Cryptocurrency as many of us already are aware of is a digital or virtual currency that has practically transformed the digital payment system around the planet making use of a technology often known as Blockchain to work. This technology mainly works across multiple computer networks helping in managing and recording transactions.
This virtual currency is nearly impossible to double-spend because of the highly secured Cryptography. Moreover, you can use your digital asset to buy, sell or exchange goods and services over the internet.
Cryptocurrency is admired mainly because of its portability, clarity, and divisibility but on the other hand, it is also known to have faced harsh criticism for its use in illegitimate activities, vulnerability, and most importantly because of its volatility in exchange rates. This is mainly because of its decentralized configuration making it work outside government jurisdiction.
Having said that, there is no doubt about why cryptocurrency caught the eye of many investors and people with celebrity status over the years. In addition to this, you need to know that there are quite a few cryptocurrencies available today to choose from and invest including Dogecoin, Binance Coin, Ethereum, Baby Dogecoin, and Cardano to name a few.
As Baby Doge is based on an older and much popular cryptocurrency, Dogecoin. It is important for you to have a fair understanding of Dogecoin first.
What is Dogecoin?
Dogecoin is also a form of cryptocurrency founded in 2013 by Jackson Palmer and Billy Markus. What started off as a joke based on a meme in 2013 featuring a Japanese breed dog Shiba Inu as its logo, acquired a lot of attention lately making the currency to be one of the most rapidly escalating cryptocurrencies in the market. However, the value of Dogecoin started going uphill after a tweet from Elon Musk backing Dogecoin along with many others.
It is important for you to know that Dogecoin is different from Baby Doge at the very core, while Dogecoin is a coin, Baby Doge is a token and not just that, Dogecoin operates on its own Blockchain independently whereas transactions for Baby Doge takes place on the Binance smart chain.
Everything you need to know about Baby Doge Coin
Baby Doge as it is called by millennials, is nothing but merely a spin-off of the meme-based cryptocurrency, Dogecoin. It was created by members and fans of the Dogecoin community which has now become the new favorite of Tesla’s CEO Elon Musk who himself is a crypto enthusiast.
Thanks to Musk’s tweets, Dogecoin became exceptionally popular till the beginning of this year and now someone has come up with Baby Doge with Shiba Inu son’s face on the coin. A few weeks ago, Baby Dogecoin was known to only a few but apparently, now #babydoge has been trending on Twitter, all thanks to Elon Musk. The reason for Baby Doge’s success apart from the fact that Musk posted on his Twitter handle could be the fact that it shares the same logo as that with Dogecoin, which got its attention merely because of the meme featuring the very same dog.
However, apart from the name and the symbol, there is nothing connecting the two cryptocurrencies. Now, it seems only logical that it was just a way of seeking public attention! In addition to this, in regards to the transaction processing speed, Baby Doge is over ten times faster as compared to Dogecoin.
The market of digital currencies is highly unpredictable and prices rise and fall in an instant. Baby Doge was no different. Thanks to the elite business tycoon, Baby Doge’s value went up by 1000 percent in just fifteen days from its launch. Due to which it has tempted a lot of investors with the possibility of increasing the values even further but, it is important for you to invest with due diligence and after doing proper research and not just by going with the hype created on the internet.
Furthermore, on its website, Bay Doge has a message that says that the credit goes to “fans and members of the Dogecoin online community” for developing it. Anyways, it is vital for you to know that Baby Doge uses an integrated smart staking system allowing people to add or invest more coins to their online wallet with each transaction.
Baby Doge has a market cap of around 0.2 billion US dollars, which might not sound as much as you would think, not even as Dogecoin and obviously not as huge as Bitcoin or Ethereum, but for a new cryptocurrency in the market, it is quite a big deal. In addition to this, it is also true that Baby Dogecoin’s mission is to help rescue dogs in need, due to which the company announced on 24th June that it donated 75000 dollars to PawsWithCause, a non-profit for dogs.
Is Baby Doge a good investment?
Seeing the hype it created over the internet, Baby Doge Coin seems like a worthy candidate for you to invest your money in. It is one of those online currencies which incentivizes speculation while charging a fee at every transaction made. Each time you trade Baby Doge, a ten percent fee out of the total amount invested is charged. Out of that 10 percent, half of it that is five percent is proportionally redistributed to all the investors in Baby Doge and the other half being the remaining five percent has to be used for liquidity pool along with Binance Coin on PancakeSwap. In simpler words, you get rewarded if you hold on to the coins and if you decide to sell them then you lose 10 percent.
