How to Buy Dogecoin
Introduced in December of 2013, Dogecoin (DOGE) was initially intended to be a “joke currency”, but its popularity took off and developed its own following among the crypto community, and within a year, it acquired an impressive capitalization of $60 million US dollars by the first month of 2014.
By the middle part of 2015, 100 billion Dogecoin tokens were circulating, which, when compared to other types of digital currencies, was a rapid production schedule for its tokens. A total of 5.256 billion tokens were introduced every subsequent year. By the last day of June, 2015, the 100 billionth Dogecoin token was mined.
At present time, Dogecoin cannot be purchased with fiat currency; however, it can be purchased with other types of more widely accepted cryptocurrencies, such as BTC and ETH.
What is Dogecoin?
Dogecoin was developed in Portland, Oregon by Billy Markus, a programmer. Markus wanted to develop a form of cryptocurrency that was “fun” and that could be used by a wider demographic than other types of cryptocurrency, such Bitcoin. He also wanted to disassociate Dogecoin from the controversy that surrounded many other types of digital coins.
An associate the marketing department of Adobe Systems in Sydney, Jackson Palmer, was provoked on Twitter by a college student to turn the Dogecoin idea reality. Eventually, Palmer bought the dogecoin.com domain installed a splash screen.
Eventually, Markus and Palmer joined forces. Luckycoin, a cryptocurrency that was already in existence, served as the inspiration for Dogecoin. Luckycoin offered a random reward for mining blocks; however, eventually, the reward was changed to a static block. As such, Luckycoin is based on Litecoin, another digital coin that utilizes a proof-of-work algorithm based on scrypt technology. With scrypt technology, coins can only be mined by computers; not by ASIC hardware. As such, the mining of Dogecoin tokens is more energy efficient.
In 2016, Dogecoin was officially launched. Initially, there was supposed to be a cap of 100 billion tokens; however, the cap was eventually removed, meaning that the network used to produce this crypto coin produces an infinite amount of tokens.
Dogecoin is an altcoin. It is most widely used as a form of tipping over the Internet. Social media issue the tokens as tips when other social media users share valuable content. In addition to being used for tipping over social media, a handful of commercial applications also use Dogecoin.
This cryptocurrency has also been used for fundraising purposes. For example, in January of 2014, the Dogecoin community held a fundraiser for the Jamaican Bobsled team, raising $50,000 to send the team to the Sochi Winter Olympics. The Dogecoin Foundation also raised 40,000,000 tokens to fund a well in Kenya.
Where to Buy Dogecoin
As mentioned, Dogecoin cannot be purchased with fiat, but tokens can be purchased with other types of more widely accepted crypto, such as ETH and BTC.
Dogecoin can be purchased at more than 50 global exchanges, including:
How to Buy DOGECOIN
In order to purchase DOGECOIN tokens, you first need to purchase ETH. Once you purchase ETH, you can then exchange it for DOGECOIN. For this example, we will explain how to purchase ETH on Coinbase, one of the most popular cryptocurrency exchanges.
Use the link here or click the image above to get $10 in Bitcoin when you purchase or sell your first $100.Register on Coinbase
Step 1: Create a Coinbase account
Select the “sign up” tab and complete the form by entering the requested information, including:
- Your name (exactly as it appears on your photo identification)
- Email address
Step 2: Verify your account
- Issue your phone number
- Upload an image of your photo ID
- Verify your credit or debit card, or your bank account information
Step 3: Select the “Buy/Sell” option on the menu, once our account is verified
After verification, select the “Buy/Sell” option on the menu
- Choose “Ethereum”
- Input how much you would like to purchase
- Select the “Buy” button
Step 4: Confirm your purchase
- Select the “Confirm Buy” button
Step 5: Open an account on an exchange that accepts Dogecoin
For the purposes of this example, we are going to use the Binance exchangeRegister on Binance
Step 6: Register your Binance account
- Enter your email address and a strong password
- Select “Register”
- You’ll receive an email to confirm your account
Step 7: Login to your Binance account
Step 8: Transfer ETH from Coinbase to Binance
- Under the “Wallet” tab, select “Deposits”
- Copy the ETH deposit address you are provided with
- Log back into Coinbase
- Select “Accounts”
- Click “Send”
- Enter your ETH deposit address
- Input the amount of ETH you want to transfer
- Select “Continue”
Step 9: Exchange ETH for Dogecoin
- When your ETH has arrived in your Binance account, you can exchange it for DOGECOIN tokens
- Select ETH currency
- Search for DOGECOIN in the search box and select it
Select whether you want to “Limit” order (you can choose the amount of DOGECOIN you want to purchase) or “Market” buy, which will autofill your order at the best price
Step 10: Select the “Buy” button
- Once you have chosen the amount of DOGECOIN you would like to purchase, select the “Buy button”
- Your DOGECOIN order will be immediately filled; your ETH will be transferred into DOGECOIN
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Why Buy Dogecoin?
While Dogecoin uses the same Scrypt protocol as Litecoin, its block time is much faster, clocking it at one minute, as compared to Litecoin’s 2.5 minute block time. That translates to faster transaction times and faster confirmation times.
Additionally, Dogecoin is inflationary, whereas other types of digital tokens are deflationary. Coins that are deflationary have a hard cap, so mining the token is no longer profitable once the cap has been met. With inflationary coins, there is no hard cap, which ensures mining can continue and any coins that are lost can be replaced.
Other notable benefits include minimal transaction fees and a dynamic community.
How to Sell Dogecoin
Dogecoin can’t be sold for fiat, but it can be sold for other cryptocurrencies that can be sold for fiat. To do so, you can:
- Open an altcoin exchange account
- Deposit Dogecoin in your altcoin account
- Sell Dogecoin for BTC or ETH
- Sell ETH or BTC for fiat
- Withdraw the fiat and deposit it into your bank account
Which Wallets Can I Used with Dogecoin?
Wallets that can be used to store Dogecoin include:
- The official Dogecoin wallet
- Dogecoin Paper Wallet
- Ledger Nano S
- Trezor One
While Dogecoin might not be as popular as BTC or ETH, but many argue that’s its biggest appeal. And, thanks to the fast transaction times, minimal fees, and excellent community, it’s definitely a great coin for those who are just starting out with crypto to invest in.
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