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Top Cryptocurrency Coins Worth Buying
Bitcoin and other cryptocurrencies are here to stay and buying a popular coin right now might turn out to be one of the best decisions of your life.
If bitcoin were a company, it would be one of the most valuable in the world. Its current valuation places it above global giants like Facebook, Tencent and JP Morgan Chase.
But Satoshi Nakamoto's creation isn't the only digital currency giving traditional companies a run for their money. Inspired by bitcoin, an army of cryptocurrencies have emerged on the scene, surging on the back of innovative blockchain tech and relentless investor confidence to become giants in their own right.
As more money comes into the industry, some new coins have been getting the love but interest still largely resides in the top twenty-to-fifty cryptocurrencies. Some of them, like Ether, have been around for a while but others, such as Solana, recently achieved elite status.
Every one of the top 90 coins right now has a valuation of at least one billion dollars. The top ten's cumulative value is roughly $1.8 trillion, and bitcoin alone is responsible for over half of that.
With the industry already awash with so much investments, many potential investors might think that there's little to gain by buying some of the top coins but this is not the case. The best-backed coins, even BTC, can still move up even higher. So, it's better to get in now before the train leaves the station.
So, What's a Cryptocurrency?
A cryptocurrency, digital coin, or digital token is virtual money most commonly created by mining or minting through a set of cryptographic mechanisms. A digital token is distributed on a blockchain and allows for decentralized transactions.
Because of how they're created, digital coins are not subject to the constraints imposed on fiat money by central governments. Anybody in any country can hold a crypto coin in specialized digital storage called wallets and send it to another address within and across blockchains.
Cryptocurrencies have a wide range of applications. Some of its use cases are Decentralized finance or DeFi, non-fungible tokens (NFTs), virtual game worlds, blockchain governance, smart contracts, and real-world buying and selling.
What Makes a Cryptocurrency Popular?
There are more than 4 thousand digital currencies around but they don't all have the same fate. While some grabbed plenty of attention, others faded into the background or disappeared completely.
When choosing the best coins to buy, it's usual to rank them by how valuable they are relative to one another. Bitcoin remains the biggest but the rest of the best are each backed by an army of investors, a dedicated community, and at least one important use case.
Market capitalization indeed plays a large part in choosing the big coins on this list but there are other considerations at play. Just being big now is not necessarily indicative of enduring popularity. All the coins on this list are capable of appreciating in value, hence why stablecoins aren't listed. Moreover, coins that are purely speculative in nature and offer minimal or zero use cases aren't considered.
Aside from the valuation, each coin on this list brings a distinctive technology or innovation to the cryptosphere. They are all trusted coins with loyal user bases, serious development teams and bullish long and short term forecasts.
1. Bitcoin (BTC)
Rank #1
The ultimate goal of bitcoin is The Bitcoin Standard, a financial system where all transactions are made in bitcoin or digital tokens pegged to its value. While that dream is still a long way away, bitcoin itself isn't doing too shabbily. It is the biggest coin in the world.
Bitcoin is the native currency of the bitcoin network and the largest digital currency. And it's not even close. From a modest fellowship of visionaries in 2009, BTC is now bought and sold, spent and speculated on by millions of users comprising retail and institutional investors.
If you're looking for the ultimate big coin to invest in, look no further than bitcoin. It is by far the safest crypto coin anyone can hold with unmatched security features.
Buy Bitcoin (BTC)
The price of bitcoin can fluctuate wildly and this can be worrisome. But if you have the chance to bag some during a dip, you should do so. Most forecasts predict the coin's value, currently around $50, 000, will eventually breach the $100,000 mark. You don't want to be on the outside looking in when that happens.
Bitcoin has a limited supply. Only 21 million of the token can be minted and most of it is already out there. Most big traders these days treat BTC as more of a store of value and investment vehicle and you can buy some, too, in anticipation of another meteoric rise.
2. Ether (ETH)
Rank: #2
If bitcoin in 2009 flagged off the age of digital currencies, the launch of Ethereum in 2014 began the use of smart contracts, a protocol that eased the deployment of digital currencies for practical on-chain and off-chain uses.
Ethereum is based on a worldwide system of nodes operated by volunteers that decentralizes information storage and financial transactions. The Ethereum network made the creation of decentralized applications or dapps possible. These applications run on the blockchain and utilize smart contracts.
All the transactions on the Ethereum network utilize computing resources. This is where Ether, the native token of the Ethereum network, comes in. Ether is used to pay "gas fees" or processing fees to complete transactions. The longer the transaction takes and the more power it needs, the higher the amount of Ether needed to complete the operation.
Unlike bitcoin, Ether has an open-ended total supply with no hard cap. 18 million new Ether tokens are minted each year. The community is also getting ready to transition from proof-of-work to proof-of-stake, a mechanism that will significantly speed up transaction validation on the network and also lower gas fees.
Buy Ether (ETH)
Despite its current high price, ETH remains one of the must-have coins in cryptosphere. It is a better alternative to bitcoin in several respects; and as the main fuel that runs the Ethereum network, demand for the token will keep increasing for the foreseeable future. Ether has a circulating and total supply of 117m and an all-time-high of $4,362 back in May.
According to many experts, Ether remains massively undervalued relative to its utility and there will be even bigger price jumps. In terms of ROI it's been one of the most reliable coins and all signs point toward even more long term profits as it tries to keep pace with bitcoin.
2. Kyrrex (KRRX)
Rank: #3
Kyrrex Coin (KRRX) is one of the most unique coins in the crypto space and will be among the most sought after exchange tokens in the market. It is the utility token of Kyrrex Exchange, the global cryptocurrency exchange platform which handles a large volume of crypto transactions. KRRX is also central to the upcoming Kyrrex online banking platform.
