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Nov

2021

What Is Bancor (BNT)? How to Buy BNT Crypto

What Is the Bancor Network Token (BNT)? How Does It Work?

By Brian Nibley | Growing Wealth, invest, Investing | Comments Off

Developers created the Bancor blockchain to help provide liquidity for token swaps. It does this by providing economic incentives (money) to users who lock up their crypto in pools. The incentives come in the form of fees paid by traders who buy and sell the locked-up tokens.

All of this happens automatically via smart contracts, without any financial institution managing the system. Cross-chain conversion is what’s known as an automated market maker (AMM), a cornerstone of the decentralized finance (DeFi) ecosystem. AMMs like Bancor aim to make more niche altcoins that have smaller market caps more liquid by making it lucrative for users to sustain pools of tokens, and allowing for the swaps to take place without relying on a large exchange.

Bancor has one feature other DeFi platforms do not – interoperability. Bancor works across both the EOS and Ethereum blockchains, whereas most DeFi protocols only work on Ethereum or another, similar smart contract platform.

Having launched in 2017 when DeFi was still new, Bancor is one of the more established AMMs. Other types of cryptocurrencies and platforms that leverage more than one crypto or blockchain were less common back then.

Here in this guide to crypto, we’ll explore how the Bancor cryptocurrency works.

History of the Bancor Network Token (BNT) Crypto

In 2017, the Bancor project raised $153 million in a token sale, managed by Bprotocol Foundation, a Swiss non-profit organization. Participants of the token sale received half the tokens, while the other half went to the founders of the project, Galia and Guy Benartzi. Silicon Valley venture capitalist Tim Draper is also an investor in the project.

How Does BNT Work?

Bancor automates its service by incentivizing users to deposit crypto into pools. A pool has two components – a token trading pair and a reserve of the BNT crypto.

Users deposit coins into a pool and receive new pool tokens in exchange. These pool tokens allow the user to get back their original funds they’ve locked away in the protocol.

BNT crypto serves as an intermediary between the trades of each token. In other words, the first token converts to BNT, and then BNT is converted to the second token. Because the process happens through a smart contract, some people refer to BNT as a “smart token.”

These automated features of the network may appeal to some traders as a security feature, since the crypto market is still largely unregulated.

Bancor also allows users to lock in one token at a time as opposed to a pair. Other AMMs sometimes require users to lock up pairs of tokens in certain proportions to each other. In a Bancor liquidity pool, users have the option to deposit ETH or DAI, for example. Some alternatives to Bancor would require a deposit of both ETH and DAI.

It’s worth noting that users also have to deposit BNT into the Bancor pool of their choice.

Using liquidity pools and the BNT token in this manner differentiates Bancor from some other decentralized applications, which require each trade order to match with another order. Instead of having to wait for a buyer or seller, Bancor users can access liquidity right away, thanks to the BNT smart token.

Developers overhauled the platform in 2020 to make it more user-friendly.

💡 Recommended: What Is a Liquidity Pool?

The Use of Price Oracles

In order to access accurate pricing information for the coins locked into the protocol, Bancor V2 uses a solution called an “oracle.” Oracles send real-time price information from an external source into an existing blockchain.

With this price data, the pools on Bancor can automatically adjust token proportions in alignment with changes in price. Liquidity providers can then withdraw tokens of the same value they originally deposited.

BNT Coin Price

At the time of writing, BNT was the #104 cryptocurrency by market cap and trading at $4.29 per BNT. This represents an approximately 150% increase year-to-date, as the token began 2021 trading at around $1.30.

The all-time high for the BNT price was about $9.30, reached in January 2018. The all-time low was about $0.14, reached in March 2020. That kind of volatility could make a difficult coin to HODL long-term.

How to Use BNT

You can use BNT tokens to exchange one type of crypto for another without needing a third-party. This may help traders who hold low liquidity tokens that don’t have a lot of trading volume on large exchanges.

BNT holders can also earn interest by locking up their tokens in the protocol. Those who stake tokens receive a portion of the trading fees incurred by traders using the platform.

BNT Coin Storage

BNT holders can keep their coin in any crypto wallet that supports ERC-20 tokens. ERC-20 is a type of standard for tokens that run on the Ethereum network. Many utility tokens fall under this category. Popular Ethereum wallets like MyEtherWallet support storage of ERC-20 tokens like BNT.

