Introduction
Many questions arise about whether you should buy Dogecoin or not. Is Dogecoin worth your investments? Well, then you’re on the right path. This article is a full-proof guide on how to buy Dogecoins, the process of mining involved for Dogecoins, the equipment needed for mining, and how different factors can affect the value of Dogecoin in USD dollars in today’s time.
Bitcoin was once the hot investment of 2017 but things have changed. Cryptocurrency is now hotter than ever, and there are more currencies to choose from than ever before. Bitcoin was once the hot investment of 2017 but things have changed. Cryptocurrency is now hotter than ever, and there are more currencies to choose from than ever before. Dogecoin is one of the latest cryptocurrencies to burst onto the scene. It’s a much better investment than bitcoin when you look at all the facts. Let’s check it out.
What Is Dogecoin?
You all be aware of the dogecoin memes that became popular in 2013. Those memes with that serious dog’s (Shiba Inu) face on them. But do you know how did dogecoin become popular? Well, keep on reading further. Dogecoin was just created out of a joke. Not joking; this is true. Creators Billy Markus and Jackson Palmer made dogecoin as a part of a joke. Dogecoin is basically a type of cryptocurrency created on December 6, 2013. People also call it a Memecoin. To be more precise, also known as a Dog coin, with a dog face on it. This coin was started as a joke, and later on, it became a very famous cryptocurrency.
An interesting fact is that Dogecoin was created in just 2 hours. Unbelievable. But, it’s true. Elon Musk played a significant role in making it successful. In 2015, one of the creators, Billy Markus, sold off all his coins 2015 and brought a Honda civic from the money he got.
History Of Dogecoin
Now that you know what Dogecoin is let’s explore more about Dogecoin and its history. The history of Dogecoin is fascinating to hear. It all started with a dog meme. There was a Japanese dog breed called Shiba Inu that got a lot of popularity in the year 2013. There were many funny memes and jokes made on it. This was all noticed by Billy Markus and Jackson Palmer. Billy Markus was working at IBM as a software engineer. At the same time, Jackson Palmer was a software engineer at Adobe Systems. Basically, Palmer is the one who gave birth to this coin. While working at Adobe, he purchased the domain name Dogecoin.com. Thus, he also added a splash screen and wrote some text in Comic Sans. A splash screen is basically the first page you see when you open any app or website with the logo.
Therefore, one fine day they created this new cryptocurrency out of the popularity of the dog meme. On December 3, 2013, Dogecoin got invented. And it got created in just 2 hours. They were just taking advantage of the popularity this meme was getting. Slowly, even Dogecoin got the attention that was needed. On December 9, 2013, the value of Dogecoin in USD jumped to 300%. There was a poll organized on Twitter regarding who should be the CEO of Dogecoin. Just like there are good and bad phases. Many ill incidents also happened. Many Dogecoins were stolen on December 25, 2013, on Dogewallet. Later on, through a donation camp, enough funds got collected to cover the loss of the coins.
Difference Between Bitcoin, Dogecoin And Litecoin
Among all the cryptocurrencies, the community of Dogecoin is big. The members of this community believe in its future, and thus the slogan says, “To the moon.” But, there is a lot of confusion about whether should you buy Dogecoin or choose another coin? Well, here is a difference between Bitcoin, Dogecoin, and Litecoin. Let’s check it out.
Dogecoin | Bitcoin | Litecoin | |
Algorithm | Scrypt | SHA- 256 | Scrypt |
Block time | 1 minute | 10 minutes | 2.5 minutes |
Difficulty time | 2881328.6684 | 7182852313938.32 | 8717916.0203 |
Block reward | 10,000 DOGE | 12.5 BTC | 25 LTC |
Current Supply | 116,696,031,816 | 17,339,662 | 58,865,752 |
Future Supply (2050) | 280,853,172,058 | 20,983,495 | 20,983,495 |
How Does Mining For Dogecoin Work?
Until now, there are 116,696,031,816 dogecoins available in today’s time. If you want to buy dogecoins you can access them at any platform. The process of mining for Dogecoin is somewhat similar to that of Ethereum. Just like other cryptos, you need to validate the transactions happening around the system and store them in your blocks. Let’s simplify it better, assume there are many people doing payments online. You notice some and decide that you will verify and check them. Once you have validated the transactions, you can add them to your block. Blocks are basically like online storage boxes where you store these transactions details and fill the blocks. As and when your blocks keep on growing, a chain of blocks gets created called Blockchain. But, in Dogecoin, it is Dogechain. Since it works on decentralized technology, all network participants know about this public ledger.
The main process of mining for dogecoin involves validating the transactions in the blocks. For validating the transactions, you need to solve mathematical problems using the equipment. As and when you verify it, you will get the reward. This reward is basically in the form of Dogecoins. You will get 10,000 DOGE per minute. Thus, you get a chance to buy Dogecoins.
