Tag Archives: Dogecoin

Best Cryptocurrencies to Invest in 2021

Bitcoin (BTC)

Theories on Bitcoin’s utility differ, but there’s no denying that it’s been the dominant player in its field since its creation. Bitcoin’s growing adoption is its saving grace; both retail and institutional investors are primed to dip their toes into cryptocurrencies with Bitcoin first. Plus, some of today’s smartest business minds are increasingly gravitating toward the “digital gold.” Although Bitcoin’s price lost more than half within two months of hitting all-time highs of about $65,000. Bitcoin on its balance sheet earlier this year could serve to usher in more corporate treasury inflows over time.

Ethereum (ETH)

Next to Bitcoin, Ethereum is the second-largest cryptocurrency. It was launched in 2015 with just a supply of 72 million coins. Since last year, Ethereum has seen a 946.8% increase, and the new launches on its network are exciting market experts and experienced investors.

Tether (USDT)

Unlike some other forms of cryptocurrency, Tether is a stablecoin, meaning it’s backed by fiat currencies like U.S. dollars and the Euro and hypothetically keeps a value equal to one of those denominations. In theory, this means Tether’s value is supposed to be more consistent than other cryptocurrencies, and it’s favored by investors who are wary of the extreme volatility of other coins.

Litecoin (LTC)

Litecoin is one of the most valuable cryptos in the industry, with a market cap of over $9.2 billion. It was created through a fork in the Bitcoin blockchain and is one of the oldest cryptos in the market. It has gained an incredible 215% in the past 12 months. However, it has stumbled quite a bit of late. In the past week, though, LTC has shown signs of a rebound, which indicates a reversal of its fortunes.

Similar to BTC, LTC is open-sourced and highly decentralized. Additionally, it is also quicker than BTC, as it takes only 2.5 minutes per transaction, rather than nine minutes. Its transactions are also at least 40% cheaper than Bitcoin.

Binance Coin (BNB)

Binance Coin is a utility cryptocurrency that operates as a payment method for the fees associated with trading on the Binance Exchange. Those who use the token as a means of payment for the exchange can trade at a discount. Binance Coin’s blockchain is also the platform that Binance’s decentralized exchange operates on. 

Binance Coin was initially an ERC-20 token that operated on the Ethereum blockchain. It eventually had its own main net launch. The network uses a proof-of-stake consensus model. As of January 2021, Binance has a $6.8 billion market capitalization with one BNB having a value of $44.26.

Dogecoin

For any cryptocurrency to survive over the long run, it needs to have a real-world purpose. Dogecoin, though, doesn’t have much of competitive advantage in the industry.

The vast majority of merchants do not currently accept Dogecoin as a form of payment, and there are several other cryptocurrencies with lower transaction fees than Dogecoin. The primary reason its price has exploded over the past several months is that it gained a large fan following. But once those investors inevitably move on to something new, Dogecoin’s price will plummet.

Cardano (ADA)

Because of its flexible network and fast transactions, Cardano is expected to remain one of the most popular cryptocurrencies. Scalability, interoperability, and sustainability are among its chief selling points. The recent update finally brought the ability to build smart contracts on Cardano’s network. Cardano has always been a venture that takes its time and accomplishes things gradually.

VeChain 

If you’re looking for a cheap digital coin to invest in, then VeChain may be the best answer for you. The VeChain currency is based on the VeChain Thor Blockchain. It’s a blockchain specifically designed for handling supply chain management and various business processes with the help of distributed ledgers. 

Things you should know before investing in Dogecoin

What is Dogecoin?

Dogecoin is a cryptocurrency, like Bitcoin or Ethereum—although it’s a very different animal than either of these popular coins. Dogecoin was originally created at least in part as a lighthearted joke for crypto enthusiasts and took its name from a once-popular meme. Despite this unusual origin story, it has exploded in popularity in 2021—as of writing, Dogecoin has become the fifth-largest cryptocurrency by market cap.