Traders might also hold their BNT tokens on an exchanged-hosted wallet. After buying coins on an exchange, the exchange will automatically hold it in a wallet on behalf of the investor. This method of storage is only as secure as the exchange itself, and is generally not advised for large amounts of funds held over the long-term.

How to Buy BNT Cryptocurrency

Buying Bancor network token is similar to buying other digital assets. Doing so involves a few simple steps.

• Step 1: First, choose an exchange that supports BNT trading.

• Step 2: Sign up for an account on the chosen exchange.

• Step 3: Fund your account. Make sure the exchange supports a trading pair of the currency you deposit. For example, if the exchange only supports BTC/BNT, you will have to deposit bitcoin. If it only supports USD/BNT, you will have to deposit U.S. dollars, and so on.

• Step 4: Place a buy order for BNT. Doing so could work differently depending on the exchange. Beginner-friendly exchanges allow users to simply place an order for a certain amount of BNT and have it instantly executed at the current market price. Other exchanges require users to select an existing ask (sell) order from the order books, and buy at that price, or create a new buy order at a price of their choosing.

• Step 5: Optionally, users can then move their BNT off of an exchange, into their own crypto wallet.

• Step 6: As with all assets, traders must keep track of their transactions so that they can declare the value of their crypto holdings at tax time.

BNT can also be acquired directly through the Bancor smart contract. Users can convert any supported ERC-20 token on Bancor’s web app.

The Takeaway

BNT is a smart token that facilitates decentralized trading through an automated market maker by functioning as a reserve currency. It may be a way for some investors to bet on its technology, or to build a diversified portfolio of cryptocurrency.

Photo credit: iStock/gradyreese

Nov

2021

Mining Fees: An Overview & Fee Calculations

By Samuel Becker | Growing Wealth, invest, Investing | Comments Off

There’s always a cost to doing business. And that includes mining cryptocurrencies like Bitcoin — a cost that is often expressed as a trading fee, a transaction fee, or a “mining fee.”

As many Bitcoin enthusiasts know, one way to add to your holdings is to mine. Bitcoin mining is a validation process that takes place on a blockchain and rewards the miner with additional tokens or coins.

There are often fees associated with mining. What is a mining fee, and who pays it? We’ll get into it all below.

Bitcoin Mining Basics

Since Bitcoin is decentralized — meaning it’s not regulated or issued by a central authority like a bank or government — Bitcoin miners are the ones who make sure everything is above board.

Bitcoin mining is the process that validates and secures Bitcoin transactions and also creates new Bitcoin tokens (out of a total 21 billion bitcoins in existence). It’s an intricate, resource-intensive process that utilizes high-powered computers to solve complex math problems.

Once Bitcoin transactions are executed, they need to be verified. That means that they’ve been added to the public record and stored on the blockchain, and verified to be accurate (not a duplicate transaction, for instance).

Miners solve math problems (this is called proof of work) using Bitcoin mining software. The miner who does so unearths the next block on the blockchain which will store the transaction data and information. As a reward for doing so, miners receive Bitcoin or fees as a reward.

Bitcoin mining can also be done through cloud mining, using cloud-based software to mine. Bitcoin mining pools exist, too, in which miners “pool” their resources to mine.

What Are Mining Fees?

When miners are rewarded for participating in the validation and expansion of the blockchain network, they’re rewarded — either with Bitcoin or with a portion of the harvested fees.

Mining fees are like transaction fees you might get charged by merchants or banks. Resources are required to run a credit card and handle the back-end of a transaction, and it isn’t free. Often, merchants assume the costs.

For instance, if you swipe your credit card at a big chain store, you’re not likely to be charged a credit card transaction fee by the store — the company eats the cost. But, if you go to a small, mom-and-pop restaurant, they may add a credit card processing fee to your transaction (around 2%, usually).

Another similar type of fee would be a foreign transaction fee, a fee that’s incurred for transacting between two different currencies.

Miners fees are similar to those processing fees. In short: Miner fees are an incentive to miners to process transactions on the blockchain and to verify and secure the network.

Who Pays Bitcoin Mining Fees?

The answer to who pays mining fees depends, based on certain factors.

Remember the earlier example about credit card transaction fees at big-box stores vs. small mom-and-pop restaurants? The same dynamic is at play when it comes to mining fees. Depending on the exchange you’re using to transact your cryptocurrencies, you may or may not be responsible for paying them.

