What You Should Know About the Cryptocurrency That Started as a Meme

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Anyone not interested in cryptocurrency might think that in the world of digital currencies there is only Bitcoin and possibly a handful of other currencies. In fact, however, there are thousands of different cryptocurrencies out there, Dogecoin is just one of them.

Dogecoin first caught people’s attention when it hit the market as a joke, inspired by a popular meme of a dog that was making the rounds at the time. However, since then it has grown into a popular and successful digital token. Although the value of the cryptocurrency is constantly changing, it is widely regarded as the sixth most valuable cryptocurrency – an increase in value of more than 1400% at its peak, according to the records of CoinMarketCap.

If you are considering investing in any type of digital currency, including Dogecoin, it is important to do as much research as possible and make sure you know everything to make an informed decision about which type of investment is right for you.

With all the hype surrounding Dogecoin, you might be wondering: is it too late to buy Dogecoin? To make life a little easier, here are some things about Dogecoin that you should know before considering investing.

What exactly is Dogecoin?

Software engineers Billy Marcus and Jackson Palmer developed Dogecoin in 2013. The idea behind it was to make fun of bitcoin and other cryptocurrencies that were really getting popular at the time.

The digital currency shows the dog “Shiba Inu” – a viral meme that was popular around the same time – all meant as a joke. Billy Marcus has spoken about the joke meme in several interviews and admitted that it was created in just a few hours without really serious thought. Nobody could have predicted that it would still be popular 8 years later, especially Marcus who sold all of his holdings in 2015.

Is Elon Musk involved in Dogecoin?

Elon Musk is generally reluctant to talk about his own financial activities and investments, and Dogecoin is certainly no exception. While he has never admitted to having one, most people are sure he has a legitimate interest. As early as the spring of 2019, he tweeted about the coin and declared it his favorite cryptocurrency.

He tweets about other digital currencies, recently he sent a tweet about Floki that made the value of the cryptocurrency skyrocket overnight. However, Dogecoin is one that he has mentioned several times, which leads people to believe that he is interested in this cryptocurrency as well.

Is it different from Bitcoin?

Although they are both considered cryptocurrency, each type of digital currency is different. Because of this, some people invest in Dogecoin and others think Bitcoin is more appropriate. The biggest difference between Bitcoin and Dogecoin is that there are unlimited amounts of the meme-inspired currency, while Bitcoin is capped at 21 million.

Experts say this means the two currencies will behave differently, with Bitcoin behaving more like other assets like gold, which also have limited supply. Since Dogecoin doesn’t have such a cap, it means it could behave differently and possibly more unpredictably.

When Marcus talked about creating the coin, he talked about wanting to create a cryptocurrency that would allow for faster transactions.

How much is Dogecoin worth?

The exact value of Dogecoin is constantly changing, much like any other cryptocurrency out there.

In general, it is worth what someone is willing to pay for it, but the value goes up and down depending on how popular it is and if there is any news about the advertised currency, etc.

Currently, there aren’t many companies that accept Dogecoin as a form of payment, so its value is entirely determined by market activity.

Can i buy Dogecoin?

While buying cryptocurrency isn’t generally difficult, it can be a little more complicated to buy digital currencies like Dogecoin, which aren’t listed as often in places like Bitcoin and Ethereum.

However, that doesn’t mean you should be put off, buying it shouldn’t be stressful at all. Just look for a trading app that lets you buy, sell and trade DOGE and you’re good to go. There are also some coin apps that allow you to pay for Dogecoin with other cryptocurrencies – so if you already own Ethereum, for example, you can use this as a payment method for Dogecoin.

Should I buy Dogecoin?

It is very difficult to predict when the demand for cryptocurrency will decline. However, some analysts say that digital currency is on the rise in general and so it is definitely not too late to buy.

As with any other financial investment you may want to make, it is important to do your own research and make sure you know what you are getting yourself into. There are many people who have done well investing in digital currencies like Dogecoin, but this is never guaranteed as there are people who have lost money too.

The general rule of any investment of this type is never to invest more than you can afford to lose. If you are looking to invest, make sure you are using an app that will allow you to track the value of your investment and keep an eye on all industry news related to your chosen cryptocurrency so that you are in the best possible position to be sensible and timely decisions when it comes to your investment.

source https://www.bisayanews.com/2021/09/27/what-you-should-know-about-the-cryptocurrency-that-started-as-a-meme/