The first-ever-launched cryptocurrency that disrupted the financial market in 2009 was bitcoin. Since then, BTC has remained the leader on the market. Even considering that there are more than 17,000 cryptocurrencies available in 2022, bitcoin still is the most popular and powerful cryptocurrency among them.
However, other fast-growing crypto assets are coming up close behind bitcoin. Dogecoin, which was launched as a meme-based coin in 2013, is already one of the 15th biggest digital currencies on the market. Many bitcoin holders are now choosing to swap a part of their stash for the exciting DOGE. If you are one of those opportunists, you can use the Godex crypto exchange to convert the two assets quickly and anonymously.
So, which coin should a crypto newcomer choose? The mature but expensive BTC or the cheap but trendy Dogecoin? Find out in the article!
Dogecoin is a decentralized open-source cryptocurrency. It was launched by software engineers Jackson Palmer and Billy Marcus in December 2013. Initially, DOGE creators aimed to introduce a joke-driven payment system based on the popular meme. Even the logo of Dogecoin has an image of the Shiba Inu breed on it.
Next thing you know, Dogecoin has gained worldwide popularity. However, a massive part of the supply is held by a limited number of entities. There are over 132 billion DOGE coins in circulation, yet in 2021, 82% of them were held by 535 wallets.
After the launch, its market capitalization remained under 1 billion until the end of 2020 (with a week-long exception in 2018). However, from the very beginning of 2021, DOGE capitalization started to increase quickly. As a result, by the beginning of May 2021, the overall market capitalization was almost $90 billion. Such an increase took place after numerous celebrities expressed their sympathy for Dogecoin.
Snoop Dogg, Mark Cuban, Gene Simmons, “Slim Jim” and “Snickers” brands expressed their support towards the asset. But the biggest fan and contributor to DOGE’s price changes has always been Elon Musk, with his infamous tweets about the coin.
What’s New About Bitcoin
Bitcoin is considered the most popular cryptocurrency available today. BTC became a synonym for the word “cryptocurrency” for most investors. According to recent studies, around 106 million people owned bitcoin in 2021. The estimated number of daily transactions is over 270,000. Also, nearly 90% of adult Americans at least once in their lives have heard of bitcoin.
The popularity of BTC increases as crypto integrates into people’s everyday lives. Within a few years, more than 15 thousand businesses started to accept bitcoin as a payment method. Among them are PayPal, Microsoft, Wikipedia, Starbucks, and many others. Also, in September 2021, El Salvador became the first country that adopted BTC as a legal payment method along with the US dollar.
Consequently, bitcoin is turning into a trusted valuable asset worldwide.
DOGE and BTC: Key Differences and Similarities
Both DOGE and BTC were the buzziest cryptocurrencies on the market through the whole of 2021. The hashtag “#DogeCoinToTheMoon” filed up Twitter and all news portals. The recognition of Bitcoin as legal tender was marked as a breakthrough.
Dogecoin does have some similarities with Bitcoin, especially when it comes to investing and spending. But still, those assets have some significant differences. So, in this Dogecoin vs Bitcoin contest, which crypto should you select for the first investment?
Here are a few common features between BTC and DOGE:
- Proof-of-work consensus
- Distributed ledger technology
- Store of value and payment method
The two cryptocurrencies share some basic characteristics, but their core idea is quite different.
Here’s what differentiates one coin from the other:
- Market supply
There is no limit to a maximum amount of DOGE coins, while BTC is capped at 21 million.
- Initial purpose
Bitcoin was created to become an alternative payment method to traditional currencies, ensuring anonymity and decentralization. Dogecoin was launched as a joke.
- Mining process
Dogecoin is both faster and easier to mine by using the Scrypt algorithm. At the same time, Bitcoin miners use the SHA-256 algorithm.
As you can see, although Dogecoin was initially based on Bitcoin, it has quite a few differences.
Which Is the Right Crypto for Newbie Trader?
Dogecoin and Bitcoin are very different. They have their pros and cons and both are worth investing in. As BTC has a more developed ecosystem, it seems to be a better solution for newcomers. Yet, just like any other asset, both Bitcoin and Dogecoin are risky investments. Do not invest more than you can afford to lose.