Coinbase, for example, “incurs and pays these fees directly,” according to company documents . But Coinbase also charges a fee to end users for conducting the transaction — it’s similar to paying a commission to a stockbroker for executing a trade. In effect, a transaction fee like this is more or less the same as paying a Coinbase mining fee, albeit in a slightly different form.

Kraken, another popular crypto-trading platform, likewise charges small “trade fees” to execute transactions. Binance, another popular platform, also charges trading fees but offers discounts to certain users, and those that use its in-house token, BNB.

What Determines Mining Fees?

The specific amount of a Bitcoin miner fee depends on the specific blockchain network in question. Different blockchain networks will have different calculation methods.

But in general, a mining fee will depend on the state of the network at any given time, and also the size of the transaction. It’s a lot like a ridesharing app calculating prices on the go: the state of the market (i.e., supply and demand) ultimately determines the end price.

When it comes to the Bitcoin blockchain network, mining fees depend on the available supply, and the corresponding demand for space on the blockchain. When there are a lot of transactions to process, the network becomes congested as there’s a lot of competition for space. As a result, fees increase. And vice versa.

For example, during Spring 2021, the crypto market was soaring, and trades were happening left and right. As a result, fees spiked — at one point, transaction fees averaged more than $62.

But as things settled down during the following months, prices decreased. Throughout the late summer and early fall months of 2021, fees averaged between $3 and $4.

If you find yourself asking “why are mining fees so high,” the answer is likely because many other traders are trying to execute transactions at the same time you are.

Bitcoin Mining Fee Example

Here’s how a crypto investor might run into a transaction, trading, or mining fee:

Let’s say you’re using an exchange and want to send a friend, F, one bitcoin. Technically speaking, you’re transferring X amount of Bitcoin from your address, or crypto wallet, to F’s. Using your keys, you sign off on the transaction by specifying your bitcoin’s address, F’s address (or public key), and how much you want to send.

A message is then sent to the network containing that information, and it reaches a mining node, where miners get to work validating and verifying it, and “mining” a new block on the blockchain. Before that change to the network takes place, you will be notified of the applicable mining fee for executing the transaction (which will depend in part on how busy the network is, and the size of the transaction).

That fee is attached to your transaction order, in most cases, and is paid in Bitcoin. The fee is paid to the miners doing the “mining” on the blockchain.

In effect, you’ll have sent F one bitcoin, plus X% of a bitcoin (whatever the fee amounts to at the given time) as a mining, trade, or transaction fee.

The Takeaway

Crypto may be a decentralized asset, but that doesn’t mean it’s a free-for-all. And that’s particularly true when it comes to paying fees necessarily to facilitate transactions, like mining fees.

Miners get paid to validate transactions, and their fee comes from somewhere — often, from the person initiating the transaction.

Photo credit: iStock/Inside Creative House

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Nov

2021

What is Distributed Ledger Technology (DLT)?

Distributed Ledger Technology (DLT): What It Is and How It Works

By Brian Nibley | Growing Wealth, invest, Investing | Comments Off

Distributed ledger technology (DLT) provides a new way of storing data and processing transactions, keeping a record of transactions across multiple computers.

DLT and blockchain are the building block of what’s become known as the “internet of value.” These technologies allow people to transfer value between themselves in a peer-to-peer fashion without needing a centralized third-party intermediary. This is a new digital frontier that has only become widespread since the invention of Bitcoin in 2009.

In this article, we’ll answer questions like what is a distributed ledger, how does distributed ledger technology work, and what are the pros and cons of DLT.

What is Distributed Ledger Technology?

A distributed ledger, sometimes referred to as a shared ledger, is a type of digital record that uses independent computers to record, share, and synchronize transactions.

Whereas a traditional ledger would be contained on a centralized server, distributed ledgers have many different servers in different geographical areas. These servers are referred to as “nodes.” In a blockchain, data gets organized into blocks, which are chained together in a way that makes them immutable, meaning the record can’t be tampered with.

All the computers work in concert to agree that transactions are valid in a process called “achieving consensus.” The entire record of transactions is then kept on file with each computer in the network forever.