What makes KRRX attractive to many investors is its rock-solid foundations. It can be said that the coin is concurrently backed by 2 different though related ecosystems. These are the Kyrrex exchange, and the Kyrrex crypto-processing and digital banking platform. KRRX is used to pay trading fees, enjoy exclusive benefits, and distribute rewards on the exchange. However, the token is issued on the secure TRC-20 protocol, which makes it compatible with other Tron tokens.
Kyrrex Coin has a max supply of 500 million tokens, half of which will be released into the market via three sale rounds. The remaining half will follow a gradual release schedule to maintain price stability. However, the Kyrrex team plans to keep burning the tokens until there are only 250m left in circulation. This is sure to create deflationary pressure which can make the price of one KRRX rise even higher.
Buy Kyrrex (KRRX)
KRRX seems to have a bright future ahead on the strength of the unique services that Kyrrex is bringing into the crypto industry. The platform rolled out ambitious plans to transform the existing investment, payments and finance systems with a comprehensive set of products and services. The token should be seeing higher moves as the crypto industry further expands. The listing price of $1.00 is a bargain.
4. Cardano (ADA)
Rank: #4
ADA is the native token of Cardano, a decentralized blockchain platform that uses the ourobouros proof-of-stake mechanism to achieve consensus on the network. The platform was launched by Charles Hoskinson in 2017 two years after departing Ethereum because of ideological disagreements.
After a monster rally in August, ADA is now the third largest digital token in the world by market capitalization. The surge has been fuelled by renewed interest in the Cardano technology which the platform claims can be implemented at scale without sacrificing speed or security. Moreover, it consumes significantly less energy than Bitcoin and Ethereum, making it attractive to those who are concerned about the impact of crypto activity on climate change.
The ADA token has increased by more than 1400 percent year-on-year and reached an ATH of $3.10 on September 2. This might seem like a very low price compared to BTC and ETH until you factor in the circulating supply of ADA (32 Billion) and total supply (33 Billion). The max supply of ADA is 45 Billion.
After several years of development, the Cardano Alonzo hard fork in September heralds the dawn of smart contracts on the platform, paving the way for DApps, including DeFi and decentralized exchanges, to start running on the blockchain which its backers claim will feature fast transaction times compared to its rivals.
These recent developments and more make ADA one of the trending cryptocurrencies of the year and a legitimate big coin that users can buy with the expectation of an increase in value once DApps have gotten up to speed.
5. XRP (XRP)
Rank: #6
Many of the top cryptoassets are affiliated with a decentralized blockchain like Ethereum, decentralized exchange like Uniswap, or global trading platform like Binance: XRP is different. The controversial digital token created by Ripple Labs is more of an exchange bridge that facilitates cross-border payments among financial institutions.
XRP is now among the largest cryptocurrencies in the world with a market share exceeding 2 percent. However, its primary purpose was and remains facilitating quick, reliable international financial settlements that can take place in seconds, rather than days. Ripple, with the XRP token as a centerpiece of its technology, aims to supplant old systems like SWIFT and digital solutions like VISA and MasterCard. The goal is to become the gold standard for moving money across the global financial system.
RippleNet, the payment network that uses the Ripple Ledger to automate transactions, has more than 100 companies on the system including Bank of America and American Express. A company on the network can convert a large sum to XRP and forward the XRP to another company in another country. That company then converts the tokens to the native currency. In this way, traditional hassles to cross-border payments such as exchange rates, slow technology and transaction errors, can be eradicated.
Buy XRP
The coin is trading around $1.10 in September, which is some way off its all time high of $3.84 achieved over four years ago. This means that there is still a lot of scope for XRP to rise again and many investors are confident that it will do just.
However, XRP's parent company Ripple is in an ongoing legal battle with the United States Securities and Exchanges Commission who allege that the token is actually a security and should be traded as such. Despite such stepbacks, XRP has maintained its status among the top ten assets in the crypto coin world. Once the case is over, there is a big chance that XRP will finally go to the moon in a way it hasn't managed to do for a few years.
6. Solana (SOL)
Rank: #7
Solana, the internal currency of the Solana blockchain, is the latest proof that crypto really can change your life. SOL was barely above 150 cents on January 1; by September, it's increased by 14,000% to a scintillating high of $214 per SOL. It knocked many established cryptoassets aside on its way to $50bn+ market cap and looks likely to nestle into the top 5 largest cryptos club before too long. It's made millionaires out of many investors who got in early enough to buy and hold a significant amount of SOL.
Even as the industry stays mired in an overall bear run, SOL keeps achieving new landmarks on the back of crazy interest in non-fungible tokens and decentralized apps built on the platform. In addition, many new tokens based on the Solana Program Library have also soared in recent weeks, helping the ecosystem's main currency to continue on its barnstorming run.
The question is, is the rally over or is there still some juice left? When we view recent developments, SOL looks like one of the real coins that are here to stay. There's a new launch on Solana almost every day which keeps interest high, and the blockchain's novel proof-of-history consensus refines industry standards for better scalability. This means that we should be seeing even more developers flocking to the platform to benefit from the crazy speed, cheap processing fees, and novel approach to dapps.
If SOL maintains its current place, or even if it slows down slightly, it will easily join Cardano's ADA and Binance's BNB in a likely 3-way battle for second most popular smart contract platform behind Ethereum.
7. PolkaDot (DOT)
Rank: #8
DOT is the native governance token of PolkaDot, a blockchain network that links other blockchains together via layer-0 technology. It's a multichain network that solves the problem of interoperability among blockchains, helping them speak the same language.
