Dogecoin is one of the latest cryptocurrencies that has attracted plenty of investors. The project started as a mimic of a meme that had misspelled the word doge while describing a Shiba Inu dog. Its popularity can be attributed to philanthropic acts, thus attracting more traders.
How Dogecoin works
Dogecoin has a similar functionality compared with leading blockchain technologies available in bitcoin and Ethereum. Holders of this cryptocurrency can transact safely because of the decentralized process. The Dogecoin project works by providing proof of work mechanism for any transaction. Investors can earn by holding or selling this cryptocurrency after trading in the blockchain wallets.
Dogecoin exchange is pretty interesting; you can use the tokens to make purchases that facilitate digital currencies transactions. However, holding this currency doesn’t guarantee profits as explained by the unavailable cap on how many Dogecoins can be mined. Speculative investors might shy away because blockchain is unpredictable.
Tips for using Dogecoin
The first thing you should do is get Dogecoin exchange through platforms like Kraken or bitcoin. This transaction is only possible after funding a wallet with euros or dollars. Though you can purchase Dogecoin through online brokers, you should be wary of fraudsters.
Like other digital cryptocurrencies, the next thing is to store your dogecoin tokens in a wallet. Using wallets demands extra caution from all investors. Initially, traders would earn this token by completing tasks instead of purchasing.
Dogecoins have been previously used in the following areas:
- To reward social media users like on Reddit and Twitter for sharing constructive content.
- Philanthropic acts like supporting talents.
- Sponsoring community-based projects like digging wells to aid water supply.
Should you invest in Dogecoin?
Investing in cryptocurrencies comes with a fair share of advantages and disadvantages. Dogecoins seems to be taking over the blockchain market as new tokens are released daily. Holding this currency long-term can be counter-productive.
Dogecoin is profitable when spending it as a currency and not storing it to sell when value accumulates. This digital currency is way cheaper; you can trade for as low as $0.003 for a token. Although this crypto has flourished since its inception, its future isn’t guaranteed. Besides, no one knows how long its philanthropic principle will be embraced.
Dogecoin exchanges
This refers to networks that allow trading. Usually, you cannot acquire Dogecoins without exchanges. There are plenty of such networks, but only a few support dogecoin exchange. Bittrex, Binance, and Bitz are the common doge exchange platforms worth exploring. Luckily, you can acquire doge crypto by completing some of the faucet’s tasks. You can find a quick guide by creating a demo account on kick token to BNB convert
Conclusion
Dogecoin cryptocurrencies are quite popular in the blockchain market. What sets it apart is that it aims to build a community for users to have fun, engage in charity, and understand crypto trading.