DLT is instrumental in Bitcoin transactions, which allow for the peer-to-peer transfer of monetary value over a blockchain. But there are also other potential use cases for DLT and blockchain. Decentralized finance (DeFi), which can bring financial services to those without access to the traditional financial system, is one sector that could be transformative for the world economy.

The Difference Between DLT and Blockchain

While all blockchains are distributed ledgers, not all distributed ledgers are blockchains.

Blockchain technology involve the creation of a specific type of distributed ledger that often establishes an immutable database within a decentralized network that uses cryptography to record and validate all transactions through the use of a specific consensus mechanism. Transactions are processed in groups known as “blocks,” with each block being cryptographically linked to the one that came before it, giving rise to the term “blockchain.”

One fundamental way that blockchains differ from distributed ledgers is consensus. A blockchain has to get all of its nodes to agree that transactions are valid, which is referred to as achieving consensus. Distributed ledgers can be designed in such a way as to achieve this goal without validation from the network as a whole.

Pros and Cons of Distributed Ledger Technology

There are pros and cons of using distributed ledgers. Here are the highlights.

Pros of DLT

The upside of distributed ledger technology includes increased security and transparency, and the lack of need for third-party intermediaries. Let’s do a deeper dive.

Security

A distributed ledger removes the possibility of a single attack vector. From a cybersecurity standpoint, this is an outstanding benefit. With a centralized database, attackers only need to compromise one computer or system. With a distributed ledger, attackers would have to compromise the majority of nodes in the network. This can be difficult if not impossible to accomplish.

Transparency

Most distributed ledgers, including blockchains, are fully public, meaning anyone can see their activity. The records kept by a distributed ledger can only be altered by a party in control of at least 51% of the network’s computing power.

Recommended: What Is a 51% Attack?

No Need for Intermediaries

Using a distributed ledger tends to reduce operational inefficiency. Cutting out third parties can save time and money. These ledgers are beneficial for financial transactions, which currently come with high costs and long wait times.

DLT also has the potential to contribute to positive change in industries like clean energy, manufacturing, and government financial management systems.

Cons of DLT

There are some downsides of distributed ledger technology.

Lack of Agility

Because they are decentralized, making changes to blockchains can be a slow and cumbersome process. A majority of nodes on the network have to agree to any proposed changes.

The Bitcoin Cash (BCH) hard fork of the Bitcoin network in 2017 exemplifies this kind of conflict. Some people wanted to increase the block size for Bitcoin’s blockchain, leading to greater transaction throughput, while others wanted to implement different software changes to achieve similar ends. The result was a hard fork, where some of the computers in the network adopt a slightly different protocol and go on to create their own blockchain.

Potential for Centralization

Distributed ledgers can also take a centralized, permissioned form, and this can create problems. When under the control of a single entity, a distributed ledger could empower a person or organization to do just about anything with the data at their disposal. They would be able to decide who gets access to the system and who doesn’t, while possibly presenting the system as democratic. Permissioned ledgers also require participants to be approved before they can participate in the network.

Recommended: What Happens When Bitcoin Forks?

DLT in Blockchain

A blockchain is a specific type of decentralized, permissionless distributed ledger that groups transactions into blocks. Each block gets attached or “chained” to the previous block, creating a chain of blocks, i.e., a blockchain.

Blockchains are decentralized because their distributed ledgers must achieve consensus across its nodes, meaning no single entity can control the network on its own. Blockchains are permissionless because anyone can use them without needing to obtain permission from a third-party intermediary.

DLT in Finance

DLT has the potential to bring fundamental change to the financial sector, increasing efficiency, reliability, and resiliency in many areas.

The use of DLT could lead to solutions for problems that have plagued financial institutions for many years. Central banks are exploring the possibility of their own central bank digital currencies (CBDCs) using DLT or blockchain. This would, in theory, give central banks direct control over monetary policy and money creation, possibly bypassing national treasuries.

In early 2021, China became the first country to run a real trial of its CBDC, the digital yuan. The digital currency was distributed to a number of digital wallets held on the smartphones of Chinese citizens.

A central bank digital currency would presumably be issued on a permissioned distributed ledger or blockchain, making it subject to the cons of the tech detailed in the section on pros and cons of DLT.

The Takeaway

A distributed ledger is a type of database that gets duplicated, synchronized, and shared across multiple regions, users, and servers without needing centralized confirmation or a specific data structure. Blockchains, for example, are distributed ledgers. But distributed ledger technology could have broader applications, within finance and beyond.

