Dogecoin Investment: Coinbase's Guide To Crypto Trading

Dogecoin is a cryptocurrency that was created as a joke in 2013 by Billy Markus and Jackson Palmer. It is based on the popular Doge internet meme featuring a Shiba Inu dog. Dogecoin is intentionally abundant, with 10,000 new coins mined every minute and no maximum supply. It is also highly responsive to public sentiment and trends, which can lead to unpredictable fluctuations in its value. While it is possible to buy, sell, hold, send and receive Dogecoin on Coinbase, it cannot be purchased directly on the platform. Instead, users must first buy Bitcoin on Coinbase and then transfer it to another exchange, such as Binance, to exchange it for Dogecoin.

Dogecoin wallets

Dogecoin Hardware Wallets

Hardware wallets are considered one of the safest types of wallets available. Although they require an initial investment, they keep the private key to your Dogecoin offline on a physical device. Examples of hardware wallets include the Ledger Nano S and Nano X, and the TREZOR One and Model T.

Dogecoin Software Wallets

Software wallets store the private key to your Dogecoin on your device, whether it be a mobile phone, desktop computer, or laptop. These wallets might be vulnerable to malware, so it is important to take the necessary precautions and only download official or highly recommended wallets. Examples of software wallets include MultiDoge, Exodus, and Coinomi. For Android mobile devices, there is also the official Dogecoin Mobile Wallet.

Doge exchanges

Dogecoin is available on several exchanges, including:

• Binance
• Bitpanda
• Uphold
• EToro
• Kraken
• Changelly
• Gemini
• Bittrex
• Coinbase
• Uniswap v2 (Ethereum)
• PancakeSwap v2 (BSC)
• Uniswap V2 (Cronos)
• Pancakeswap V3 (BSC)
• AscendEX (BitMax)
• ShapeShift
• BitTrex
• Poloniex
• HitBTC
• Abucoins
• Tidex
• BitSquare
• BTC38
• Cexio
• Cryptsy
• Gateio
• LiveCoin
• Cryptopia
• Yobit
• Novaexchange
• TuxExchange
• Exmo
• Bleutrade
• BXinth
• CCEX
• BitFlip
• CCEDK
• MEXC Global
• Gate
• Bybit
• LocalCoinSwap

Some of the smaller exchanges that offer Dogecoin include Exrates, YoBit, and Livecoin, all of which have DOGE/USD pairs. LiteBit.eu and Bittylicious and Cryptomate offer brokerage services for Dogecoin via EUR.

When choosing an exchange, it is important to consider factors such as security, liquidity, fees, and payment methods. It is also worth checking reviews of cryptocurrency exchanges before signing up and buying.

Dogecoin's history

Dogecoin was created in December 2013 by software engineers Billy Markus and Jackson Palmer, who were working at IBM and Adobe Systems, respectively. The creators intended Dogecoin to be a friendly, light-hearted digital asset that would appeal to a broader demographic than Bitcoin. Dogecoin was conceived as a joke—a parody of the crypto market—and a way to satirize Bitcoin and other cryptocurrencies that boasted grand plans.

Dogecoin was introduced on December 6, 2013, and quickly developed its own online community. Within the first month, there were over a million visitors to Dogecoin.com. The site became an instant hit with the help of Reddit, and its market value reached $8 million, once jumping to become the seventh-largest electronic currency in the world. Dogecoin's logo, featuring a Shiba Inu dog, was inspired by the popular "doge" internet meme and is based on a 2010 photograph of a Japanese Shiba Inu dog called Kabosu.

In 2014, both Billy and Jackson left the development efforts, and a Dogecoin Core Development team was formed. The team has been maintaining and developing Dogecoin since then and is comprised of a small group of core maintainers and supported by more than 40 contributors over the years. Although it owes its genesis to a joke, Dogecoin quickly developed into a massive and passionate cryptocurrency community.

Dogecoin's brand logo is based on a popular meme of that time that featured a Shibu Inu dog. It was created using the open-source code from Litecoin, which itself was a fork of the Bitcoin blockchain. Dogecoin introduced some improvements, including faster access speeds and more affordable transactions. It also counts on the support of a robust community around the DOGE, popularly known as the "Doge Army."

Dogecoin has been used for various fundraising events and charitable endeavours. For example, in 2014, the Dogecoin community raised 26.5 million Dogecoin (worth around $30,000 at the time) to send the Jamaican bobsled team to the Sochi Winter Olympics. In March of the same year, the Dogecoin community also raised over 40 million Dogecoin (worth approximately $30,000) to help build clean-water wells in Kenya.