How Does Dogecoin Work?

Dogecoin is a cryptocurrency that runs on blockchain technology, similar to Bitcoin and Ethereum. Blockchain is a distributed, secure digital ledger that stores all transactions made using a decentralized digital currency.

All holders carry an identical copy of the Dogecoin blockchain ledger, which is frequently updated with all new transactions in the cryptocurrency. Like other cryptocurrencies, Dogecoin’s blockchain network uses cryptography to keep all transactions secure.

People called miners use computers to solve complex mathematical equations in order to process transactions and record them on the Dogecoin blockchain—a so-called “proof of work” system.

In exchange for processing transactions and supporting the blockchain ledger, miners earn additional Dogecoin, which they can then hold or sell on the open market.

Interesting Facts About Dogecoin

Dogecoin is an open-source peer-to-peer digital currency popular among Shiba Inus around the world. 

The Shiba Inu is a Japanese breed of dog that has become popular as an online meme and is associated with Dogecoin. 

Dogecoin has one of the most active and largest communities in the cryptocurrency world. This group has banded together to support a variety of charitable endeavors and other ventures.

Unlike Bitcoin, Dogecoin has no upper limit, which means there are actually more than 100 billion doge coins in circulation.

Things to consider before investing in Dogecoin

There are multiple things to consider before you invest in any cryptocurrency. Here are some key things to consider before investing in Dogecoin.

Volatility

The first and foremost thing to note is Dogecoin’s high volatility. Dogecoin witnessed serious price fluctuations over the past few months as it rallied to an all-time high of around $0.70. However, soon after, it crashed to around $0.45. While Dogecoin has gained notable momentum with more people learning and investing in it, these investors also cash out when it spikes, thus crashing its price as a result. 

Influencers 

Not just stocks but cryptocurrency can also be influenced by prominent personalities. Elon Musk, the self-appointed Dogefather, and community dubbed Dogecoin CEO, has repeatedly tweeted about the cryptocurrency. As a result, its prices spiked sharply a couple of times. It only stands to reason that if an individual can influence Dogecoin pricing, it could go either way. 

While Musk has always shown support for the cryptocurrency, his recent appearance on Saturday Night Live (SNL) was expected to push its value near the $1 mark. However, that didn’t happen and in fact, Dogecoin fell sharply after his SNL appearance. 

Playing with a bubble

The Dogecoin cryptocurrency can be seen as a bubble that crashes soon. However, not considering it as such will be more of an issue since its price fluctuates based on how many people are holding it, how many Dogecoins are in circulation, and how many are being added every day. If one checks out Dogecoin’s price graph, the general expectation will be that it will go up in the future but sadly, there’s nothing backing up that notion.

FOMO and the sheep mentality

With Dogecoin taking over social media and everyone talking about investing in it, there can be real Fear Of Missing Out or FOMO on a lucrative investment opportunity. But before that happens, it should be taken into account that not everyone is as successful as the person who became a millionaire banking their life savings on a transient trend. 

Unlike stocks, one can use cryptocurrencies they’re holding to actually purchase something. 

What is Ethereum ? – Practical uses of Ethereum

Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum. It is open access to digital money and data-friendly services for everyone – no matter your background or location. It’s a community-built technology behind the cryptocurrency ether (ETH).

What’s an Ethereum wallet?

Ethereum wallets are applications that let you interact with your Ethereum account. Think of it as an internet banking app – without the bank. Your wallet lets you read your balance, send transactions, and connect to applications. You need a wallet to send funds and manage your ETH.

Your wallet is only a tool for managing your Ethereum account. That means you can swap wallet providers at any time. Many wallets also let you manage several Ethereum accounts from one application.

Types of wallet

  • Physical hardware wallets that let you keep your crypto offline – very secure.
  • Mobile applications that make your funds accessible from anywhere
  • Web wallets that let you interact with your account via a web browser
  • Desktop applications if you prefer to manage your funds via macOS, Windows, or Linux.

