Dogecoin frequently called Doge is an open source peer to peer cryptocurrency which began its success journey at first as a joke and was developed to be a fun currency. It is also a decentralized platform that allows users to make transactions easily via online medium. It was named after the Shiba Inu “doge” meme. Slowly and steadily it was grown in values and became popular among thousands of users, traders and shared as a currency by the internet communities.
When people talk about Cryptocurrency, there are lots of many coins and currencies available in the market, worldwide. Few of them which are on the top in this list are Bitcoin, Ethereum, Litecoin, steem and many more. Similarly, Dogecoin is in the market and it has a Dog picture on it.
HOW DOGECOIN WORKS
Dogecoin behaves in almost a similar fashion as Bitcoin which means it also works on the decentralized platform and is stored digitally. The primary advantage of this coin is that it makes transactions with a minimum effort and maximum simplicity. It was initially created for fun but it gained positive user response which it has built a community with their support. Dogecoin uses Scrypt algorithm. Thus under this algorithm, like other cryptocurrencies, miners are getting rewarded in the form of digital currency, for mining the block of coins. It charges the lowest fees for performing transactions which brings more users towards it.
SOME ADVANTAGES OF DOGECOIN OVER OTHER COINS
There are lots of reasons which can be considered in the rapid growth of Dogecoin but the very basic ones include:
i) It provides significant tips to the users who are showing interesting and unique content on social media due to which it is famous for Internet tipping.
ii) Transaction fees on this platform are as low as $0.01 which would grasp more attention of the users.
iii) It requires less time in processing the transactions as it also takes less effort to compute the computations.
iv) And lastly, it is very simple to use.
HOW TO USE DOGECOIN
In order to use Dogecoin, a user needs to own their native crypto wallet which enhances the usage of this currency. Other than that, this currency can also be stored on the online as well as offline wallets. It is preferred to make a tangible amount of currency online to perform the purchases or better to maintain the funds in the offline wallets just to avoid hacking and stealing of funds from the wallet.
Two wallets which can be used for making Dogecoin transactions are the Ledger and Jaxx wallets respectively.
WAYS OF MAKING MONEY USING DOGECOIN
a) Buying Dogecoin: Just like stocks and funds, a user can decide to buy Dogecoin and expecting the rise in the value of the coin.
b) Sell products and services: A user can decide to buy any product and services in exchange for this Dogecoin because it has one of the easiest form of payment method. Most of the online platforms are providing plugins to accept the Dogecoin as payment instead of USD, EUR as payment for the exchange of goods and services.
c) Getting Tipped: Dogecoin users get tipped with this currency when they provide unique content either its art or any post on social media. These tips are getting added in the user wallet which can/will be used later to buy product/services or to tip other users.
For now Bitcoin is considered a base for the other cryptocurrencies available in the market currently such as Litecoin, Ethereum etc. or we can say that it is the one who somewhat inspired other cryptocurrencies. The only and major difference between Bitcoin and Dogecoin is that Bitcoin is capped at 21 million productions whereas, Dogecoin, there is no cap limit decided on the amount of production.
Thus at the end, It would be quite interesting to know how will this currency do in the coming future though it does not have that fancy features like other currencies, but due to its user friendly features and environment, It is the one which is able to make prove of itself to be different from the other available cryptocurrencies. Click here to check dogecoin on coinmarketcap.com.