Dog coins to bitcoins definition
Baby Steps Millionaires available now! But what is cryptocurrency really? But the million-dollar crypto? Cryptocurrencies are digital assets people use as investments and for online purchases. Think of it this way: Cryptocurrency is kind of like swapping out your money in a new country. We value dollars and euros because we know we can purchase goods or services with them.
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- What is dogecoin? And why is it rising and falling with Elon Musk?
- Column: Bitcoin, dogecoin, NFTs, GameStop — is this the peak of investment absurdity?
- Q&A: Binance CEO on bubbles, meme coins and crypto’s swings
- What Is Shiba Inu Coin? Is It a Good Investment?
- What is the problem with cryptocurrency (bitcoin)?
- After GameStop, the rise of Dogecoin shows us how memes can move markets
- 3 important differences between bitcoin and dogecoin, according to experts
What is dogecoin? And why is it rising and falling with Elon Musk?
Not to mention, the usual losses incurred by jumping on the bandwagon due to fear of missing out and watching your new investment plummet as the meme mob moves onto other shiny objects are also concerns. Before we start detailing the key features to look out for in a credible meme coin, let us first define the concept of meme coin itself. Introduced in , meme coins are usually crypto projects built around meme-worthy themes and animals.
For instance, dogecoin DOGE , the first-ever meme coin, was inspired by the Shiba Inu a breed of hunting dog developed in Japan meme sensation a picture of a presumably smiling Shiba Inu dog that swept the internet in the early s.
Notably, the success of dogecoin birthed a horde of other dog-themed coins, including the self-proclaimed doge killer shiba inu coin or SHIB which briefly surpassed the former in terms of market capitalization earlier this year. Unlike traditional cryptocurrencies, meme coins are not usually judged based on the utility they provide to users. In essence, virality is the single most important factor required to gauge the success of meme coins.
With this in mind, what then can you do to identify credible and fake meme coins? Although emphasis is not placed on utility, it is a good sign when the community backing the meme coin project shares something in common, apart from the desire to generate profits. Moreover, the project has gone a step further to implement a decentralized exchange called ShibaSwap , in a bid to provide a bit more utility for token holders. As such, it is critical to research the long-term focus of the project in question and how the project team plans to keep community members engaged with the network.
Those familiar with the crypto industry know that reputation is a vital factor to consider when determining the viability of a product or platform. Hence, it is advisable to unravel the identities of the core contributors of the project and their track records. Note that it may be impossible to find information about the members of the development team due to their decision to remain anonymous.
In such cases, you can base your research on the design decisions of the team, especially tokenomics. Tokenomics refers to the token distribution of cryptocurrencies. Such digital assets are prone to experience a price slump if the major token holder decides to dump sell off their coins. Therefore, it is advisable to go for a meme coin whose circulating supply is not concentrated among a handful of investors.
There are now over meme coins all vying for the attention of crypto investors. While many may look legitimate, a majority of meme-inspired cryptocurrencies are simply scam projects designed to capitalize on the growing meme coin trend. You can reduce the risks involved by ensuring that the project is not prone to rug pull scams. For those unfamiliar with the term, a rug pull occurs when the development teams suddenly sell off all their coins after driving the prices up.
Investors are the ones with the rug pulled out from under them, leaving them flat broke as the price of that coin falls abruptly to zero. Squid token and snow dog are two of the most recent examples of meme coins that ended in an alleged rug pull. As mentioned earlier, meme coins concentrated in the hands of a few investors or the development team are risky ventures.
In most cases, meme coins are distributed via automated market makers AMM. This means when a token first launches, the development team creates a new liquidity pool for investors to use to purchase the token. Liquidity pools are smart contracts that allow investors to swap cryptocurrencies without the need for a third-party order book or counterparty.
For example, an investor would likely exchange ETH for a new Ethereum-based coin on liquidity pools. To achieve this, the development team must provide liquidity. This is done by depositing both ETH and an amount of the meme coin in a liquidity pool. It is this liquidity that inventors would trade against to get their hands on the newly launched coin. The problem however is that the liquidity provider, which in this case is the development team, can withdraw liquidity if the appropriate safety system is not put into place.
When such incidents occur, the investors are left with no means of exchanging a coin that is fast losing its value. In light of this, it is vital that you only engage with pools held by burn addresses any wallet address starting with oxoooo , which signals that the liquidity has been permanently locked. When it comes to digital assets, development teams need to promote an open and transparent ecosystem. More importantly, the underlying code of the cryptocurrency needs to be audited by a reputable third-party software auditing firm such as Certik or Hacken , to ensure that the development team has not implemented back doors that might allow them to initiate an exit scam.
Completed audits are usually shared across social media and can be easily found by a quick internet search. When you find a viable meme coin, the next thing you need to consider is how to correctly trade this type of volatile asset. Remember that speculation fuels the prices of meme coins. Hence, you will likely have to contend with high volatility.
With this in mind, here are some of the ways to invest in meme coins:. The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group , which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights , which vest over a multi-year period.