Practical uses

Ethereum allows you to move money, or make agreements, directly with someone else. You don’t need to go through intermediary companies.

Here are 5 practical uses of Ethereum:

1. It can be used in the healthcare system to securely store and share patient information.
2. Smart contracts can be used to make risk-free, direct transactions.
3. It can be used to improve the current election polling system by making it more transparent and secure.
4. It can be used as a decentralized data storage facility.
5. It can be used to build decentralized apps (DAPPS).

Interesting Facts

Here are 3 interesting facts about Ethereum:

1. Programmers of Ethereum created a custom programming language called ‘Solidity’.
2. Unlike other cryptocurrencies, Ethereum’s currency ‘Ether’ doesn’t have a maximum number of coins. This makes it an inflationary currency.
3. Ether mining was originally based on the Proof-of-Work mining principle, but developers have since planned to switch over to Proof-of-Stake in the future.

Criticisms 

Ethereum faces the same criticisms that all cryptocurrency platforms face:

  • Cryptocurrencies may or may not be a bubble about to burst (again). This debate has been going on since at least 2017, a year during which Bitcoin’s value seesawed between about $20,000 and about $3,000.
  • Each of these networks is eating up a vast amount of energy. Cryptocurrency miners, in particular, are devoting a huge amount of computing power to the process of validating transactions. 

Is Ethereum Better Than Bitcoin?

Unlike the Bitcoin blockchain, the Etherium blockchain was not created to support a cryptocurrency. The Ether cryptocurrency was created to provide an in-house currency for applications built on the Etherium blockchain.

In other words, Etherium has wider ambitions. It wants to be a platform for all kinds of applications that can store information safely.

Despite their differences, the two are the creators of virtual currencies that have become rivals in the investing world. And virtual currencies are just that: They are coins that have no physical existence but are represented by a string of code that can be exchanged at a price agreed upon by a buyer and a seller.

About Decentralized Finance & Digital Gold – Cryptocurrency

Decentralized finance refers to financial activities conducted without the involvement of a traditional bank. Think about all of the activities in which you’d normally use a bank or some other financial institution — getting a loan, insurance, investing, even using a credit card. All of these activities are traditional-finance-based and have intermediary companies. Now people are creating these products in a completely autonomous way with cryptocurrencies.

It can seem counterintuitive — where else would you go for a loan, if not an established lender? But that’s one of the appeals to DeFi (Decentralized Finance). In the same way, people have increasingly brought smart technology into their homes, proponents say the cryptocurrency has the potential to automate and digitize more and more aspects of the financial system. The appeal of this happening outside the conventional — or centralized — finance system depends on who you ask. 

Many peoples may not understand the appeal of a finance system that operates beyond government control. But things can be very different in countries with less financial stability. If cryptocurrencies offer as much or more stability as a given national currency, it’s an entirely different equation than if your national currency is safe and stable.

There are different types of accounts and tools in conventional finance — from savings accounts to investment accounts to credit cards — that are used for different purposes, different cryptocurrencies can have similarly unique uses in this emerging decentralized finance system.

Instead of going to a bank to draw out a loan, you might go to a decentralized application that’s not owned or operated by anyone in particular.

Where conventional loans involve humans at a bank who take part in the processing, reviewing, and approving loans, a DeFi loan — with funding in the form of cryptocurrency — could run via an app on a network like Ethereum with an algorithm processing it. The borrower would put up some cryptocurrency as collateral, which they’d get back minus interest when they repay the loan.

The code runs autonomously using smart contracts. So once the developers release the data they’re pretty much hands-off, and everything runs automatically so there’s no intermediary.

Ethereum’s website offers a comparison chart contrasting decentralized from traditional finance. Along with these technical differences, a big consideration to keep in mind is that the conventional financial system is regulated to serve the interests of everyday customers, while cryptocurrency and decentralized financial systems are largely unregulated, and subject to governance and oversight only by their creators/users.