Dogecoin has enjoyed a tremendous upsurge in popularity since its creation, and by 2021, it was the ninth-largest cryptocurrency by market capitalization.

Dogecoin mining

Dogecoin is a cryptocurrency that was created in December 2013 by Billy Markus and Jackson Palmer. It was introduced as a joke, light-hearted alternative to Bitcoin, with the intention to reach a broader audience. Dogecoin is intentionally abundant, with 10,000 new coins mined every minute and no maximum supply.

Dogecoin is also secured by mining. Thousands of computers around the world compete to mine Dogecoin in order to share the millions of new coins added to the supply per day while also validating and processing network transactions. Early in Dogecoin's history, any computer could be used for mining. However, as its popularity has surged, mining competition has increased, making it difficult for small-scale miners with regular hardware.

Dogecoin used to be much simpler to mine in the early days. A miner only needed a computer with enough disk space and a gaming GPU. However, as the total mining hashrate of the network increased, the likelihood of a miner finding a block while mining solo decreased drastically. This led to the creation of mining pools for Dogecoin miners, where people could combine their hashing power with that of other miners.

In 2014, Dogecoin was modified to allow merged mining with other cryptocurrencies that shared the same Proof-of-Work algorithm (called Scrypt). The most popular cryptocurrency using Scrypt at the time was Litecoin. Since then, miners can mine Litecoin and any other classic Scrypt crypto and contribute to the Dogecoin network, receiving mining rewards from multiple blockchains at once for the same amount of work.

Nowadays, most miners use specialised hardware called Application-Specific Integrated Circuits (ASICs) to mine Dogecoin and other Scrypt coins profitably. Mining Dogecoin for profit typically requires the following:

• A Windows/Linux/Mac OS computer
• One or more ASIC miners for Scrypt-based cryptocurrencies
• Power supplies for your ASIC miners
• An account with a mining pool
• Access to relatively cheap electricity
• A Dogecoin wallet where the mining pool will send your mining rewards

ASIC miners are generally very expensive, difficult to obtain, and require experience to set up and house properly. They are also louder and generate more heat than GPUs, so they need to be housed in a dedicated room with proper ventilation and cooling.

It is possible to mine Dogecoin using a computer with a gaming GPU, but this will lead to minimal profits, high energy bills, and a small contribution to the total mining hashrate of the network.

Dogecoin's viability

Dogecoin is a cryptocurrency that was created in 2013 as a joke based on the "doge" internet meme featuring a Shiba Inu dog. It was intended to be a light-hearted, friendly digital asset that would appeal to a broader audience than Bitcoin. Unlike Bitcoin, which is designed to be scarce, Dogecoin is intentionally abundant, with 10,000 new coins mined every minute and no maximum supply. Dogecoin is also unique in that it uses a different mining algorithm than Bitcoin, which allows it to be mined on regular computers rather than specialised systems.

Dogecoin has gained a lot of traction and a loyal community since its creation. It is currently the 4th largest cryptocurrency by market capitalisation, with a total market cap of about $70 billion as of May 2021. Dogecoin's community has been involved in several public news stories, including fundraising efforts for the 2014 Winter Olympics Jamaican Bobsled Team and sponsoring NASCAR driver Josh Wise.

When it comes to investing in Dogecoin, there are a few things to consider. On the one hand, Dogecoin has a strong and devoted community, and it has gained a lot of attention, even from celebrities like Elon Musk. It also offers some benefits over other cryptocurrencies, such as faster transaction processing times and a flat-rate fee for transferring coins. Additionally, Dogecoin is consistently among the 10 most popular cryptocurrencies, and it can be easily bought and sold on several major cryptocurrency exchanges, including Coinbase.

However, it is important to note that Dogecoin was not created as an investment cryptocurrency, and it does not have a clear competitive or technical advantage over other cryptocurrencies on the market. Its value is highly responsive to public sentiment and trends, which can introduce unpredictable fluctuations. Additionally, Dogecoin's network is fairly small and, therefore, less secure than some other cryptocurrencies. Finally, the long-term viability of Dogecoin is questionable, and the vast majority of traditional investors believe that it is not a good investment.

Overall, Dogecoin's viability as an investment is uncertain. While it has gained popularity and has some advantages, it also faces challenges and may not be a good investment in the long term. As with any investment, it is important to do your own research and carefully consider the risks and potential rewards before deciding whether to invest in Dogecoin.

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