Dogecoin (DOGE) is an open-source, peer-to-peer cryptocurrency designed for sending and receiving digital payments processed through the Dogecoin blockchain network. It was first created to poke fun at the crypto industry, but now it’s one of the world’s most popular cryptocurrencies.
Read on to learn everything you need to know about Dogecoin and what happens when a joke gets taken seriously.
What Is Dogecoin
Dogecoin was developed as a joke cryptocurrency, a parody of the moon chasing crypto communities. The joke was started by Jackson Palmer initially on Twitter and later on a website he built. Dogecoin, a decentralized cryptocurrency for instant payments, was released in 2013 by Palmer and Billy Markus with the hope of making cryptocurrencies a little more fun and approachable.
Dogecoin was created as a hard fork of the now non-existent Luckycoin, Litecoin (LTC) fork. The coin was named after the DOGE Meme featuring Kabosu, the Shiba Inu dog (different from the Shiba Inu cryptocurrency launched later in 2020). The Dogecoin team marketed it as a “fun and friendly internet currency, and it quickly built up a lively community of enthusiasts. Despite gaining popularity in the meme culture, its price stayed below $0.01 till January 2021. Dogecoin hit a market cap of $88 billion during its May 2021 price surge of $0.712926.
DOGE is mainly used for crowdfunding and tipping online content creators. The team raised more than $25,000 in Dogecoin to help send the cash-strapped Jamaican bobsled team to the 2014 Olympics. They also teamed up with a water charity to raise thousands to improve clean water access in Kenya through the Doge4Water initiative.
Though DOGE was born a meme, Dogecoin has emerged to become one of the top currencies in the crypto world by market cap; with 5000% returns in 2021 and endorsed by millions of users, including notable supporters like Elon Musk and Snoop Dogg.
Musk is a big fan of Dogecoin and tweets about it regularly. Musk’s company SpaceX announced a moon mission funded by Dogecoin, becoming the first cryptocurrency to go to the moon.
The Dogecoin network operates based on the Proof-of-Work protocol, which means that Dogecoin can be mined. Miners verify and validate transactions and secure the network from potential attacks and malicious entities. One Dogecoin block is produced every minute, and the block reward is 10,000 DOGE.
More recently, the cryptocurrency is being accepted by an ever-growing list of merchants as a means of payment and finding better use cases beyond the energetic Dogecoin community.
Dogecoin has become one of the top 10 cryptocurrencies globally, with a market cap of $36,580,525,113 as of November, 8th 2021. It’s probably the most favored digital asset in the world, second only to Bitcoin.
Where to Purchase Dogecoin
Popular cryptocurrency exchanges where you can buy Dogecoin Doge include CoinStats, Binance, Binance Futures, CoinBase, Upbit, HuobiGlobal, KuCoin, etc. These crypto exchanges offer the option to purchase Doge through various payments methods and using different fiat currencies and cryptocurrencies like Bitcoin, Ethereum, etc.
Some exchanges offer a simple, easy-to-use platform that charges higher fees, but more advanced trader platforms have lower fees.
Some beginner-friendly investment apps like Robinhood also offer brokerage services for Dogecoin, but these may not let you transfer your coins from the app.
Some of the popular decentralized exchanges where you can buy Dogecoin are PancakeSwap(V2), UniSwap(V3), Uniswap(V2), SushiSwap, etc. They allow you to trade cryptocurrencies securely and anonymously; however, they can prove to be a bit tricky to use for a novice trader.
While decentralized exchanges are more secure, most users choose to buy their crypto assets from centralized exchanges. To buy from any of these exchanges, you must create an account and complete your KYC verification. Let’s take Binance as an example, as it’s the biggest cryptocurrency exchange in terms of trading volume worldwide. You will need to create an account on Binance, provide personal details and pass KYC verification. Once your account is set up, follow the steps below to purchase Dogecoin.
How to Buy Dogecoin on Binance
Binance is a leading cryptocurrency exchange for crypto trading. Registration is quick and straightforward, and the Exchange offers excellent liquidity. You can buy Dogecoin on Binance at the best price available, and your trade will complete within seconds. Binance also lists a vast selection of other cryptocurrencies, so after buying Dogecoin, you can easily convert your DOGE to another coin later.
To buy Doge:
Add Money to Your Binance Account
Once you’ve logged into your verified Binance account, go to wallets and add money to your spot account through a credit/ debit card or a bank transfer. You can use various fiat currencies like USD, EURO, AUD, GBP, etc. Add as much money as you are willing to risk, as cryptocurrency trading is a risky investment.
Once you have successfully added fiat currency to your wallet, it should display under your Fiat and Spot balance. Searching for Dogecoin on Binance will give you a price comparison of Dogecoin against various assets such as BTC, BNB, ETH, USDT (TETHER), etc. You can also use the comparison service of CoinStats. Both BTC and ETH have trading pairs with the vast majority of cryptocurrencies listed on Binance and therefore give you the greatest amount of flexibility. Both can be traded for DOGE on Binance. Choose the asset you’d like to trade for Doge and purchase it depending on how much Doge you want to buy.
