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With its ardent and consistent supporters in the meme community and backed by the TECHNOKING of Tesla, Elon Musk, Dogecoin is undoubtedly going to the moon!
Do you also feel perplexed by the whereabouts of the altcoin, Dogecoin, and its origin?
Or do you want to know the procedure for buying Dogecoins?
If your response is Yes, in either case, then stick throughout the blog to get all your queries about Dogecoin cleared.
Initiated by Jackson Palmer and Billy Markus in 2013, Dogecoin was supposed to be a joke and a funny cryptocurrency, used for erratic purposes in a serious domain like the Cryptocurrency world.
But fast forward to the pandemic years 2020-21, the so-called ‘MEME-COIN,’ Dogecoin accumulated a market cap of whopping 40 billion dollars, as of 18/4/21.
Starting from a point where one coin was valued at less than a cent, it has risen as high as 30 cents and is expected to continue its growth.
Due to its rapid growth and popularity in the social media culture, it got ranked recently in the top ten list of digital currencies.
Although the Dogecoin lags way behind the end-all-be-all of the CRYPTOCURRENCY world, BITCOIN’s $1 trillion market cap, its infinite supply would certainly overshadow other Altcoins.
In the last few years, the sudden rise of cryptocurrency, because of several factors, unravels many human behavioural patterns during investments.
It also highlights the power of social platforms like Reddit and Twitter in influencing people to go after anything displayed before them.
Please read the blog further to trace down the history of DOGECOIN, know about the reason behind its surge, and procedure to buy one.
History of dogecoin
Started as a fun Segway from BITCOIN and other heavy Altcoins, Jackson Palmer and Billy Markus developed Dogecoin on 6th December 2013.
In 2013, Billy Markus, a Software Engineer at IBM, teamed up with Jackson Palmer, an Adobe Software Engineer, when the former developed a website named Dogecoin, with an urge to help him in bringing the DOGE crypto to reality.
As discussed above, the digital currency aimed to be non-serious crypto, unlike BITCOIN and wasn’t expected to grow at such a massive scale.
The symbol and name of the digital currency got inspired by another meme that featured a Shiba Inu dog.
The picturization of the Shiba Inu dog, which was already trending back in 2011-13 in the meme culture, helped in the initial progression of the Altcoin.
Also Read, Cryptocurrency – Strong History, Overview and Current News that you need to know in 2021
What exactly are Dogecoin and the reason behind its sudden surge?
It’s an upbeat altcoin, basically originated from the meme community, whose market cap soars up and down over $50 billion at times.
The digital coin drew a substantial online crowd, owing to its sheer absurdity. Since its launch, it has become popular like a mascot.
In 2014, an anonymous community on Reddit donated $50,000 to the Jamaican Bobsled Team, enabling them to participate in the Winter Olympics.
Also, Altcoin has been used to fund the construction of wells in Kenya and solve the water crisis. Isn’t that fantastic?
During its initial phase, the cryptocurrency was used to tip meme creators on diverse platforms, especially Reddit.
Reddit groups specifically created to take its price to one dollar through trading them, played a significant role in the erratic percentage increase in the Crypto-Trading world.
Along with the instances mentioned earlier, ardent support from influential personalities like Elon Musk (majorly), Snoop Dogg & Gene Simmons has maintained the relevancy of DOGE in popular culture.
The surge of more than 70% that increased the price of a DOGE to about 30 cents after a tweet from Elon Musk is evident enough to highlight the social media influence over the random surges.
How do cryptocurrencies work?
Generally, cryptocurrencies enable the transferring of funds from a particular source to anybody including a bank. Any cryptocurrency transaction is registered on a blockchain, which is a massive digital ledger. Thousands of machines, known as nodes, store the database.
Nodes assemble new transaction groups and add them to the blockchain. The transaction groups are known as blocks.
Before getting linked to the blockchain, every block of transactions must undergo verification by all nodes on the network.
People could claim to have more money than they do if nodes didn’t review transactions.
Since block-chains do not have to pay staff like banks, users who validate transactions get rewarded.
A new cryptocurrency is given out as a reward for confirming recent transactions. We name the process of being rewarded with a new currency in exchange for verifying transactions as Mining.
There is a blockchain for each cryptocurrency. Different coins use different methods for mining new money, and additional rewards are provided.