PolkaDot is a flexible decentralized platform that hosts other blockchains and connects them together via a relay chain. Each parachain is fully independent but relies on the central PolkaDot system for security and validation. Both PolkaDot and its various parachains can also connect to external blockchains like Ethereum and Solana through "bridges" that create a communicative link through which both information and transactions can flow seamlessly.
As the main network that provides a way for other chains to easily interact, PolkaDot earned its place among the top cryptocurrencies in the market. It's currently some ways off its ATH but the long-term forecasts are positive across the board.
8. Dogecoin (DOGE)
Rank #9
Dogecoin was originally created to extend the appeal of digital assets beyond the hard-core crypto community. It uses the Shiba Inu dog as its mascot and promotes the idea that you can make money in crypto and have fun doing so. The DOGE community prides itself on being lighthearted; the coin itself has been used to tip valuable contributors on dedicated forums long before it gained mainstream attention.
These days, Dogecoin has secured a firm spot among the biggest and trendiest cryptocurrencies in the market. Having a superstar supporter in Elon Musk will do that for you. It's available to buy on basically every cool coin exchange around and investors are often rewarded with big spikes in price.
Dogecoin is a fork of Litecoin, which is itself a fork of Bitcoin. Transactions on Dogecoin take around one minute, making it a fast network though not as fast as some newer blockchains. Unlike bitcoin and Litecoin, the supply of Dogecoin is unlimited. Around 131 billion DOGE is in circulation and 5 billion more are added each year.
The price of DOGE is around three quarters down from its all-time high, giving making it one of the most tantalizing risky bets in the crypto space.
9. Uniswap (UNI)
Rank: #11
Uniswap is the only decentralized exchange on this list and the most successful by far. It launched on the Ethereum network in 2018. The platform allows users to trade various tokens among each other via a process known as "swapping".
Uniswap gained popularity as a solution to two problems of trading on centralized exchanges: privacy and liquidity. Users from anywhere can swap their coins anonymously on Uniswap: no questions asked. Also, many tokens that aren't listed on exchanges can be traded on Uniswap via liquidity pools.
The platform goes beyond trading coins only; it offers secondary services like staking and farming. You can stake DOT or another token into a pool to earn more of the staked coins. Many other swap exchanges have sprang up in recent times as developers sought to replicate the success of Uniswap but the platform remains the leader in its class.
10. Chainlink (LINK)
Rank: #14
Chainlink is a decentralized oracle network that connects the world of blockchains and smart contracts to the outside world. It gathers and streamlines relevant information from thousands of sources in the real world and provides the data to smart contracts on blockchains so that they can execute advanced functions.
LINK performs various utility functions on the Chainlink network. It is distributed to validators for their work and also to stabilize contracts on the network. As a proof coin, LINK also gets distributed as a reward to nodes that bring in the most accurate data.
As the most popular conduit of real-time information from partners like Google to blockchains like Ethereum, Solana, Polygon and Binance Smart Chain, Chainlink's importance in the crypto space is among the most secured and has few coin competitors that can provide this kind of utility and probably none that can deliver at the same scale.
11. Litecoin (LTC)
Rank: #16
Litecoin is colloquially known in crypto circles as the lite version of bitcoin. It replicates the things that bitcoin does best and improves upon those things that bitcoin doesn't do too well. It's essentially bitcoin with a rocket strapped to its back: transaction speed on the Litecoin network is roughly 2.5 minutes which is 3 times more than the average transaction confirmation time on the Bitcoin network.
Litecoin was created in 2011 by former Google engineer Charlie Lee. While many other digital tokens launched around that time have been left in the dust of history, LTC has remained one of the top crypto coins throughout its existence. Despite a slight dip in popularity in recent times it remains a giant in the digital token space with over $11 Billion in market capitalization.
Often described as the silver to bitcoin's gold, Litecoin enables holders to carry out peer-to-peer transactions at minimal cost. It has a maximum supply of 84 million LTC tokens and there are currently around 66 million in circulation.
Buy Litecoin (LTC)
Like bitcoin, the Litecoin token undergoes periodic "halving", an event that reduces the rate at which new coins are mimed by half. It has helped to induce deflationary pressure and keep the coin trending in a positive direction. Experts anticipate an upsurge of activity on the blockchain as the next halving event draws near. For those who prize longevity, stability and a loyal community when choosing what to invest in, Litecoin is 1 coin worth buying.
What Will Replace Bitcoin?
Bitcoin is the king of cryptocurrency but that doesn't mean it will stay on its perch forever. After all, BlackBerry and Nokia once ruled the phone space and both are now considered relics of a past era.
Despite its significance Bitcoin does have a myriad of problems that impact scalability and wide acceptability. Several digital tokens have positioned themselves to possibly take the throne in the future by improving on a problematic aspect of BTC.
Ethereum is the crypto best positioned to overtake bitcoin in terms of functionality. It also has an edge in user base as more than 90% of all DeFi, DEX and NFT projects currently run on the Ethereum network.
What Solana (SOL) yet lacks in user base, it makes up for in speed. It can process up to 50,000 transactions every second, which makes it a lot faster than anything else out there. It's the perfect blend of speed and scalability.
XRP and Cardano also have a shout as potential bitcoin killers. One thing that could cause Bitcoin's demise is the high amount of energy it needs. Cardano, in particular, is a whole lot more sustainable and this can count for much as the world moves towards efficient and clean energy.
Conclusion
By investing in the right coins, you can make a lot of money from cryptocurrency. On the other hand, the volatile nature of the crypto industry means that you can lose everything without proper planning.
The absence of regulation means that new coins are always emerging with lofty promises. You can be tempted to invest after reading a fine whitepaper or getting enthralled during an AMA. However, the best coins to invest in are those that have stood the test of time. Keep an eye out for the top coins by market capitalization: it's usually a sign of a good project and lots of backers.
