Dogecoin is a cryptocurrency that was created to reach a broader demographic than Bitcoin. It has been called the “fun” cryptocurrency because of its cute and playful image.
If you are interested in learning how to buy DOGE, we will cover all the basics here to make an informed decision about whether or not this currency is right for you. We will also overview what makes Dogecoin unique and why people have begun investing in it over other cryptocurrencies like Bitcoin and Ethereum.
How does Dogecoin work?
Dogecoin is a decentralized peer-to-peer cryptocurrency, just like Bitcoin. It is also based on blockchain technology which allows users to make direct transactions without going through a third party.
Dogecoin can be “mined” by anyone who uses their computer’s CPU power to solve algorithms. This creates new coins and helps keep the network secure, just like Bitcoin.
Dogecoin network transaction speeds are much faster than Bitcoin’s. Once a transaction is confirmed, it takes just one minute to get the next confirmation. Therefore, Dogecoin transactions typically complete in under two minutes compared to Bitcoin’s ten minutes.
What makes Dogecoin different?
You’ve heard about cryptocurrencies like Bitcoin and Ethereum, but you’re not sure if they are right for you. The Doge is a very popular internet meme that has been around since 2005. The creators of Dogecoin decided to use this playful image as their marketing tactic, and it has worked out well for them. People love the doge meme, so they also enjoy Dogecoin because of its association with the fun-loving Doge.
How to Buy DOGE
One key step in buying DOGE is to open a wallet. This will allow you to store your coins while you go through the verification process for purchasing and transferring them from a crypto exchange.
After opening a wallet where you can store Dogecoin, you first want to purchase some DOGE from an exchange or other methods. Several exchanges sell Dogecoin, the most notable of which is called eToro. It allows you to buy Doge with a credit card or cash.
You can also buy Dogecoin with Bitcoin or Litecoin on other exchanges. Withdraw the DOGE to your wallet, and you’re ready to invest!
Mining Dogecoin is another option you have for acquiring coins. This is similar to mining Bitcoin, but it uses less energy because of its different algorithm and shorter block time. Mining uses your computer’s processing power to solve algorithms and create new coins.
One way you can help to mining Dogecoin is to join a mining pool. A mining pool allows you to pool your resources with other users so that you can all share in the benefits of mining. This is especially helpful if you are trying mining on your own.
Mining dogecoin solo is similar to solo mining Bitcoin, but easier, meaning that you need a lot less hashing power to start making money from Dogecoin.
History of Dogecoin (DOGE)
The History of Dogecoin goes back to November 2013, when a programmer from Portland, Oregon created it. In January 2014, enough people had begun mining and investing in DOGE that the total value for all Dogecoins on the market reached $60 million.
The Dogecoin community is very active and has even taken part in a project called Doge4Water, which raised money to build wells for people in need. By comparison, Bitcoin’s most famous philanthropic action was sending $1 million worth of coins to the Electronic Frontier Foundation (EFF) and other necessary groups for protecting Bitcoin.
In February 2014, Dogecoin saw its first huge jump in value as it gained more than 300% over the course of a few weeks.
Dogecoin transactions are also ridiculously fast, and can handle at least 100 transactions per second. This compares to Bitcoin, which needs nearly an hour for a single transaction and cannot do much more than seven transactions per second.
(Summary) – Final Thoughts
Dogecoin (DOGE) is a cryptocurrency that has since gained so much popularity for its use of the popular doge meme as a marketing tactic. It can be mined through a mining pool, purchased via exchanges, or even mined solo. As more and more people are using it, Dogecoin’s value keeps increasing.
Dogecoin (DOGE) FAQs
What is the Dogecoin blockchain?
The Dogecoin blockchain is used to record all transactions and keep track of each address’s balance.
How many Dogecoins can exist?
There can be infinite Dogecoins, but there are 100 billion coins in circulation today.
Can I buy fractions of a DOGE?
Although Dogecoin’s smallest fraction is 1/100,000,000, you can buy DOGE in blocks as small as 1000.
How many DOGE coins will I receive for mining?
You will receive 50 DOGE per block if you mine solo, and the number of coins mined drops by half every 100,000 blocks mined.
How can I get started mining DOGE?
You can use something like CoinWarz to see how suitable your computer is for mining, and you can join a pool to have more consistent payouts.
How many confirmations are needed for Doge?
Only 1 confirmation is needed for a transaction to go through. This means it’s possible to mine a block and spend the coins all in the same minute if you are fast enough.
How long does it take for a Dogecoin transaction?
Transactions can take about a minute on average to go through.
Is Dogecoin mining similar to Bitcoin mining?
Dogecoin uses scrypt, which means it’s incompatible with Bitcoin mining hardware.
What is a good hash rate for mining Dogecoin??
Because Dogecoin uses scrypt, you need a lot less hash power to mine it than most other coins. Look for something like 1000 K/hash per second if you are using CPU, or 2000-3000 KH/s if you have a GPU available.