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Been on the crypto side of Twitter?
Then you might know a thing or two about DOGE (Dogecoin).
However, if you need help understanding what DOGE means, this article is for you.
Let’s hold your hand and walk you through Dogecoin — the cryptocurrency that started as a joke — but later took the world by storm.
You ready? Let’s jump in!
In an ironic twist of fate, what started as a joke by two Aussies in 2013, later became one of the largest and most popular cryptocurrencies.
Wonder how that came about? Then keep reading.
In 2013, Australian developers; Billy Markus and Jackson Palmer sought to create a meme cryptocurrency. They felt that the crypto ecosystem, in general, was taken far too seriously and wasn’t any fun at all.
However, they didn’t expect the coin to be a near-instant success. Markus said, “It went from a silly joke to something worth something to people very quickly.”
The coin gained huge popularity on Reddit, where it was initially used as a tipping currency, and later went viral on TikTok.
But then, what does DOGE mean?
Dogecoin is coined from “doge” and “coin.”
Dogecoin is a peer-to-peer, open-source cryptocurrency that can be used to store value or pay for goods and services. It’s the first widely accepted meme coin named after the popular Doge meme.
Doge refers to a common internet meme with a Shiba Inu dog, with captions written in broken English. This meme became popular in the 2010s and was associated with humour and silliness.
Jokes aside (no pun intended), DOGE has unique systems and processes like any other cryptocurrency. Let’s take a look at some of them.
Just like Bitcoin, Doge has its own blockchain network, which acts as a public ledger, records all Doge transactions, and maintains the security and integrity of the network.
The core idea behind cryptocurrencies, in general, is being decentralized, transparent, and open source.
A Blockchain makes this possible because all transactions of a particular crypto are recorded on the platform and available to anyone.
To validate transactions, the Dogecoin blockchain uses a proof-of-work (PoW) consensus mechanism, where miners (more on that later) compete to solve complex cryptographic puzzles.
Mining is the process through which Dogecoin is created. This is possible through a consensus mechanism, as mentioned earlier.
During the mining process, transactions that have been confirmed are added to the blockchain in the form of blocks. This process tightens the network’s security and prevents fraudulent activities.
The miner is rewarded with new Dogecoins once a transaction is successfully verified (through solving complex cryptographic puzzles). This is how DOGE is created.
Transactions occur when Doge is transferred from one wallet address to another.
An explorer, also known as a block explorer or blockchain explorer, is a tool with which users in the crypto ecosystem can get information from a particular blockchain.
Dogecoin has its blockchain explorer, enabling users to view transaction details and other unique information on the Dogecoin network.
The Dogecoin blockchain explorer allows users to view information like
Dogecoin’s blockchain explorer provides full transparency, allowing users to explore and gather information about the cryptocurrency’s blockchain.
Without a DOGE wallet, you can’t carry out any transactions.
A Dogecoin wallet stores, sends, and receives Dogecoin in the crypto ecosystem. It is a software application you can use to interact with the Dogecoin network.
A Doge wallet usually generates a unique address for each user, which serves as a type of “bank account” to receive Dogecoin.
This address is often a long string of alphanumeric characters. To receive DOGE coins, all you have to do is share this address.
Popular types of wallets include:
As much as Dogecoin is a meme coin, it still has other functions, such as being a digital currency.
Want to start investing in DOGE? Here are some major factors to consider.
Dogecoin’s blockchain is designed to facilitate lightning-fast transactions. The blockchain has low transaction fees and fast confirmation times, which makes it perfect for everyday transactions.
Dogecoin has a solid and active community with a strong social media presence. This strong community is a major perk for investors, who can be reassured that major forces back Doge. For example, Doge has immense support from Elon Musk, one of the most powerful people in the world.
DOGE’s price often experiences significant volatility from time to time, and this presents market opportunities for potential short-term gains.
However, it’s important to exercise caution, as the market can prove speculative and risky. Only trade DOGE as a certified and professional investor, or with the help of one.
While DOGE has gained massive recognition and adoption in the crypto ecosystem, it is yet to be adopted in mainstream industries — compared to other cryptos like Bitcoin and Ethereum.
This limited universal acceptance may reduce the coin’s usability for transactions around the globe.
Cryptocurrency faces a lot of regulatory uncertainty, and DOGE is no exception. This poses a significant threat to investors, as some regulations can make markets go haywire and leave investors stranded.
DOGE’s value is prone to market instability and the forces of demand and supply. These fluctuations can make DOGE volatile and make market gains difficult to predict.
Ready to start buying DOGE? Follow these steps to buy DOGE from any crypto exchange platform you choose.
1. Consider Your Risk Appetite
Before you start investing in DOGE, consider your risk appetite. How much can you invest? How much are you willing to pay, and that doesn’t remove anything from you? Only if you’ve ascertained how much you want to invest, should you proceed.
You can only buy crypto from a crypto exchange platform. Unless, of course, you have friends that sell crypto.
Picked a good crypto exchange platform? Good job.
Now proceed to fund the crypto exchange platform with fiat. The good news is, most crypto exchange platforms come with a fiat wallet, so you can easily transfer money to the platform and buy your preferred cryptocurrency.
After funding your crypto fiat wallet, proceed to buy. Navigate to the market section and search for DOGE. However, if buying directly from the platform, search for the DOGE trading pair instead.
Popular pairs include; DOGE/USDT, DOGE/ETH, DOGE/BTC, etc. You can also convert the fiat in your account into BTC, ETH, USDT, or your preferred opposite pair.
5. Place a Buy Order
This next step only applies if you buy on p2p or directly from the crypto platform.
If so, choose a market order (buying at the current market price) or a limit order (setting your desired price).
6. Store your DOGE
Once your buy order is confirmed, the DOGE will be deposited into the platform’s DOGE wallet. You can leave it on the platform or transfer it to a more secure wallet.
Ready to sell your DOGE for fiat or another cryptocurrency? Follow these steps.
P.S: You can sell DOGE through p2p (peer-to-peer), i.e., within users in the platform, or sell to the crypto exchange itself. If you want to sell on a different platform, first transfer your DOGE to the platform’s DOGE wallet.
Now let’s get into the process.
Choose your preferred crypto platform to sell your DOGE, and move on to the next step.
2. Connect Your Fiat Bank Account
If you aren’t selling for fiat, skip this step.
If you’re selling your DOGE for fiat, you must link a fiat account to the crypto platform. The account is where your fiat will be deposited into. However, if you’re selling through p2p, you can send the buyer your fiat bank account details.
If selling directly to the crypto exchange, navigate to the “market” or “sell section” to sell DOGE for your preferred currency.
Re-confirm the amount of DOGE you want to sell, and review the order details (to avoid stories that touch).
If selling via p2p, navigate to the p2p section.
Once your sell order is confirmed, the fiat will be deposited into either your fiat wallet or your given account details. If deposited in a fiat wallet, you can later withdraw the fiat into your preferred bank account.
Even if you aren’t a Twitter guru, by now, you should know a thing or two about DOGE.
Without a doubt, Dogecoin (DOGE) has emerged as a one-of-a-kind cryptocurrency, capturing the attention of investors and users worldwide.
With solid community engagement and backing from prominent people like Elon Musk, Dogecoin is no ordinary meme coin. It’s got some future potential.
However, investors must understand that Dogecoin’s market volatility and speculative nature make it a potentially risky investment. While its meme ideology and social media presence has propelled its popularity, it’s crucial to approach DOGE investment with caution.
Looking ahead, DOGE’s long-term usability and widespread adoption will depend on its ability to evolve beyond its meme origins.
May the crypto gods be forever kind to you. WAGMI!