Even if you have started wanting to buy cryptocurrency in India only recently, there’s a chance you have heard of Dogecoin – one of the earliest altcoins that started as almost a joke and is based on one of the most popular memes to come out of the internet. And in case you are new to this cryptocurrency or are wondering where can you buy Dogecoin, here are all the details. Not just to buy Dogecoin, but on how to buy cryptocurrency in India.
What is Dogecoin?
Dogecoin was born of the famous Doge meme that exploded all over the internet back in 2013. The original meme shows a Shiba Inu breed dog, with its inner monologue written around it in Comic Sans font. Dogecoin has this same image of a Shiba Inu dog as its logo.
Dogecoin, or DOGE, is an open-source, P2P (peer-to-peer) cryptocurrency. The coin uses Litecoin‘s Scrypt technology and a PoW (Proof-of-Work) algorithm. Back in 2013, Jackson Palmer, a product manager at Adobe Inc., came up with the concept of Dogecoin to satirize all the hype surrounding digital currencies. After receiving some encouragement from social media, he went on to buy the domain dogecoin.com.
Around about the same time, Portland’s Billy Markus – a software developer at IBM, also had a notion of building a ‘joke’ cryptocurrency since the funny aspect of it might attract the majority of the crypto community. When Markus found out about Dogecoin, he immediately reached out to Palmer for permission to create the software behind the crypto and make Dogecoin a reality. Markus and Palmer finally jointly launched Dogecoin on December 6, 2013.
How Does Dogecoin Work?
Dogecoin has – since the beginning – presented itself as a faster, less expensive, and user-friendly alternative to Bitcoin. As mentioned before, Dogecoin’s code is based on a fork of Litecoin (LTC) – known as Luckycoin. Just like Bitcoin, Dogecoin is decentralized, so there’s no singular authority figure or institution controlling the Dogecoin network. And just like Bitcoin, the Dogecoin blockchain also employs the PoW (Proof-of-Work) consensus mechanism. Users have to install open-source software onto their devices to act as full nodes on the Dogecoin network – as in each of them keeps a real-time copy of the blockchain’s database, containing the history of all transactions performed on the chain.
Dogecoin uses a procedure known as ‘mining’ to generate new coins. Now, in the case of mining, miners (some users on the network) have to solve complex mathematical problems using their devices, through a method known as ‘hashing,’ to add new blocks to the Dogecoin blockchain. In return, they are rewarded with newly minted Dogecoins.
However, while Bitcoin uses the SHA-256 hash function for mining on the blockchain, with Dogecoin, Markus chose to use Scrypt, just like Litecoin. Scrypt is an ASIC (Application-Specific Integrated Circuits) resistant Proof-of-Work algorithm. The developers behind Dogecoin also made it so that Dogecoin uses a merged mining model that allows Litecoin miners to earn Dogecoin as well. This was done mainly to avoid competition and to lessen security threats to the Dogecoin network.
In Dogecoin mining, a new block generation takes only one minute (as opposed to Bitcoin’s ten minutes), and each block amounts to a reward of 10,000 DOGE. There’s also no limit to the supply of Dogecoin, unlike Bitcoin and most altcoins, which makes Dogecoin an “inflationary coin.” Over one hundred billion Dogecoins are in circulation as of 2021.
Is Dogecoin a Good Investment?
Even though Dogecoin was created as a joke, its performance in the crypto markets since its introduction has been anything but. Ever since its launch, Dogecoin has held on to its extremely dedicated and enthusiastic community of users. Dogecoin’s value went up along with many other cryptocurrencies at the end of 2017, and even though it lost much of its value afterwards in 2018, the summer of 2019 once again saw a rise in Dogecoin’s price.
As the Covid-19 crisis sent financial markets all across the world tumbling down, a viral video on TikTok caused Dogecoin’s value to skyrocket again. The hype resulted in Dogecoin trading at over 2.5x of what it had in the weeks before. As of the beginning of March 2021, Dogecoin’s market cap ranking is 15, with a market cap of about $6.4 billion.
The main reason behind Dogecoin’s success so far is its active, loyal community of users, and it is also one of the primary reasons that make Dogecoin a good investment. The fact that there’s no limit to Dogecoin’s supply also proves it to be a good investment since it incentivizes the spending of the coins and prevents the early adopters from making more profit out of the system. Besides, even Tesla CEO Elon Musk considers Dogecoin one of his favorite cryptocurrencies. What’s not to love?
How to Buy Dogecoin in India?
If you are new to the crypto space and want to buy cryptocurrency in India, you might wonder where you can buy a cryptocurrency. Well, WazirX has established itself as one of the safest and most trusted cryptocurrency exchanges within the Indian crypto community. It allows you to trade 100+ cryptocurrencies, including BTC, ETH, LTC, XRP, and of course, DOGE! Additionally, for Dogecoin, you can make both DOGE to INR and DOGE to USDT trades!