Let’s Understand Coins, But Not the Ones We Physically Use

by | Mar 18, 2022 | Uncategorized | 0 comments

Doge Coin - Cockapoo

Introduction

It doesn’t matter if you are a beginner or an expert in the crypto world; you must know about all the hot concepts such as Defi Coin and Memecoins like dogecoin because they seem to have immense popularity now; they are here to stay.

Meme Coin

We wouldn’t believe it if someone says that they do not understand what memes are in today’s age, but what meme coins are? We have often heard of Bitcoin in the cryptocurrency world, but what about dogecoin, Shiba Inu? Let’s dig into the details.

Meme Coin - Cockapoo

These coins, unlike bitcoin, are often started as a joke taking inspiration from trendy internet jokes and memes, which is why the name ‘meme’ coin. Examples include Dogecoin, Shiba Inu, Dogelon Mars.

Not actually made to be taken seriously, these meme coins being highly volatile, sometimes become mainstream and gain popularity like wildfire, for example, the case with DogeCoin gaining so much value in May 2021.

These are popular because they are community and social media-driven and are super low priced with huge supplies.

DogeCoin

Wish to reach the moon? Possibly the best way to introduce this coin!

One of the most popular meme coins, DogeCoin, gained maximum popularity in 2021. It has a logo of a Shiba Inu Dog which can help you identify it.

Doge Coin - Cockapoo

Coming to history, it was started in 2013 by Billy Markus and Jackson Palmer as a joke to transfer value but to be different from the existing cryptocurrencies. The inspiration was a trending meme back then which used the picture of a Shiba Inu Dog. However, being open-source and a joke rather, it was taken as a peer-to-peer source of interest, giving it a devoted fan following to buy and sell the same.

While meme coins are usually not backed foolproof like bitcoin and ethereum, DogeCoin still has some backing, based on Litecoin and using the same technology.

Defi Coins

Defi, which stands for Decentralised Finance, is an effort to create a digital financial infrastructure that doesn’t need a middle party like the central bank or government agency to approve the financial transactions.

A way to innovate the financial space, Defi is associated directly with blockchain, which is based on the idea of recording transactions digitally over computers and not allowing a particular entity to possess, access, control, and alter these transactions.

Defi Coin - Cockapoo

Defi Coins are built on unique and native blockchain networks and are used for transferring value in a financial transaction. In short, a Fiat coin’s digital version.

And Defi Tokens may be used to transfer value in the form of passwords, physical assets, or the representation of unique items known as NFT’s.

Conclusion

With the increasing importance and interest in cryptocurrencies, this is a space to explore and experiment with. However, with that comes the responsibility to research and be aware of all the details of all the coins you wish to invest in, especially meme coins, to not waste your hard-earned money by getting influenced by the coming and going trends.

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