computer or in a secure hardware wallet.
  • Dogecoin could potentially be replaced by another cryptocurrency with a more advanced technology.
  • Dogecoin mining uses a lot of electricity because it is not mineable using ASICs.
  • The success of Dogecoin still depends on its usefulness as a medium of exchange.

Disadvantages

  • Lack of exchanges – Dogecoin is not generally supported by many exchanges, so users must trade through an exchange such as Poloniex or Shapeshift.io if they want to exchange their Dogecoins between different cryptocurrencies or USD. This means that there is a lack of liquidity for the coin on most trading platforms.
  • Low trading volume – Most exchanges have a low volume of Dogecoin trades, which means that the market is not strong and the coin’s price fluctuates more than it would do on a larger exchange.
  • Delayed transactions – Transactions using Dogecoin take a long time as they are usually congested. This is because the coins are not supported by most exchanges and there is not enough liquidty to support high volumes of trades.
  • Short block time – The block time for Dogecoin is only 1 minute. This short block time means that miners can process many transactions in a single day (and therefore increase their profits).
  • Inflation – The Dogecoin protocol produces new coins at a rate of 100,000,000 per year. Miners can then sell these coins on to investors in exchange for currency or goods and services. This means that there is a lot of inflation in the Dogecoin system as new coins are introduced onto the market each year (and therefore decreases the value of existing coins).
  • No value – The Dogecoin coin has no value outside of its own network and cannot therefore be used to buy goods or services from other markets, meaning that it is largely useless outside of its own community.
  • Inflation/Deflation
    In Bitcoin there is a set amount of currency that can ever be “mined” into existence, and the nature of the Bitcoin system is such that this will be a constantly decreasing amount (with as yet unknown consequences.) This means that if its value as a currency going up, prices must go down. The number of minable Dogecoins is unlimited.

Like gold or any other commodity-based (rather than fiat) currency its value as money is inversely proportional to its usefulness as an investment. So, if Bitcoin succeeds as currency it will succeed because of its usefulness as a currency, not despite it.
There is no central authority that controls Dogecoin and therefore there is no underlying value for the coin itself.
Dogecoin was intended to be a “joke currency,” but instead its use has become so widespread that its price has increased over the last year. Dogecoin is a good source of cryptocurrency for new users because of its low fees, lack of support on hardware wallets, and lack of an official wallet for mobile devices which means it can be hard to acquire through traditional methods.

How to buy and sell Dogecoin

If you want to buy Dogecoin, you can do so on exchanges like Poloniex or Shapeshift.io. There are also many other exchanges that list Dogecoin.
Dogecoins can be stored in a wallet on your computer or smartphone. There are no official wallets for Dogecoin that are available for mobile devices. You can find the official wallets at dogecoin.com.
If you use Dogecoin for trading, it is important to note that there is no official wallet for Dogecoin. As a result, if you want to trade Dogecoin to another cryptocurrency or USD you will have to use an exchange such as Binance. This means it is not possible to transfer your Dogecoins directly from one user to another with low transaction fees.

Where to store Dogecoin? – Best Wallets

There are many different places that you can store your Dogecoins, both online and offline. One option is to store your coins in a paper wallet. In order to do this, print the wallet out and then send the coins from the exchange to the public address shown on the paper wallet (with your private key). You can also store your coins online by sending them to any web-based cryptocurrency wallet such as MyEtherWallet.com or EthereumWallet.org (the same goes for other cryptocurrencies). Finally, you can store your Dogecoins offline by transferring them from the online wallet to a hardware wallet like Ledger Nano S or Trezor.

Dogecoin is one of the most popular cryptocurrencies in the world. Many exchange platforms have added Dogecoin to their service, and it is also supported by an official wallet that makes sending and receiving transactions easy for users. The coin has made much promising progress in recent years, and it has shown a lot of promise for the future. However, there are still some limitations that you should be aware of before you decide to invest in Dogecoin.

The Dogecoin Foundation

The Dogecoin Foundation is a non-profit organization that helps to further the Dogecoin currency. The Foundation was founded in 2014, and it helps to support the development of the currency for charitable causes. The Dogecoin Foundation also helps to encourage the use of DOGE as a medium of exchange for goods and services.

Dogecoin in fundraising

Some charities accept Dogecoin donations, including Bicyclenetwork.org and Waterfor.org. You can also search online for other charities that accept DOGE donations (such as Dogetipbot, which is being phased out) or create your own fundraiser using dogetipbot or Dogedaily Patreon https://www.patreon.com/dogedaily

Support of Jamaican Bob Team: Dogedaily posted on Facebook its support for Jamaican Bobsled Team and their participation at Sochi Winter Games 2014. In 24 hours, the post got more than 7000 reactions, more than 1000 shares and nearly 200 comments. Total Dogecoin donation was 26 million DOGE (approx. $10,000).