Photo credit: iStock/andresr

Nov

2021

What Is the Ethereum Virtual Machine (EVM)?

What Is the Ethereum Virtual Machine? How Does It Work?

By Brian Nibley | Growing Wealth, invest, Investing | Comments Off

You may have heard of Ether (ETH), the second largest cryptocurrency by market cap. And if you use the terms ETH and Ethereum interchangeably in conversation, you’re definitely not alone.

But there’s a distinction to be made between ETH, the crypto, and Ethereum, the network. As with most cryptocurrencies, Ethereum involves both a digital asset and a blockchain. The Ethereum network is a blockchain designed for smart contracts.

Developers can create programs using smart contracts for a variety of purposes, including the use of decentralized applications. They’re able to do this because of the Ethereum Virtual Machine (EVM).

Ethereum Virtual Machine Definition

The Ethereum Virtual Machine is the software platform that developers can use to create decentralized applications (DApps) on Ethereum. This virtual machine is where all Ethereum accounts and smart contracts live.

The Ethereum EVM does away with the need for powerful hardware, and is thought to be suitable for beginner programmers. That said, deeper understanding of the Ethereum virtual machine and EVM code would require knowledge of computer science terms like memory, bytes, and a stack, and also blockchain concepts like proof of work, the Merkle Tree, and hash functions.

In this article we’ll cover the basics of the EVM and how it works.

What is the Purpose of the Ethereum Virtual Machine?

The purpose of the EVM is to determine what the overall state of Ethereum will be for each block in the blockchain.

Ethereum is much like other blockchain-based networks in that it has its own native cryptocurrency (ETH), and uses a distributed ledger to maintain a database of transactions while enforcing specific rules for how people can operate on the network. However, Ethereum has an additional layer of functioning because of its smart contract capability.

This second layer has been referred to as a “distributed state machine.” On the simplest level, Ethereum’s state is a large database that holds all ETH accounts and balances.

At the same time, Ethereum’s state is also a machine state, capable of changing with each new block, in accordance with a set of predefined rules which can execute any kind of machine code. The specific rules that determine how the machine will change state during each new block are defined by the Ethereum Virtual Machine.

An Intro to Smart Contracts

Smart contracts are programs that run on the Ethereum blockchain. The contract is a collection of data and code that resides at an address on Ethereum.

A smart contract exists as a type of Ethereum account. Like other accounts, they have the ability to send transactions over the network. But instead of being controlled by a user, smart contracts get deployed to the network where they function according to the way they have been programmed.

User accounts then have the ability to interact with the smart contract. Doing so involves sending transactions that execute certain functions defined by the contract. Smart contracts share a few different attributes: they enforce pre-determined rules through their code, they cannot be deleted, and transactions with them cannot be reversed.

How Does Gas Relate to the Performance of EVM?

Every action taken on Ethereum represents an ETH transaction. Transactions require fees. On Ethereum, fees are referred to as Gas, as in the gas that powers decentralized applications.

During times of high network activity with many transactions happening, Gas fees tend to go up. At times, it can cost as much as $10 or $20 worth of ETH to make a simple transaction.

How Is Data Stored in Ethereum?

Data is managed on Ethereum using trie (tree-like) data structures. Data like account balances don’t get directly stored in the blocks of the Ethereum blockchain. Only root node hashes of transactions, states, and receipts are held on the chain.

Two distinct data types exist in Ethereum — permanent data and ephemeral data.

Permanent Data

Transactions are a type of permanent data. Once a transaction gets confirmed, it will be recorded in the transaction trie (a tree-like data structure) and never be altered.

Ephemeral Data

The balance of an account address would be an example of ephemeral data. The balance held in an account address gets stored in the state trie and will be altered when transactions are sent by or received to that address. In this way, permanent data like mined transactions and ephemeral data like account balances are stored separately.

Ethereum record-keeping is much like bank record-keeping. One analogy would be using a debit card. Banks track the amount of money each debit card has, and when individuals need to spend money, the bank checks its record to make sure the account has the necessary balance before the transaction is approved.

Benefits of the Ethereum Virtual Machine

• The EVM allows anyone to create their own DApp. There are endless potential use cases for this kind of software, and the technology isn’t restricted to a certain group of people or those with a lot of money or connections.

