Good day, everyone! Should I still need to discuss who or what is Dogecoin? I think somehow you already have an idea of what it is. Anyway, for the sake of brief information, as per Wiki,
it is a cryptocurrency featuring a likeness of the Shiba Inu dog from the "Doge" Internet meme as its logo. Introduced as a "joke currency" on 6 December 2013, Dogecoin quickly developed its own online community and reached a capitalization of US$60 million in January 2014; as of December 2017, it has a capitalization of US$1 billion.
As a crypto trader, I usually use Dogecoin or Doge to transfer funds IF IT IS AVAILABLE on both platforms that I'm using. For example, both #Bittrex and #HitBTC offer Doge/BTC pairings. Instead of using #BTC or #ETH or other major cryptos to transfer funds from platform A to platform B, I'll use Doge considering that both platforms offer the same pairing.
How and why?
- Let's start with how. In you have BTC funds that you want to transfer on platform A, simply convert it to Doge and then withdraw it. You may now make a deposit to platform B's Doge. Then, later on, convert it back to BTC if you wish to. Huh? If you're just transferring your BTC from one exchange to another, why not just use BTC to BTC directly? That's a good question. Yes, you may do so, and I will not stop you from doing that.
- Here's my reasons behind of using Doge:
- It is CHEAPER. Way cheaper! As of this writing, platforms that I use have an average transfer or withdrawal fee of 0.001-0.002 BTC while the average transfer fee of Doge to Doge is just 2 Doge. Yes, just 2 Doge and a Doge's current value is just around 70-80 satoshis. So, 0.001 or 0.002 versus 0.00000150 is a no brainer. Though there are some transaction fees that need to be considered but just minimal. And whales may not be bothered with the fees.
- It is FASTER. Very much faster! With a congested blockchain, it is nearly impossible to transfer BTC with just a couple of minutes. While waiting for the transfer of Doge, you may just check an SMS or any chat and you may not even notice that the transfer is already completed.
Are you sure about this? That's another good question. Yes, and as stated above, I'm using this method. If you're not certain but still want to give it a try, then transfer Doge with just a few. Average minimum amount of Doge to be transferred is just 10. Go ahead, be my guest, give it a shot.
Why not use other coins instead of Doge? Another good question. Again, you may do so. If you want to ask the difference of Doge's value on both platforms, the price spread is just small.
Now, what if DOGE/BTC pairing is not available on a platform? Hmmm.. Is that even a question? We're talking about Doge here. You may go and try to find another coin instead. BUT! (a big but) transferring coins from one platform to another comes along with risks. Please check Arbitrage.
Here's a brief explanation of Arbitrage.
As per Wiki,
arbitrage is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices.
Did you get it? I didn't. :)
In simple words in crypto, the value of a coin on two platforms may be different from one another. Sometimes the spread is more than 10%. With that said, that's an opportunity to get some profit as well. Buying low on platform A and then selling it high on Platform B. That's arbitrage. The practice of taking advantage of a price difference between two or more markets.
However, this method comes with risks, like:
- the price of the coin may change during the transfer
- the transfer of the coin may take longer than usual
- using a wrong wallet address may also happen
Here's a thorough explanation that I found.
https://steemit.com/arbitrage/@kesor/the-math-behind-cross-exchange-arbitrage-trading
By the way, according to Chinese zodiac, this year is their Year of the Dog. Knowing that China, and South Korea observes #Lunar calendar too, it is a huge factor on crypto and Doge may benefit from it. However, I will not provide further details about it since I don't believe in zodiacs. Though sentiment matters.
Then, are you HODLing it? We have another good question. Honestly, I have just a few considering that I usually use it to transfer funds instead of other crypto. To HODL Dogecoin is also a good idea after all.
This is not a financial advice. I just shared a cheaper and faster way to transfer funds from one platform to another. I hope you got the idea. Comments are very much welcome.
