How to earn Dogecoin? W can earn dogecoin from buying, mining, and various kind of free ways. If you are interested in earning dogecoin, please keep reading! Dogecoin has come a long way since its modest beginnings as a joke cryptocurrency centered around a viral internet meme of a Shiba Inu “doge.” What was once a parody project purposefully created by software engineers Jackson Palmer and Billy Markus to be “as ridiculous as possible,” is now a top fifteen crypto-asset boasting a $22 billion market capitalization and a global fanbase.
What is Dogecoin?
Dogecoin is a decentralized P2P currency that allows users to send money online. The creators of DOGE, Billy Markus and Jackson Palmer, released it in December 2013. The DOGE coin features a dog, Shiba Inu. This is a Japanese breed whose face features in a popular DOGE meme. The meme-influenced cryptocurrency currently has a market capitalization of $6.5+ billion.
Dogecoin is popularly used for tipping people that create or share amazing content on the internet.
Moreover, the cryptocurrency’s protocol is based on script technology. That means that you can mine dogecoin using graphic cards, preferably the AMD brand.
How Much Dogecoin Can you Afford?
To determine how much to invest in Dogecoin, ask yourself this: If you lost your entire investment tomorrow, would you still be financially sound? Sure, you’d be bummed, but would you still have your core portfolio of diversified, long-term investments and enough cash on hand to pay the bills?
If the answer is no, then you’re probably investing more than you can afford to lose. Generally speaking, it’s wise to earmark money for alternative investments only if you’ve paid off high-interest debt, built up healthy cash savings and already created a diversified portfolio.
Where to Buy Dogecoin?
You’ll find Dogecoin on a wide range of cryptocurrency exchanges, including many of the crypto brokers and exchanges reviewed by NerdWallet.
As with any cryptocurrency, be sure to check if the platform allows you to access your own digital wallet, which means you can send and receive Dogecoin. Some brokers only let you buy and sell Dogecoin with USD.
Unfortunately, Dogecoin isn’t as widely available as other coins such as Bitcoin, Litecoin, or Ethereum. Traders may be disappointed to find that many popular cryptocurrency exchanges such as Coinbase and BlockFi don’t currently support DOGE.
A few exchanges do offer Dogecoin, though, such as Uphold, Webull, Robinhood, Kraken, and Crypto.com. If you don’t already have a crypto wallet, you might want to get that first. A wallet allows you to store your crypto securely and get it off of an exchange. Exchanges are prime hacking targets, so there is good reason to store your crypto yourself. You also have full control over your crypto when it’s in your wallet.
Crypto wallets typically integrate into browsers or mobile apps. Wallets also come with a password which you’ll want to keep in a safe place and not forget. Hardware wallets, which cost between $70-$100, are also an option. But unless you’re buying lots of crypto, you probably don’t need one yet.
How Do I Buy Dogecoin?
Once you’re logged into an exchange, you’ll most likely have three payment methods for buying Dogecoin (or any other cryptocurrency):
1. Credit Card — This is the easiest and fastest method for buying crypto but also the most expensive. Fees can range from just under 2% up to 3%, plus a flat fee.
2. Bank Transfer — This is the slowest method and can take 2-3 days to complete. — Most exchanges offer direct access to the exchange.
3. Cryptocurrency — With this option, you trade cryptocurrency that you own with another crypto trader who owns DOGE. Fees are typically lower when you go this route, often coming in at less than 1%. However, direct trading can be a bit more complex and may be intimidating for beginners.
Once you’ve purchased Dogecoin, you’ll move it from the exchange to your wallet. Simply supply your wallet address to get your coins out of the exchange.
How to Mine Dogecoin?
In its early years, mining dogecoin was much easier because very few people participated in the network. This meant anyone could mine the coin individually. However, as the popularity of DOGE increased, the mining process became more difficult, prompting miners to come together and form “mining pools.”
A mining pool is a group of individual miners who mine the cryptocurrency as a single entity, or node, by merging their computing power. The rewards are then distributed among pool participants proportionally by the amount of computer power committed by each miner.
Today, there are three main approaches to mining dogecoin:
- Individual mining/solo mining
- Dogecoin mining pools
- Cloud mining
Crypto mining involves the process of earning digital-currency rewards — tokens of appreciation and monetary incentives, if you will — for solving cryptographic equations with one’s hardware. To help you understand how this works, let me use Bitcoin as an example.
