Chris White As of 2024, the surge in startup activities is more palpable than ever, particularly those focusing on digital currencies. Amid this boom, one name that consistently pops up is Dogecoin. Originally started as a joke, Dogecoin is currently amongst the top 20 cryptocurrencies by market cap. In this article, let’s explore what Dogecoin is, and we’ll guide you through buying your very own DOGE this year.
What is Dogecoin?
Dogecoin was created in December 2013 by two software engineers, Billy Markus from Portland, Oregon, and Jackson Palmer from Sydney, Australia. The idea for Dogecoin began almost as a joke. Jackson Palmer initially tweeted about investing in a fictional “Dogecoin” — poking fun at the rising number of cryptocurrencies at the time. The tweet caught the attention of Billy Markus, who reached out to Palmer about making Dogecoin a reality.
Markus and Palmer wanted to create a cryptocurrency that was more fun and less intimidating than Bitcoin. They hoped that this approach would help demystify the technology behind cryptocurrencies for the general public. The choice of the Doge meme, which features the iconic Shiba Inu and broken English written in colorful Comic Sans MS text, was in line with their vision of a lighthearted cryptocurrency.
Launch and Early Days
Dogecoin was officially launched on December 6, 2013. Unlike Bitcoin, which is designed to be scarce and deflationary, Dogecoin was created with a very high initial coin production schedule—100 billion coins were to be mined by 2014, with an additional 5.2 billion coins to be produced every year thereafter. This setup made Dogecoin inflationary, as its supply would increase continually.
Dogecoin caught on quickly with a vibrant and enthusiastic community. The Dogecoin community, known for its friendly and welcoming ethos, began using the currency to tip users on the internet who created or shared great content.
How DogeCoin Became the Top Meme Coin
Over the years, Dogecoin continued to grow, albeit with much volatility. Its price saw significant increases and decreases, often influenced by external factors like celebrity endorsements or broader crypto market trends. In 2021, Dogecoin gained unprecedented mainstream attention when figures like Elon Musk and Snoop Dogg tweeted about it, causing the price to surge to all-time highs.
Despite its beginnings as a joke, Dogecoin has become a staple in the crypto world. It’s been used in more serious contexts as well, including being a popular means for tipping and small transactions online due to its low transaction fees and fast confirmation times.
How to Buy Dogecoin in 2024
Today, in 2024, purchasing Dogecoin (DOGE) is easy. Here’s a comprehensive guide to help you buy your first Dogecoins.
Step 1: Choose a Digital Wallet
Firstly, you need a digital wallet to store your Dogecoin. Crypto Wallets come in various forms, each offering different levels of security and convenience:
- Software Wallets: These are applications you install on your device. They are convenient for regular use but less secure against online threats since they store your private keys on an internet-connected device. Examples include Trust Wallet and the official Dogecoin Wallet.
- Hardware Wallets: For those planning to hold DOGE as a long-term investment, hardware wallets provide the best security. These devices store your private keys offline, away from internet threats. Top choices include Ledger Nano X and Trezor Model T.
- Mobile Wallets: These are apps on your smartphone. They are handy for daily transactions and are generally secure. However, the security level also depends on the overall security of your mobile device.
Step 2: Find a Reliable Cryptocurrency Exchange
Buying Dogecoin will most likely happen on a cryptocurrency exchange. There are many to choose from, each with its strengths:
- Binance: Known for its low fees and wide variety of cryptocurrencies available.
- Coinbase: Highly user-friendly and ideal for beginners; however, fees can be higher.
- Kraken: Praised for its security measures and low fees, suitable for both beginners and experienced users.
Ensure the exchange you choose supports Dogecoin and check their security features, user reviews, and fee structures.
Step 3: Register and Verify Your Account
To use any reputable exchange, you will need to create an account and verify your identity. This process is crucial for ensuring the security of your transactions and compliance with regulatory requirements:
- Submit identification documents, such as a passport or driver’s license.
- Provide proof of address through a utility bill or bank statement.
- Complete any additional verification steps required by the exchange, which may include answering security questions or providing a selfie.
Step 4: Deposit Funds
Once verified, you will need to deposit funds into your exchange account. This can be done via several methods:
- Bank Transfers: Usually the cheapest option but can take longer to process.
- Credit and Debit Cards: Provide instant deposits but often come with higher fees.
- E-Wallets: Platforms like PayPal might be accepted on some exchanges and offer a balance of speed and cost.
Step 5: Purchase Dogecoin
With funds in your account, you are ready to buy Dogecoin:
- Market Orders: Buy DOGE instantly at the current market price.
- Limit Orders: Set a price at which you want to buy DOGE, and the exchange will execute your order when the market hits that price.
Consider the fees associated with each type of order and the potential waiting times for limit orders to fill.
Step 6: Transfer Dogecoin to Your Wallet
After purchasing, it’s wise not to leave your Dogecoin on the exchange. Transferring DOGE to your wallet enhances security:
- Initiate a withdrawal from the exchange to your wallet address.
- Be mindful of withdrawal fees and minimum withdrawal amounts.
- Verify the transaction details thoroughly to avoid sending your DOGE to the wrong address.