Don't just follow coin price when choosing which digital tokens to invest in: variables like the total market cap and circulating supply, and tokenomics should be studied as well. And remember to only invest what you can afford to lose.
Each name on this list is a trending coin and the toast of investors, who have presumably done their homework. Each one brings something unique to the table, be it pioneering smart contracts, bridging the blockchain-real world divide or adding a bespoke variation to the DeFi playbook.
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Crypto Trading Pairs Made Easy: Understanding BTC/USD vs. BTC/USDT
If you're new to cryptocurrency, you might be scratching your head over terms like BTC/USD and BTC/USDT. Don't worry; they're simpler than they seem! Think of them as little price tags for Bitcoin. Let's break down what they mean and why they're important.
What's the Deal with Trading Pairs?
Trading pairs are like the language of cryptocurrency markets. They tell you how much of one thing you can get for another. It's the same idea as exchanging Euros for US dollars – you've got a pair! BTC/USD and BTC/USDT simply show the exchange rate between Bitcoin and another asset.
BTCUSD: The Classic Bitcoin Price Tag
BTC/USD is the most basic way to see how much Bitcoin is worth in US dollars. If BTC/USD is at $20,000, it means you'll need 20 grand to buy one Bitcoin. This pairing is like your classic price tag, making it easy to compare Bitcoin's value against the most common currency in the world. Just remember, like any currency, the price of Bitcoin goes up and down based on how much people want to buy or sell it.
BTCUSDT: Meet the Stablecoin
BTCUSDT tells you the value of Bitcoin in Tether (USDT). So, what's Tether? Well, it's what we call a "stablecoin." Stablecoins are special cryptocurrencies designed to hold a steady value – think of them as the less-jumpy cousins of regular crypto. One USDT is supposed to always be worth one US dollar.
So, if the price of BTC/USDT is $20,000, it still means one Bitcoin equals $20,000. The difference is that you're looking at the price through the lens of a stablecoin.
Why Bother with Stablecoins?
Here's where stablecoins get cool:
- Taking a Break from the Rollercoaster: Crypto prices can be super bouncy. Stablecoins are like safe havens. If things get too wild, traders can swap their Bitcoin for USDT to keep the same dollar value without cashing out completely.
- Trading Made Smoother: Stablecoins make it easier and faster to switch between different cryptocurrencies. Think of USDT like the universal translator of the crypto world.
BTC USD vs. BTC USDT: The Lowdown
Okay, now you get the tickers, but how are they really different? Here's the simple version:
- BTC/USD is the rollercoaster. It shows Bitcoin's price against the US dollar, which changes all the time thanks to the crazy world of finance. BTC/USDT is pegged to the dollar, so it's less bumpy.
- BTC/USD is for ups and downs. It pairs two things that change in value constantly. BTC USDT is more chill (usually) because Tether is designed to stick to $1.
- BTCUSDT is for crypto adventurers. It makes switching between different cryptocurrencies a breeze, no need to mess with regular dollars. BTC/USD is better for folks who just want to trade Bitcoin the old-fashioned way.
- BTC/USD is dollars and cents. Simple and clear. BTC USDT is more like a roundabout way of showing the same thing.
- BTC USDT is where the action is. Because of the stablecoin magic, you'll usually find more people trading with BTC/USDT on the big exchanges.
- BTC/USD is for classic investors. If you care about the dollar value and want to day trade, stick with this.
Both are super important ways to trade Bitcoin. Which one is right for you depends on whether you like a smooth ride or the thrill of the market!
BTCUSDT vs. BTCUSD: Usually the Same, Sometimes Not
If you check out the price charts, you'll see that BTC/USD and BTC/USDT prices usually move in sync. Makes sense, since Tether is meant to mirror the US dollar. But here's the thing – things can get a little weird sometimes.
When the crypto market goes totally nuts, Tether can sometimes get knocked off its $1 peg. It might dip below a dollar or even spike above it. That's when you get a difference between the two charts… and a chance for quick-thinking traders to make a profit fixing things.
But don't worry, over the long run, the charts for BTC/USD and BTC/USDT tend to stay pretty close. After all, they're both tracking Bitcoin's value against the dollar, just in slightly different ways.
BTC/USDT: The Crypto Crowd Favorite
We mentioned that BTC/USDT usually sees way more trading action than BTC/USD. Well, the numbers really back this up. A recent study showed that BTC/USDT trading volume was more than 7 times higher than BTC/USD over the past year. Plus, way more exchanges offer BTC/USDT trading.
This tells us that crypto traders definitely lean towards using Tether. It's also interesting that BTC/USDT trading is spread out across exchanges, while BTC/USD is clumped up on a few big ones like Coinbase. This likely means it's easier for exchanges to set up Tether trading, while dealing with actual dollars has more hoops to jump through.
The Takeaway
Okay, so BTC/USD and BTC/USDT both track Bitcoin's value against the dollar, but they do it differently:
- BTC/USD: The raw deal. It shows you Bitcoin's price against the dollar, no tricks. This price goes up and down based on how much people want Bitcoin at that moment.
- BTC/USDT: The smoother option. It shows you Bitcoin's worth in Tether, which is meant to stay around $1. This can help shield you from the crypto market's crazy price swings.
Why it matters:
- BTC/USD: Straight-up reality check. This is the best way to see Bitcoin's actual value in the 'real world'.
- BTC/USDT: The crypto trader's tool. If you're always swapping between cryptocurrencies, Tether makes things easier since you don't have to mess with regular dollars as much.
Both BTC/USD and BTC/USDT are important tools for understanding Bitcoin's price and trading in the crypto world. Whether you're into long-term holding or fast-paced crypto action, knowing how these pairs work will help you navigate the market with confidence.
