Cryptocurrencies could be the next step in the way we do business with each other. Bitcoin, for instance, was first released not that long ago, and it is still causing a lot of commotion. And since its debut, many other cryptocurrencies have been released as well. One of the most commonly used is Dogecoin, an altcoin that might make it to the very top in the following few years.
There is actually a pretty funny story behind the development of Dogecoin.
In 2013, the company behind it introduced a new cryptocurrency saying it is a “joke currency”. In accordance with that, that named their coins after a dog from one of the internet memes circulating at the time. Despite all this, or maybe because of it, Dogecoin soon earned $60 million. Sounds like a lot of money for a joke currency, right? Well, maybe it really isn’t.
But what is Dogecoin really?
Just like any other cryptocurrency, it is a way of making financial transactions without involving any of the institutions in the process.
In other words, it is a payment method for which you don’t need to use bank services. This has plenty of pretty obvious advantages, one of the most important one being the fact that you don’t have to spend your assets on paying fees. Also, you can remain anonymous when you want to, since you don’t need to provide an institution with your info every time you want to make a transaction.
Dogecoin allows you to do all that, but it can also be a great way to start accumulating profit. Just like with every other currency, you can invest it and if all goes well, sell it for a higher price later on.
But how do you get Dogecoins in the first place?
One of the ways to get your hands on a cryptocurrency is mining.
Not all altcoins can be mined – Ripple, for example, doesn’t allow it. Fortunately, Dogecoin is not among those.
There’s not that much to the process of mining, actually.
You need to make an investment in the form of specialized hardware and software, but other than that, your computer does all the work. Running the program that allows you to mine for Dogecoin is your way of communicating with the Dogecoin network. Basically, by running the program, you provide the network with a certain amount of power. In return, and according to the amount of power you put into the process, you get your Dogecoins.
To see how mining for Dogecoin differs from mining for other cryptocurrencies, we are going to make a quick comparison to Litecoin. While Litecoin’s block time is 2.5 minutes, Dogecoin boasts a lower number – only one minute.
Also, Litecoin has a limited number of coins, while Dogecoin quickly changed that into a system in which a fixed reward is always received by the users. Determining which altcoin is better, however, will take answering some more questions.
If you are contemplating buying Dogecoins, you will be glad to hear that the process is actually very simple.
In order to get your first batch, visit the official site first.
There you will be able to download a Dogecoin wallet. Don’t worry, this is completely free of charge, as with most other wallets of this type. After this, it gets a bit tricky, but you will get the hang of it pretty quickly.
Since there are no safe exchange sites or brokerage platforms that deal in Dogecoins, you will first need to get your hands on some Bitcoins or Litecoins. You can use CoinBase, for instance.
Register for an account and deposit the amount with which you will be buying the cryptocurrency (CoinBase give you $10 free after buying $100).
Next, use your Bitcoins or Litecoins to buy Dogecoins. This will be simple, since there are plenty of people who have them and use them to trade.
There are even sites that specialize in exchanging cryptocurrencies. One of the best is certainly Poloniex or Bitstamp. But there might be an even simpler way to go about doing all this. In the following paragraph, we will tell you how you could get your hands on Dogecoins completely free of charge!
Buying Dogecoins isn’t the only way to go. That is one of the many reasons why cryptocurrencies are simply awesome. When you type “free Dogecoin” into your browser, you get a whole list of sites and individuals giving away massive amounts of their altcoins. It might sound too good to be true, but it actually makes sense. Cryptocurrencies will need to win over a lot of people in order to substitute regular money, and the best way to do that is to simply provide them with a starter kit of sorts.
Here is out updated list of Dogecoin faucet, to earn for free!
Anyway, the fact that you can get your Dogecoins for free is very good news, but it doesn’t really help you if you don’t know how it actually works.
First of all, you need to start frequenting forums for altcoin enthusiasts. Sites giving away free Dogecoins will post there before they get to any other group of people. Check for updates regularly, since otherwise their offers might come and go. And once they post, make sure to do what they ask right away or risk missing the opportunity.
We have already said that Dogecoin’s value skyrocketed during the first year after the launch.
But that is not all – from $60 million in 2014, they went to $340 million in 2017. Three years for such capital growth is a really short time.
How to invest in Dogecoin? Firstly you need to open a trading account with a broker which is authorized to operate in your country (here is our lists of authorized brokers: Australia, Canada, India, New Zealand, UK, USA).
After having opened the account you can make the first deposit (some brokers will also offer you an initial bonus). Once done you can start trading.
Investing in Dogecoin can be a good alternative to diversify your cryptocurrency portfolio and the very low price makes it really affordable for everyone.
And although that is not the whole point, it nevertheless seems safe to conclude that even a cryptocurrency that started as a joke can be a real contender for the next Bitcoin. So if you get the chance to invest in Dogecoin, we recommend you to go for it!