Introduction to Dogecoin Mining
The process of being rewarded with new Altcoins for authenticating transactions on the Dogecoin blockchain is known as DOGE mining. It seems like a cakewalk, right? But No, it’s not that simple.
Mining Dogecoin is similar to playing the lottery. In this case, your node must perform some tasks.
That job includes verifying and reviewing transactions.
Many PCs work on the same block of transactions, but only one receives new coins as a reward.
The node that attaches the new block of transactions to the old block of commerce is the one that receives the new coins. Several mathematical calculations are used to simplify the process.
The first node to solve the mathematical equation wins.
Then the freshly confirmed block of transactions gets attached to the rest of the block-chain.
This is how the majority of cryptocurrency mining takes place.
Dogecoin mining, on the other hand, is distinctive from that of different coins in many ways:
● Algorithm: Each cryptocurrency has its own set of rules for creating a new currency. The process is known as a mining or hashing algorithm.
● Block Time: This is the usual amount of time it takes to pursue and connect a new block of transactions to the blockchain.
● Difficulty: Depending on the number of miners, the ease of mining may increase or decrease. The coin’s rules often fine-tune the complexity to ensure that the block time remains persistent.
● Reward: The sum of new currency awarded to the miner of each new block is called the reward.
What do you need to mine Dogecoin?
Before you jump into an ocean of cryptocurrency, buckle up and consider few things.
● Hardware: To begin, you can use any Windows, Mac OS, or Linux framework. Simple machines are great for testing, but scrambling would require more complex hardware, such as GPUs and ASICs.
● Software: Software can be different depending on your OS and hardware. For example:
1. GPU Mining: Pooler’s CPU Miner
2. EasyMiner is an excellent place to start if you’re new to GPU mining.
3. CGMiner and open-source MultiMiner are two ASIC mining.
You’ll also need a secure wallet to store your Altcoins.
In the case of Dogecoins, online wallets are not recommended; instead, select software or hardware wallets.
One may choose to go ahead with hardware wallets like Ledger Nano S and Trezor Model T to store the coins.
Besides the hardware wallets, software wallets like Coinbase and Coinomi also get preferred for storing Altcoins.
Mining Pools: To get started with mining, one may consider joining mining pools that work on the Scrypt mining principle.
Some of them to initiate the process of mining are listed below:
● Prohashing Mining pools include X11, Equihash, SHA-256, and Scrypt.
● Multipool: Allows Litecoin and Dogecoin to be mined together.
The time needed to generate one Dogecoin
If you choose to mine alone, you risk having to wait a long time for a transaction to be confirmed due to the high level of competition.
It could take weeks to mine your first block.
When you do win, however, you will receive the exclusive prize. You don’t have to share the reward. The total block time of DOGE is only one minute. However, if you are alone, then it might take weeks to mine one block.
But if you are a newbie, it’s better to join pool mine so that you won’t have to wait for long to mine your very first block.
The best method to trade Dogecoins?
Traders may either buy Dogecoin or trade derivatives like CFDs to gain exposure to price fluctuations.DOGE can be traded on the following exchanges:
● Exchanges – Using fiat currency or another cryptocurrency, you can buy or sell the coin.
● Online brokers – Purchase CFDs, futures, or forex contracts from online brokers to bet about whether the cryptocurrency price would rise or fall.
Steps to purchase Dogecoin
- Head to your Dogecoin wallet, be it software or hardware and note down your Dogecoin address.
The address starts with D (in capitals), succeeded by numbers/ capital letters.
- Then, navigate to a Crypto exchange platform, Binance or Coinbase, for instance, and follow the steps accordingly to purchase a cryptocurrency.
Select Dogecoin as the required crypto and fill in the payment details.
Once the transaction gets finished, transfer the purchased coins to your software or hardware DOGE wallet.
Is it safe to store Dogecoin in exchange wallets?
Remember that cryptocurrency exchanges aren’t always safe, and cyber precautions are essential to prevent theft of your digital currency from virtual wallets.
● Facilitate two-factor authentication at all times.
● Holding all of your coins in a single wallet is a bad idea. If you don’t want to swap your cash, don’t leave them in an exchange pocket.
● The easiest way to keep your crypto coins secure is to keep them in a hardware wallet or cold storage.