Today, almost 60 million Americans have some form of digital assets. For many, this is in the form of cryptocurrency, which is a digital currency maintained under a decentralized system.
The most popular one that everyone’s heard of is Bitcoin. But there are also other options out there, such as Dogecoin.
If you’re interested in investing, it’s best not to pour your money into only one. By expanding your horizons, you won’t have all your eggs in one basket.
What’s the difference between Bitcoin and Dogecoin though? Read on to find out!
What’s Bitcoin?
Bitcoin is the original cryptocurrency. It was created back in 2009 to be an electronic peer-to-peer cash system. However, as you can see, it’s become something much bigger.
There’s a market cap of 21 million Bitcoin and as of early 2022, there are just under 20 million in circulation. Because it’s the first crypto and the most popular one, its cost is very high, with the record being over $65,000 in 2021.
What’s Dogecoin?
Dogecoin was actually started as a joke in 2013, as it was based on the Shiba Inu from the meme. Because of this, the value of a Dogecoin wasn’t much (around 5-10 cents per Dogecoin).
There’s no market cap on Dogecoin, so theoretically, crypto miners can keep mining Dogecoin forever. Do note that there’s an annual cap of 5 million Dogecoins though.
The Difference Between Bitcoin and Dogecoin
Both Bitcoin and Dogecoin are cryptocurrencies, but that’s where the similarities end.
Not only is the value of Bitcoin much higher, but there’s also a finite amount of them. whereas Dogecoin is extremely cheap and there’s no maximum coin limit.
On average, a Bitcoin transaction takes just under 10 minutes. Dogecoin wins here, as it’ll take only a minute or so to complete a transaction!
Bitcoin also has a higher transaction fee; it can be anywhere between $1.00 to $5.00. Dogecoin’s transaction fees have historically been under $2, but that’s to be expected since transaction amounts are much lower.
Buying Bitcoin (and using it) is much easier as well. There are plenty of online exchanges, as well as Bitcoin ATMs (search here for some). You’ll have to search a bit harder when buying Dogecoin, but there are definitely some online exchanges you can use.
Lastly, Bitcoin is much more secure than Dogecoin. Developers are always working to upgrade Bitcoin’s security, but Dogecoin didn’t have a single update between 2015 and 2020. This means that cyberattacks are more likely to be successful on Dogecoin.
Be Smart When Investing in Crypto
By knowing the difference between Bitcoin and Dogecoin, you can weigh their pros and cons carefully.
Of course, when it comes to crypto for beginners, it’s always good to start out small and cautious. Considering that buying a little of both is good for your portfolio, spread out your investments and get a better chance of seeing your money grow.
If you want to learn more about crypto investments, then keep browsing our blog page now.
