What is Dogecoin (DOGE)?

Dogecoin (DOGE) is an open-source peer-to-peer digital currency that was created in 2013 by two software engineers to make fun of the cryptocurrency hype. Based on the famous Doge meme, Dogecoin has since grown into a friendly community and become one of the most popular cryptocurrencies on the market, endorsed by celebrities like Elon Musk.

• Dogecoin is a fork of Litecoin, which itself is a fork of Bitcoin.

• Dogecoin is a coin, not a token, and is hosted on its own blockchain.

• On its website, Dogecoin refers to itself as “the people’s cryptocurrency.”

• Dogecoin’s total value topped $80 billion in 2021. 

• The Dogecoin price reached its all-time high on May 8, 2021 at €0.73 and its all-time low on May 7, 2015 at €0.00008.

What is Dogecoin?

Dogecoin (DOGE) is an open-source peer-to-peer digital cryptocurrency that was created by software engineers Jackson Palmer and Billy Markus (aka Shibetoshi Nakamoto) in December 2013. It was created as a fork of Litecoin, which is itself a fork of Bitcoin. 

Based on the famous Doge meme, Dogecoin has since become one of the most popular cryptocurrencies on the market, with a total value that topped $80 billion in 2021. There are already many real-life use cases for Dogecoin, including as a payment method for online services and in stores.

The makers of Dogecoin pride themselves on its community and its appeal to a broad audience. They also count having fun and being kind among their core values, with the unofficial tagline of the crypto being Do Only Good Everyday (DOGE). 

How does Dogecoin work?

Dogecoin is often compared to Bitcoin because of its quick rise in popularity, its prominence in popular culture and its endorsement by celebrities like Elon Musk. One major difference between the two is that Dogecoin’s supply doesn’t have a cap and is therefore unlimited, whereas Bitcoin’s supply is capped at 21 million bitcoins. 

Dogecoin is also often compared to Shiba Inu (SHIB), another “memecoin” based on the Doge meme. SHIB is considered to be an alternative to Dogecoin and although the two cryptos have many things in common, they do differ on one key point: SHIB doesn’t have its own blockchain and instead runs on Ethereum, meaning it is an ERC20 token. DOGE, on the other hand, runs on its own blockchain, making it a coin. The consensus mechanism employed by the Dogecoin blockchain is Proof of Work - a consensus algorithm strongly associated with being energy-intensive and generating significant CO2 emissions.

How to buy DOGE?

You can buy Dogecoin through cryptocurrency exchanges like Bitpanda using fiat currencies, e.g. euros or U.S. dollars. It’s a good idea first to get familiar with the DOGE price history and the current exchange rate. Once purchased, your Dogecoin investment can be viewed and accessed in a digital wallet similar to a banking app. You then have the option to hold on to your DOGE or sell it again via the exchange. 

DOGE price history

Like other cryptocurrencies, Dogecoin is considered a highly volatile asset. Its price has fluctuated through highs and lows throughout its existence, and there’s no way to make a guaranteed DOGE price prediction. As always, it’s important to do your own research before investing in crypto.

Dogecoin experienced price surges of up to 300% within the first weeks of trading in 2013. Between 2017 and 2022, the price of DOGE hovered around the €0.003 and €0.001 marks. Like many other cryptocurrencies, DOGE had some setbacks between 2018 and 2019. Currently DOGE is trading at an average daily high of €0.09401 and an average daily low of €0.091119.

How to use Dogecoin?

Dogecoin is already being accepted as a valid payment method for online services and in some select stores, including by household brand names: Gucci recently started to accept crypto payments in selected US stores, AMC Entertainment announced its decision to embrace Dogecoin and Shiba Inu, as well as Chipotle, Shopify, Balenciaga and many more. After some back and forth, Tesla also decided to allow payments in DOGE on certain products, and SpaceX might soon follow.