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The Story of DOGE: How a Meme Became a Leading Cryptocurrency
Dogecoin (DOGE) is one of the most well-known and widely-used cryptocurrencies today. But unlike Bitcoin and Ethereum, which were created with serious intentions, Dogecoin has much humbler origins—as an internet meme that took on a life of its own. This is the story of how a joke became a multi-billion-dollar cryptocurrency.
The Birth of DOGE
In 2013, software engineers Billy Markus and Jackson Palmer launched Dogecoin as a satirical take on the sudden hype surrounding cryptocurrencies. They branded the coin's logo using a popular internet meme at the time featuring a Shiba Inu dog accompanied by broken English phrases like "wow" and "such coin."
Markus has said Dogecoin was created "to poke fun at the wild speculation going on in cryptocurrencies." The lighthearted approach was meant to encourage more casual participation since Bitcoin was perceived as too serious and inaccessible to the average person.
Going Viral: DOGE Takes Off
Though created as a parody, Dogecoin quickly took off and developed an online community. The low Dogecoin price and unlimited force made it popular on social media.
In December 2013, the Dogecoin community raised $30,000 worth of DOGE coins to send the Jamaican bobsled platoon to the Sochi Winter Olympics when they couldn't go. This and other high-profile charity fundraising campaigns associated with Dogecoin generated media attention and goodwill.
By early 2014, Dogecoin's market cap had reached over $60 million. Its community on Reddit boasted over 85,000 subscribers. DOGE established itself as a prominent altcoin and proved that a cryptocurrency didn't need to be serious or technically groundbreaking to gain significant attention.
The Power of Memes: DOGE in Pop Culture
A major factor in Dogecoin's continued fashionability has been its use in internet memes and viral content. The meme-friendly coin represents a confluence between cryptocurrency and internet culture.
On Reddit, Twitter, and other social platforms, Shiba Inu memes featuring expressions like "1 DOGE = 1 DOGE" and" To the moon!" have kept Dogecoin circulating in online exchanges. This grassroots marketing, amplified by memes, has propelled DOGE's brand recognition.
Celebrity signatures have also given Dogecoin periodic boosts. In 2020, Elon Musk posted memes about DOGE on Twitter, leading to a sharp Dogecoin price increase. Mark Cuban and Snoop Dogg have also shown support for the meme coin. DOGE thrives on its pop culture applicability.
Serious Growth in 2021
In early 2021, Dogecoin endured a gradual rise fueled by growing interest on social media and from institutional investors. In January, the r/WallStreetBets subreddit that boosted GameStop stock began encouraging investments in Dogecoin. Dallas Lions proprietor Mark Cuban even blazoned that his organization would accept DOGE for wares and ticket deals.
In May 2021, DOGE hit an all-time high of $0.7376 shortly after Elon Musk appeared on Saturday Night Live and called Dogecoin the" future of currency." The coin's market cap reached over $80 billion. This period demonstrated that Dogecoin had progressed far beyond its meme-rooted origins. Major companies and investors were now treating DOGE as a legit digital asset.
The DOGE Community
A crucial part of Dogecoin's identity and success has been its vibrant online community. On Reddit, Twitter, and Discord groups, Dogecoin backers organize fundraising drives, create memes, and spread enthusiasm for the coin.
Unlike some cryptocurrency groups, which are exclusive and specialized, the Dogecoin community prides itself on being accessible to beginners. It embraces DOGE's roots as an approachable, unconcerned coin for the internet legions rather than solely a serious investment vehicle. This grassroots energy and fidelity have helped drive the Dogecoin euro price surge and given it a distinctive appeal.
Criticisms of the Dogecoin Price Model
Some critics argue that Dogecoin's lack of genuine invention or usefulness makes it a bad cryptocurrency compared to blockchain innovations like Ethereum. Its unlimited supply and the low Dogecoin euro price also mean the cryptocurrency is super volatile and easily manipulated.
Others contend that Dogecoin derives its value purely from jokes and marketing hype rather than mileage. They see the coin as a pump-and-dump scheme centered around online hype rather than fundamentals.
Proponents argue that the Dogecoin blockchain is still growing and already faster compared to Bitcoin. They point to DOGE's growing number of fans, users and developers as proof that is has segued into something meaningful beyond just internet hype.
DOGE Milestones
Despite the naysaying in certain quarters, Dogecoin has achieved several milestones that demonstrate its progression into a mature cryptocurrency.
- In 2014, Dogecoin innovated the use of merged mining with Litecoin, allowing miners of both coins to partake in calculating power for increased effectiveness. This was an early, specialized use case for DOGE.
- Major brands like Slim Jim have run marketing campaigns centered around Dogecoin and memes. This indicates commercial interest in tapping into the DOGE phenomenon.
- The nonprofit Dogecoin Foundation was revived in 2021 after a period of dormancy. The renewed interest in supporting the coin's open-source development reflects its growing mainstream appeal.
- DOGE is now supported by most major cryptocurrency exchanges and trading and payment apps like Robinhood and Coinbase. Availability for investors and consumers has improved significantly.
The Future of DOGE
As crypto tokens go, Dogecoin is one of the major and most recognizable. People have grown to rely upon it as a cultural touchstone for cryptocurrency humour and Old Internet jokes alike. That being said, what exactly does the future hold for DOGE; after it has shaken off its meme-derived roots and become a more mature technology?
Some see Dogecoin as a means of payment that is faster and cheaper than ever before. Others feel it is essential for DOGE to make inroads into decentralized finance (DeFi) solutions and the NFT space.
Still, for Dogecoin to advance to the next level, critics say it needs to continue developing its burgeoning technology for real-world usage. More serious investment in development and mainstream partnerships is needed for DOGE to thrive in the long term.
