A Comprehensive Beginner’s Guide to Buying Dogecoin (DOGE)

Are you a memecoin fan? Check out Dogecoin, one of the top ten crypto assets by market valuation. This article will show you how to buy DOGE, but before that, it is essential we know everything about the memecoin.

Exploring Dogecoin

Launched in 2013, Dogecoin is the brainchild of software engineers Billy Markus and Jackson Palmer. The project that started as a joke has become an integral part of the cryptocurrency ecosystem, facilitating peer-to-peer transactions. Dogecoin uses the PoW (Proof-of-Work) consensus mechanism, just like Bitcoin.

Since its inception, Dogecoin has inspired the launch of other memecoins like PEPE, Shiba Inu, and Baby Doge. All these tokens are known to be highly volatile. Therefore, you should practice caution when trading them.

Understanding how Dogecoin Network Works

DOGE separates itself from other memecoins as it runs on its own blockchain. The Dogecoin blockchain uses the PoW consensus mechanism. What this means is that miners must solve extremely tough problems to validate transactions. Is the Dogecoin chain fast? Yes! It completes transactions within a few minutes and at relatively low costs.

Why is DOGE Popular?

Dogecoin’s price is usually driven by the hype around the token. The memecoin is popular since it generates wild returns. In addition, the world’s richest man, Elon Musk, is a massive fan of DOGE. Over the years, his tweets have led to the memecoin’s price pumping.

Dogecoin is also popular because it trades at cheaper prices than Bitcoin or Ethereum, making it affordable for retail investors.

How Does DOGE Compare to Other Cryptocurrencies?

It is vital to compare Dogecoin with other top digital currencies before you buy it.

DOGE vs. BTC

Although these two use the same consensus mechanism, they have massive differences between them. For example, Dogecoin has no supply cap, while Bitcoin’s maximum supply is set at 21 million coins.

DOGE vs. ETH

Dogecoin and Ethereum were both running on the Proof-of-Work consensus until September 2022. The latter now adopts the Proof-of-Stake (PoW) mechanism. Regarding transactions, Ethereum transactions are slower and more expensive than those of Dogecoin.

DOGE vs. LTC

Both run on Proof-of-Work consensus. The major difference between Litecoin and Dogecoin is that the former has a supply limit (84 million tokens) while the latter does not.

Dogecoin Ecosystem

DOGE’s ecosystem is made up of developers and an active community. Moreover, there are several wallets designed to store Dogecoin, along with crypto exchanges, that support the trading of the memecoin, making access to the ecosystem easy. Also, Dogecoin has its blockchain explorer known as DogeChain, allowing DOGE users to monitor transaction statuses.

DOGE Wallets

Your DOGE tokens need to be stored in a secure wallet to avoid losing them. So, which crypto wallets are compatible with Dogecoin? You can use Ledger, Guarda, MyDoge, or Trezor.

Can You Mine Dogecoin?

Yes! You can mine Dogecoin using GPUs or ASICs. However, the former is not as effective as it used to be due to the rising mining difficulty. While it is possible to mine the memecoin individually, joining a mining pool is also recommended.

Dogecoin Price Prediction

Elon Musk’s favorite crypto token, DOGE, hit an all-time low of $0.000856 about two years after its inception. The meme coin then peaked at $0.7319 in 2021. As of September 2023, Dogecoin has dropped by 92.4% from its peak price to trade at $0.0611, according to data from CoinGecko.

How Do You Buy and Sell Dogecoin?

The process of trading DOGE is super simple. We advise you to open a trading account with a centralized exchange that supports Dogecoin for a seamless trading experience. Once you have a verified trading account, deposit funds, preferably USDT, and then search for the DOGE/USDT trading pair in the exchange’s spot market. Once you find it, press “Buy” to exchange the USDT for DOGE. And that’s it. You have bought Dogecoin. To sell it, click on the “Sell” button.