This comprehensive guide will equip you with all the Dogecoin basics, exploring its history and defining features, such as its use of the scrypt algorithm and its unlimited supply.
Additionally, it will detail the many ways in which Dogecoin can be used, from online purchases to charitable donations to the Jamaican Bobsled team, and show why it’s quickly becoming a popular choice for investors in New Zealand and around the world.
What is Dogecoin in NZ?
Doge is an open-source, peer-to-peer cryptocurrency that utilizes blockchain technology, a highly secure decentralized system for storing information as a public ledger.
This digital currency is not only popular around the world, but also in New Zealand, where its community of friendly folks is growing fast. Dogecoin’s ethos is encapsulated in the Dogecoin Manifesto, which inspires the movement’s amazing, vibrant community.
At its heart, Dogecoin is a fun and accessible crypto option that brings smiles to faces everywhere in the world, including in the New Zealand cryptocurrency scene!
The History and Evolution of Dogecoin
Dogecoin was created in 2013 by programmer Billy Markus and marketer Jackson Palmer as a fun and lighthearted alternative to Bitcoin and other cryptocurrencies.
It was named after the popular “Doge” internet meme featuring a Shiba Inu dog. Despite its initial lightheartedness, Dogecoin quickly gained a devoted following and became known for its supportive community and charitable initiatives.
Interesting Fact: In 2014, the Dogecoin community raised over $50,000 (USD) to send the Jamaican bobsled team to the Winter Olympics.
Since then, Dogecoin has experienced its share of ups and downs, including a surge in popularity in early 2021 following tweets by Tesla CEO Elon Musk. Despite its volatile history, Dogecoin has remained popular with a dedicated fanbase and continues to evolve with updates and improvements to its blockchain technology.
How does Dogecoin work in NZ?
Dogecoin's Blockchain
Doge’s blockchain is a decentralized, public ledger that records all Dogecoin transactions.
It operates using the Scrypt algorithm, which is a proof of-work concept. It is secured by miners who validate transactions by solving complex mathematical problems. This process ensures the integrity of the network and prevents double-spending.
Dogecoin’s blockchain is also notable for its fast transaction times and low fees, making it a popular choice for online tipping and micropayments.(33 transactions per second)
Dogecoin Mining and How Does it Work?
Dogecoin mining is the process of verifying transactions on the Dogecoin network and adding them to the blockchain. Miners use their computers to solve mathematical problems and create new blocks of transactions. As a reward for their efforts, miners receive newly minted Dogecoin (DOGE) as well as transaction fees.
Dogecoin mining uses the Scrypt algorithm. Scrypt is a “memory-hard” algorithm, which means that it requires a large amount of memory to solve mathematical problems.
The Scrypt algorithm also makes Dogecoin mining more resistant to centralization, as it is less vulnerable to mining pools with a large amount of hashing power.
To get started with Dogecoin and Cryptocurrency Mining in NZ, users typically need to join a mining pool or set up their own mining rig with the necessary hardware and software.
How to Store Dogecoin in NZ
When it comes to storing Dogecoin safely in NZ, there are several options to consider.
The most secure method is cold storage, which involves storing your Dogecoin offline in a hardware wallet. Popular hardware wallet options for Dogecoin include Ledger and Trezor.
Another option is to store your Dogecoin in a desktop or mobile wallet, which offers more convenience but can be less secure. Exodus and Trust Wallet are great examples.
It’s essential to take precautions like backing up your wallet’s private keys. It’s also important to research and choose a reputable wallet to avoid potential scams or hacks.
More info about Best Cryptocurrency Wallets in NZ can be located here.
Private Keys and Public Keys
Acting as your digital identity and signature, every cryptocurrency wallet is distinct by having its own unique public and private key – with each unique key pair being freshly generated whenever a new cryptocurrency wallet is created.
- Private Key: Private keys is the password to your crypto bank account, and it’s required to sign off outbound transactions from your wallet. Never share your private key with anyone, and the security of your wallet rides on how safely you store your private key.
- Public Key: Dogecoin public keys are like your crypto bank account number – an address others can use to send you DOGE. You can safely send your public key to anyone, knowing they can’t change or open your wallet and take your dogecoin.
Best Dogecoin Wallets in NZ
Cryptocurrency NZ chooses Exodus as the best Dogecoin wallet for beginners due to its exceptional features. Being a free wallet, it offers an accessible entry point for newcomers. Additionally, Exodus provides great customer support.
Pros & Cons
Pros Of Exodus Wallet:
- ✔️ Built-in Exchange: Exodus offers the convenience of a built-in exchange, allowing users to easily trade between supported cryptocurrencies without leaving the wallet interface.
- ✔️ Good Customer Support: With responsive and helpful customer support, Exodus ensures that users receive assistance promptly, enhancing their overall wallet experience.
- ✔️ Easy Setup Process: Exodus boasts a user-friendly and straightforward setup process, making it an ideal choice for beginners entering the world of cryptocurrency.
Cons Of Exodus Wallet :
- ❌ Closed Source Software: The closed-source nature of Exodus’s software may raise concerns for security-conscious users, as they have limited visibility into the codebase and potential vulnerabilities.
- ❌ Lacks 2FA Security Protection: Unfortunately, Exodus currently lacks Two-Factor Authentication (2FA), which is an additional layer of security desired by some users to protect their accounts from unauthorized access.
Overview
Exodus is a user-friendly desktop and mobile wallet known for its straightforward interface and built-in exchange. With the ability to swap between over 250 cryptocurrencies, it offers great versatility for users. Beginners appreciate its simplicity and excellent customer support, making it an ideal entry point into the world of crypto.
However, more advanced users might find it lacking due to its closed-source nature, raising potential security concerns. Despite this, Exodus allows custom fee settings and ensures prompt transaction completion, adding to its appeal for users seeking cost-effective and efficient transactions.