Trade the Asset for Dogecoin
To place an order, go to Exchange> Basic. Let’s assume you deposited BTC. If you deposited another coin, don’t worry – the process is precisely the same.
On the top right corner, select BTC and search for Doge. The DOGE/BTC trading pair should appear. After clicking on the trading pair, a price chart will appear in the center. You can place your buy order under the chart. If you want to buy Doge when it reaches a specific price, use the Limit order. Enter the desired price (in BTC) and the amount you want to buy, then click the Buy DOGE button. If you’re going to buy Dogecoin at its current price, click on the Market tab and enter the amount you wish to purchase. The order is executed instantly, and the DOGE will be added to your balance soon.
How to Buy Dogecoin on Coinbase
Coinbase is a regulation-friendly US-based cryptocurrency exchange, which has been around since 2012. It’s also one of the only publicly-traded crypto exchanges in America. Coinbase is one of the most recognized and trusted digital currency exchange companies today and has an easy-to-use and straightforward interface. It’s also known for excellent liquidity, a high number of available cryptos, and excellent security. Like Binance, Coinbase also allows you to buy Dogecoin in Exchange for several cryptocurrency tokens.
Create a Coinbase Account
If you don’t have a Coinbase account already, it’s very easy to set up one. Provide some personal details and complete your KYC verification and the 2-step verification. Once your account is verified, you are free to buy Dogecoin and/or other cryptocurrencies to build your crypto investment portfolio.
Link a Payment Method
Once you’ve successfully created your Coinbase account, choose a payment method and your fiat currency. Different payment methods from bank or wire transfers to credit/debit cards would be available for trading depending on your country. There are no transaction fees on bank transfers, but you will not be able to withdraw them for 5 days. There are transaction fees on wire transfers, but there is no waiting period.
Now, click “Portfolios” and then “Deposit” on the top-right corner.
Input how much you’d like to buy, then click on “Withdraw.” Next, click “Trade,” then “Select Market.” Suppose you are buying from the USA, select “DOGE-USD.” Click “Buy” under the order form, input how much DOGE you want, then purchase. You now have your Dogecoins, which you can hold, trade, or sell. You can also store them in your Coinbase wallet for extra security.
Other Exchanges to Buy Dogecoin from
Apart from Binance and Coinbase, there are other cryptocurrency exchanges to buy, sell, or trade Dogecoin. All these exchanges are pretty easy to use, and the process of buying Dogecoin or other major cryptocurrencies is somewhat similar to the abovementioned methods on Binance and Coinbase. You can use any exchange that best suits your needs to buy cryptocurrency tokens and build a diversified portfolio or just invest in Dogecoin.
Storing Your Dogecoin
When you buy Dogecoin, it’s kept in your Exchange’s crypto wallet. However, these are connected to the internet, and you might prefer to withdraw the new coins you purchased from the Exchange and store them in another wallet.
You can store your Dogecoin in a hot wallet or a cold wallet outside of your Exchange. Hot wallets are digital and connected to the internet. They will store the private key to your Doge on your mobile phone or computer and might be vulnerable to malware. In contrast, cold wallets are physical hardware not connected to the internet. Cold wallets are more secure than hot wallets.
Let’s look into various types of crypto wallets.
Types of Wallets
Various wallets are available on the market to store your cryptocurrencies. The type of Dogecoin wallet you choose will depend on the amount of DOGE you have and what you intend to do with it.
- Software Wallets: These are connected to the internet at all times and store your crypto assets online. They can be downloaded to your smartphone or computer and may be custodial or non-custodial. With custodial wallets, your private key is managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. Software wallets are more convenient but less secure than hardware wallets, meaning they’re better suited to inexperienced users with smaller amounts of DOGE. One of the most secure software wallets is the CoinStats Wallet, where you can store all your assets safely and track their growth in real-time. Another example is the Trust Wallet.
- Hardware Wallet: A hardware wallet (aka cold wallet) offers the most secure option with offline storage and backup. However, it tends to be more expensive and difficult to understand, so it’s probably more suitable for experienced traders with lots of DOGE to store. Some of the best cold/hardware wallets are available on the market are Ledger Nano X, Ledger Nano S, Trezor Model T, etc. All these wallets give a user the freedom to generate their own private key.
Now you know everything about investing in Dogecoin and ways for safely storing them. If you are interested to learn how to buy Bitcoin, you can find it here.
To sum up, Dogecoin stands out because of its unique functionality and purpose. It’s based on a decentralized network and was created as a fun and user-friendly digital currency for instant payments and cost-efficient transactions. It has an unlimited supply (no limit on how many coins can be issued) and a robust and constantly-growing community of users and promoters who all praise DOGE. They have also been known to rally around good causes.
This content and any information contained therein is being provided to you for informational purposes only, does not constitute a recommendation by CoinStats to buy, sell, or hold any security, financial product, or instrument referenced in the content, and does not constitute investment advice, financial advice, trading advice, or any other sort of advice.