Dogecoin is a decentralized digital currency that allows peer-to-peer transactions in a very fast, secure and low-cost way. The basic initiative of the creator of Dogecoin was to create a currency with a more humorous approach. That’s why he chose the name “Doge”, which is a viral shiba dog meme that is very well known among English-speaking Internet users. If the basic idea was rather a joke, the Doge has nevertheless quickly found a community of followers who decided to support this new crypto-currency. Today, the Doge is still the mascot of the network.
Dogecoin (DOGE) is a crypto-currency and probably one of the most curious examples of digital tokens in existence. The crypto-currency has a peculiar history: it was created after a meme in 2013 and everyone, including its founder, expected the joke token to disappear in a few weeks. Eight years later, the token is still one of the most popular and is often among the 30 crypto-currencies by market capitalization.
In the final days of January 2021, the token experienced a massive daily surge, with its price rising 420% in 24 hours and more than 600% in a week. The crypto-currency also became the first token in history to surpass Bitcoin in terms of mentions on Twitter (on the same day as its famous spike).
Unlike Bitcoin, the benchmark in the cryptocurrency world, Dogecoin was created with the goal of making small, “tip” type transactions. Transaction amounts are often under €10, which allows for micro-payments like sending tips or buying music or apps costing a few cents or a few euros. Initially, the maximum amount of DOGE in circulation was set at 100 billion tokens. Once this limit was reached, 5.2 billion tokens were to be reinjected each year. This limit was finally lifted and the issuance of DOGE is now indexed to that of Litecoin.
The Doge network operates through blockchain and mining processes, in the same way as the virtual currency LuckyCoin, which is itself based on Litecoin.
Name of the crypto-currency: Doge
Where to buy Doge? Binance
Date of creation: 2013
Most activities in the crypto-currency industry are fee-based, which can vary greatly depending on the token. Brokers and crypto exchanges typically charge for their services, so you can expect to encounter several types of fees.
Transactions are almost always done for a small fee, which ends up being used by the broker or crypto exchange for maintenance fees, new developments etc.
Deposits tend to be free on most platforms, but this is not a rule and you may encounter a platform that also charges you to deposit money.
Some platforms offer free withdrawals, but most charge a fee, which usually depends on the amount you withdraw or the transfer method. For small amounts, these fees may be flat, while for larger amounts, they may be based on a percentage.
As we mentioned earlier, it is recommended that you set up a private wallet to store your Dogecoin safely. There are many types of wallets in the crypto-currency industry.
Internet wallets usually come in the form of a browser extension or website. Their main advantage is that they are always online, making it easy to transfer your funds at any time, even on the go. The disadvantage is that they can be easily hacked since they are always on the Internet.
Cell phone wallets can be more or less secure, depending on whether the phone is constantly connected to the Internet or not. Therefore, you can use it to store your crypto-currencies with a higher or lower degree of security (hot wallet or cold wallet). In addition, they are convenient because they allow you to trade on the go. The downside is that you have to be very careful about the security of your device, as well as your wallet.
Like cell phone wallets, desktop wallets can be “hot” or “cold” depending on whether your computer is connected to the Internet. With proper security, such as an anti-virus and anti-malware program, you can secure your device quite effectively. These are convenient and overall good intermediate solutions between hot and cold wallets.
Hardware wallets are the most secure of the crypto-currency wallets, as they are only connected to the Internet when you transfer tokens. These are USB stick type devices that you can plug or unplug and when disconnected, they do not allow access to your tokens. The downside is that you have to buy the hardware in question and it’s not really practical because you have to plug it into a computer to use your tokens.
Some wallets can be linked to each other so that you can enjoy high security and convenience. For example, you can keep the majority of your chips in a physical wallet where they will be safe, and keep only a small portion of your chips for trading in a hot wallet. This way, even if your hot wallet is hacked, the majority of your funds will still be out of reach.
If you can’t find a crypto exchange that allows you to buy Dogecoin directly with traditional currencies like USD or EUR, you can always buy DOGE with Bitcoin or Tether, as these are the tokens that DOGE is usually available against.
The smallest and largest amount depends on the platform you use. Crypto exchanges may impose a limit on how much DOGE you can buy – they may also limit your purchase due to ongoing regulations. With the price of Dogecoin being well under $1, it’s usually not cost-effective to buy fractions of tokens, as your transaction fees will be higher than the amount you’ll actually own.
There are also platforms that allow you to buy unlimited Dogecoin , although these are not necessarily regulated. For this reason, we recommend that you avoid them.