Dogecoin first surfaced as an April Fools joke in 2013. But quickly gained popularity among a niche community. From tipping social media users to sponsoring Jamaican bobsled teams, its use has expanded exponentially since 2013. Today it boasts a market cap of over two billion dollars; like other cryptocurrencies it trades on cryptocurrency exchanges with sharp price swings.
Dogecoin is an open-source peer-to-peer digital currency using blockchain technology for transaction recording. As an alternative to centralized payment providers such as PayPal, its low transaction fees and fast processing speeds have made it popular for microtransactions; also it boasts an ample supply that won’t soon run out.
Jackson Palmer and Billy Markus of Adobe Inc.’s Sydney office initially created Dogecoin as a meme coin intended to mock the exorbitant cryptocurrency hype of late 2017. Instead, its existence has since become integral part of crypto community use as both currency and for fun online activities.
As of this writing, Dogecoin boasts a market cap of more than $2 billion and trades on several major cryptocurrency exchanges. Its prices are determined primarily by supply and demand factors; however, they can also be affected by speculation and other external influences.
One reason behind its recent surge in popularity is its staggering user base, which spans the globe. Many use cryptocurrency merely for entertainment online while others invest because they believe its potential as a new form of payment will only grow with time.
Investors can purchase Dogecoin via cryptocurrency exchanges or third-party vendors. Most cryptocurrency exchanges require that you create an account and pass a KYC check, including providing proof of identity such as driver’s license scan or passport scan scan, in order to trade Dogecoin against other cryptocurrencies or fiat money.
The cryptocurrency industry can be full of scams, and it is crucial to be mindful of potential dangers before investing your hard-earned money in any project or team. Before making a commitment, conduct sufficient research into them before investing, and only commit funds that you can afford to lose.
As with other cryptocurrencies, Dogecoin is unregulated and therefore poses no guarantees when investing. There’s no assurance your investment will return a profit; all funds may be lost if the project fails or if your coins are stored on an exchange with poor security measures; so for maximum safety it is recommended that they are kept in an offline wallet or secure vault.