What is Dogecoin? A "meme coin" to be reckoned with? | Finder UK

What is Dogecoin?

Dogecoin began life as a “joke currency”, but quickly exploded onto the market, harnessing the power of online communities to help it rise.

Dogecoin (DOGE, Ð) began life as a joke. Software engineers Billy Markus and Jackson Palmer created DOGE to be a fun currency, naming it after the Shiba Inu “doge” meme. Eventually it grew in value, with thousands of users and whole Internet communities emerged around sharing the currency and posting memes about the coin online. Overtime the dedicated fanbase has helped propel Dogecoin to become one of the most recognised coins on the market – a certifiable “memecoin”.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

What is Dogecoin?

Dogecoin is an altcoin designed to reach a much broader demographic than bitcoin. Additionally, Markus, one of the developers behind it, wanted to keep Dogecoin fresh and fun in order to distance it from the controversial past of bitcoin (for example, being widely used in online black markets like the Silk Road).

As of February 2021, Dogecoin has become one of the most iconic coins on the market, thanks to memes, a cult like following, and even celebrity endorsements by self-proclaimed Former Dogecoin CEO Elon Musk. While many other altcoins are attempting to become something bigger than a simple currency transaction platform, Dogecoin has stuck to its roots and is now widely used on platforms such as Reddit and Twitter to tip other users for information, funny posts or whatever else is deemed tip-worthy.

Today’s Dogecoin price

1
0
Updated: 19 Apr 2021 15:41:39 UTC

How do I buy Dogecoin in the UK?

Table: shows partner brands and other brands, sorted by popularity
Name Product Deposit methods Fiat Currencies Cryptocurrencies
Exmo Cryptocurrency Exchange
AdvCash, Bank transfer, Cryptocurrency, Debit card, Payeer
USD, EUR, GBP, RUB, PLN, TRY, UAH, KZT

53
cryptocurrencies

A UK-based cryptocurrency platform that provides buyers with a wide variety of payment options.
BC Bitcoin Cryptocurrency Broker
SEPA, Faster Payments (FPS), BACS, Instant SEPA
GBP, EUR

122
cryptocurrencies

BC Bitcoin is a UK-based cryptocurrency brokerage that buys and sells more than 100 different cryptocurrencies.
Bitpanda Cryptocurrency Exchange
Bank transfer (ACH)
EUR, GBP, CHF, USD

36
cryptocurrencies

A European exchange which enables users to pay in EUR, GBP, CHF and USD through a variety of payment platforms.
Indacoin Cryptocurrency Exchange
Credit card
USD, EUR, RUB

158
cryptocurrencies

Use your credit or debit card to buy bitcoin and other cryptocurrency without having to verify your identity.
loading

Compare up to 4 providers

Trading in Dogecoin comes in three parts: buying and holding coins, paying/tipping other users and joining the community.

More and more users are diving into the (sometimes silly) world of Dogecoin. Whether that comes from spreading memes on social media, buying products and services online with DOGE or tipping other users online, this cryptocurrency has been seen to respond well to healthy community activity.

This positive community activity often results in an increase in the value of a coin, especially if it’s shadowing an increase in the value of bitcoin beforehand.

Joining the community will not only teach you as much as you need to know about Dogecoin, but it will also increase the visibility of the coin online, exposing it to users who might not have known of its existence.

Transferring Dogecoin

Standard Dogecoin transfers (such as those made to pay for a product or service online) are carried out in much the same way as other altcoins, as long as you own some DOGE in a Dogecoin compatible wallet. Here’s how it works:

  1. Enter the recipient’s address. Whether it’s sent as a string of numbers and letters or scanned from a QR code into your mobile wallet, you first require the recipient’s wallet address (or public key).
  2. Enter an amount of DOGE to send. After agreeing on how much DOGE you are required to send, enter that amount into your wallet. Make sure you have enough funds to avoid failed transactions.
  3. Send your coins. After pressing your wallet’s “Send” button equivalent, the amount of DOGE sent will be taken out of your balance and added to the recipient’s. Even though the transaction is instantaneous, it might take a few minutes for it to be validated and the funds made available for use on the recipient’s end.

Making money with Dogecoin

You can make money with Dogecoin in one of three ways:

  • Get tipped. Producing good content (whether that’s free art posted online, articles or funny comments on Reddit) can result in tips being sent in from users of Dogecoin. Tips are automatically added to your wallet, and can either be used to buy products/services from others, tipping other users in return or holding onto them as an investment.
  • Sell products or services. Whether you’re a website developer, writer, business advisor, jeweller or social media marketing guru, taking payment in the form of Dogecoin is as easy as taking any other form of payment via fiat currency. Lots of online cart platforms have plugins for accepting DOGE as payment alongside USD, EUR, etc. and you can even get paid directly by providing your wallet’s public address to the person paying for your services.
  • Buy Dogecoin. Similar to buying stocks, shares or ForEx trading, you can buy Dogecoin and hope it rises in value.

If you’re able to predict movements in the market, investing in Dogecoin this way would likely be very profitable. We should emphasise again that cryptocurrencies are highly unpredictable so past performance is not an indicator of future growth.

What to watch out for

While it has sometimes been called the Internet’s favourite altcoin, Dogecoin is not without its cons.

  • Low value. As is often the case, Dogecoin’s biggest advantage is also considered its biggest disadvantage by some: its low price. US$100 could have bought you 120,192 DOGE on 16 September 2017 and this can be seen as a sign that the coin is not as valuable as something like bitcoin (where US$100 at that time would have bought you 0.028149 BTC). Bitcoin is considered the gold of the Internet, Litecoin the silver, while large amounts of Dogecoin are thrown around between users without batting an eye. This might discourage serious investors from putting their money into Dogecoin.
  • Just another altcoin. While other cryptocurrencies like Ethereum aim to rise above the altcoin label, Dogecoin is happy to remain a simple cryptocurrency for small transactions. Again, this is both a pro and a con, as it might turn away buyers who are looking for something with a vision that’s a little more ambitious.

What’s next for Dogecoin?

Dogecoin’s community aims to send their favourite coin’s value soaring. With more and more merchants embracing Dogecoin every day, the future appears to look bright. If more users and communities adopt the tipping ecosystem, in which Dogecoin currently has a leading role, the community behind this altcoin might very well see its hard work come to fruition.

FAQs

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Image sources: Shutterstock, CoinMarketCap

More guides on Finder

  • How to buy Dogecoin (DOGE)

    This step-by-step guide will show you where to buy Dogecoin (DOGE) in the UK, how to sell it and factors to consider when you are thinking of buying DOGE.

  • Best Dogecoin (DOGE) wallets

    An in-depth guide to the best wallets for storing Dogecoin (DOGE), and how to choose the right wallet for your needs.

  • Dogecoin (DOGE) price prediction 2021

    Where is the price of Dogecoin headed in 2018 and beyond, and what are the factors affecting the value of this iconic cryptocurrency?

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked
Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site