CoinDesk journalists are not allowed to purchase stock outright in DCG. Andrey Sergeenkov. Andrey Sergeenkov is a freelance writer whose work has appeared in many cryptocurrency publications, including CoinDesk, Coinmarketcap, Cointelegraph and Hackermoon.
NFT All-Stars. Investing in Meme Coins? So, the question is, how do you safely invest in these tokens? Learn how to spot credible and fake meme coins. The track record of the development team. How to safely invest in meme coins. Here are some precautions you need to take to avoid this type of scam:. Avoid coins where developers hold most of the tokens. Verify the validity of the liquidity pools. Check the transparency and audit status of meme projects.
How to trade meme coins. Diversify your investment: Try as much as possible not to put all of your eggs in one basket. In other words, avoid investing all your funds into any single meme coin. Instead, adopt a more measured investment strategy. A share of your portfolio should be allocated to one or multiple meme coins, while the remaining can be distributed among more established and stable cryptocurrencies.
In the instance of shiba inu coin and dogecoin, both cryptocurrencies took a number of years before they soared in value. Track community sentiment on social media: Do not forget that virality triggers the success of meme coins. Hence, it is advisable to track community engagement and gauge market sentiment to predict price movements.
Be as objective as possible when dealing with cryptocurrencies, especially meme coins. Are you buying the meme coin at the top of a rally, or at a more suitable entry point? These are the questions you need to ask. This article was originally published on Dec 21, Follow Nikopolos on Twitter. Subscribe to Shows, show newsletter promo. Sign Up. Related stories. Crash Courses. Bitcoin Price Data Crypto Terms.
Column: Bitcoin, dogecoin, NFTs, GameStop — is this the peak of investment absurdity?
A document released by a crypto project that gives investors technical information about its concept, and a roadmap for how it plans to grow and succeed. Whitepapers explain the purpose and technology behind a project. They usually provide statistics, diagrams and facts to convince interested investors to purchase the cryptocurrency. Producing a whitepaper is key a step required for a crypto startup to be considered legitimate and professional, as it helps investors understand how a business is different from rivals in the space. Whitepapers differ from litepapers, which tend to be shorter, less technical and easier to understand.
Q&A: Binance CEO on bubbles, meme coins and crypto’s swings
These are the core obsessions that drive our newsroom—defining topics of seismic importance to the global economy. Our emails are made to shine in your inbox, with something fresh every morning, afternoon, and weekend. In , a new cryptocurrency, Dogecoin, was minted as a joke making fun of the speculative frenzy surrounding Bitcoin. Then last August, an anonymous developer created the Shiba Inu coin, the canine mascot for Dogecoin, riffing off the previous prank. Somewhere along the way, the internet gags became very real. On Oct. The coin soared on speculation that it might be listed on the exchange Robinhood. The crypto market is full of puffery. But meme coins are among the most risky, and perplexing, investments.
What Is Shiba Inu Coin? Is It a Good Investment?
This content can also be viewed on the site it originates from. If things had gone just a bit differently, James Howells might today be as rich as the Queen of England. The decisive moment, he now thinks, occurred one evening in August, , when he was twenty-eight and at home with his family in Newport, a small city on the Welsh coast. Howells and his partner, Hafina, were raising three children, and family trips—like the one that they had taken to Disneyland Paris—were fun but exhausting.
What is the problem with cryptocurrency (bitcoin)?
Photo of Elon Musk holding a doge. Credits: Elon Musk's Twitter. According to Coindesk , it has risen to In early January, each token was worth less than one cent. The coin has spent the past few months in the three- to seven-cent range.
After GameStop, the rise of Dogecoin shows us how memes can move markets
Dogecoin DOGE is a peer-to-peer, open-source cryptocurrency. It is considered an altcoin and an almost sarcastic meme coin. Launched in December , Dogecoin has the image of a Shiba Inu dog as its logo. While it was created seemingly as a joke, Dogecoin's blockchain still has merit. Its underlying technology is derived from Litecoin. Notable features of Dogecoin, which uses a scrypt algorithm , are its low price and unlimited supply. Dogecoin started as something of a joke, but after it was created, it gained a following.
3 important differences between bitcoin and dogecoin, according to experts
A Shitcoin is a cryptocurrency that has no utility or unique features. The term is also used to describe coins that do not serve any purpose other than being a means of exchange. Dogecoin emerged in as a joke. While it was intended to be a joke, it led to some use case as its large supply and low price facilitated efficient micro-tipping content on social media.
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Such fast growth is drawing in more investors, as well as gaining the attention of regulators around the world. Zhao spoke with The Associated Press after his company issued a call for more regulation of crypto markets around the worl d. Besides bubbles and meme coins, he talked about which cryptocurrencies he owns and his promise to donate most of his wealth. This conversation has been edited for clarity and length. But this shows the power of decentralization.
Virtual currencies such as Bitcoin could be the natural next stage in the evolution of money. Despite an explosion in media coverage, virtual currencies such as Bitcoin are misunderstood. Every day, news articles describe exchange meltdowns, price volatility, and government crackdowns. This focus on Bitcoin as a volatile and even renegade currency may be distracting governments and businesses from its potential long-term significance as a disruptive new money technology.