If you’ve been following all of the thrill round the amazing stock run and collapse of GameStop (GME), you’ve probably seen some related media coverage coming from Elon Musk.
But Musk didn’t have just an interest in GME. He’s also curious about Dogecoin (DOGE). And thanks in large part to Musk’s tweets, Dogecoin has recently been enjoying a huge run-up of its own.
But what exactly is Dogecoin? and can it flame out a bit like GME? during this article, we plan to break down what Dogecoin is all about.
What Is Dogecoin?
Dogecoin (pronounced dOj-coin) may be a cryptocurrency that was started as a joke in 2013. Its name comes from a Shiba Inu dog meme from back in 2012/2013.
During the summer of 2020, a viral TicToc video tried to psych up DOGE. The video author said if everyone deposited $25, Dogecoin would reach $1, making each $25 investment worth $10,000.
The video was a classic pump and dump. Dogecoin hasn’t gotten anywhere near $1. If it did, DOGE would have had a market cap worth quite Bitcoin.
So, where is Dogecoin’s price now? consistent with CoinGecko.com, it’s currently worth about $.07 and features a market cap of $10,383,370,714. as compared , Bitcoin features a market cap of $832,167,825,180, or over 80X that of DOGE.
Dogecoin hit a high of $0.0175 in January 2018. It then fell below $0.01, where it remained until January 27, 2021, when it started its massive rise to $0.07 subsequent day. It went on to hit $0.08 on February 8.
Where am i able to Buy Dogecoin?
Unfortunately, Dogecoin isn’t as widely available as other coins like Bitcoin, Litecoin, or Ethereum. Traders could also be disappointed to seek out that a lot of popular cryptocurrency exchanges like Coinbase, Gemini, and BlockFi don’t currently support DOGE.
A few exchanges do offer Dogecoin, though, like Robinhood, Kraken, and Crypto.com. If you do not have already got a crypto wallet, you would possibly want to urge that first. A wallet allows you to store your crypto securely and obtain it off of an exchange. Exchanges are prime hacking targets, so there’s good reason to store your crypto yourself. you furthermore may have full control over your crypto when it’s in your wallet.
Crypto wallets typically integrate into browsers or mobile apps. Wallets also accompany a password which you’ll be wanting to stay during a safe place and not forget. Hardware wallets, which cost between $70-$100, also are an option. But unless you’re buying many crypto, you almost certainly don’t need one yet.
How Do I Buy It?
Once you’re logged into an exchange, you’ll presumably have three payment methods for purchasing Dogecoin (or the other cryptocurrency):
Credit card — this is often the simplest and fastest method for purchasing crypto but also the foremost expensive. Fees can range from slightly below 2% up to three , plus a flat fee.
Bank transfer — this is often the slowest method and may take 2-3 days to finish . — Most exchanges offer direct access to the exchange.
Cryptocurrency — With this feature , you trade cryptocurrency that you simply own with another crypto trader who owns DOGE. Fees are typically lower once you go this route, often coming in at but 1%. However, direct trading are often a touch more complex and should be intimidating for beginners.
Once you’ve purchased Dogecoin, you’ll move it from the exchange to your wallet. Simply supply your wallet address to urge your coins out of the exchange.
Related: Getting Started With Crypto: Our Interview With Crypto 101
What’s the longer term Of Dogecoin?
There’s still tons of stories hype around Dogecoin, which helps to approach its price. Elon Musk has been getting into on the action also . He started tweeting about Dogecoin at the top of last year and hasn’t stopped.
Dogecoin has been during a consistent uptrend. But, as long as the coin doesn’t seem to possess any practical use, it’s hard to see it having an enduring future. Unlike another cryptocurrencies, there’s no cap on Dogecoin. Currently, there are 128 billion Dogecoins in circulation.
Musk has tweeted his support for the coin again, again, and again. And as long as he keeps doing so, people are likely to stay buying it. But while following social media hype are often a sensible short-term trading strategy, it doesn’t necessarily mean that DOGE are going to be a successful coin over the long-term.
Like most cryptocurrencies, Dogecoin is extremely volatile. DOGE is for people who are willing to require a big gamble that the hype will keep driving the worth higher, a minimum of within the short-term. But, at now , we wouldn’t really call it an investment because it could come crashing backtrack any day.