Dogecoin

Dogecoin (DOGE), “an open-source, peer-to-peer digital currency,” may have started as a joke, but the cryptocurrency appears to have had the last laugh. With a market capitalization that exploded in 2021, DOGE became one of the biggest — and most infamous — cryptocurrencies. Dogecoin was a fork of LuckyCoin (LKY), which in turn was a fork of Litecoin (LTC), which was itself forked from Bitcoin (BTC). The maiden block on the Dogecoin blockchain was mined in 2013.

Who created Dogecoin? In an attempt to build a fun, friendly alternative to Bitcoin, Dogecoin was co-founded by software engineers Billy Markus and Jackson Palmer, both of whom cashed out of the project in 2015 (though Markus has still accepted DOGE tips). The inspiration for Dogecoin was a 2010 picture of a Shiba Inu that was turned into a meme. The meme’s dog mascot, which became known as “Doge,” caught on like wildfire and uses two-word catchphrases usually leading with a modifier such as “much wow.” Doge was taken on as the mascot of the Dogecoin project.

With its explosive price jump upward in 2021, Dogecoin’s market cap also grew substantially. The popularity of the cryptocurrency and its associated price rally, as reflected in the above Dogecoin chart, has largely been fueled by the endorsement of billionaire entrepreneur Elon Musk, whose bullish tweets helped catapult Dogecoin to stardom. 

How Dogecoin works

DOGE is a coin running on its own proof-of-work (PoW) blockchain, with miners running the network. More specifically, Dogecoin is an auxiliary proof-of-work (AuxPoW) cryptocurrency that has an unlimited supply, with 5 billion DOGE issued into circulation each year. 

Dogecoin has been used to pay for tickets and merchandise for the Dallas Mavericks of the National Basketball Association (NBA). Major League Baseball (MLB) team the Oakland A’s has also accepted Dogecoin as payment for tickets to its ballpark. In addition, DOGE has been directed toward charitable donations, including to the Jamaican national bobsleigh team and also to build wells in Kenya during a water crisis.

Wondering how to get some DOGE, or how to invest in Dogecoin? Dogecoin mining is one way to get a hold of Dogecoin, though you can also buy, sell and trade DOGE.

How to mine Dogecoin

Dogecoin miners have two options: They can either go it alone, which is recommended for megaoperations, or become part of what is known as a mining pool in which multiple miners contribute their hashing power and therefore share in the block rewards.

In 2014, Dogecoin was merge-mined with Litecoin, allowing Litecoin mining pools to also mine DOGE at the same time. Like Litecoin, Dogecoin uses the Scrypt hashing function. Dogecoin’s algorithm is less tricky to mine than Bitcoin’s SHA-256; therefore, blocks are completed much more quickly.

Dogecoin’s average block time is about one minute vs. Bitcoin’s 10-minute block time. The blockchain can see upward of 50,000 DOGE transactions completed per day.

Dogecoin price

Dogecoin fanfare took off in 2021, with high-profile celebrities ranging from Musk (the self-proclaimed “Dogefather”) and Guy Fieri to Mark Cuban and others all jumping on the DOGE bandwagon. 

What is one Dogecoin worth? DOGE’s value constantly changes amid the greater crypto market — a market that trades every day of the year, around the clock. The top of the page includes Dogecoin’s live price (Dogecoin’s current price) in Dogecoin-to-USD (U.S. dollar) format. 

Aside from a few brief periods, such as trading around $0.02 in 2018, DOGE’s price largely traded below the $0.01 price point for much of its existence, according to the DOGE price chart above. The asset shot up in 2021, swiftly reaching $0.74 on May 7. Prices subsequently fell dramatically in the same year, however, dropping under the $0.20 mark at times.

How to buy Dogecoin

Wondering where to buy Dogecoin, or how to buy DOGE? Numerous crypto exchanges host Dogecoin trading. 

One method of picking up some DOGE could involve making an account on a jurisdictionally appropriate crypto exchange, transferring funds to the platform and then purchasing DOGE with that capital.

For a more in-depth dive into buying DOGE, check out Cointelegraph’s guide on the subject, or see a separate guide for selling Dogecoin. It is crucial, however, to research and abide by any applicable jurisdictional laws that may relate to Dogecoin involvement. 

How risky is Dogecoin?

“Should I buy Dogecoin?” “Is Dogecoin a good investment?” “Is Dogecoin safe?” These are all questions prospective DOGE buyers must answer themselves. No one knows the future of Dogecoin with certainty.

The asset has seen dramatic price increases and notable price declines. Parties navigating the world of Dogecoin trading should evaluate their own desires and risk limits, as well as understand the asset (or its charts, or both) and applicable regulations.