Dogecoin, like Bitcoin, relies on the proof-of-work (PoW) process through which individuals and groups use their computers to solve complicated equations on the blockchain, complete transactions, and create blocks, in exchange for which they receive new coins.
Dogecoin’s use cases are two-pronged: as a store-of-value asset and as a payment method, the latter of which has increasingly gained popularity thanks to companies adding support for Doge transactions.
The Dogecoin price reached a fresh all-time high of $0.74 in 2021 and since then has been volatile, much like bitcoin. While Doge is currently trading below the $0.20 level, market bulls believe it’s only a matter of time before it reclaims its former glory and goes higher, with some calling for Dogecoin $1 as soon as 2022.
One of the most significant risks for holders of Dogecoin — or any crypto-asset for that matter — is sending funds to an incorrect wallet address. The blockchain’s decentralized nature means nobody is on the other side to help if things go awry.