Best Apps To Invest In Dogecoin

Dogecoin, known as the people's currency or underdoge, has sparked both optimism and skepticism in the cryptocurrency world. Despite gaining mainstream attention in 2021, its future remains uncertain. Dogecoin is a digital currency that was introduced in 2013 as a more memorable and fun alternative to other cryptocurrencies. It was created by software engineers Billy Markus and Jackson Palmer in the early days of crypto, soon after major players like Bitcoin and Litecoin. It started off as a joke based on the popular Doge meme featuring a Shiba Inu dog.

Dogecoin can be purchased on several apps and exchanges, including Robinhood, Coinbase, eToro, Binance, Kraken, Bitpanda, Uphold, and Gemini. It is important to note that investing in cryptocurrency carries risks, and it is crucial to understand the market and consider starting your investment journey with smaller amounts.

Dogecoin wallets

Custodial wallets are typically favoured by people who trade Dogecoin more frequently due to their convenience. Non-custodial wallets, on the other hand, are preferred by those who like to be in control of their private keys. It is very important that people who use non-custodial wallets don't lose their private keys or seed phrases, which can be avoided by backing up your wallet.

Wallets can also be 'hot' or 'cold', depending on whether they are connected to the internet or not. Hot wallets include Dogecoin Core, browser extension wallets such as MetaMask, and smartphone wallets. Cold wallets, on the other hand, are not connected to the internet and include hardware wallets and paper wallets. Many people consider cold wallets to be inherently safer than hot wallets and prefer them for holding Dogecoin long-term. However, non-custodial hot wallets, such as smartphone wallets, are considered safe enough for day-to-day expenses and holding small amounts of Dogecoin.

• Dogecoin Wallet: Dogecoin's own simple, intuitive wallet option for both desktop and mobile. It takes about 5 minutes to get started and can be downloaded for free on the Google Play store.
• Ellipal Titan: A hardware wallet that offers a secure way to store and manage digital assets with features such as air-gapped technology and multiple layers of encryption. It also has a user-friendly interface and supports over 10,000 cryptocurrencies, including Dogecoin.

Dogecoin exchanges

• Binance: A leading cryptocurrency exchange that supports the purchase of over 200 cryptocurrencies. Binance offers a wide range of payment methods and is available worldwide. It is also one of the few places that allow you to buy Dogecoin with almost any currency (fiat or crypto).
• Bitpanda: An Austrian exchange founded in October 2014 that allows residents of the EU and a few other countries to buy Dogecoin and other cryptocurrencies using various payment methods such as Neteller, Skrill, and SEPA.
• Uphold: A New York-based platform that offers trading for cryptocurrencies, commodities, equities, and fiat currencies. Uphold does not have any fancy crypto features like lending or staking, but it is easy to fund your account and get started.
• EToro: A multi-asset investment platform that offers a user-friendly interface and commission-free trading. eToro is a good option if you are only interested in profiting from Dogecoin's price changes and do not want to own the coins themselves.
• Kraken: A US-based exchange founded in 2011 that allows users to deposit funds via credit card or wire transfer. Kraken uses the XDG ticker symbol for Dogecoin, which is different from the widely accepted DOGE ticker.
• Changelly: A conversion service that works quickly and only requires an email to sign up. Changelly allows you to buy Dogecoin with almost any currency, but it can be expensive if you use a credit card.
• Gemini: A New York-based exchange founded by the Winklevoss twins that offers instant purchases using a bank card or fiat currency deposits via wire transfers or ACH.
• Bittrex: A US-based cryptocurrency exchange that offers a DOGE/BTC pair, meaning you need to buy or deposit Bitcoin to exchange it for Dogecoin.
• Coinbase: A regulation-friendly, US-based cryptocurrency exchange that has been around since 2012 and is one of the only publicly traded crypto exchanges in America. Coinbase allows users to easily buy cryptocurrency using a linked credit card or bank account.

It is important to do your research and choose a reputable and secure platform when investing in Dogecoin or any other cryptocurrency.

Dogecoin's inflationary model

Dogecoin is a cryptocurrency that was created by software engineers Billy Markus and Jackson Palmer, who intended it as a joke based on the "Doge" meme featuring a Shiba Inu dog. Dogecoin is considered the first "meme coin" and was introduced on December 6, 2013.

However, critics argue that Dogecoin's inflationary nature is a fatal flaw that will lead to its collapse. Unlike other cryptocurrencies, Dogecoin does not have a supply cap, and 5 billion new Dogecoins enter circulation annually, causing indefinite supply growth. This perpetual inflation erodes the value of Dogecoin over time, and its holders constantly lose purchasing power. As a result, Dogecoin has become more prone to speculation and hoarding rather than everyday usage.

Despite these concerns, Dogecoin has maintained its popularity and has been used in various mainstream commercial applications, such as Internet-based tipping systems and payments for products and services.

Dogecoin's transaction fees and speed

Dogecoin was created to be an ultra-cheap cryptocurrency payment network. It offers faster and more affordable transactions compared to other cryptocurrencies like Bitcoin. For instance, while the average transaction fee for Bitcoin is $30, Dogecoin's transaction fees are under one cent per transaction and have levelled at around half a cent.

Transaction fees refer to the money paid to the cryptocurrency's miners to get transactions accepted. Cost increases can occur when user numbers increase as the blockchain has limited space available to process all the transactions, so it becomes congested. This is what happened between December 2020 and January 2021 when the fee for a Dogecoin transaction increased by over 1500%. Transaction fees also increase with the price of Dogecoin. For example, in 2021, Dogecoin transaction fees rose after tweets from Tesla CEO Elon Musk.

Dogecoin can be purchased on several apps, including eToro, Robinhood, Coinbase, and Kraken. However, it is important to note that investing in Dogecoin is risky as it is a highly volatile cryptocurrency with no intrinsic value.

Dogecoin's community ethos

Dogecoin is a digital currency that was introduced in 2013 as a fun alternative to other cryptocurrencies. It is an open-source, peer-to-peer digital asset inspired by the "Doge" meme, featuring a Shiba Inu dog. Dogecoin was created by Billy Markus and Jackson Palmer and was initially intended to be a joke. However, it quickly gained a dedicated following and became a popular cryptocurrency in its own right.

The Dogecoin community is known for its lighthearted and friendly ethos, which is summarised in the Dogecoin Manifesto. The community is made up of people who are interested in supporting each other, being kind, teaching others about cryptocurrency, fundraising, having fun, making memes, and embracing the absurd. This ethos is encapsulated in the unofficial tagline: "Do Only Good Everyday".

The community-driven approach of Dogecoin fosters a supportive network that aims to increase user engagement. Dogecoin's value is notably responsive to public sentiment, introducing unpredictable fluctuations that may not necessarily correlate with intrinsic project milestones or achievements. This makes investing in Dogecoin risky, as it is highly volatile with no intrinsic value.

While Dogecoin's future remains uncertain, its dedicated community continues to drive its growth and shape its unique ethos.

Frequently asked questions