Dogecoin is a product of the cryptocurrency fever started by Bitcoin, but it’s also based on the popular Internet meme Doge. Dogecoin is a bit different from the other types of digital cryptocurrency you might have already read about but it’s based on the same principles.
The currency features a digital wallet (called Dogewallet) in which users hold their funds, a concept you might be familiar from Bitcoin and Litecoin.
Once again we have a peer to peer basis on the network, and a public principle with a big (and further growing) community. The process of mining is involved in here, as well, and is one of the ways to acquire dogecoins and to keep the system safe and secure.
The basic principles of Dogecoin are the same as other cryptocurrencies but there are also some vital differences. The volume of Dogecoin is much more immense and has no end limit in the production.
As you may know, Bitcoin is set to produce a maximum of 21 million bitcoins, after which the production will stop and the rewards for the miners will be based entirely on the transaction fees.
Since Litecoin produces four times more coins per 10 minutes than Bitcoin, the limit is 84 million. Dogecoin, on the other had a set limit of 100 billion, but that limit was removed and now no one knows how many dogecoins will be produced.
To give you an idea of the sheer score of Dogecoin’s volume, about a month after its release, it had more trading volume than all other cryptocurrencies combined. The first 100,000 blocks gave out a random reward of 0 to 1,000,000 for solving them. As you can see, there are significant differences in the policies but ultimately the main principle stays the same.
Since the principles behind Dogecoin are the same, this also implies that the difficulties of purchasing the currency are the same.
You cannot simply buy Dogecoin with credit card Visa or Mastercard, or even using PayPal since it’s against their terms and conditions to use their services to purchase cryptocurrency.
The process of buying dogecoins with credit card is made even more difficult by the fact that the cryptocurrency is relatively new, hence very few exchanges work with it. You don’t want to risk giving your credit card to uncertified websites, so the best way to proceed is to acquire some bitcoins and then exchange them for dogecoins.
You can first buy Second Life Lindens at VirWoX using your credit card and exchange them for bitcoins (and the bitcoins for dogecoins after that), or you can add funds to a Crypto-Trade account from your Mastercard or Visa via Payee.
Then you can again obtain some bitcoins and exchange them for dogecoins. Do your research before you start trading.
There can be a wide variation in price between different exchanges so read before you buy.