Dogecoin vs Ethereum – What’s the difference?

Dogecoin and Ethereum are not unheard names in the cryptocurrency circles. However, new investors usually need to be versed with Dogecoin vs Ethereum, what they are and how they differ. Since new coins enter the crypto frame daily, it is vital to draw daylight between the most famous coins.

Although both of these coins have appropriate market capitalization and offer multiple utility options, they are still quite different from each other. It may not be possible to rank them in terms of investment, but they have significant differences.

Therefore, knowing these differences becomes essential to investors, as they can choose the right cryptocurrency that resonates with their objectives.

Let us understand the application of these two coins better and understand Dogecoin and Ethereum. 

What is Dogecoin?

Surprisingly, Dogecoin (DOGE) came to spoof Bitcoin (BTC) but turned into a severe cryptocurrency. It initiated a new line of crypto coins known as meme coins. The word Doge was deliberately altered by Billy Marcus and Jackson Palmer – the founder of Dogecoin, in late 2013. The word doge describes the Shiba Inu Dog.

Dogecoin gained value primarily from the sentiments of its fans and social media hype. Unlike other coins, Dogecoin has limited usage and is not widely accepted at outlets.

Currently, Dogecoin is mined by a proof-of-work consensus algorithm. Unlike Bitcoin, there is no per day limit for mining of DOGE, while miners are rewarded with Dogecoin coins.

Additionally, Dogecoin uses the Scrypt hashing algorithm, which is less complex than SHA-256. Further, Dogecoin and Litecoin enable merged mining, as both use standard algorithms without impacting operational efficiency.

What is Ethereum?

Technically, Ethereum is blockchain, while Ether is its native cryptocurrency. Ethereum occupies the second position on the list of most famous cryptocurrencies behind Bitcoin. ETH revolutionized decentralized finance (DeFi) by introducing DApps. Similarly, non-fungible tokens are the product of Ethereum.

Programmer Vitalik Buterin introduced Ethereum in 2013 and currently working on a proof-of-stake consensus method for transaction verification.

Ethereum has recently upgraded its system from Proof-of-Work to Proof-of-Stake, known as a consensus layer upgrade. The shift has reduced transaction costs while speeding up the process.

Ethereum is one of the safest cryptocurrencies as it avoids third-party intervention through its centralized control. Additionally, it supports the frictionless functioning of smart contracts.

Ethereum has a flexible programming language that allows developers to create DApps. Therefore, many experts rank Ethereum as the best cryptocurrency as it has the potential to change almost any industry in the world.

Dogecoin vs Ethereum

Now that we know both Dogecoin and Ethereum, let have to find noticeable differences between the two.

Symbol

Launching Year

Purpose

Market Capitalization

Number of Coins

Supply Restrictions

Consensus Mechanism

Key differences between Dogecoin and Ethereum

Despite several similarities, Dogecoin and Ethereum have vital differences which help investors choose as per their investment preferences.

First, Ethereum has a more robust, scalable, and flexible programming language than Dogecoin. In other words, Ethereum’s code makes more complex decentralized apps in contrast to Dogecoin. Therefore, ETH is more secure when compared to DOGE.

Second, since ETH’s apps have a Turing-complete program running in the background, thus its apps are comparatively secure. The programming language used by Ethereum develops multi-layer smart contracts that are tough to crack.

Third, Ethereum recently shifted to the PoS mechanism, which means it offers high transaction speed at a low cost compared to Dogecoin, which uses the PoW mechanism.

Pros & Cons of Dogecoin

Following are the key pros and cons of Dogecoin cryptocurrency:

  Pros

Cons

Pros & Cons of Ethereum

Follows the key pros and cons of Ethereum cryptocurrency:

Pros

Cons

Frequently Asked Questions

Which is better for investment – Dogecoin or Ethereum?

Both cryptocurrencies have their profit promises. But the majority of experts rank Ethereum as a better investment opportunity as compared to Dogecoin. However, always seek professional advice before opting to invest in cryptocurrency.

Should I mine Ethereum or Dogecoin?

Ethereum is easy to mine since it uses the PoS mechanism compared to Dogecoin, which uses PoW. Additionally, there are many validators for Ethereum, thus making it more viable for mining.

Where is Dogecoin acceptable?

You can use Dogecoin everywhere; famously, Tesla has also started accepting Dogecoin. Similarly, the crypto debit card is usable like any other debit card.

Is it reasonable to invest in Dogecoin?

Dogecoin is one of the most famous cryptocurrencies, which has the potential to offer good returns. However, since cryptocurrency is a highly volatile market, seeking professional advice is always recommended.

Should I invest in Ethereum?

Ethereum is the second biggest crypto after Bitcoin and is among many investors. However, it is volatile, so backing investment decisions with expert opinions are recommended.

Parting Thoughts

Dogecoin vs Ethereum is a comparison many new investors look for before making an investment choice. Luckily, both of these coins are performing better and are on the wish list of many investors.

Ethereum has an advantage over Dogecoin. Most of it depends on Ethereum has better security, fast transaction speed, and low fees. Having said that, Dogecoin is too far behind and has its own advantages that suit many investors.

Additionally, both cryptocurrencies have large communities to support them; they have low transaction fees and high transaction speeds. Also, these coins are widely and globally accepted at many stores.

However, since the crypto market is unstable and highly volatile, investing in them depends on speculation. Therefore, an investment decision supported by prior homework and expert opinion will lead to better outcomes.

Please share your feedback in the comments section and let us have your thoughts on Dogecoin vs Ethereum.