Dogecoin, a digital currency created as a joke and now it has been the world’s 5th ranking cryptocurrency. In recent day it’s price is up by more than 1,600 percent so far this year.

Everyone has been talking about What is doge Coin?. In this article we are going to know about the new Crypto world “DOGE”.

What is Dogecoin?

DOGE is based on Luckycoin (LKY), which is based on Litecoin (LTC)‘s blockchain ledger. By virtue of its lovable mascot (the Shiba Inu “doge” meme), Dogecoin was designed to be a more approachable cryptocurrency than Bitcoin. Based on the “Doge” meme and started as a “fun” alternative to Bitcoin, Dogecoin’s value has risen phenomenally now valued at $51+ billion.

The Ride of Doge

Dogecoin seems to be riding the wave.

• Dogecoin found further acceptance when cryptocurrency ATM provider CoinFlip made the digital currency available for purchase at 1,800 ATMs across 46 states in the US.
• Another reason behind its current success is said to be a Reddit group called SatoshiStreetBets, where members built up an enthusiasm for the cryptocurrency in a manner similar that led to the rise of GameStop earlier in the year 2021. The group’s name refers to Satoshi Nakamoto, the screen name of the person or group of persons behind Bitcoin.

Over the last few years, Dogecoin has really become a kind of cryptocurrency fueled by online communities and support from internet personalities.

Elon Musk behind Dogecoin ride

The cryptocurrency, which was conceived as a joke in 2013, rose because of the tweets from Elon Musk.

Musk had said during a Clubhouse session that “Dogecoin was made as a joke to make fun of cryptocurrencies, but fate loves irony.” He added, “The most ironic outcome would be that Dogecoin becomes the currency of Earth in the future.”

Billionaire Musk has been a staunch supporter of the meme cryptocurrency and frequently tweets about it. Recently He tweeted that he planned to take Doge to “the moon” on a SpaceX rocket in 2022. The “DOGE-1 Mission to the Moon” is in collaboration with a Canadian company, Geometric Energy Corporation.

How can I buy it?

Just like any other cryptocurrencies, Dogecoin can be purchased through any cryptocurrency wallet or online trading platform. There is also a dedicated Dogecoin wallet that can be accessed through a smartphone or a desktop. You can trade this currency in any online CFD trading Platforms providing dogecoin.

How To Manage Your Dogecoin

To manage your Dogecoin or any other cryptocurrency, you must learn how to navigate exchanges and keep your computer secure.

• You will need to take extra precautions to protect yourself against phishing scams, viruses, and other risks. You will also need to keep very careful track of your wallet’s access codes. If you misplace those then your DOGE coin will be trapped in a wallet you can no longer access.
• On top of this, there are risks that you have no control over. Whenever you use an exchange you are relying on it to protect your DOGE. The problem is that they sometimes fail to do this properly.

Are Exchange Wallets Safe To Store Dogecoin?

Keep in mind that cryptocurrency exchanges are not automatically safe and you will need to be serious about your security.

• Always enable two-factor authentication.
• Avoid keeping all of your coins in a single wallet.
• Don’t leave your coins in an exchange wallet unless you are planning to exchange them.
• If you don’t have the keys to your wallet then you don’t own the coins inside it.
• The best way to secure your Dogecoin may be in a hardware wallet or by putting them in cold storage.

Reasons to Trade Dogecoin

Here are some reasons that traders choose to trade Dogecoin:

• Inflationary supply dynamic
• An engaged user base
• Significant price fluctuation offers day trading opportunities.
• Inflationary supply dynamic – Unlike Bitcoin, Litecoin, and many other cryptocurrencies, Dogecoin is an inflationary currency. It means that there is no maximum limit to the number of coins in circulation.
  It may seem counterintuitive to call inflation a good thing since it devalues individual Dogecoins. However, its inflationary nature is a feature that may ensure Dogecoin’s survival.
• An engaged user base – Many believe Dogecoin has one of the best crypto communities out there: approachable, friendly, and helpful. Dogecoin is a transactional currency, rather than a speculative asset or mere store of value. From a trading point of view, even though Dogecoin might not have cutting-edge technology behind it, it is being treated as a proper currency by many users. It has utility.
• Significant price fluctuation offers day trading opportunities – This is excellent for liquidity and makes it easy to obtain coins.

Reasons Not to Trade Dogecoin

While there are upsides to this unique crypto, there are always risks to consider when trading any cryptocurrency:

1. Update lag

Dogecoin has not seen a major update since 2015. While the security behind the coin is still strong, a lack of updates could well leave the cryptocurrency behind as newer coins bring new features to the table.

2. Uncapped maximum supply levels.

Being an inflationary coin encourages users to spend Dogecoin, rather than see the value of their coins fall over time. But this limits its utility as a long term store of value, versus something like Bitcoin or even traditional assets, like gold.

Final Thoughts

Bitcoin and Dogecoin look almost exactly the same. Their code differs in only a few parameters. But their economic functions are almost entirely opposite.

Bitcoin is a kind of “digital gold” adopted as a secure hedge against political and economic uncertainty. Dogecoin, on the other hand, is a meme people add to their digital wallet because they think it’s funny. But in an open digital economy, memes move markets.