• There are many potential benefits of smart contracts. A recent example would be non-fungible tokens (NFTs). By creating NFTs, anyone can create digital art and sell it on a decentralized marketplace. This democratizes access to the art market in a virtual way, something that wasn’t possible before.

Downsides of the Ethereum Virtual Machine

• The EVM network isn’t entirely decentralized. The vast majority of Ethereum nodes are hosted on centralized cloud servers like Amazon Web Services. If the owners of such services decide they don’t like Ethereum for some reason, the nodes could easily be shut down, damaging or destroying the network. This has happened before with certain social media apps, for example.

• The EVM requires some technical knowledge. Those who don’t know how to code can’t do much with the EVM. More user-friendly interfaces are still in the process of being developed. NFTs are a good example again — there are programs that have graphical user interfaces (GUIs) that allow almost anyone to create NFTs and use related marketplaces.

• High gas fees during times of network congestion. This can be a big downside for users of Ethereum. While those sending large transactions might not be affected as much, everyone trying to send smaller transactions might be unable to use the network for a time. In particular, this creates problems for decentralized applications. When a lot of users are interacting with the DApps’ smart contracts and creating many transactions, things can slow down to a crawl or even stop working when gas fees get too high.

The Takeaway

Ethereum is a transaction-based “state” machine, and as such, others can build any transaction-based state machine concept on it. An Ethereum virtual machine (EVM) specification of almost any kind can be used by developers to create smart contracts for many different reasons.

Photo credit: iStock/nortonrsx

Nov

2021

What is Baby Doge Coin? What Do You Need to Know?

By Brian Nibley | Growing Wealth, invest, Investing | Comments Off

As Dogecoin (DOGE) briefly saw a spike in value in 2021, several related, competing coins have sprung up, despite the subsequent DOGE price plunge.

These are meme coins that are based on the original Dogecoin. Baby Doge Coin (BabyDoge) is one of the spinoffs. DOGE is said to be the “father” of BabyDoge.

What is the Difference Between Baby Doge and DOGE?

The two cryptocurrencies are both meme coins that are highly volatile and speculative. That said, BabyDoge has attempted to incorporate a few added features that make it unique from DOGE.

Here are some of the main differences between the two altcoins:

	DOGE	BabyDoge
Supply	Unlimited	420 quadrillion
Purpose	Meme coin, joke currency	DOGE improvement, Pet charity
Market cap	$33.5 B	$52.4 M
Price	~ $0.25	~ $0.0000000019

A few things that make BabyDoge unique are its commitments to coin scarcity and a pet charity. The crypto currency accomplishes this through coin burning and donating some coins to save dogs.

Baby Doge Coin’s developers maintain a charity wallet with 2.2% of the total supply of coins, which they claim that they donate to dog rescues and shelters.

Is the Supply of Baby Doge Coin Limited?

There are 420 quadrillion Baby Doge Coins in existence, according to the Baby Doge Coin team. They claim that nearly 27.6 quadrillion of these are in public circulation. Note that these numbers have been self-reported by the people behind BabyDoge and have not been verified independently.

Recommended: How Many Dogecoins Are in Circulation?

The coin is very new and no one knows the exact identity of the developers. Information on how BabyDoge works is therefore not 100% verifiable. But as far as anyone knows, the supply is capped at 420 quadrillion. While this is a large total number of coins, BabyDoge brands itself as being “hyper-deflationary” due to three functions designed to reduce the supply. These include:

• Coin burning

• Liquidity pair acquisition

• Reflection

Coin Burning

Coin Burning is a common practice among altcoin projects that seek to limit their supply. This practice involves periodically sending tokens to a “burn” address from which no one can recover them, effectively eliminating those coins from existence.

Liquidity Pair Acquisition

Also known as LP acquisition, this involves adding coins as a liquidity pair on a decentralized exchange, in this case Pancake Swap.

Reflection

Reflection is the process of adding coins to holder’s wallets.

Of the 10% transaction fee that Baby Doge coin pay, half gets redistributed to users of BabyDoge. A smart contract controls the other half, selling it to a smart contract into Binance Coin (BNB) and automatically added as a liquidity pair on the Pancake Swap decentralized exchange.

Where Can You Buy Baby Doge Coin?