Another aspect worth keeping in mind while investing is the fact that Baby Dogecoin has low prices and a large supply. Seeing a thousand percent increase in value is not enough for Baby Doge it seems.
Baby Doge’s goals:
- To start a nonfungible token or NFT marketplace
- Generating a wallet in order to track rewards
- To get listed on all available cryptocurrency exchanges
- Offer various modes of payments including credit cards.
Considering all of these goals and others like on reaching a market cap of 250 million US dollars, a free Tesla will be given away and some other ridiculous ones. Seeing everything there is, it is only logical to assume that Baby Doge has a short term hype and won’t last long, seeing that the digital currency market is highly volatile and looking at how unpredictable all of it is, Baby Doge may ride the spike-wave once again but not beyond that as there is no understood practical explanation for usage of the coin, at least not yet! Nobody can ascertain Baby Doge’s performance in the coming times but it would be astonishing if it crosses its father, Dogecoin’s value.
It all began with 420 quadrillion tokens. The developers of Baby Doge are manually burning tokens and have destroyed nearly over a hundred and twenty-five quadrillion tokens to date.
Based on data collected by CoinGecko, Baby Doge’s rise and fall since its launch are-
- The initial opening price on 9th June was 0.000000000175 dollars
- With a 1050 percent increase on 24th June, the prices hit an all-time high of 0.000000002014 dollars
- On 25th June, the next day the prices dropped drastically with a sixty percent loss to 0.000000000799 dollars.
So, if you are wondering whether or not to invest in Baby Doge, I would say that it is not recommended as there are a lot of red flags, and not just that, there is nothing that makes it stand out as a cryptocurrency assuring its stability in progress. If you are looking at investing in cryptocurrency, it is better to choose from projects with more long-term potential.
Important factors to consider before investing in Baby Doge
1. Do proper research-
As discussed earlier, before buying any cryptocurrency, do your own research, and don’t just go with the hype created on the internet. It is important that you follow trends, analyze price chats, and most importantly, make wise investments. Being a fairly new currency, it is highly volatile.
2. Choose the right cryptocurrency exchange-
As of now, Baby Doge is not listed in a lot of crypto exchanges. There are several cryptocurrencies in India but not all of them make the cut, unlike Baby Doge. Being a small token, you can buy Baby Doge only on PancakeSwap.
3. Be aware of the rules of Exchange-
PancakeSwap is known to be a decentralized crypto exchange where users deposit the token for trading. It is not as complicated as it sounds, unlike many other cryptocurrency exchanges.
On PancakeSwap’s website, you are required to link your cryptocurrency wallet in order to make a trade. Once it is done and you are on to the trading part, to buy the tokens, you must deposit cash to trade one cryptocurrency in exchange for other.
4. Don’t slip!
The crypto exchange platform PancakeSwap involves another thing known as slippage, which is the price the user pays between your deposit of payment and its execution. Maximum price change or as it is known slippage tolerance can be set according to what you are willing to accept for your trade. It is highly essential to set it above twelve percent. Baby Doge being a new currency won’t trade with low slippage like five percent.
5. How much to invest-
A currency being cheap does not mean that you invest in excess. You must know that a lot of digital currencies like Baby Doge come and go, leaving a lot of investors to dry. To invest in Baby Doge, think of it as a prize lottery, start with less, and then gradually increase your investment in order to be safe.
How to buy Baby Doge?
Baby Doge being a fairly new currency is not listed in a lot of crypto exchanges. For those of you wanting to buy Baby Doge, PancakeSwap is the preferred platform. In order to trade using PancakeSwap, you will be required to connect your crypto wallet. Then you will be able to trade it with other currencies like Binance Coin. It is not as difficult as it seems to be.
In India, you can trade cryptocurrencies using WazirX, BuyUcoin, Zebpay, and Binance but again in order to buy Baby Doge, you can do it through Decentralized Exchanges like PancakeSwap.
In conclusion, It seems like the joke which started nearly seven years ago has gone too far now. If you are planning on buying Baby Dogecoin, don’t just go with the hype but do your own research. Do it only if you are willing to take risks and bear losses if necessary.
What are your thoughts on Baby Doge? Do let us know in the comments below. Thank you for your time & if you found our content informative, do share it with your investor friends!
Also read: https: What is Dogecoin? Everything you should know