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Dogecoin is the 3rd Largest Crypto

58105-12-2022, 05:55

Dogecoin is the world’s third-largest cryptocurrency in terms of market cap, which currently stands at $325 million. This may seem like a small amount but given that Dogecoin has a supply of just 112 billion tokens that places its market cap far smaller than Bitcoin (market cap of $5.5 billion, supply 21 million tokens) or even Ethereum (market cap of $1.4 billion, supply 96 million tokens). It was originally launched as a joke by Billy Markus and Jackson Palmer; the intention was that it would function as an easy-to-use token for users who wanted to tip others online for providing good content. Because of this, Dogecoin became known as the ‘internet currency’ and ‘friendly’ cryptocurrency. It functions primarily as a tipping token rather than a store of value or payment option, with one Doge currently worth around 0.00019 BTC or 1 USD at the time of writing.

Table of contents

What makes Dogecoin Unique?How to Store and Use Dogecoin Advantages of Investing in Dogecoin Disadvantages of Investing in Dogecoin

What makes Dogecoin Unique?

Dogecoin’s key difference from other cryptocurrencies is that it is a hybrid coin, meaning that it has elements of both a ‘store of value and a ‘tipping token’. Store of value cryptocurrencies are intended to be kept by investors as a long-term investment and so are not meant for quick and easy transfers. By contrast, tipping tokens are built for quick and easy transfers as they are not intended to be held onto by investors. This makes tipping tokens perfect for use as rewards on social media platforms. Beyond this, Dogecoin has a large and passionate community that has helped to make it the third-largest cryptocurrency by market cap. This community is active in many different areas, including social media and internet forums, which have helped to bring in new users. Dogecoin is also unique because it is the only major cryptocurrency that is hosted on the ‘Scrypt’ algorithm. This means that it is easier than most other cryptocurrencies to mine, which could be a key factor in its future success.

How to Store and Use Dogecoin

Dogecoin can be stored in a range of wallets, including desktop wallets, paper wallets, and mobile wallets. It can also be kept on some exchanges, though this is generally not recommended. For a full overview of the various options available, see the guide to storing Dogecoin. To use Dogecoin, you have to have a wallet that stores Dogecoins. If you wish to buy Dogecoins, then you need to have a wallet that can store Dogecoins. In this article, we will discuss the various options available for storing Dogecoins: Desktop wallets, Mobile wallets, Web wallets, and Paper wallets.

Advantages of Investing in Dogecoin

Dogecoin is one of the most accessible cryptocurrencies available, with a total market cap of just $325 million. While this makes it a ‘small fry’ by cryptocurrency standards, it also means that it could see large growth if it gains adoption. Given that it has a low price (1 Dogecoin is worth just 1 cent) and is generally easier to mine than most other cryptocurrencies, it could see a rise in value shortly. Beyond this, Dogecoin is also one of the oldest cryptocurrencies, having been launched in 2013. While this could be seen as a disadvantage because it could be out-of-date compared to newer coins, it also means that it has been around for a long time and has proven itself as a viable option for investors. It has a large and active community that continues to grow and build, which could also help to boost its value.

Disadvantages of Investing in Dogecoin

Should You invest in Dogecoin?

Dogecoin has many advantages over other cryptocurrencies. It is one of the most accessible, is easier to mine, and has a lower market cap. Given that it has been around for a few years and has proven itself as a viable cryptocurrency, it could see a rise in value shortly. Overall, Dogecoin appears to be a solid investment and could be worth adding to your portfolio.