If you’re familiar with the internet in the last few days, you would know that the meme of the year has been Dogecoin, a digital currency that was originally intended as a joke. The Dogecoin community, however, has proven that it is anything but a joke. Dogecoin was recently added to the exchange Cryptsy, where its price skyrocketed. Cryptsy and similar exchanges can capitalize on Dogecoin mania by adding other cryptocurrencies that have similar features as Dogecoin.
Dozens of altcoins (alternative cryptocurrencies to bitcoin) have popped up in the last few months, but one of the most popular and best-performing of late has been dogecoin. Short for doggecoin, the cryptocurrency was created in December 2013 by programmer Billy Markus from Portland, Oregon, as a parody of the doge meme, and was added to the coinmarketcap.com database in December at a value of $0.00088, or 10,000 Dogecoins for one bitcoin. One month later, the value has shot up to $0.016544, or 25,000 Dogecoins per bitcoin.
Crypto exchanges are on a mission to become the go-to trading platform for digital currencies. But in order to do so, exchanges must build a stronger infrastructure to support their services. They must also develop a robust method of accepting new altcoins. This is why exchanges are welcoming dogecoin with open arms. . Read more about new cryptocurrency and let us know what you think.
Don Guo, CEO of Broctagon Fintech Group The cryptocurrencies market may have just been rocked by a major price drop, but the market is bullish and cryptocurrencies have reached new highs this year. Large financial institutions, from JP Morgan to Paypal, are now enthusiastically entering the market. Although bitcoin remains the market leader, the demand for cryptocurrencies is expanding to smaller coins: Ethereum has reached new heights and Dogecoin has reached astronomical heights, growing over 1000% this year. What will happen after the current volatility remains to be seen, but we have certainly entered a new era of cryptocurrencies where altcoins are coming to the fore. But to really get altcoins off the ground, the market needs to address a chronic lack of liquidity. The underlying trading infrastructure can be improved if exchanges adopt technologies often used in other asset classes to connect buyers and sellers in the most efficient way. By implementing this sophisticated liquidity technology, variable value altcoins can become a much more attractive asset to trade. The crypto-currency environment has never been better. Both structural factors and traditional market uncertainty caused by the global pandemic have opened the door for bitcoin to reach new heights. A perfect storm has developed in favor of cryptocurrencies: Interest rates are low, massive stimulus packages will fuel inflation, and commercial and investment institutions are backing cryptocurrencies like never before. All of these themes are likely to persist over the next few years, suggesting that cryptocurrency market growth will continue for the foreseeable future. The main goal of cryptocurrencies is to create a fairer, peer-to-peer monetary system, free from outside influence. People are increasingly aware of this and as the industry develops, we are seeing the emergence of a sophisticated infrastructure that provides participants with efficient trading and liquidity. Thanks to this bullish market sentiment, major altcoins like Ethereum have hit a new high of $4,000 in recent weeks. Not surprisingly, price movements of large coins directly affect price movements of small coins. Investors are increasingly attracted to altcoins as an investment option, and it seems that some traders are shifting their profits from bitcoin to altcoins. All great altcoins started small at some point, so people look at the prices of other coins and think they can get rich if they quickly discover a future great altcoin. After all, the price of BTC peaked at $0.39 in 2010, and those who invested then are laughing about it today. Stories of altcoin millionaires are starting to surface, with a Goldman Sachs executive retiring after a big win. Besides, there are only so many bitcoins available, and when demand exceeds supply, the market goes looking for the next best deal. That’s why we need options that will always offer traders the best prices. Large altcoins may be the main beneficiaries at the moment, but investors will explore other currencies as they incorporate cryptocurrencies into their portfolios. Getting out of bitcoin will become increasingly common, as these investors see new profit opportunities in the scalability of altcoins and become more comfortable with the asset class. There are thousands of coins to choose from – almost every exchange has its own coin that serves as the basis for that exchange and the community that uses it. Most of these coins are now highly illiquid. Despite its own liquidity problems, bitcoin is by far the most liquid cryptocurrency. Like traditional exchanges, most cryptocurrency exchanges use an order book, meaning they match bids from buyers and sellers. Therefore, the combination of low trading volume and high volatility often leads to a huge spread in altcoin prices, with large swings from one exchange to another. High slippage and large spreads are synonymous with undesirable trading conditions. This is particularly problematic for institutional investors. For large trade transactions, the cost of slack and efficiency is significant. Large investors are therefore wary of trading these assets, as the potential losses from inefficient trading are too great to ignore. Sufficient liquidity, both entering and exiting the market, facilitates greater market participation. And without greater participation in these assets, the prices of native tokens will remain low, reducing growth opportunities for both the crypto exchange and the industry as a whole. There is no doubt that the infrastructure of the crypto industry is much more developed than it was during the last bull run in 2017. But in order to extend trading to more currencies, these fundamental problems need to be addressed and the focus needs to be on providing short-term liquidity. We need to enable exchanges to reach the next level of maturity with liquidity pooling and aggregation technologies. By solving this problem, we can overcome the problem that has plagued cryptocurrencies since the invention of bitcoin.Dogecoin is an altcoin that was originally created as a joke currency, but quickly grew in popularity. Since its creation, the Dogecoin community has used the Dogecoin as a way to contribute to charitable causes, and have even sponsored a NASCAR car.. Read more about is bitcoin safe and let us know what you think.
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