What Is Dogecoin (DOGE)? How Does It Work?

Written by BTSE

January 19, 2023

Before You Invest: Dogecoin (DOGE)

Based on the well-known “doge” internet joke, Dogecoin (DOGE) is a popular cryptocurrency that features a Shiba Inu as its logo. Despite its humble beginnings, it swiftly took off and is now one of the most popular cryptocurrencies.

Here is a detailed rundown of everything you need to know about Dogecoin — DOGE — which can be bought and sold using BTSE’s exchange.


What is Dogecoin (DOGE)?

DOGE is an open-source, peer-to-peer cryptocurrency that was created as a parody of the cryptocurrency market after the launch of Bitcoin. 

Here are some quick highlights about DOGE:

  • Dogecoin has a devoted following of supporters who trade it and use it as a “tip” for social media content.
  • Dogecoin employs the same proof-of-work algorithm as Litecoin.
  • The Dogecoin network has a devoted and friendly community of creators and followers.
  • Dogecoin is an inflationary currency, which limits its potential as a means of investment.


What can Dogecoin Do?

On Reddit and Twitter, Dogecoin has mostly been utilized as a tipping system to encourage the creation and sharing of high-quality content. Dogecoin may be obtained through a Dogecoin faucet or by engaging in a community that accepts the cryptocurrency.

Dogecoin has become a payment alternative for many conventional businesses as a result of its low transaction fees and ongoing support from Elon Musk.

In addition to tipping creators on social media, DOGE has been used by its community to support people and projects around the world. For example, a well was built in Kenya with the help of US$11,000 in Dogecoin, the community donated US$50,000 to send the Jamaican bobsled team to the 2014 Winter Olympics after they qualified but were unable to finance it, and NASCAR driver Josh Wise received US$55,000 in Dogecoin sponsorship thanks to the community’s donation of 27 million Dogecoins, or around US$30,000, in 2014.

DOGE is the current shirt sponsor of English football club Watford F.C.


How to mine Dogecoin

Dogecoin’s proof-of-work methodology differs from Bitcoin’s in a number of ways, one of which is the use of Scrypt technology. The cryptocurrency also has a one-minute block time, and the overall supply is unlimited, meaning that any amount of Dogecoin may be mined. Dogecoin can be mined either individually or by joining a mining pool. A Doge miner can mine the digital currency on Windows, Mac, or Linux, and with a GPU.

Unlike other cryptocurrencies such as Bitcoin, Dogecoin has an unlimited supply. The block reward for Dogecoin miners is 10,000 DOGE, and a new block is generated every minute. This implies that 14,400,400 new DOGE coins are produced every day and either sold on the open market or kept in miners’ wallets.


Elon Musk and Dogecoin (DOGE)

Elon Musk’s enthusiasm for Dogecoin and its success go hand in hand. Early in 2021, Musk tweeted about Dogecoin and shared a DOGE meme featuring the Lion King. That sparked a strong DOGE rally that ended with Musk’s participation on Saturday Night Live.

Despite Musk’s assurances that DOGE’s price would soar after the SNL performance, the stock fell. Musk appeared to lose interest in the project in the months that followed, and DOGE’s price has since fallen by nearly 70% from its peak. However, as seen by his sporadic tweets, Musk continues to impact the price of Dogecoin.

Elon Musk publicly endorsed Dogecoin in 2021, saying that he was collaborating with the coin’s creators to increase transaction speeds. The creator of SpaceX conducted a social media survey to determine whether Tesla should accept Dogecoin as payment.


Who founded Dogecoin?

Bill Marcus and Jackson Palmer, two software developers who were employed by IBM and Adobe Systems, respectively, launched Dogecoin in late 2013. It was developed with Litecoin’s open-source technology, which was a fork of the Bitcoin blockchain. Its establishment was primarily intended to increase public understanding of the potential of blockchain technology.

Members of the Dogecoin team established a non-profit foundation in 2014 to offer governance, support, advocacy, and trademark protection for the cryptocurrency project. But over time, the foundation was dissolved.

The foundation was restarted in 2021 with a “renewed focus on supporting the Dogecoin Ecosystem, community, and promoting the future of the Dogecoin Blockchain.” The initiative now includes several seasoned industry leaders on its board of advisors, in addition to members of the initial core team.


Where and how to buy Dogecoin (DOGE)?

Swapping for DOGE on BTSE’s exchange is an easy 5-step process:

  1. Log in to your personal account on BTSE. If you do not have a BTSE account, you can register here.
  2. In the “Spot” section, choose “DOGE” as one element of your trading pair.
  3. Choose the other element in the trading pair — you can define the stablecoin, fiat currency, or cryptocurrency that best fits your trading strategy.
  4. Select the type of order you want to place — limit or market — then enter the amount of DOGE you want to buy.
  5. Click “Buy Order.”

And then you’re done! Your new DOGE token balance will then be displayed in your wallet.


Final thoughts

The blockchain that powers Dogecoin has appeal since it uses Litecoin’s core technology. Dogecoin, which employs the Scrypt algorithm, is notable for its low cost and limitless supply.


Any data, text, or other content on this page is provided as general market information and not as investment or financial advice. Past performance is not necessarily an indicator of future results.


Our aim is to create a platform that offers users the most enjoyable trading experience. If you have any feedback, please reach out to us at feedback@btse.com or on Twitter @BTSE_Official.

Note: BTSE Blog contents are intended solely to provide varying insights and perspectives. Unless otherwise noted, they do not represent the views of BTSE and should in no way be treated as investment advice. Markets are volatile, and trading brings rewards and risks. Trade with caution.

Related Articles

Stay Informed with BTSE

Join Our Newsletter

Never miss a beat with the latest updates and industry insights from BTSE.

Follow Us

Join our rapidly growing community and exclusive events!