Bitcoin runs on a blockchain: a digital database of transactions distributed and duplicated across a peer-to-peer network of computers. Each “block” on a blockchain is filled with Bitcoin transaction data (e.g. Pete sent $500 worth of BTC to Christina) until it reaches one megabyte in size. Next, it’s up to the Bitcoin miners to verify each block to ensure that it is valid and accurate.
Now, here’s where it gets interesting. Each block comes with a complex, mathematical problem (the cryptographic equation I mentioned earlier) that is extremely difficult to solve. The Bitcoin miner that solves this complicated puzzle first wins all the transaction fees and scores BTC rewards. As such, the Bitcoin network plays favorites; it doles out an abundance of rewards to miners with higher-powered hardware while yelling “and none for you Gretchen Weiners!” to miners with lower-powered internals.
Put it this way: having a beastly rig is equivalent to having Sheldon from the Big Bang Theory on your mathlete team. However, if you join the Bitcoin network with weak internals, it’s like having Penny as a teammate; it’s going to take her a while — a very, very long time — to solve the math problems hurled her way.
Dogecoin uses the same protocol as Bitcoin, which is called proof-of-work. However, it’s much less power-hungry than BTC, which generates a shocking amount of heat and energy. Dogecoin relies on an algorithm called Scrypt; it’s less complex than mining on Bitcoin’s SHA-256 algorithm. As such, Scrypt requires fewer resources, allowing miners to mint DOGE on less-powerful computers.
How to Earn Free Dogecoin?
- Dogecoin Faucet
- Dogecoin PTC Sites
- Dogecoin Airdrop
- Dogecoin GameFi
- Dogecoin Bounties
- Learning About Dogecoin
- Shopping Reward
- Dogecoin Interest
- Owning a Faucet
- Write about Dogecoin
- Dogecoin Affiliate Program
- Free Dogecoin Cloud Mining
Read More: How to Earn Free Dogecoin (DOGE) in 2022 (12 Safe Ways)
How to Earn More Cryptocurrency?
Brief History of DOGE
Despite rising in popularity in 2021, Dogecoin is among the earliest cryptocurrencies to reach the market. Dogecoin was created as a joke in 2013 to help raise public awareness of the capabilities of blockchain technology. Its mascot, the Shiba Inu, replicates the popular “doge” internet meme, which is also where the cryptocurrency gets its name. Co-founders Billy Markus and Jackson Palmer whipped up Dogecoin in just a handful of hours. Markus noted in an interview that much of the time spent on creating Dogecoin was changing its font to Comic Sans.
Billy Markus was a developer experimenting with cryptocurrencies for his own entertainment. Billy created Bells, a crypto-based on the Animal Crossing currency. When Billy stumbled across a form post by Jackson Palmer about a “doge” coin, he reached out to make it happen. Billy forked Bells and made some minor updates to the underlying software. Needless to say, the rest is history.
DOGE is among the largest cryptocurrency project when measured by total market capitalization with a market cap of around $19 billion. This ranks Dogecoin in the top 25 most valuable cryptocurrencies, ahead of projects like Polygon, Uniswap and FTX token.
Dogecoin 2022 Price Prediction
2021 was a monumental year for Dogecoin – the cryptocurrency appreciated multiple times over in price before crashing back down. After peaking above $0.70, Dogecoin is now trading at around $0.11 in 2022. While Dogecoin is down significantly from its all-time highs, some investors believe that DOGE still has the potential to each the coveted $1 mark. However, a lot will need to happen for Dogecoin to reach $1 per coin. The cryptocurrency markets will need to turn around and major cryptos like Bitcoin and Ethereum will need to reach new all-time highs for DOGE to have a chance at climbing higher.
Is Investing in Dogecoin Worth It?
Cryptocurrency as an asset class is riskier than other more traditional investments. Investing in cryptocurrencies based on memes or hype, like Dogecoin, is even riskier than investing in established digital assets with strong fundamentals. That being said, there’s strong community support for DOGE and buying well below all-time high prices may present a good opportunity. If you decide to invest in Dogecoin, be sure to only invest money you’re willing to lose, as much of Dogecoin’s price is determined by speculation.