Why Many People Love Buying Dogecoin
Yes! Dogecoin is the favourite of many. People have also made a fortune investing in Dogecoin. Here’s what makes it popular amongst crypto investors and enthusiasts:
Strong Community and Cultural Presence
Dogecoin has one of the most active and welcoming communities in the cryptocurrency world. This community not only promotes Dogecoin on various social media platforms but also engages in charitable activities and fundraisers, which builds a positive image and attracts more users who want to be part of a ‘fun’ community. The involvement of high-profile figures like Elon Musk, who has tweeted support for Dogecoin, has also boosted its popularity. In 2021, Musk’s tweets were often followed by sharp increases in Dogecoin’s price, highlighting the impact of celebrity endorsements on crypto preferences.
Low Transaction Costs
Compared to many cryptocurrencies, Dogecoin offers relatively low transaction fees. As of mid-2024, the average transaction fee for Dogecoin remains below one cent, which is appealing for those looking to use cryptocurrency for small, everyday transactions rather than merely as an investment.
Fast Transaction Times
Dogecoin boasts a quick block time of around one minute, making transactions faster compared to Bitcoin’s ten-minute block time. This efficiency is ideal for users who prioritize speed, especially for small and casual transactions.
Simplicity and Accessibility
The entry barrier for Dogecoin is quite low. It’s available on numerous major exchanges and can be stored in various types of wallets that support it. This accessibility makes Dogecoin a popular choice among newcomers to the cryptocurrency space.
Why Many Don’t Prefer Dogecoin
Not everyone is a fan of Dogecoin. Many consider it a high risk investment with not much practical utility. Here are a few reasons why Dogecoin is not for everyone.
Lack of Seriousness and Technical Advancement
Initially started as a joke, Dogecoin lacks the more serious technological ambition and utility that cryptocurrencies like Ethereum or Bitcoin have, which serve broader purposes beyond just being a digital currency. Ethereum, for example, executes smart contracts and runs decentralized applications (dApps). Dogecoin’s primary use case remains limited to transactions and tips, which can be a turn-off for more serious investors looking for innovation and utility in their crypto holdings.
High Volatility and Speculative Nature
Despite its low transaction fees and strong community, Dogecoin is highly volatile. This volatility is often driven by social media and influencer endorsements rather than underlying technological advancements or adoption in the financial ecosystem. Such volatility can deter investors who prefer stability and predictability in their investments.
Inflationary Supply
Unlike Bitcoin, which has a capped supply, Dogecoin has no maximum supply limit; about 10,000 new coins are mined every minute. This continuous increase in supply can lead to inflationary pressure, potentially decreasing the coin’s value over time, making it less attractive as a long-term investment.
Perception Issues
The whimsical origin and branding of Dogecoin can lead to challenges in being taken seriously by traditional investors and institutions. This perception affects its adoption as a payment method by major businesses and retailers, limiting its utility compared to other cryptocurrencies.
Common Questions People Ask When Buying Dogecoins
Here are five common questions people ask when considering purchasing Dogecoin:
1. Is Dogecoin a Good Investment?
Dogecoin has been a volatile but sometimes rewarding investment. Its value has seen significant fluctuations, often influenced by social media and celebrity endorsements rather than its technical fundamentals. While some have made substantial profits from timely investments in Dogecoin, it should be treated as a high-risk asset. Potential investors should consider their risk tolerance and investment timeline, and think of Dogecoin as part of a diversified portfolio.
2. How Can I Safely Buy Dogecoin?
To buy Dogecoin safely, use reputable cryptocurrency exchanges such as Binance, Coinbase, or Kraken. Ensure that the exchange adheres to regulatory standards and offers robust security measures like two-factor authentication (2FA). It’s essential to secure your account with a strong password and never share your login credentials or private keys. After purchasing, transfer your Dogecoin to a secure wallet, preferably a hardware wallet if you’re holding a significant amount.
3. What Are the Transaction Fees for Buying Dogecoin?
Transaction fees for buying Dogecoin vary depending on the exchange and the method of payment used. Generally, fees can range from as low as 0.1% to over 3% per transaction. Bank transfers usually offer the lowest fees, while credit card purchases tend to be higher. Additionally, trading fees can vary based on your trading volume and the exchange’s fee structure. Always check the specific fees on the exchange before finalizing a transaction.
4. Can Dogecoin Be Used for Everyday Transactions?
Yes, Dogecoin can be used for everyday transactions. It is known for its low transaction fees and fast confirmation times, making it suitable for smaller, routine transactions such as tipping content creators online or participating in community fundraising activities. However, it’s essential to note that while Dogecoin’s transaction capabilities are robust, its acceptance is not as widespread as major currencies like Bitcoin or Ethereum, especially among larger retailers.
5. How Do I Store Dogecoin After Purchasing It?
After purchasing Dogecoin, it is crucial to store it securely. You can choose between several types of wallets:
- Software Wallets: These are applications you can download to your computer or smartphone. They are convenient but less secure than hardware wallets.
- Hardware Wallets: These devices store your crypto offline, providing increased security by protecting your funds from online hacking attempts. Examples include the Ledger Nano X and Trezor.
- Paper Wallets: For those looking for a non-digital option, paper wallets are a secure method of storing Dogecoin offline. Just print your public and private keys on a piece of paper, but ensure it is kept safe from physical damage or loss.
Each type of wallet offers different levels of security and convenience, so choose based on how much you plan to store and how frequently you plan to access your DOGE.
