There are currently over 19,400 different cryptocurrencies listed on CoinMarketCap. Out of all these currencies, Bitcoin is number one, while Dogecoin is number 10.
Why is Bitcoin at the top of the crypto market? What is the difference between Dogecoin and Bitcoin? How do you invest in Dogecoin?
We answer all these questions and more in our guide to Bitcoin vs Dogecoin. Keep reading for the skinny on this popular meme coin and how it compares to the current king of cryptocurrency.
Types of Crypto
Crypto uses a consensus mechanism to verify transactions to a ledger. Among all the thousands of crypto coins, there are two main types of crypto consensus:
- Proof of Work (PoW)
- Proof of Stake (PoS)
There are other consensus mechanisms like Proof of Capacity (PoC) and Proof of Authority (PoSA). The majority of top cryptos currently use PoW or PoS, however.
PoW uses puzzles to verify transactions. Since this method requires a significant amount of work and computing power, it cuts down on bad-faith transactions like spam.
PoS uses owner stakes to verify transactions. The people who already own a set amount of cryptocurrency can become validators by offering their coins as collateral. This method reduces both bad faith transactions and the high energy consumption demands of PoW.
What Is Dogecoin?
Dogecoin actually started off as a spoof of popular crypto Bitcoin. Doge is a popular meme shared on social media sites like Reddit, Imgur, and Tumblr.
The creators decided to use this iconic meme in 2013 for their crypto theme. Dogecoin saw unexpected success, however, thanks to the meme’s already enduring popularity.
The crypto coin went viral just like its meme origin. It quickly became a top crypto coin, at one point reaching #5. Reddit communities built around cryptocurrencies and investing are especially watchful of Dogecoin.
Bitcoin vs Dogecoin
There are a few key differences between Dogecoin vs Bitcoin. Both currently use PoW as their consensus mechanism, although Dogecoin has indicated they’ll transition to PoS at some point.
Bitcoin requires users to solve a complex mathematical puzzle, which generally takes around 10 minutes. This is why Bitcoin in particular has come under fire for its environmental effects.
Dogecoin’s PoW process is faster and easier. It only takes around one minute to verify a transaction, compared to Bitcoin’s 10. This uses much less energy and computing power.
Dogecoin also offers unlimited coins, while Bitcoin is capped at 21 million coins total. This difference translates to higher block rewards: 10,000 DOGE compared to only 6.25 BTC.
How To Buy Crypto
If you want to buy Dogecoin, it can be as simple as opening an account with a trading platform. The current Dogecoin price vs Bitcoin is very substantial.
Bitcoin is currently listed at around $31,000 on the Crypto.com Exchange. Dogecoin’s current price is only $0.09255. If you’re looking for ways to get started investing in crypto, Dogecoin is a casual, accessible, and low-stake altcoin that isn’t capped to inflate market value.
Create Your Own Crypto Investing Strategy Today
The differences between Bitcoin vs Dogecoin are important. Bitcoin is a more established form of cryptocurrency, while Dogecoin is a spoof of Bitcoin.
Dogecoin is easier to mine and comes with higher rewards. Its market price is also significantly lower than Bitcoin. Bitcoin is a high-stakes and high-reward investment, while Dogecoin aims to be a “fun and friendly” crypto ecosystem.
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