But if its history has shown anything, it's that coins like Dogecoin shouldn't be underestimated. DOGE has once already defied disbelievers and cemented its place in cryptocurrency lore. The vibrant community of Dogecoin is its X factor, something that many coins hardly have.
As a joke coin, Dogecoin has already realized remarkable successes. One hopes for its future, but this meme coin-cum-bitcoin continues to show that internet culture must not be overlooked when evaluating the future potentials of crypto.
The Technology Behind DOGE
While created as a meme coin, Dogecoin operates on a real blockchain and cryptocurrency network. Understanding the technical rudiments provides insight into its functionality.
The Blockchain
The Dogecoin blockchain is predicated on Luckycoin, which itself derives from Litecoin. It uses a decentralized proof-of-work system where miners compete to solve mathematical problems and produce new blocks. This secures the network and provides the foundation for DOGE as a cryptocurrency.
Mining Dogecoin
Dogecoin mining uses the Scrypt algorithm, which is less complex than Bitcoin's SHA-256. Scrypt mining can be performed with even basic PCs rather than the precious ASIC equipment demanded for Bitcoin mining. This makes the Dogecoin network more accessible.
Transaction Speed
Dogecoin's 1 minute block time makes DOGE 10 times faster compared to Bitcoin's 10-minute finality time. This speed enhances Dogecoin's suitability for point-of-trade purchases, micropayments, and other transactional uses.
Unlimited Supply
A crucial difference from Bitcoin is Dogecoin's emission rate. 10,000 DOGE are mined per block, with no limit on the total number created. This provides an inflationary counterpoise to Bitcoin's fixed supply. If there is anything that can pause or even reverse the long-term Dogecoin price momentum, it is this inflationary aspect of its tokenomics.
Keeping Dogecoin Relevant
DOGE might have been the best success story of the crypto memecoin craze, successfully fending off fierce competition from Shiba Inu and the array of new challengers from the Solana space. However, nothing lasts forever—success will eventually dissipate if not sustained and Dogecoin is no exception. Over the years, the community has rolled out a few things to make sure that the cryptocurrency retains its spot in the limelight.
Current Developments
The original core developers of DOGE have long sailed into the sunset. However, a new group of dedicated developers have taken up the mantle and continue to maintain the Dogecoin codebase. There are even plans underway to upgrade the network with special features and advancements that will keep it relevant in the digital currency space.
Major DOGE Events
Dogecoin has long moved past sole reliance on viral moments and meme to gain traction. Now an established behemoth in its own right, the network continues to make its mark through major events and fundraisers. Here are some noteworthy instances:
- 2014 Winter Olympics: The Dogecoin community raised $30,000 worth of DOGE coins so the Jamaican bobsled platoon could attend the Sochi games. This put DOGE in the media spotlight for the first time.
- Doge4Water: In 2014, the Dogecoin community bestowed over $50,000 worth of DOGE to fund the creation of clean water wells in Kenya. This remarkable feat was one of the very first demonstrations of crypto’s transformative impact on charity.
- Doge4NASCAR: The community sponsored NASCAR motorist Josh Wise to the tune of over $55,000 in DOGE coins. The DOGE logo on his car and jumpsuit brought Dogecoin's name into mainstream sports.
- DOGE-1 Satellite: In 2021, Dogecoin funded the DOGE-1 satellite set to launch through SpaceX. It'll be the first crypto-funded project in space and collect lunar data.
These caption-grabbing moments have shaped Dogecoin's story and shown that it's more than just an internet meme.
How to Buy DOGE and Check Dogecoin Price
For those interested in this notorious memecoin, it's easy to buy Dogecoin. There are many options.
- Exchanges: Major crypto exchanges like Kyrrex, allow direct DOGE purchases with fiat or crypto. This is the most straightforward buying method.
- Trading Apps: Apps like Robinhood and Webull offer quick signup and the capability to buy Dogecoin without actually holding the coin itself.
- Wallets: Software and hardware wallets like Trust Wallet or Ledger let users buy DOGE directly and store it securely. Some of them also allow spending DOGE at merchandisers accepting the coin.
- Mining: Users can mine DOGE by joining a Dogecoin mining pool and contributing calculating power. Still, single mining isn't very practical for average users.
- P2P Trading: Websites like LocalDogecoins connect buyers and sellers directly for DOGE trading without a central exchange. This allows for fast deals.
What Can You DO With Dogecoin?
While frequently treated as a joke or memecoin, Dogecoin can still be used for serious purposes.
- Paying for Goods and Services: A number of crypto businesses now accept DOGE as a payment method. The picture is less rosy outside the crypto space but you can still find a few online markets that either already accept the token or may do so in the future.
- Tip Jar for Content Generators: DOGE is one of the favorite tipping methods online. Bitcoin and ETH used to be more popular tipping methods. But now that they are both super pricey, coins like DOGE have stepped into the gap.
- Trading and Investment: Punters and investors trade DOGE with the end goal of profiting from the Dogecoin price volatility.
- Money Transfer: DOGE offers a fast way to transfer value digitally due to its speed and low costs.
- Donations/Fundraising: As demonstrated by its early moves in the charity space, Dogecoin can be—and indeed has been—used for both single large donations and community fundraising.
Conclusion
Dogecoin is an intriguing intersection between cryptographic technology and internet culture. Born of a meme joke, it has become a major cryptocurrency with billions of dollars in real-world value and a devoted community.
Nevertheless, questions about the likelihood of DOGE becoming a blockchain with more advanced capabilities and real-world use cases continue to linger. Perhaps, it will remain as chiefly an entertainment tool and an avenue for daring speculators to realize their dreams.
