Just a couple of years earlier, the financial sector was completely separate from the rest of the world. People in finance, stocks, and investment were majorly exclusive and only a small portion of the novices expressed any interest to join this sector. Even if they wanted to play a role by making investments, they usually did it via brokers or hiring an expert. Not many newbies were willing to dip their feet into a sector that took so long to understand. This could be because not many deemed this sector to be ‘worth it’. Times have drastically changed in the mere last couple of years – all due to the advent of cryptocurrencies. This word would be the reason for the bridged gap between the financial experts and the rest of the world. Now, not only the people in the sector but also the ones in any field, some even as young as teenagers, have heard and have been fascinated by cryptocurrencies.
The role of social media – A huge credit to the fast-spreading interest in cryptos could be given to social media. Whether it is to fit in or genuine interest, the traction that cryptocurrencies have gained only in 2020 broke all records. Of course, it has seen a rise ever since then. Social media sites like Twitter, Reddit, and Instagram have played a huge role in educating people about different cryptos. One of the currencies that owes all its popularity to social media, and of course, Elon Musk, would be Dogecoin. Mr. Musk’s tweets were a large reason for the skyrocketing rise in the Dogecoin price. Originally created as a light-hearted joke based on the image of the dog, it took its name from a popular meme. However, it exponentially rose from simply being a memecoin to the 5th largest crypto in the market cap in 2021.
About Dogecoin – Created by a couple of software engineers in 2013, using a popular meme that purposely misspelled the word ‘dog’ to ‘doge’ to describe the Shiba Inu, it was created to make fun of Bitcoin. Today, however, the value of Dogecoin has evolved from being much more than a meme or a joke having exploded in terms of its market value. DOGE saw a gain of more than 5000% only in 2021. Among the major propagators of this coin was the CEO of Tesla, Elon Musk who tweeted about Dogecoin being his favorite cryptocurrency. Like other cryptos, Dogecoin also runs on the system of a blockchain that stores all the transactions using a decentralized currency.
Dogecoin mining – Firstly, it is important to note that the blockchain network uses complex cryptography to ensure the safety of all transactions made using Dogecoin. The method by which newer coins are made available in the market is called mining. The ‘miners’ use computers with complex hardware and software programs to solve high-level mathematical equations. Upon processing these transactions, the miners are rewarded with Dogecoins that they can buy, sell, or hold. Theoretically, there is no limit to the supply of Dogecoin, this may act as a boon or a bane concerning the prices. However, in India, the value of DOGE to INR depends on many more things apart from mining and availability such as market trends, backing from industrial titans, any significant event about the economy, etc.
Advantages of buying Dogecoin – Being one of the largest cryptocurrencies in the market, it has created a mass appeal among its investors. Among the several hundred currencies that exist in the market, Doge is considered to be comparatively more accessible and even pocket-friendly. There are several advantages to buying DOGE:
- It has a growing appeal – The increase in supporters and holders of Dogecoin has caused a stir in the market and people are running to grab the opportunity of purchasing this coin at the earliest. This growing use has also put it in contention for a suitable medium of exchange and integration into the mainstream economy. This is also due to the support by Tesla. The promotion of this coin is also expanded to social media and it is becoming an easy favorite.
- Compatibility with decentralized exchanges – This crypto is fluid in terms of being easily traded on different decentralized exchange platforms.
- Easy transactions – Several benefits that one can reap via DOGE resemble bitcoins. The coding is also quite similar to BTC that enables a secure and easy transaction. Additionally, the active community that is involved in the trading of DOGE ensures the constant upheaval in the market.
- Unique marketing position – This cryptocurrency has an inflationary prospect. There are several unique features even in the mining process, even though it is tedious. Since it entered the market early on, the trust it has gained from its investors also provides a huge boost to its status and existence in the market.
Dogecoin is one of the easiest and cheaper cryptocurrencies to purchase. The steps to buying and trading are the same as any other cryptos, head over to any online exchange platform and begin trading at the earliest.