eToro Dogecoin Trading

Introduction

At first glance, especially looking at its logo featuring a Shiba Inu dog from a viral dog meme, Dogecoin appears like the cryptocurrency's inside joke. Well sort of, but not quite.

The creators of Dogecoin was designed by software engineers Jackson Palmer and Billy Markus to create a payment system that is instantaneous, fun and operates outside the intervention of banking fees. It also started—as they claim themselves—as a joke to make fun of Bitcoin.

Well, that "joke" has snowballed Dogecoin to one of today's popular cryptocurrency thanks to the endorsements of known entrepreneurs and celebrities like Elon Musk, Mark Cuban, Snoop Dog and countless Reddit and TikTok users.

Dogecoin’s coin is known simply as DOGE and is available on the eToro online trading platform.

History

First introduced on December 6, 2013, Dogecoin was created by IBM Software Engineer Billy Markus and Adobe Software Engineer Jackson Palmer as a peer-to-peer digital currency that aims to be a more accessible version of Bitcoin.

Dogecoin was designed using the protocols used by existing crypto's Litecoin and LuckyCoin that base its proof-of-work algorithm to the scrypt technology.

This disallows the use of SHA-256 cryptographic hash functions used by Bitcoin miners and instead uses the dedicated and more complex ASIC and FPGA devices for mining.

Despite being not as popular as other cryptocurrencies, Dogecoin has achieved a "cult-like" following among crypto-investors and even gained media attention when SpaceX, the American Aerospace manufacturer, announced a "completely Dogecoin funded rideshare mission to the Moon in 2022".

Is Dogecoin Here to Stay?

People refer to Dogecoin as "Bitcoin's silly cousin" because it is considered as not as secured and decentralized as Bitcoin. It is also seen as a lesser innovative digital coin compared to other cryptocurrencies.

At 129 billion DOGE in existence and at its current price below $1, it can be seen—at present—as a "fun investment".

But of course, if one would believe Tesla founder Elon Musk who said before "arguably, the most ironic outcome would be that Dogecoin becomes the currency of the Earth of the future".

Mark Cuban, the popular businessman from Dallas, Texas and owner of the NBA team Dallas Mavericks, meanwhile expressed hope that Dogecoin may become a serious player in the cryptocurrency world if more people use it.

If more places take Doge and more people spend it, then those 5 billion coins (DOGE’s annual inflation) annually will be consumed and that may increase the value of Doge”

DOGE Supply

After mining its 100 billionth DOGE in 2015, an additional 5 billion was added every year. So far, no cap has been set for Dogecoin and it is expected to reach 200 billion in 2035.

DOGE Inflation Rate

By removing its originally set limit of 100 billion coins, the DOGE is expected to register an inflation rate of 2% by 2035 from 3% in 2027 and 5% back in 2015.

How to Buy a Dogecoin?

Several big exchanges in the world sells Dogecoin like Binance. You can also buy and trade Dogecoin in eToro.

Once you purchased a DOGE, you hold on to it as you would with other cryptocurrencies. You can store it on your trading platform exchange or keep it in your own digital wallet or at Dogecoin's official wallet in dogecoin.com.

Did you know?
You can buy DOGE from eToro for as low as $10 by accessing their online platform but in order to do this, you need to sign-up for an account first. You can click the button below to get started.

81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

How to Trade DOGE on eToro?

1. On your eToro dashboard, click "Trade Markets".

   

2. Select "Crypto".

   

3. Scroll down to look for "DOGE".

   

4. Click "Buy" and set the amount you want to invest.

   

5. "Click "Open Trade".

   

Current Uses of DOGE

Considered as an altcoin used by many users, Dogecoin's DOGE is now being used in many commercial transactions online.

Social media platforms such as Reddit and Twitch are seeing many users trade tangible items in exchange for DOGE as a form of payment.

eToro Dogecoin Stats

Along with Bitcoin, Ethereum, Cardano, Ripple and Shiba Inu, Dogecoin is among the top cryptoasssets in eToro as per their Q4 2021 Investor Update (March 2022) data^[1]. For the year 2021, DOGE had a trading volume of 4% and 2% of all the assets under administration.

Price of Dogecoin in US Cents

With DOGE's price range being under 1 cent, it can be a bit confusing to keep track of its value. To make this a lot more convenient to understand, here's a graph showing the monthy price of this particular cryptocurrency in US cents. To give you an example, a value of 0.47 in the chart means that the actual price is $0.0047. Also take note that the monthly prices here were based on the value of DOGE at the end of each month^[2].

Is DOGE the Right Crypto for You?

Like with other cryptocurrencies and whether you are an experienced investor or a first-time investor, one should proceed with caution before investing on a cryptocurrency.

With cryptocurrency still considered a new player in the investment market, it is advisable to do your own studying regarding the crypto you want to buy. In this case, it's the DOGE. The upside of investing on DOGE is its low value of less than a dollar, which present a lower risk compared to buying other more expensive cryptocurrencies.