Lately, if you've tried to move around your bitcoin you may have realized that it's become sort of a hassle. Your coin can get stuck because you didn't pay a high enough fee, so you're forced to do some research regarding how to make the fee higher, then resubmit the payment.
Next, you'll find out that just the cost of sending the transaction will hit your digital wallet harder than you'd like.
But this is where dogecoin seems to excel because you'll be able to send payments in a shorter amount of time and for a fraction of the cost it takes to send bitcoin.
While we recommend making a small investment in many of the leading altcoins including litecoin and ripple and moving them from wallet to wallet, you'll soon realize that dogecoin is one of the best altcoins that and one that comes with a number of benefits.
But there are still some traders out there that prefer to exchange dogecoin to bitcoin, for a variety of reasons. So, let's explore that.
For many pro traders and investors, bitcoin is the holy grail of digital currency, but even those with experience in the cryptocurrency world know that in order to have a well-rounded portfolio, you need to expand and invest in other types of leading cryptocurrency including dogecoin, litecoin, and ripple. Lately, dogecoin has taken a turn for the better, considering it's higher trading volume and impressively fast transaction times.
In just a ten minute period, dogecoin is capable of nine times as many transactions compared to bitcoin. It's also capable of two times more transactions compared to litecoin, in a two minute period.
If payment processors would've adopted dogecoin in the last twelve months, then bitcoin block discussions wouldn't even be relevant, and basically, the price for all altcoins would be much higher.
Anyone with experience in the cryptocurrency market knows about the immediate advantage of a network that offers larger transaction abilities and this is where dogecoin seems to shine.
Compared to bitcoin, dogecoin offers faster confirmation times. While bitcoin has a block every ten minutes, dogecoin has a block every minute. It simply blows the competition out of the water when it comes to confirmation times. This allows investors and traders to get on with their business instead of sitting around and waiting for bitcoin confirmation.
Additionally, when it comes to liquidity, dogecoin's is steadily increasing. The liquidity, speed, and value are useful for any trader who is searching for arbitrage opportunities.
With all of these benefits over bitcoin, you may be wondering why anyone would want to exchange dogecoin to bitcoin, but in truth, there are a number of important strategic reasons behind this.
Some are more basic than others, such as bitcoin is still, in fact, the leading digital currency on the market, and because of this, it's more commonly accepted by merchants.
Since it first began in 2008, bitcoin has taken the lead as the world's most widely accepted and popular digital currency. In 2015, the number of merchants that accept bitcoin payments surpassed one hundred thousand. On the open market, one bitcoin is worth three hundred and seventy-four dollars. Prices are continually adjusted based on supply and demand, but bitcoin payment volumes tend to fluctuate between one to two hundred and fifty thousand transactions a day.
Currently, there are more than fifteen million bitcoins in circulation, which gives this cryptocurrency a dollar-denominated market cap that's closing in on almost six billion. This system was designed to continually reduce the amount of reward that's associated with mining until the supply grows to twenty-one million. Twenty-one million is the limit that's programmed into the system. After it reaches this mark, miners will only have transaction fees to rely on.
As we've mentioned, dogecoin differs from bitcoin in many respects, such as impressively fast confirmation times. Additionally, its system doesn't have a cap on the number of coins that a user can mine. This means dogecoin will continue to expand as long as miners continue operating. One dogecoin is worth one dollar. Currently, in terms of circulation, there are more than one billion dogecoins available and they're expected to increase by five billion a year. But dogecoin acceptance isn't as widespread in retail environments like bitcoin is, which is the main reason many choose to exchange dogecoin for bitcoin.
Dogecoin currently accounts for the most transaction volume compared to every other type of coin combined.
Dogecoin is the most transferred coin of all time.
The average bitcoin transfer is worth just under ten thousand dollars, while the average dogecoin transfer is worth just over one hundred dollars.
In other words, bitcoin is often used for large-scale transfers and major purchases, while dogecoin is used to transfer small amounts of cash all over the world.
Dogecoin is mostly used for online fun, as opposed to serious purchases. In fact, it's a currency that's commonly used to buy popular Steam games. It's also used for online tipping on blogs, message boards, and forums, or it's given away as prizes.
Eventually, this coin may be widespread enough to be used at regular outlets, but don't expect to get rich off of it like you potentially can with bitcoin.
Dogecoin continues to struggle due to the huge number available, which can make hoarding almost impossible. Coin hoarders do so in order to create a shortage in the market which results in an increase in value.
As you can see, there is some value to buying dogecoin, but if you're looking for a sure thing and a cryptocurrency that offers the most value, obviously bitcoin is the top choice.
If you want to trade your dogecoin for bitcoin, we recommend checking out Coinmama, which is one of the most popular cryptocurrency exchanges around and definitely one that's going to continue to grow in the coming years.
If you'd like to learn more about exchanging the leading cryptocurrency, you can learn more about the process in our exchange litecoin to bitcoin article.