Dogecoin in Charity vs Accepting Fiat

Some charities accept Dogecoin and some don’t. There are pros and cons to each approach. Accepting fiat is easier, but you lose a lot of money in transaction fees. We get around this in two ways: We have agreements with a few payment processors that waive the fees for donations to us, and we set up fundraising campaigns that use Dogecoin as a currency instead of US dollars (such as with Dogetipbot). If you are able to convert Dogecoin to fiat before being taxed, this means your charity can keep the donations that are sent to it without losing money to taxes or fees.
Doge4Water is one of the most high-profile examples of a successful fundraiser, raising over $30,000 in just 30 days.

Winter fundraiser, 2014

We raised $3,500 for winter coats for our homeless students and their families in January 2014 with the help of the Dogecoin community. We raised a little over 100 million Dogecoins over January and February 2014. We then used an exchange (Moolah) to convert all of those coins into USD at once, and collected in a bank account for future use. The exchange charged a small fee for this conversion, but it was much lower than if we had tried to accept donations directly in USD.

History

On December 16, 2013, a group of Dogecoin enthusiasts in Jackson, Mississippi formed a group called Doge4Water. The founders of the organization were Jackie Smith and Jason Kraft. At the time, Smith was living in West Africa and was living without running water for several months. In February 2014, Smith contacted Jackson residents to ask them to send donations to his address in West Africa through the “Doge4Water” fundraiser. The fundraiser lasted for 10 months until December 13, 2014 when Jackson residents raised $30,000 for water supplies among other projects. This successful fundraiser inspired other people around the world who wanted to raise funds for water supplies.

In January 2014, the Doge4Water team was approached to create a fundraiser for Bobsled Team Jamaican from Sochi Winter Olympic Games 2014. The organizers of the fundraiser said they thought that Dogecoin was a better way of raising funds for Bobsled Team Jamaican than using traditional currency. Smith later said that he could not have received funding for the project without his friends and family pushing him to raise the profile of Dogecoin in Jackson, Mississippi. The organizers held a fundraiser on Facebook and collected $10,000 in Dogecoins within 30 days. The charity raised over $30,000 total after Smith’s family members donated money they won in contests and local businesses donated money that was left over from Christmas shopping.

Dogecoin is quite popular in the United States and has become a leader in the cryptocurrency community. On February 14, 2014, Dogecoin users raised $15,000 for the Jamaican bobsled team to attend Sochi Winter Olympics 2014. The “Doge4sled” campaign was organized by Eric Nakagawa who was one of the administrators for Dogecoin on Reddit.com. He asked users to help support the Jamaican bobsled team after hearing that they could not rely on funding from Jamaica Olympic Association (JOA). Instead, they would have to raise money themselves or not attend Sochi Winter Olympics 2014. The campaign was successful and raised enough money for two-man sled and transportation costs.

On February 28, 2014, Dogecoin users raised $50,000 to sponsor NASCAR driver Josh Wise. Wise’s car was painted with a Dogecoin livery and the driver wore a Shiba Inu themed helmet at race events. The fundraiser was organized by Reddit.com user Denis Pavel who was inspired by the fact that Wise drove cars without any major sponsor decals. The fundraiser attracted a lot of attention from people in the cryptocurrency community and mainstream media.

Later that year on March 2014, Reddit members contributed Dogecoins to help raise funds for the Jamaican Bobsled Team and received sponsorship from WinMark Corporation (a casino company in Beijing).

Dogecoin was used to raise funds for the Jamaican Bobsled Team from Sochi Winter Olympics 2014 and Josh Wise’s car at NASCAR Xfinity Series.

In December 2014, Dogecoin users raised $60,000 to sponsor the Jamaican Bobsled team in Sochi Winter Olympics 2014. The fundraiser was organized by Eric Nakagawa who later said he could not have raised so much money without his friends and family helping him promote Dogecoin and getting other people involved. The campaign was successful and raised enough money for two-man sled and transportation costs.

In December 2015, Reddit users started a fundraising campaign called “Free Hugs” for the Nigerian suicide prevention nonprofit, ReachOutUSA. They logged into the site and sent one Dogecoin to the organization. The fundraiser ended on December 9, 2015 after donating more than $31,000.

In January 2014, a group of volunteers in Jamaica raised over 246 million Dogecoins (about $60,000) for charitable purposes. They sent most of these coins to the Jamaican Bobsled Team before transferring them to an exchange which converted them to USD. The exchange then gave a portion of the donated funds in USD funds for use by non-profit organizations.

In May 2014, Dogecoin was used to raise funds for the Jamaican Bobsled Team in Sochi Winter Olympic Games 2014 and Josh Wise’s car at NASCAR Xfinity Series.

In July 2014, Dogecoin was used to raise funds for the Jamaican Bobsled Team in Sochi Winter Olympic Games 2014 and Josh Wise’s car at NASCAR Xfinity Series.

In December 2015, Reddit users started a fundraising campaign called “Free Hugs” for the nonprofit suicide prevention organization ReachOutUSA. They logged into the site and sent one Dogecoin to the organization. The fundraiser ended on December 9, 2015 after collecting money from more than 467 people and receiving over $31,000 in donations.

