There are close to 400 cryptocurrencies in the market today. Each cryptocurrency arrived with solutions to problems the previous one could not solve. Every crypto has a purpose and made some digital advancements. It started with Bitcoin wanting to make funds transfer easier. The ones that followed powered platforms, evolved into marketplaces, provided opportunities for investment, and so on. Amidst these high-reaching cryptocurrencies, few were made as a joke or to mock others. One such currency was Dogecoin. Dogecoin was based on the dog Shiba Inu who was used as a symbol on the Dogecoin token by the creators as a joke.
When Dogecoins were nothing but a joke, there was an explosion of usage of Dogecoin on Reddit. People started exchanging them and that led to a massive expansion of the user database. 2021 was a good year for Dogecoin when the value skyrocketed and Elon Musk said he was going to take one token to the moon. The value of Dogecoin rose more than 5000% in 2021 and it surprisingly became the fifth most valuable cryptocurrency in the world. The Dogecoin to INR price had reached its peak of 58 rupees in 2021. Although this gained popularity and interest from the investors, the uses of Dogecoin were overshadowed by the controversy and buzz around it.
Let us take a look at how to make use of Dogecoin.
How to use Dogecoin?
If you are planning to use Dogecoin, you will first need to purchase it. You can use an exchange platform to trade Dogecoins. One of the best exchange platforms in India to buy Dogecoin is CoinSwitch. You can find all the tools required to assess the crypto market and make an investment here. The articles by experts are informative and are aimed to make you aware of the cryptocurrency you are planning to invest in. You can add funds to your account at CoinSwitch and buy cryptocurrency. Once you make the purchase, it is recommended you buy a wallet to store your cryptocurrency.
There are 4 ways you can use Dogecoin.
- P2P trades – Peer-to-peer is the easiest method to send or receive Dogecoins. It involves transferring funds from one blockchain address to another without any intermediary. This can be done in exchange for products or services and the trade can be carried out by scanning QR codes to access one’s wallet and send DOGE to the other person’s wallet and vice versa. Few stores have also started accepting DOGE as a form of payment.
- E-commerce – Online stores or businesses are the ones that have given a boost to the usage of DOGE. The convenience of being paid in crypto has encouraged more businesses to make use of it. However, given that one of the characteristics of crypto is that it is irreversible, it is recommended to do a background check and go through the reviews left by past users to ensure you are dealing with a legitimate business. Be alert and if you unearth a scam, report it immediately and gain attention to alert as many members of the community as possible.
- Trading platforms – This is the most common way DOGE is being used right now. You can buy and sell DOGE and use it as an asset to make a profit. This depends on the local laws in place for the regulation of cryptocurrency. Currently, this is the only viable option for DOGE to be used in India. While the other options have not yet been declared illegitimate, only a few businesses accept cryptocurrency and all of them only accept Bitcoins.
- Mastercard – Mastercard is said to have tied up with an international company to launch a prepaid crypto card. It is the same as having a prepaid card at the games zone, just that the points are in the form of cryptocurrency. Apple supported this by allowing Apple purchases with a digital form of this card which could be stored in the iPhone. The downside of this was that it was limited to the U.S. and was not launched in India at all.
What does the future of Dogecoin look like?
Even though Dogecoins can be used on the spot to buy a product or avail a service, the future of this cryptocurrency is uncertain. Although this is backed by celebrities, Dogecoin cannot be considered for long-term investment. The number of dogecoins is unknown. Every day whenever miners complete the equations there are millions of new Dogecoins created available for people to use. No one knows when the last supply will be cut off and what the value of Dogecoin will be at that time. The uncertainty of the supply coupled with the lack of actual applications compared to other cryptocurrencies in the market makes Dogecoin a risky investment.
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