Dogecoin, also known as DOGE, originates from a fork of the Litecoin code base. Dogecoin was founded in 2013. Its founder, Jackson Palmer, created Dogecoin with the idea of creating a "witty" digital currency and the most popular Doge Emoji. With the help of people's extensive understanding of the Emoji, the Dogecoin quickly gained attention once it was released, and the price continued to rise in a short time.
How does Dogecoin (DOGE) Work?
The Dogecoin network adopts the PoW proof of work (PoW) mechanism, that is, it needs to add new blocks to the distributed ledger to form collaboration with other nodes. However, it is different from the Bitcoin network in that Dogecoin follows the Scrypt hash algorithm of Litecoin. This algorithm is simpler than the SHA-256 algorithm used by the Bitcoin network, and the mining power is lower and faster. At the same time, the joint mining mode is also adopted, that is, litecoin miners can earn Dogecoin at the same time when mining.
In the Dogecoin network, the confirmation time of a block only takes 1 minute, while in the Bitcoin network, the confirmation time of a block takes 10 minutes. In contrast, Dogecoin is low in price and fast in transfer speed. It is suitable for online rewards and other purposes.
What is Dogecoin (DOGE)?
Dogecoin (DOGE) is a cryptocurrency based on the Scrypt algorithm. The total supply of Dogecoins in the first year was 100 billion, and it will be issued in the number of 5 billion each year. There is no upper limit. At present, the total supply of Dogecoins has exceeded 128.989 billion. Tip spending, storing in wallets, trading / exchanging other cryptocurrencies and purchasing goods are the most common use scenarios of Dogecoin. Thanks to the "people friendly" positioning of Dogecoin, Dogecoin has a wide audience in the community. In 2021, due to community effects and market events, Dogecoin quickly became popular and its value continued to soar. Tesla CEO Musk also mentioned it on Twitter and once opened his products to accept Dogecoin payment to show his support for Dogecoin.
Dogecoin (DOGE) Crypto Wallet
In addition to placing DOGE in the Gate.io exchange to facilitate trading, DOGE can also be placed in a crypto wallet.
Dogecoin Core, MyDoge, DogeChain and other wallets are officially recommended by Dogecoin. Users can learn about the operation process and wallet characteristics on relevant official websites.
There are two schools of thought in determining the price of Dogecoin.
By way of intrinsic value: This typically involves on-chain metrics, project metrics and financial metrics of Dogecoin, collectively known as fundamental analysis. The law of supply and demand, tokenomics, use case, project roadmap as well as regulations and governance involved would affect the value of Dogecoin from a long term perspective.
By way of price action: Primarily analyzed via candlestick chart patterns and technical indicators such as MACD, RSI and the bollinger bands, technical analysis forecasts the price of Dogecoin on the basis that history tends to repeat itself. As the candlestick charts are a general representation of the emotion of the market, news announcements and community sentiment can be significant price action drivers for Dogecoin as well.
HODLers tend to prefer the long term nature of fundamental analysis, whereas short term traders tend to rely on technical analysis more. In reality, both analyses may combine and create interesting scenarios for Dogecoin and the cryptocurrency market as a whole.
2. What is the highest price of Dogecoin in history?
Dogecoin achieved the all-time high of $0.73 in 2021-05-08, and is currently trading at $0.100.
3. What is the lowest price of Dogecoin in history?
In 2015-05-06, Dogecoin reached the all-time low of $0.00009.
4. Should I buy Dogecoin now?
It is important to remember that Dogecoin, like all other cryptocurrencies, are subject to extreme market conditions, legal policies, project team management and other unpredictable factors. As such, cryptocurrencies fluctuate greatly and it is important to manage your own risk level. Users are advised to do your own research when making investment decisions in the crypto market.