Types Of Mining Pools
Now that you know how mining for dogecoin takes place, let’s look at the different mining methods you can opt for. The number of coins will decide how much you can buy dogecoins. Basically, there are 3 ways to mine dogecoin. They are explained below.
Single Mining
The name itself speaks that there will be only one person in this mining process. The miner itself tries to validate the transactions and creates the block. Thus, the reward in this mining goes to the miner itself. he doesn’t need to share the reward. This type of mining can be profitable if the miner has the right equipment and he uses them correctly. However, you need to run multiple devices on different systems to crack the hash. Because the competition is very high among the miners. If you are smart enough, you will be able to make huge profits out of it.
Pool Mining
In pool mining, many miners come together and mine the coins. This is the best mining strategy for dogecoin. Therefore, in this mining, there are groups of people trying to crack one transaction. Thus, if any of them cracks the hash, he gets the reward. He then decides that the reward will get distributed among all the miners. So, basically, the risk gets reduced, and the chances of getting reward increases. An advantage over here is that the energy cost also reduces as compared to solo mining. The top Dogecoin mining pools are as follows.
- Antpool: It is currently one of the largest cryptocurrency pools in the market, also consists of Bitmain ASIC miners. Almost 10% of the cryptocurrency blocks are added by Antpool. This has been one of the popular pools in today’s time.
- Prohashing: Prohasing is the oldest form of pool mining group that mines Altcoins. Altcoins are basically coins other than bitcoin. They work on a pay-per-share (PPS) model and they usually charge a 3.99% pool fee. It also allows you to mine Dogecoin and Litecoin at the same time. This method is called Merged mining.
- ViaBTC: ViaBTC is the largest mining pool with a user-friendly interface. It has a hash rate of 20,026.95 PH/s. If you are a beginner, this can be a good option. It also offers merge mining.
- Aikapool: Aikapool has the biggest share in the total Dogecoin hash rate (i.e 7%). the best part is that the mining fee is just 1%. Earlier there were some issues, just research before using this pool.
Cloud mining
You might have heard about many clouds where you can backup your data and store it in that cloud storage. But, don’t get confused with this cloud mining. Cloud mining is basically for those who want to mine Dogecoins but also don’t want to mine them. In other words, you assign this mining work to some person and he on your behalf will mine coins for you. All you have to do is give them equipment and they will do your work. And, yes they will charge a fee for that. There are various platforms such as Nicehash, Eobot, and Genesis Mining. Sadly, Eobot has stopped serving. If you want to buy hash power, the fee is basically 3%. Buying hash power means that you want to buy mining services from someone.
Equipment Needed Before starting Mining For Dogecoin
Before entering the battlefield, you need to be prepared with your weapons. In the same way, even mining requires various equipment. Now that you know how to do mining for ethereum, let’s learn about the equipment needed for doing the mining process. Let’s check it out.
Hardware
Before starting the mining process, you need to have proper hardware systems. Hardware basically includes various computer systems. You have two options: either own a miner rig or a dedicated Dogecoin miner. They might sound similar but they aren’t. A miner rig is an in-built PC that is only used for mining. A standard Dogecoin mining rig consists of a motherboard, a processor, and a rig frame that houses the graphics cards. Usually, CPUs are cheap but the GPUs are expensive. Therefore, go for a motherboard that supports multiple GPUs. But, again don’t overboard on many GPUs. Start with small and slowly keep adding as you gain experience.
Again, you can use the processing power of the CPU, but many people prefer to use GPU (graphic cards) power. Because GPUs are more powerful than CPUs. There are many GPU cards like ASUS RX Vega 64, Nvidia GeForce GTX, SAPPHIRE Pulse Radeon RX 580. Another option is to buy a Dogecoin or an ASIC miner. Scrypt ASIC miners are basically used for mining DOGE. These are prebuilt devices that allow you to mine at an affordable price. There are some ASIC miners like Bitmain Antminer L3, BW L21 Scrypt Miner, Innosilicon A2 Terminator.
Software
For mining, hardware and software both are needed. There is a lot of software present in the market. But, it will depend on the GPU you have. If you are a beginner, you can have EasyMiner. It is one of the user-friendly options. Alternatively, if you have Nvidia GPUs and ASICs, you can opt for CudaMiner. Those operating just CPUs can install CPUminer. Likewise, for ASICMiners, Multiminer, and CGMiner.
While you are doing mining, you need to take utmost care. During the mining process, these systems i.e CPUs and GPUs get heated up very fast. Thus, ensure that you have coolers or fans beside them while mining. Also, keep in mind that the mining process for dogecoin requires huge space and there is a lot of noise. They even require high electrical power. If you have a low voltage supply, maybe your mining might stop in between. Likewise, do the arrangements and see to it that the mining is done properly.