Dogecoin is, at the very least, an educational case study. It is a testament to the power of online communities and how far enthusiasm and devotion can achieve. Whatever happens, the DOGE currency has already accomplished more than its creators ever anticipated.
7min reads
UK Crypto Tax: Full Guide to Regulations and Taxations 2024
Cryptocurrency investment has seen a rise in popularity in the UK! However understanding the tax implications of crypto can be daunting for newcomers. This guide aims to simplify the concept of UK crypto tax so that you can grasp your obligations as an investor.
Here's what we'll discuss;
·The fundamental principles of crypto taxation
·Instances where you are required to pay Income Tax on activities like mining or staking
- How to calculate your Income Tax liability
- When Capital Gains Tax is applicable when selling crypto for a profit
- Steps to determine your Capital Gains Tax obligation
- Tax allowances that may lower your tax bill
- Guidelines on reporting transactions to HMRC
- Essential records you should maintain
- Utilizing tax software to streamline the process
- Seeking professional tax assistance if needed
Our aim is to demystify UK crypto tax, empowering you to invest confidently! We will walk you through all the regulations and procedures in a simple manner.
Cryptocurrency can be both thrilling and perplexing. Lets shed some light on cryptocurrency taxes in the UK so that you can unwind and enjoy the journey! Keep reading to become well informed about UK crypto taxation.
The UK government (HMRC) categorizes cryptocurrencies like Bitcoin as assets or property and not actual currency. This means that crypto falls under existing UK tax legislation. It does not have its own “crypto tax" category.
Categories of UK Crypto Tax
For folks looking to invest they'll mainly have to deal with Capital Gains Tax and Income Tax.
- Capital Gains Tax: The Capital Gains Tax is charged on any sale or disposal of cryptocurrency worth more than what was originally paid for it. That can include trading for fiat currency or other cryptocurrencies; goods or services; gifts, etc.
- Income Tax: If you earn cryptocurrency by doing things like mining, staking, peer-to-peer lending, airdrops etc., you may have to pay income tax on it. HMRC sees this kind of crypto as miscellaneous income: that is, taxable.
But don't worry—you only have to pay tax on your profits or earnings when they outweigh the tax-free allowances given to you, and these are generous by traditional standards. For most people who invest in crypto only occasionally, there's no tax bill at all. It's frequent traders and those making larger investments who might find themselves owing taxes.
In a nutshell, HMRC doesn't regard crypto as money but rather as taxable property. Capital Gains Tax and Income Tax, following the existing UK tax law, are the main taxes that apply to crypto. But for occasional or small-scale crypto investors, that's unlikely to make any difference at all to their tax situation.
Income Tax: Paying Taxes on Your Crypto Earnings
Receiving cryptocurrency through certain activities is considered by the HMRC as taxable income. There are some ways people earn crypto-pounds which would be subject to Income Tax:
- Being paid by an employer in crypto - Whether your employer gives you part or all of your salary this way, it's just normal income to HMRC.
- Successfully mining coins - Your computer mines for you and makes new tokens, so that counts as taxable income.
- Staking coins to validate transactions - The crypto you earn from staking is taxable.
- Earning interest on crypto loans - All interest you receive would be taxable.
- Receiving free coins through an airdrop - Airdropped coins count as a taxable income even though they're free to receive.
- Yield farming, or offering liquidity - If you receive tokens this way, they are taxable.
- Receiving coins from a hard fork - Forked coins you received for free are an income event.
In most cases, cryptocurrency earnings are seen as "miscellaneous income" for tax purposes. The only exception is employer-paid crypto wages.
The good news is that you only owe Income Tax on cryptocurrency if your total income exceeds the £12,570 tax-free allowance for 2023-24. If you stay under that threshold, then your crypto earnings are tax free!
Determining Your Cryptocurrency Tax Liability
If your total earnings are more than the UK Personal Allowance, then follow these steps to work out how much income tax is payable on gains from cryptocurrency.
- First, you must establish the exchange rate on the date that each of your taxable dividends was paid in crypto and convert into sterling. Previous exchange rates can be used.
- Next, add together all the pound sterling values for your taxable crypto income from the tax year.
- Add this total of crypto-incomes to other emoluments from employment, self-employment, property, interest and all other sources.
- Use the standard Personal Allowance of £12,570 as a deduction from this figure to find your total taxable income.
- Use income tax bands to work out which rate - 20%, 40% or 45% (the additional rate) - you should apply to the total of your taxable income.
- Now multiply your total taxable income from cryptocurrency and all other sources of earnings by the relevant tax rate.
The Income Tax amount calculated should be paid to HMRC on or before the due date for payments.
Capital Gains Tax: When the Taxman Comes for Your Crypto Gains
Let's be real - no one enjoys paying taxes. But if you profit from crypto, HMRC will want a slice of the action. As far as the UK taxman is concerned, crypto assets like Bitcoin are property. Just like if you flipped houses or traded stocks for a profit. So they slap on Capital Gains Tax for any crypto gains you realize.
Brace yourself to owe Capital Gains Tax if you:
- Cash out your crypto for pounds and come out ahead
- Swap one crypto for another and make a profit on the exchange
- Use crypto to buy stuff and the value rose since you bought it
- Gift crypto to someone besides your spouse and it gains value
- Get free crypto from an airdrop then sell or swap it later at a higher price
Now the positive spin - you only pay tax on gains above the tax-free allowance, which is a relatively meagre £3000 this tax year. (Don’t look at us like that—blame Jeremy Hunt.) So smaller crypto players often dodge Capital Gains Tax.