Unlike the money kept in a bank account, the money you have in crypto may not be FDIC insured. Some exchanges offer this insurance while others don’t — something you’ll want to look into before buying crypto from one or another. For exchanges that don’t offer this insurance, there’s no guarantee you will be repaid if there is a hack or the exchange goes out of business.

Decentralized FinanceTraditional Finance 
You hold your moneyMoney held by financial institutions 
Transfers happen in minutesPayments can take days to process
Transactions are pseudonymous Financial activity is coupled to your identity
Market is always openMarket closes 
Built on transparency – anyone can inspect the systemFinancial institutions are closed books

Digital Gold

Digital gold refers to cryptocurrency comparable to the real gold in its ability to store and increase in value. There’s a limited amount of gold on earth, in the same way, that digital gold cryptocurrencies have a limited supply. 

People buy gold not because they expect to be able to go to the store and spend it, but because they expect it to hold its value and maybe probably, increase in value over time.

The primary example of a digital gold cryptocurrency is Bitcoin, though that was not its original intention. Bitcoin was originally put forth as an electronic peer-to-peer cash system, but its volatility, among other things, limited its potential for that purpose. 

In use, such digital gold cryptocurrencies are bought and held for the same reason people would have diamonds, or some $100 bills, or some gold coins in a safe. Lite coin is another example — it’s been described as silver to Bitcoin’s gold.

What Is Cryptocurrency and why it is so popular?

A cryptocurrency is a form of payment that can be exchanged online for goods and services. It’s a peer-to-peer system that can enable anyone anywhere to send and receive payments. Instead of being physical money that is carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database that describe specific transactions. Cryptocurrencies work using a technology called a blockchain. Blockchain is a decentralized technology spread across many computers that manage and records transactions. 

Cryptocurrency got its name because it uses encryption to verify transactions. This means advanced coding is involved in storing and transmitting cryptocurrency data between wallets and to public ledgers. Encryption aims to provide security and safety.

Is cryptocurrency real money?

Cryptocurrencies are an alternative to traditional money. Today, some outlets accept cryptocurrencies as a form of payment. However, they bear little resemblance to other asset classes because they are intangible and extremely volatile. They are mainly used by traders for speculating on rises and falls in value.

How many cryptocurrencies are there?

There are over 2000 cryptocurrencies available to buy and sell, though most have little value. Of these, bitcoin, ether (the token of the Ethereum network), ripple, bitcoin cash (an offshoot of bitcoin), and litecoin are among the most valuable by market capitalization.

Why it is so popular?

Cryptocurrencies appeal to their supporters for a variety of reasons. Here are some of the most popular:

1. Supporters see cryptocurrencies such as Bitcoin as the currency of the future and are racing to buy them now, presumably before they become more valuable.

2. Some supporters like the fact that cryptocurrency removes central banks from managing the money supply since over time these banks tend to reduce the value of money via inflation.

3. Other supporters like the technology behind cryptocurrencies, the blockchain, because it’s a decentralized processing and recording system and can be more secure than traditional payment systems.

4. Some speculators like cryptocurrencies because they’re going up in value and have no interest in the currencies’ long-term acceptance as a way to move money.

Regulation

The fact that the cryptocurrency market is not regulated has both – brighter side and a darker side. For those willing to invest massively without having to deal with any obstacle whatsoever, it is an advantage. Those unwilling to take risks need to extra cautious of not investing money that they aren’t willing to lose. A nicely laid out plan as to how should cryptocurrencies be classified and a clear regulation would make it easy to predict the future.

Uses 

1. Though cryptocurrencies can be used to make purchases, what is worth noting is that they are not yet widely accepted among retailers and other businesses.