How To Buy And Trade Dogecoins
Now that you know about the mining process, you might be thinking of mining. Yes, go or it. But, there might be some who might not find it feasible to mine the coins. Well, then you can buy dogecoins. Dogecoins can be brought from various platforms and exchanges. Let’s check it out.
- Get a Dogecoin wallet/ Dogecoin exchange: First and foremost step involves having a Dogecoin wallet. There are many wallets available like MultiDoge, Ledger, ZenGo. You can choose any wallet you want to. In the case of the Dogecoin exchange, you need to sign up and select the coin you want.
- Add money to wallet: The next step is to add money to the wallet or exchange. You can use different options such as credit card, debit card, PayPal, etc. Also, you can buy bitcoins and exchange them for Dogecoin using Changelly.
- Locate your Dogecoin address: Once you get access to the wallet, locate your Dogecoin address. Dogecoin address is basically a string of numbers and letters where the first letter is a capital.
- Buy dogecoin: Now that you have money in your wallet, you can buy dogecoin from any of the platforms. Convert the USD amount to Dogecoins. For example, the value of Dogecoin in USD is $0.1449062.
- Withdraw the coins: If in the case in the future you wish to withdraw the coins, you can easily do that. just click on the withdraw or sell button, and you will earn as per the value of Dogecoin in USD or any other currency today.
Best Dogecoin wallets
There are many types of Dogecoin wallets depending on their useability. It includes some hardware wallets, software, and some online wallets.
- Ledger Nano: It is one kind of hardware wallet. You can trade your crypto assets on the go directly from your smartphone using the Bluetooth connection. This ledger lets you manage 22 coins using the one-single app. To manage other cryptos, you need to use external wallets. This wallet is compatible with Windows (7+), Mac (10.8+), and Linux.
- Changelly: It is an instant crypto exchange. Basically, it provides you with a window where you can buy coins from other exchanges. The transparent fees are 0.5%. In case you have BTC and want to convert to Dogecoin, you can easily do that in Changelly. You just need to pay a fee of 0.25% for that.
- Kraken: It is a crypto exchange that allows you to buy cryptocurrency and fiat currency. It is a secure platform like others. In Kraken, the majority of volume takes place within Bitcoin, Ethereum, and Dogecoin. The transaction fees here are 1.5%.
- Others: There are many other exchanges such as Binance, Okex, Bitforex, Upbit, Digifinex, etc. Exchanges are safer than wallets. Thus, before choosing any wallet, do thorough research and then transact wisely.
Stock Prices Of Dogecoin
Many variations were seen in the prices of Dogecoin. When dogecoin first entered the market, it was flat. The value of Dogecoin in 2014 was 0.000450 to 0.000190 USD. One fine day on April 15, 2021, Elon Musk tweets, “Doge barking at the Moon”. Thus, the value of dogecoin in USD then was $0.13=. It reach its highest peak on May 8, 2021. The value of Dogecoin in USD was $0.74. It was a treat for a day. The price again fell down after that. The current value of dogecoin in USD (i.e February 14, 2022) is $0.14. Looking at the analysis of the past few months, the price is dropping down. It will remain stable for the next few weeks. Worse can be that it might fall a bit, but not much. Therefore, before investing, watch the market for the past few months and then invest.
Should You Buy Dogecoin?
The main question arises, should you buy Dogecoin? Is it worth investing in? Well, keep on reading further. Just like other cryptocurrencies like Ethereum or Bitcoin, the price depends on the supply and demand forces. The supply of Dogecoin is huge. Every day, there are 10,000 new dogecoins minted. Thus, every minute, roughly 14.4 million new Dogecoins get circulated. Therefore, 5.2 billion Dogecoins get minted per year. As you see, the supply is huge, demand is not so huge as compared to Bitcoin. Again the decision stays with you. If you feel the price to rise in the future, you can still hold it. Otherwise, if you feel the price might fall, it is better to sell.
There was a tweet on January 25, 2022, where Elon Musk had advised McDonald to accept DOGE as a payment option. To which Mcdonald added a pun stating that before that he needs to accept Grimacecoin. This had accelerated the value of Dogecoin in January in USD was $0.14. As per the analysis, it is the best time to sell because the price is down. In the future, around the end of the year, the value of Dogecoin might rise. Thus, it would be best if you long it for a long time.
Conclusion
Dogecoin has been a craze for Elon Musk for a long while. As and when he has tweeted something about anything, the price of the stock also increases. The same thing has accelerated the value of Dogecoin also. Many people are having a craze for this out-of-joke coin in recent years. Since it is the fastest method of mining, many people are rushing into this space. This article gives a clear idea of whether you should buy Dogecoin or not. If you have any questions, you can comment down below.
