There’s still a lot of news hype around Dogecoin, which is helping to drive up its price. He started tweeting about Dogecoin at the end of last year and hasn’t stopped.Dogecoin has been in a consistent uptrend. But, given that the coin doesn’t seem to have any practical use, it’s hard to envision it having a lasting future. Unlike some other cryptocurrencies, there’s no cap on Dogecoin.
Dogecoin is a meme coin created by two software engineers Billy Markus and Jackson Palmer in 2013. Based on the “doge” Shiba Inu meme, Palmer tweeted about making a doge-themed cryptocurrency. The College Investor is an independent, advertising-supported financial media publisher, focusing on news, product reviews, and comparisons. 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.
The Dogecoin network releases 10,000 DOGE into circulation with every block being validated. Overall, 10,000 DOGE releasing every block results in around 5 billion DOGE issued a year.
How can I get my Dogecoin?
The College Investor does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with). Those who bought and sold Dogecoin at just the right moment back in 2021 could have seen lucrative earnings.
In fact, it only took Markus three hours to develop and release Dogecoin. Markus saw Palmer’s tweet and started developing Dogecoin of his own accord. Dogecoin is a fork of Lucky Coin which is a fork of Bitcoin, so it’s not wrong to say Dogecoin is based on Bitcoin’s code. And thanks in large part to Musk’s tweets, Dogecoin has recently been enjoying a massive run-up of its own. In fact, the DOGE community is working to bring new scalability and security upgrades over the next year. Whether or not these upgrades contribute to a solid long-term token is anyone’s guess.
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During the summer of 2020, a viral TicToc video tried to hype up DOGE. The video author said if everyone deposited $25, Dogecoin would reach $1, making each $25 investment worth $10,000. If it did, DOGE would have had a market cap worth more than Bitcoin.So, where is Dogecoin’s price now? According to CoinGecko.com, it’s currently worth about $0.45 and has a market cap of $10,383,370,714.
This being said, there are other trading platforms where you can invest in DOGE and even earn interest on your holdings. Learn how you can earn interest on Dogecoin in 4 simple steps below. No, there currently aren’t promotions for free dogecoin with a crypto interest account. By earning interest on your holdings, you’re receiving “free” Dogecoin from a very low risk savings account. Many crypto exchanges support Dogecoin, but very few support interest bearing accounts on DOGE.
- The video author said if everyone deposited $25, Dogecoin would reach $1, making each $25 investment worth $10,000.
- TheCollegeInvestor.com strives to keep its information accurate and up to date.
- This crypto asset is highly volatile and high risk, so earning interest on DOGE is still a risky investment.
- Dogecoin is a fork of Lucky Coin which is a fork of Bitcoin, so it’s not wrong to say Dogecoin is based on Bitcoin’s code.
- Dogecoin has been so influential that it spurred “Dogecoin killers” like Shiba Inu, and the meme coins just seem to keep coming.
Bitcoin and Ethereum are perhaps the safest options, as they are by far the largest players in the industry and have the most real-world value. If Dogecoin’s popularity surges, it could see significant short-term gains. But unless the network starts making big moves to improve its intrinsic value, it will be incredibly difficult for Dogecoin to sustain long-term growth based on popularity alone. Answer paid surveys, play games, or watch videos to redeem free rewards. DOGE is faster and cheaper to transact with as compared with its competitors such as Bitcoin, which automatically makes Dogecoin a better investment asset.
Some people predict that Dogecoin’s value will continue to rise long-term. If the price of Dogecoin increases while it’s in your savings accounts, so will the interest you’ve earned and the interest you will earn in the future. This is because all the interest you earn from your savings account is paid directly in Dogecoin. When the Dogecoin is in an exchange wallet, the investor can sell instantly via a market order or at a future price using a limit order. Aside from the market order and limit order selling types, there’s also a stop-loss order method.
The only accredited platform for earning interest on Dogecoin is Binance. Binance currently offers a 5% annual interest rate on DOGE, but this is subject to change based on market demand and the supply of coins in investor savings accounts. Remember, interest rates for cryptocurrency projects change from one exchange to another. Whether he is serious or not, Musk brings attention to Dogecoin and the entire cryptocurrency market through his tweets. He’s even urged Coinbase to start supporting Dogecoin; this is unlikely, as Coinbase is strict about which cryptocurrencies it allows its users to invest in.
Start Earning Points
But when a cryptocurrency’s worth is based primarily on its popularity, that can be a dangerous game. You should only put money into Dogecoin that you’re willing to lose completely. Dogecoin is unlike other cryptocurrencies because it doesn’t have a good value proposition. This means you’ll be exposed to the high volatility of Dogecoin. A stop-loss order prevents a trader from losing their funds in case of an asset price crash.
Dogecoin is a highly volatile asset, much more so than Bitcoin and other large market capitalization cryptocurrencies. Unfortunately, the only major exchange that supports earning interest on Dogecoin is Binance. Investors can put their Dogecoin in an interest bearing account on Binance to earn a 5% annual interest rate on their crypto. If you want to earn interest in cryptocurrency, using a more widely used and less volatile asset like Bitcoin or Ethereum may be in your best interest.
How Does Compound Interest Work for DOGE?
DOGE is for those that are willing to take a gamble that the hype will keep driving the price higher, at least in the short-term. But, at this point, we wouldn’t really call it an investment as it could come crashing back down any day. Musk has tweeted his support for the coin again, again, and again.
However, there are various key factors to consider before deciding if DOGE is a good investment. Because DOGE is based on Bitcoin, Dogecoin is a proof-of-work (PoW) cryptocurrency that requires miners to validate transactions. On the Dogecoin network, miners are called “diggers.” further to poke fun at the prospect of mining cryptocurrency.
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. If you’re looking to make money with crypto, you’re better off looking for investments with real-world utility and the potential for long-term growth. There are still no promises that these cryptocurrencies will thrive, but the more value a crypto has, the better its chances of succeeding. While it and many other cryptocurrencies have seen their prices plummet over the past year, many investors are still optimistic that Dogecoin could make a comeback. If Dogecoin decreases while it’s in your account, then you will lose money on the interest you’ve earned and the interest you will earn.
Simply supply your wallet address to get your coins out of the exchange. For more information and a complete list of our advertising partners, please check out our full Advertising Disclosure. TheCollegeInvestor.com strives to keep its information accurate and up to date. The information in our reviews could be different from what you find when visiting a financial institution, service provider or a specific product’s website.
This crypto asset is highly volatile and high risk, so earning interest on DOGE is still a risky investment. At the end of the day, whether or not DOGE is a good investment is entirely up to the investors’ sentiments. Some might use DOGE for simple transactions or paying for goods and services.