If you are searching for a user-friendly cryptocurrency with low transaction fees, Dogecoin may be one the best solutions you might find. This Crypto that started off as a Parody currency, is now being taken seriously in the cryptocurrency market and is popular among internet users and even the likes of Elon Musk. If you are curious about this so called “meme cryptocurrency”, in this post we will explain what is Dogecoin, how Dogecoin works, how to exchange Dogecoin to PayPal or other currencies using low commission HiExchange services, without KYC, and much more.
You could be forgiven at first impression for assuming that Dogecoin is a bit of a joke. The coin’s logo is from the Doge internet meme, the Japanese Shiba Inu dog, and it was developed after a playful tweet by Jackson Palmer (Adobe Systems Worker at the time), who suggested that investing in Dogecoin is going to be the next big thing for sure.
The rise of Dogecoin, however, proves that it is not a joke. An army of devoted fans was generated by the excitement surrounding its launch, helping turn it into a big cryptocurrency with a current market cap of over 300 million Dollars.
What is Dogecoin?
Dogecoin is a decentralized network that enables you to trade and exchange the value of the Dogecoin token (DOGE). The coin was released with none of the controversy surrounding its more developed peers in December 2013 as a fun and light-hearted cryptocurrency.
It was based on an established cryptocurrency named Luckycoin that initially gave randomized rewards to individuals for mining a block (it changed to static block rewards in March 2014). Luckycoin itself is based on Litecoin, a lighter clone of Bitcoin that utilizes Scrypt technology in its Proof-of-Work algorithm. As a result of being Scrypt-based, Dogecoin can only be mined by computers and not by ASIC hardware making it less energy-consuming to mine.
The original aim of Dogecoin was to have a hard cap of 100 billion coins, but the cap was removed later.
How Does Dogecoin Work?
In this section, we can focus on how this currency works in detail.
Dogecoin was developed to be a form of currency, similar to Bitcoin (although not a serious one), however, it is not Turing complete or capable of enabling smart contracts such as Ethereum.
Dogecoin is also used to reward users of the internet who produce or distribute digital content. In 2018, the market capitalization of Dogecoin reached 1 billion Dollars.
Dogecoin Launch and Issuance
As mentioned earlier, Dogecoin was released in December of 2013. At the time, none of the supply of the cryptocurrency was set aside to encourage the founders. The software was instantly available for use, and anyone who wanted to mine the cryptocurrency could compete for prizes.
Design of Network and Security Model
Dogecoin is a fork of the Luckycoin blockchain, as described earlier. Since Luckycoin is an open source protocol, the developers were able to copy the program. Everybody is free to use, sample, modify and distribute the Luckycoin blockchain.
Luckycoin is a Litecoin clone, which is a Bitcoin fork itself. Dogecoin is, like Bitcoin, an open-source, decentralized peer-to-peer network that uses the proof-of-work consensus algorithm. Therefore, the network relies on miners to verify transactions and protect the network from malicious actors who might try to alter the transaction record of the blockchain.
Dogcoin, however, uses the scrypt mining algorithm, which has lower hashrates and uses less energy than the SHA-256 mining algorithm of Bitcoin.
What is Dogecoin Used For?
Dogecoin can be kept as an investment in the hope of making a profit, like other cryptocurrencies. However, most Dogecoin fans use the altcoin as a currency, taking advantage of its relatively low transaction fees, quick transaction times, and a platform that is easy to use.
Dogecoin has also become the most famous coin to tip people on the internet in order to thank them for providing interesting content. It is basically a digital currency that individuals will potentially use rather than only invest in.
The community of Dogecoin has also raised money for charitable causes for frequent events. It launched a campaign in January 2014 to raise $50,000 for the Jamaican Bobsled Team, which could not afford to go to the Winter Olympics in Sochi. Meanwhile, in the Tana River Basin in Kenya, the Dogecoin Foundation managed to raise 40,000,000 Dogecoin to create a well.
While Dogecoin is built on the Scrypt protocol of Litecoin, its block time is only one minute, compared to 2.5 minutes of Litecoins. This ensures that quicker transfers and confirmations are provided by Dogecoin.
This currency is inflationary rather than deflationary, which is a significant distinction between Dogecoin and other cryptocurrencies. Deflationary coins have a hard cap, which can encourage people to hoard them in the hope of increasing their value over time. When the hard cap is reached, the continued mining of the coin is no longer profitable. On the other hand, inflationary coins guarantee that mining will be continued and that missing coins are replaced.
What really makes Dogecoin special is its community, in addition to offering fast transaction times and negligible transaction fees. Its users are large in number and enthusiastic about promoting the coin among the general public and traders. They think it is the ideal coin for anyone looking to dip their toe into the cryptocurrency world.
How to buy Dogecoin?
Dogecoin is traded all over the world on more than 50 exchanges. Most exchanges do not allow you to buy DOGE with fiat currency, so you will need to buy and then trade a cryptocurrency listed in a pairing with DOGE. Here at hi.exchange, we offer you DOGE exchange options such as DOGE to PayPal, DOGE to WebMoney, DOGE to Webmoney, and DOGE to Skrill at the lowest exchange rates on the market with the least commission and no KYC.
Dogecoin can be deposited in the official Dogecoin wallet, in another coin-supported online or desktop wallet, or in a hardware wallet.
How to Exchange Dogecoin
As mentioned, you can use services offered here at hi.exchange to convert your DOGE to other currencies such as PayPal. If you want to quickly exchange your DOGE for fiat currencies, you can exchange DOGE to PayPal (USD) on HiExchange without KYC or high commission. For more information, read How to Exchange Dogecoin to PayPal.
In conlusion, Dogecoin may never be taken as seriously as Bitcoin, but that arguably is part of its charm. And it is possibly one of the best coins for crypto beginners to get their hands on, with a loyal following, great community support on Reddit, and fast transaction times.