Dogecoin on Robinhood Stock: A positive yield generator for the exchange?

What is Dogecoin (DOGE)?

This coin featuring a Japanese breed of dog, Shiba Inu, was started as somewhat of a joke but gained significant popularity over the years. With prominent names associated with it. Dogecoin was created as a lighthearted alternative to cryptocurrencies like Bitcoin. It works like other cryptocurrencies providing the ability to exchange value on the internet without an intermediary like the traditional financial systems.

Dogecoin is a first-of-its-kind cryptocurrency; it is a peer-to-peer open-source cryptocurrency.

Dogecoin was created by two software engineers named Billy Markus and Jackson Palmer in 2013. Dogecoin promoted itself as a sarcastic version of Bitcoin. It was created using the open-source code of Litecoin, which itself was a fork of Bitcoin.

Features of Dogecoin

Supply: While Bitcoin was a measure for inflation and is scarce, Dogecoin is meant to be abundant. Dogecoin has no maximum supply. The miners of Dogecoin earn 10,000 DOGE per block every minute.
Decentralization: Decentralization is the primary feature of the security governing cryptocurrencies.
The technology used: Scrypt technology derived from Litecoin proved to be an argument to be a faster and more adaptable version of Bitcoin.
The most significant selling point for Dogecoin is its strong community with an enthusiastic user base. And the support from the Tesla CEO, Elon Musk, is one of the most important reasons the coin has been so popular lately.

Dogecoin’s Mining

Similar to some other cryptocurrencies, Dogecoin is also entered into circulation through mining. The process of altering the shared ledger with a newly added transaction in which all the core supporters synchronize the copies is what we call mining in the crypto industry. These core supporters verifying and adding a new block are known as miners. But comparatively, Dogecoin mining can be a bit costlier due to its use of Scrypt technology, which is a bit faster than mining other cryptocurrencies.

Dogecoin also has its Decentralized Autonomous Organisation (DAO) called DogeDAO, where the utility token is $DogeDAO, and it will serve as the currency for the DogeDAO ecosystem. It supports multi-chain and cross-chain access to Doge and meme tokens through the index tokens.

Current price of Dogecoin

At the time of writing, Dogecoin is trading at a value of $0.1351. And the coin stands at the twelfth position by market capitalization, which is $17,923,102,362. Dogecoin witnessed its All-Time High last year in May when it reached $0.7376. Dogecoin has no maximum supply specified.

What is Robinhood?

Robinhood is one of the most popular exchanges in the crypto industry. It is an American financial services company known for its commission-free trades of stocks, cryptocurrencies, and exchange-traded funds. Headquartered in Menlo Park, California, this company is a FINRA regulated broker-dealer and is registered with the U.S. Securities and Exchanges Commission.

The company’s revenue is generated mainly through three sources, margin lending, selling order information to high-frequency traders, and interest earned on customers’ cash balances. At the time of writing, the market cap of Robinhood markets is around $10.15 Billion.

The Backstory of Robinhood

The exchange was founded by Vladimir Tenev, the current Chief Executive Officer(CEO), and Baiju Bhatt, the current Chief Creative Officer(CCO), in 2013. Interestingly the two founders were classmates and roommates studying at Stanford. After their graduation, both set up their finance companies in New York and sold their own trading software to hedge funds. They wanted to change the fact that most Americans were charged a commission to trade stocks, whereas Wall Street firms were paying nothing much to trade. Hence, they moved back to California to build this financial services company.

Its mission is to provide everyone with access to financial markets and not just the wealthy, and the company name is also derived from it. The app was first showcased publicly in LA Hacks and was first published on AppStore in December 2014. And the official launch took place in April 2015. In July 2021, the company went public Nasdaq, the famous American stock exchange.

Though the company has gotten into several controversies in the past, it is one of the popular stock and crypto exchanges for crypto trading.

Robinhood Exchange facilitates its users with

Trading of cryptocurrencies: Robinhood provides trading of cryptocurrencies which started in January 2018. Initially, it offered the trading of Bitcoin (BTC) and Ethereum (ETH). It later added support to other crypto assets like Dogecoin (DOGE), Bitcoin Cash (BCH), Litecoin (LTC), Ethereum Classic (ETC), etc. There are rumors and news regarding the listing of Shiba Inu on Robinhood, but the crypto asset is currently not available on the exchange.

Stock and ETF trading: The initial products of Robinhood stock exchange were commission-free trades of stocks and exchange-traded funds. And it primarily supports trading stocks and ETFs on Nasdaq and New York Stock Exchange.

Banking services: Initially, the news about Robinhood stock acquiring a U.S. banking license came out in June 2018. In December, it announced a checking and savings account which it claimed was SIPC secured, which SIPC denied. The products were rebranded as Cash Management the next day, and the waitlist and sign-up page were removed from their application. The new Cash Management feature was announced in October 2019.

How to buy Dogecoin on Robinhood Stock?

The listing of Dogecoin on Robinhood stock exchange had a significant impact on the Cryptocurrency. It surged about 40% after getting listed on the major crypto exchange. Not only that, but this popular crypto asset also accounts for considerable revenue for the exchange. Last year in the second quarter, Dogecoin accounted for about 62% of the revenue from transactions based on Cryptocurrency.

This commission-free stock trading platform allows the buying and selling of Dogecoin along with other cryptocurrencies. Here are the steps on how to buy Dogecoin on Robinhood stock:

Users can set up an account and verify it at the Robinhood stock exchange website and download the mobile app on iOS or Android.
Navigate to Dogecoin’s detail page.
Tap on the trade button
Tap on buy or sell.
Click on Order types in the upper right order.
Select the order type that you prefer.
Confirm and Submit your order.

Before starting to buy Dogecoin on Robinhood stock or any other cryptocurrency exchange, thorough research should be done, if they have any specific requirements, etc.

ALSO READ: Can Dogecoin rally to $5 by 2025?

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.