2. Some look at cryptocurrencies from an investment point of view. People invest in them hoping that the future would see an increase in value. However, what needs to be understood here is that the demand cycle is just unpredictable. So, assuming that the future would give a higher return on investment might sound vague for many.

Future

With an exponential increase in the number of people becoming aware of cryptocurrencies, it is evident that the future would see huge investments in the same. That said, it is always better to have a fair idea pertaining to the volatility and risk factors of cryptocurrency before investing. 

Ultimately, the future of cryptocurrencies — their value, security, and staying power — is still up in the air. But the experts spoke to believe owning some crypto could create value over time. Whatever your interest or motivation, experts stress the importance of making sure you understand the unique volatility and risk factors of cryptocurrency before investing.

Why Dogecoin is going up – Is it good to invest in 2021?

What is Dogecoin?

Dogecoin is a cryptocurrency that was originally formed in 2013. Doge was built to be a friendly introduction to the concept of cryptocurrency for the general public and had a fun and friendly brand image behind it. The face of DOGE was the dog Shiba Inu, who became popular as the DOGE meme. It became a meme cryptocurrency. Nobody in the early years believed DOGE would become as valuable as it is today.

However, Dogecoin has grown in popularity because of the community surrounding it. Dogecoin has an almost cult-like status in the crypto world. DOGE helped to spread awareness about the value and importance of blockchain technology and cryptocurrency among millions of people worldwide. Today, Dogecoin has become one of the most popular cryptocurrencies. Over the past couple of days on May 3 and May 4, the price of Doge has gone up from $0.37 to 0.44 dollars, which is an 18 percent increase in the price in just 2 days. 

Should you invest in Dogecoin?

Dogecoin that started as fun or experimental coin has gained a lot of ground in the last few months. Initially, it was made as a joke by Billy Markus and Jack Palmer and never really expected it to take off the way it has. The currency has gauged attention, ever since Elon Musk has been tweeting about it. Many personalities have also hinted about their vision and Dogecoin is hence making a lot of news.

Is it good for individuals to invest in Dogecoin?

To understand this, one needs to first consider certain points, including- legitimacy, history of the project, market valuation, etc. According to Kumar Gaurav, founder, and CEO- Cashaa, Dogecoin has been in the market for over 7 years now, hence, in terms of its legitimacy, there aren’t any questions. Secondly, it is said to have a defined purpose of creating a payment system that is free from traditional banking fees. So, if an investor puts money in the coin, he or she is participating in a constructive project, which forms for a good investment he states.

However, Gaurav added that this is only his personal opinion and shouldn’t be taken as any financial advice.

The real reason for the growth of Dogecoin, as per Gaurav, is its low value, which is also helpful to teach new investors about crypto and basic principles of demand and supply in the market. The industry is in its initial stages and the value of the coin will grow given the fact that a huge number of people are joining the market every day and they pick something at a low price, to begin with. Dogecoin is at a low price right now and also considerably popular. Hence, it is a good bet, but as an investor, one needs to know when to exit from it,” he affirms.

Ashish Singhal, CEO, and co-founder, CoinSwitch Kuber calls this a subjective decision. Investments in Dogecoin are like any other form of cryptocurrency and should be only be done up to an amount that one is fine with losing he suggests. Comparing it to bitcoin, Sathvik Vishwanath, CEO and co-founder of Unocoin tells that while the main reason for the invention of bitcoin is fast and free payments on the internet, the increase in the price of bitcoin and very high transaction fees that needs to be paid to get the transaction in the blockchain is one of the main reason for many to think that Dogecoin is a better alternative.

With its transaction confirmation times being less than few minutes, and every coin to be worth no more than a few rupees, Vishwanath believes it is positing itself to be the fast free transfer use-case savior while bitcoin is establishing itself as a digital gold which is meant to be like a reserve currency on the internet. The investment into this, he however warns, has appeared to be risker than investment into bitcoin based on its previous trends but the acceptance of the use case by the general public has the potential to make this coin as well a good investment.