Trend/ Forecast/ Future

Dogecoin was developed as a specific cryptocurrency, one that had features not found in other coins. The purpose of Dogecoin was to combine the fun and acceptance of Bitcoin with the donations and charity aspects of Doge. It is named after an Internet meme known by many as “Doge” (the Japanese word for “dog”). The user base saw this meme as evidence that Dogecoin would be just as popular among users who are unfamiliar with crypto. This new currency was intended to be a fun way to start earning some DOGE while also helping others in need at the same time. Dogecoin was supposed to give people an alternative reward system when compared to other coins such as Bitcoin and Litecoin.

Dogecoin has had some success as a cryptocurrency, but its true value is in its community – the people who use it. The community continues to support various efforts that are taken by this currency, such as donating to philanthropic causes, while also having fun with it at the same time. The Dogecoin community’s main goal is increasing the value of the coin and making it a fun way to be used for tipping and/or micro-transactions online (such as buying coffee from a man on Reddit who only uses Dogecoins). People see this coin’s growth as being more than just monetary value. The fact that the Dogecoin community showed interest in a particular project or charity was enough for them to donate – some people even put aside their own money for this cause. In the future, the value of these projects is expected to increase as well. Dogecoins may be able towards charitable causes and also have value in other areas besides just digital currency exchanges.

Use cases

Dogecoin was primarily used as a micro-tipping system on Reddit and Twitter to reward the creation or sharing of quality content. You can receive Dogecoin as a tip by participating in a community that uses the digital currency.

Transaction fees

The Dogecoin network has its own built-in transaction fee system. Miners prioritize transactions with higher fees in their blocks, thus ensuring that transactions with higher fees get included into blocks more rapidly than transactions with lower fees. It also encourages spending of Dogecoin by making transfers less “economical” for users who choose to pay a lower transaction fee.

Dogecoin Faucets

There are a variety of other faucets out there, but the two most popular are XPM and Dogefaucet. I was inspired to create this post when the former went 404. Having heard of these two faucets, and even though I had my own dogecoin information page on my blog that contained information on dogecoin and its history, I decided to add this list to feature those that are still functioning. Both faucet websites offer free satoshis as reward for visiting their pages. The basic satoshi on faucets is worth about $0.000015 or 1/10th of a cent.

Conclusion

Dogecoin has proven itself to be the most loyal cryptocurrency in the world. It has been a strong force in the crypto community since its inception. Dogecoin is used today on a daily basis to buy goods like water for people who need it, food and medicine for people who are suffering, electricity, transportation, computers and more.

In the long run, Dogecoin should continue to grow and evolve at the same pace as 2017’s events which has been very positive for the currency. Dogecoin was used in a recent contest to predict the best kicking performance of the NFL prospect Josh Lambo. It is also all over Twitter as an online tipping bot. This is a very positive event for Dogecoin if it will lead to increasing revenues for the founders and eventually increasing the value of each coin.
In the long run as Dogecoin continues to excite and entertain the crypto community, it will continue to rise in value.

Some of the information within this post may have a current and past effect on the value of the cryptocurrency. Dogecoin may go up, down or sideways and that this is not expressed within this post.

Dogecoin has been introduced as a “fun” currency and it has an “inspirational spirit” behind it that encourages people to donate in a unique way. However, many people have not realized that Dogecoins can be used for donations in real life just like fiat currencies or other cryptocurrencies. The Dogecoin community is one of the major reasons why Dogecoin has been able to survive and thrive to this day.

While Bitcoin is still considered to be the number one cryptocurrency because of its technology, anonymity and longevity, Dogecoin should not be overlooked. It is currently in the top 10 cryptocurrencies with a huge following, a wide user base and a big market cap. This small but powerful cryptocurrency has shown that it deserves its place in major financial transactions around the world as it can bring changes in several aspects of life.

Links and Resources

  • Free ebook: http://www.hodlmybtc.com/shares
  • More info: https://en.wikipedia.org/wiki/Dogecoin
  • Reddit: https://www.reddit.com/r/dogecoin/
  • Forum: https://bitcointalk.org/index.php?board=159.0
  • Traffic Exchange: http://trafficjunky.com/go/dogecoin
  • Website: https://www.dogecoin.com/
  • Exchange: https://www.cryptsy.com/ markets/view/DOGE_BTC? volume=8976000&bts=1&wap=0
  • Faucet: http://freedogecoins.net/index.php?page=faucet

This is not financial advice. Please do your own research before purchasing Dogecoin or any other Cryptocurrency.

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About the Author

Jonas is an entrepreneur and crypto enthusiast. He has been releasing cryptocurrency content since 2015, and prior to that at university he co-founded multiple student groups related to technology, entrepreneurship, startups etc. Jonas focus is on developing blockchain solutions for real-world problems. 

More Posts from Jonas. Jonas's Webseite.

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