And married couples get double - you both have your own separate £3000 allowance. So between you, that's £6000 in tax-free crypto profits in the 2024-25 reporting year. The bottom line - HMRC will come collecting on any big crypto windfalls you have. However modest investors can often avoid Capital Gains Tax.
How to Calculate Your Crypto Tax UK Capital Gains Tax
Hit a jackpot with your crypto and go beyond what the taxman lets you keep tax-free. Let's break down how you can figure out the Capital Gains Tax that's coming out of your pocket:
- Calculate what you've put in. This means ringing up the initial price and any extra costs for each crypto piece you've let go of.
- Chase down what you got for it
- Look for the British Pound value on the actual day you waved goodbye to your crypto.
- Do the math: selling price minus what you spent
- Take what it cost you and subtract it from what you pocketed to find out your profit.
- Put all your wins together
- Gather all the profits from each time you cashed out on crypto within the tax year.
- Remember your tax break
- Subtract the £3000 you don't have to pay taxes on to see what's left.
- Figure out the tax bite
- If you're in the basic tax bracket, put aside 10%. Those in the higher bracket, get ready to hand over 20%.
- Whip out the UK crypto tax calculator for the last step
With that tax rate in mind, analyze the taxable gains and see how much damage your bank balance is likely to take.
Figuring out your crypto taxes just seems to be a treasure hunt--for ancient transactions. Calculating precisely how much money you’re giving the government doesn’t sound even the tiniest bit fun. This is why intelligent investors use tax software to sort everything out instead.
Reduce Your Crypto Tax Bill with Tax-Free Allowances
Besides the regular Personal and Capital Gains Allowances, you can use additional generous tax-free reliefs for crypto income:
- Gift tax-free up to £3,000 of crypto each year through the Annual Exempt Amount for Gifts.
- Transfer assets tax-free between spouses. This can be used to bypass crypto UK tax.
- Reduce the tax you owe by offsetting losses against total Capital Gains.
- The first £1,000 of miscellaneous trading income can be earned tax-free. This is called the Trading Allowance.
- Donate to registered charities tax-free. Donating crypto means not just Income Tax but also Capital Gains Tax are excluded.
- Place crypto in an Individual Savings Account (ISA) wrapper to shelter it from tax.
- Contribute crypto to your pension plan and in this way reduce your taxable income.
When you calculate your ultimate crypto tax bill, factor in these allowances and exemptions you can utilize. Thorough record-keeping enables you to successfully claim any allowances you are entitled to.
How to Report Crypto Taxes to HMRC
Each year you must complete a self-assessment tax return in order to officially report and pay any Income Tax or Capital Gains Tax due on your crypto trades. The self-assessment deadline is 31 January of the next year. Therefore, online returns must be filed by 31 Jan 2025 for the 2023-24 tax year.
When completing your return, you'll report:
- Crypto income on the foreign income section
- Crypto capital gains on the capital gains summary
On the basis of your Self-assessment, HMRC works out your total tax bill for the year including allowances. Any tax due must be paid on 31 January, as well.
If you miss the deadline for reporting or payment, you can expect financial penalties from HMRC. Therefore, get into the habit of preparing well in advance for your crypto taxes.
How to Keep Records for Crypto Taxes
Good record-keeping is the key to getting your tax return right and reducing your crypto tax bill. For each transaction potentially liable to tax you should record:
- Date Acquired
- Acquisition cost in GBP
- Date of disposal
- Disposal value in GBP
- Fees incurred
- Nature of transaction
It's best to keep track of all this as you go along, making it easy to pull together at tax time. If you use only a few trading platforms, their account history may suffice for your tax preparation. However, if you trade across many different platforms, manually compiling transaction data can be extremely difficult. At such times tax software is essential.
Use Crypto Tax Software
Crypto tax preparation is fraught with difficulties, so most investors turn to specialized tax software for help. Leading providers such as CoinLedger, Koinly, CoinTracking can:
- Import your transaction data automatically from exchanges using API connections
- Interface with wallets and block explorers to capture full transaction records
- Match and synchronize data from across all of your accounts
- Calculate your capital gains and losses
- Generate the necessary tax reports for filing
This means you no longer have to collect your wallet addresses and do the math yourself. Every top crypto tax UK calculator also syncs directly to reputable tax filing suites like TurboTax. However, you must ensure that whatever software you use for handling crypto tax also meets the reporting requirements of Self-assessment to HMRC.
Get Professional Tax Advice
If you are heavily involved in crypto investing, it could well be worth consulting a professional accountant with expertise in crypto taxes.
A crypto accountant UK specialist can help you:
- Correctly classify your crypto transactions
- Benefit from exemptions and relief
- Arrange your holdings in a tax-efficient manner
- Keep complete records of all payments in compliance with the latest HMRC regulations
This specific advice comes at a cost. But the reduction in taxation likely more than compensates for this.
Key Takeaways of UK Crypto tax Regulations
With crypto investing on the rise, an understanding of UK crypto tax rules is vital. By following the guidance in this article, UK crypto holders can remain compliant, minimize their tax bills, and avoid issues with HMRC.
- UK tax laws view crypto as an asset, not a currency
- Income Tax must be paid on crypto derived from activities such as mining and staking
- Capital Gains Tax is payable when crypto is disposed of at a profit
- You'll only be charged tax on crypto profits/income over any applicable tax-free allowances
- Thorough records are essential to accurately estimate the taxes due for crypto
- Transaction data gathering and tax work can be automated using accounting software
- If your crypto dealings are substantial or complex, seek professional tax assistance
With much current interest in investing in cryptocurrencies, a knowledge of UK crypto tax regulations is necessary. By following the advice in this article, UK taxpayers can stay compliant. While remaining within the law they are better able to minimize their tax bills and lessen their chance of having problems with HM Revenue & Customs.
5min reads
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