If you’ve been following the news this past year or spent some time on social media, you’ve probably heard of Dogecoin, the cryptocurrency that took the world by storm. From television roundups to financial sites to memes on Instagram, everyone was – and still is – talking about Dogecoin.
Dogecoin, or DOGE, is famous for many reasons. It’s one of the most well-known cryptocurrencies. According to CoinMarketCap, it is currently among the top 15 cryptocurrencies globally ranked by total market cap.
Therefore, it’s not surprising that so many people want to buy Dogecoin Netherlands. Here’s all you need to know about DOGE and how you can buy and sell Dogecoin.
The price of a single Dogecoin can fluctuate. You can track the current value of DOGE on the Dogecoin price page.
However, one thing is sure: The price has risen a lot since Dogecoin was first released.
At first, the value of Dogecoin was fueled by the hype surrounding it as a meme coin. However, as time went on, people started to acknowledge the significance of Dogecoin as a store of value and payment method. Many investors and crypto experts invested in DOGE.
What Is Dogecoin?
Dogecoin is a cryptocurrency that was first created as a meme, just for fun. First released in 2013, it went several years with most people knowing nothing about the coin. It was originally intended to be a parody of Bitcoin.
However, in 2021, it exploded in popularity. Many crypto experts started to buy and talk about DOGE. Eventually, Elon Musk, CEO of Tesla and richest person in the history of the world, hopped on the Dogecoin hype and started tweeting about it. As many crypto fans hang on to Elon Musk’s every word (or tweet), Dogecoin skyrocketed in value.
What’s behind the Dogecoin hype? It followed the GameStop hype earlier in 2021. People seemed to identify with Dogecoin, a “joke” coin that seemingly had no value and served no purpose at all. It was all part of sticking it to the establishment (Wall Street and the major financial institutions), and the fact that it kept going up in value fascinated people.
However, as many crypto experts later pointed out, Dogecoin has real utility. It might make for funny memes, but Dogecoin has lower fees than Bitcoin and faster transaction processing times.
Elon Musk himself pointed this out. While many hold Bitcoin as a store of value, it’s not that great for buying stuff, simply because it can incur high fees, and it can sometimes take hours or days for a transaction to go through. Contrarily, Dogecoin transactions don’t cost much and take little time to process.
Can You Use Dogecoin as a Payment Method?
Yes. As you read above, Elon Musk pointed out how great Dogecoin can be as a payment method. Many companies have started to accept Dogecoin as an alternative to Bitcoin.
Elon Musk himself declared that Tesla will start accepting Dogecoin as a payment method.
Companies that already accept Dogecoin or plan to accept it include airlines, resorts, and internet service providers. For example, Air Baltic, a Latvian-based airline, accepts Dogecoin. Kessler Collection, which owns several hotels, and Post Oak Motor Cars, a luxury car dealership, are among the list of businesses that have announced they will accept Dogecoin.
There are many smaller websites and e-commerce stores that accept Dogecoin.
Furthermore, DogeCoin is fantastic for peer-to-peer payments. If your friend has a Dogecoin wallet, you can send them some DOGE to pay for small stuff. Some stores and private sellers may accept Dogecoin. You can also send DOGE as a gift to a friend or relative. Its quick transaction times make it perfect for peer-to-peer payments.
How Does Dogecoin Work?
Dogecoin is a derivative, or fork, of Litecoin. Litecoin was created to fix several issues that Bitcoin has. Among them is the potential for a lack of decentralization in the Bitcoin mining process. Furthermore, Litecoin was created with speed in mind. Indeed, Litecoin boasts a transaction processing speed that's many times faster than Bitcoin.
As a derivative of Litecoin, Dogecoin comes with many of the advantages that Litecoin does.
One thing worth noting is that while Bitcoin, Litecoin, and Dogecoin all use a proof-of-work model to confirm transactions, Dogecoin does not have any upper limit on the number of coins that can be mined. As such, it is inflationary by nature.
That was by design. As new coins can always be minted, miners will always have incentives to mine new coins and confirm transactions on the blockchain. Coins with limited supplies, on the other hand, will only have network fees to incentivize miners after all coins are minted.
Furthermore, since Bitcoin has a finite supply, many people are using it as a store of value. Scarcity creates value. With Dogecoin being limitless, however, it is the perfect digital currency. Nevertheless, it is also a good store of value, as evidenced by the fact that its value has increased so much in the many years since it was first released.
Even Litecoin has a supply limit of 84,000,000. Once Bitcoin reaches its cap of 84,000,000 coins, no further supply will be mined. Dogecoin thus sets itself apart from Litecoin.
Buy Dogecoin with iDEAL
Knaken users can easily buy Dogecoin iDEAL. iDEAL is one of the most popular e-commerce payment systems in the Netherlands. Select iDEAL as a payment method when purchasing Dogecoin on Knaken.
However, we also accept additional payment methods, such as credit cards and bank transfers.
How to Sell Dogecoin
Did you know that you can also sell Dogecoin on Knaken? You can sell your Dogecoin for Euros at any time by submitting a sell order. Once you sell your Dogecoin for cash, you can transfer that money to your bank account. Alternatively, you can use it to buy other coins, like Bitcoin or Ethereum.