Because BabyDoge is a much smaller cryptocurrency, there are only a handful of lesser-known exchanges that trade the coin. At the time of writing just one of 10 centralized cryptocurrency exchanges and one decentralized exchange allowed user to trade Baby Doge Coin. The most common trading pair is Baby DogeCoin against the Tether stablecoin, or BabyDoge/USDT.

At the time of writing, the top exchanges for trading BabyDoge included:

• DODO BS

• CoinW

• Pancake Swap (v2)

• LBank

• XT.com

To buy Baby Doge Coin, you must create an account on one of the exchanges that trades BabyDoge, fund their account, and make a purchase. The process is generally the same for investing in cryptocurrency in general.

Is Baby Doge the Same as Dogecoin?

Baby Doge Coin (BabyDoge) is a separate cryptocurrency from Dogecoin (DOGE). The DOGE meme coin gave birth to the BabyDoge meme coin, metaphorically speaking.

BabyDoge has a market cap of around $564 million, whereas DOGE has a market cap of about $27 billion. Doge was created in 2014 while BabyDoge was created in 2021.

Refer to the table earlier in this article for additional differences between the two coins.

Other Dogecoin Inspired Coins

Baby Doge is not the only cryptocurrency inspired by DOGE. There are many DOGE-like imitators that have sprung up recently. There have even been imitations of the imitators. This has become such a problem that Coinmarketcap.com has had to place a disclaimer on their Baby Doge Coin page stating that the page is, in fact, about the original BabyDoge.

But besides BabyDoge and DOGE, there have been many other dog-inspired meme coins that have risen to prominence as well. Shiba Inu coin can be found among these. The original DOGE meme depicts the face of a shiba inu dog, and someone developed a separate spin-off coin based on this.

Created in August 2020 by someone using the pseudonym “Ryoshi,” the Shiba Inu coin is similar to BabyDoge in that SHIB has a campaign with Amazon Smile that collects donations to help rescue real, live Shiba Inu dogs by partnering with the Shiba Inu Rescue Association. Shib has a much larger market cap than BabyDoge, however, being valued at nearly $3 billion, making it the 40th largest cryptocurrency by market cap at the time of writing.

The Takeaway

The recent Dogecoin craze has spawned a flurry of new dog-based meme tokens. BabyDoge and Shiba Inu are among the most well-known, but there have been many others. There may be more to come in the future, too, but it’s important for investors to do careful analysis in such coins before making an investment.

BabyDoge is a very small cryptocurrency, being ranked #2589 in terms of market cap. Five hundred million BabyDoge coins would be worth less than one U.S. dollar at this time. Many investors believe that meme coins and many other altcoins have no practical value and doubt their long-term future. They are among the riskiest investments available to the average person.

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What Is the Bancor Network Token (BNT)? How Does It Work?

History of the Bancor Network Token (BNT) Crypto

How Does BNT Work?

The Use of Price Oracles

BNT Coin Price

How to Use BNT

BNT Coin Storage

How to Buy BNT Cryptocurrency

The Takeaway

Mining Fees: An Overview & Fee Calculations

Bitcoin Mining Basics

What Are Mining Fees?

Who Pays Bitcoin Mining Fees?

What Determines Mining Fees?

Bitcoin Mining Fee Example

The Takeaway

Distributed Ledger Technology (DLT): What It Is and How It Works

What is Distributed Ledger Technology?

The Difference Between DLT and Blockchain

Pros and Cons of Distributed Ledger Technology

Pros of DLT

Security

Transparency

No Need for Intermediaries

Cons of DLT

Lack of Agility

Potential for Centralization

DLT in Blockchain

DLT in Finance

The Takeaway

What Is the Ethereum Virtual Machine? How Does It Work?

Ethereum Virtual Machine Definition

What is the Purpose of the Ethereum Virtual Machine?

An Intro to Smart Contracts

How Does Gas Relate to the Performance of EVM?

How Is Data Stored in Ethereum?

Permanent Data

Ephemeral Data

Benefits of the Ethereum Virtual Machine

Downsides of the Ethereum Virtual Machine

The Takeaway

What is Baby Doge Coin? What Do You Need to Know?

What is the Difference Between Baby Doge and DOGE?

Is the Supply of Baby Doge Coin Limited?

Coin Burning

Liquidity Pair Acquisition

Reflection

Where Can You Buy Baby Doge Coin?

Is Baby Doge the Same as Dogecoin?

Other Dogecoin Inspired Coins

The Takeaway

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