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Cryptocurrencies have been in the limelight for quite some time now. People have started acknowledging it as a form of investment, and this has increased the number of options available in the market.
Dogecoin is an emerging cryptocurrency that has shown some great performance recently. Before you buy Dogecoin with USD, it is essential to know all about it, so that you can make an informed decision.
Dogecoin is a first-generation cryptocurrency that helps to transfer value globally in a secured environment. It has basic functionality and does not include features like a smart contract which is quite common in recent times. It was an early coin whose primary focus was to create a secured network, which Dogecoin did in the best possible way. Also, the spirit in which Dogecoin was expressed was unique. It was built to create fun and spread goodwill throughout the crypto community.
Investing In Dogecoin: Does Dogecoin Offer Any Benefits?
The popularity of Dogecoin was due to all the benefits that it offers to the market. You can use it just like Bitcoin, quickly and securely. It is now accepted by a lot of vendors. A great benefit of Dogecoin is its resistance to censorship- There are many characteristics possessed by Dogecoin, which is quite similar to the world’s largest cryptocurrency, Bitcoin. Both the networks are secured and provide real-time consensus. Also, for both the cryptos, hackers would need to control 51% of network hashing power to alter the blockchain’s state.
How Does Dogecoin Function?
Dogecoin and Bitcoin have common codes, which is the main reason behind the similarities in their features. We have listed the important highlights of Dogecoin that you must know:
- Consensus- The dogecoin mainly uses the algorithm known as proof-of-work to help keep the network secured. Here, the network basically relies on script technology in its unique PoW mechanism. This was done to reduce the usage of the highly powered Bitcoin mining rigs. Users can only mine the Dogecoin using dedicated ASIC and FPGA devices.
- A total number of coins- One of the best things about Dogecoins is that it has no hard cap. Initially, Dogecoin began its operation with 100 billion coins in circulation. In 2015, due to a minute’s block time, all the coins got mined. The developers then decided to add another 5 billion coins which are now scheduled for insurance every year.
- Mining Dogecoin- The Dogecoin ecosystem involves diggers. The network nodes help to validate new transactions and then add the blocks. Mining Dogecoin involves less competition than Bitcoin. Pre-mines help developers to build a reserve before the network is made public, however, in the case of Dogecoin, no such pre-mines were made.
How to Buy Dogecoin?
Dogecoin is easily available on famous exchanges, like Kraken (USA), Binance (Australia, Canada, UK, Singapore, and various other parts of the world), and Easy Crypto (Australia, New Zealand, and South Africa). You should always buy Dogecoin from reliable platforms to reduce any security issues and they will also address your queries and concerns if there are any.
How to Store Dogecoin?
There are several ways of storing Dogecoin these days. One of the most popular ways of doing it is by storing it in a crypto wallet. These wallets are easily accessible on all types of smartphones, and you will be able to store all kinds of cryptos using them. Some wallets would also give you the option to trade your coins directly from the wallet. You can also get thorough details of transactions and know the current balance through the wallets. You can opt for the hardware wallet that helps in holding your crypto for the longest time. These wallets would store your crypto offline in cold storage. This secures your cryptocurrencies and makes it tough for hackers to access them. Before choosing a wallet, ensure that it supports Dogecoin.
Dogecoin has shown some incredible growth since its initiation. The journey started as a fun concept, but soon it became a popular cryptocurrency choice due to its amazing features. If you are interested in investing in Dogecoin, you should first do some market research and check out its current status. You would have to constantly update yourself with the happenings of the market if you wish to earn big from Dogecoin.