Everything you need to know about Dogecoin (DOGE)
If you have been following crypto news lately, then you must have heard of Dogecoin (DOGE), the coin with a dog image. Its price rise in the last few weeks has taken everyone by storm.
What is Dogecoin?
Dogecoin is an open source peer-to-peer coin meant for doge lovers, the world popular Shiba Inu dog. Other than being a joke coin, it actually has a real purpose and acts as a digital currency that allows for easy transfer of money online.
What‘s the key selling point of doge?
With bitcoin transaction costs and speeds rising over time, people are looking for cheaper alternatives that can be used to transfer money online. One of the best options available is Dogecoin (DOGE), since it has very low transaction costs as compared to bitcoin and many other cryptocurrencies out there.
How to mine doge coin
Just like bitcoin, Dogecoin uses the proof of work mining algorithm. This means that Dogecoin miners have to verify transactions on a block, for them to get rewarded for it. Like bitcoin, mining doge coin requires a high amount of electricity.
How is Dogecoin different from bitcoin?
So what is the difference between Dogecoin and bitcoin, considering that they have similar mining algorithms? Well, the difference is in the supply. Bitcoin has a finite supply, which means that the mining blocks will over time become so small that no new coins can be created. This is quite different from Dogecoin. The creators of doge coin created a 10,000 doge reward after the 600,000 block. This makes it easier and more viable to mine doge coin in the long run, as compared to mining bitcoin.
Is Dogecoin a worthy investment?
Dogecoin (DOGE) is not the best coin to hold for a long term investor. That’s because there are new and better coins coming up into the market offering higher quality service. On top of that, the Dogecoin community is still stuck on the idea that doge coin is still a joke coin, and that it was never meant to have any major growth. This would explain why a few days ago, its founder was surprised that it had hit a market cap of $2 billion despite not having a software update in 2 years. That alone shows you that Dogecoin is not an investment. In fact, even its recent price rise can be attributed to the overall growth of the cryptomarket. However, if you are a short term trader, you can make a ton load of money with Dogecoin.
Trading Dogecoin today
Dogecoin is a great short term buy right now.
Looking at the weekly chart above, it is quite clear, that Dogecoin (DOGE) is on an uptrend. The bearish red candle from last week was rejected, and failed to clear the out the previous week’s bullish candle. This is a pointer to the coin’s strong upward price momentum that is likely to continue in the next two weeks or so.