Dogecoin vs Ethereum • Investment Comparison • Benzinga


Just when you thought the Dogecoin craze was over, DOGE blasted past $0.60 on May 4 setting a record for the new all time high. At the same time, Ethereum continued it’s record setting rally with a short excursion over the $3500 mark. 

With the crypto bull run in full effect, many new investors are looking to be early in the next generation of money. With both Ethereum and Dogecoin in price discovery mode, let’s take a look at what these 2 currencies are, and what makes them so unique. 

What is Dogecoin?

Dogecoin is a Bitcoin copycat that was created amidst a tsunami of other Bitcoin copycats. Billy Markus and Jackson Palmer did not intend on becoming Bitcoin’s worst nightmare, they just wanted to meme on the other shitcoins. They ended up doing both.  

Markus explained in a Reddit rant that the project took around 3 hour to put together, and that he spent “the bulk of that time making alterations to the client to make the text Comic Sans”.

Dogecoin has a few notable differences from the Bitcoin core it copied. Namely, faster transaction processing, lower fees, and lower security. For an in-depth look at this comparison, check out Dogecoin vs. Bitcoin

The takeaway for this comparison is that Dogecoin is a transactional cryptocurrency, made for sending payments to friends and creatives across the world quickly and cheaply. 

What is Ethereum?

Ethereum is a global computing platform for decentralized applications in finance, supply chain, insurance, options trading and much, much more. What seperated Ethereum from Bitcoin was Ethereum’s ability to compute (as well as transact) on the chain. These computations are known as smart contracts, and are written in Ethereum’s own programming language, Solidity. 

The Ethereum project began in 2013, and is currently the most actively developed project in the entire blockchain and cryptocurrency industry (and it’s not even close). Ethereum began to solve the problems that creator Vitalik Buterin saw within Bitcoin. After working in the crypto industry for a few years, Vitalik saw the future of finance on the blockchain. 

Since its inception, Ethereum has continued to grow following 4 year market cycle patterns based off of Bitcoin’s halvening. In 2018, Ether reached an all time high of $1,420 before correcting harshly. In 2021, that record has been erased and rewritten many times already. 

The Ether cryptocurrency powers the Ethereum network and is the required form of payment for access to the chain. Ether additionally functions as a store of value and medium of exchange, however, high demand for space on the chain has driven up the price of transactions. 

Similarities Between Dogecoin and Ethereum

Both DOGE and ETH are stores of value and capable of transactions, however, this is DOGEs main selling point, and ETHs weakness. If you are just looking to send your friend a couple bucks, it might cost you $10 on the Ethereum network, and $0.10 on the Dogecoin network. The Dogecoin transaction will also process faster! If the $75 billion market cap did not make it clear, Dogecoin has been selected as the people’s currency of choice.

Dogecoin and Ethereum are also both resistant to dedicated mining computers, called ASICs. These computers are designed solely to mine a single type of cryptocurrency, and tend to skew power towards the center. The decision to make their currencies resistant to ASICs encourages decentralization and better security. A win for everyone involved. 

Differences Between Dogecoin and Ethereum

While both cryptos have some transaction purposes, Ethereum differs by allowing smart contracts to be executed on the chain. Ethereum’s smart contracts enable automation of financial products such as liquidity pools and derivatives, as well as applications in other products and sectors. To learn more about smart contracts and their potential use cases, check out Benzinga’s guides to What is Ethereum? and What is DeFi?.

While the importance of smart contracts can hardly be understated, there are additional differences between these 2 chains. Ethereum’s chain is much more decentralized and secure than Dogecoin. In the blockchain world, decentralization and security are 1 in the same, as the only way to hack the chain, is to centralize 51% of it yourself. It would cost around $10 million to attack and control Dogecoin, whereas it would cost hundreds of millions or more to do the same thing to Ethereum. 

Another difference between the 2 projects is the size and activity of their respective development teams. While Ethereum has been the most actively developed project in the space for years, it seems Dogecoin’s team neglected the puppy from 2018 until 2021, when the Dogecoin team pushed out the first update in years. 

Where to Buy Dogecoin

Dogecoin is available from Gemini, Robinhood, Kraken, Voyager and others. If you don’t already have an account with one of these centralized exchanges, you can get started with the link below. 

To keep things simple, some centralized exchanges store your dogecoin for you. While this may seem like a benefit, it actually means that you don’t own, or even have access to, your money. Additionally, this presents a centralized choke point for a high-value hack. If control of your funds is something you value, then it may be worthwhile to download or purchase a dedicated crypto wallet. Find out which one is right for you on Benzinga’s guide to the Best Crypto Wallets

Alternatively, you could opt for a decentralized exchange (DEX) where you can swap from your favorite stablecoin into some DOGE. 

Best For

Buying & selling Bitcoin

1 Minute Review

eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since 2007. A major eToro plus is its social trading operations, including OpenBook, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features

Best For
  • U.S.-based cryptocurrency traders
  • Social and copy traders
  • Simple user interface
  • Community engagement and following other traders
Pros
  • Expansive network of social trading features
  • Large client base for new traders to imitate
Cons
  • U.S. traders can only buy cryptocurrency
  • Only 15 cryptocurrency pairs available

1 Minute Review

Gemini is a cryptocurrency exchange and custodian that offers investors access to 26 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.

Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader. 

In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.

Best For
  • New investors looking for a simple mobile and web app
  • Experienced investors who need a more advanced platform with more tools
  • Users looking for a 1-stop-shop to buy, sell and store all of their coins
Pros
  • Easy and quick signups — can get started in as little as a few minutes
  • Multitude of platforms to accommodate traders of all skill levels
  • Hot wallets include insurance to protect your from theft and hacking attempts
Cons
  • Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app

Best For

Intermediate Traders and Investors

Best For

Intermediate Traders and Investors

1 Minute Review

Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.

Webull is widely considered one of the best Robinhood alternatives.

Best For
  • Active traders
  • Intermediate traders
  • Advanced traders
Pros
  • Commission-free trading in over 5,000 different stocks and ETFs
  • No account maintenance fees or software platform fees
  • No charges to open and maintain an account
  • Leverage of 4:1 on margin trades made the same day and leverage of 2:1 on trades held overnight
  • Intuitive trading platform with technical and fundamental analysis tools
Cons
  • Does not support trading in mutual funds, bonds or OTC stocks

Where to Buy Ethereum

You can pick up some Ethereum from Coinbase, Etoro, Gemini, Robinhood, Kraken, BlockFi and more. Just make sure you have an Ethereum wallet like MetaMask to keep it in. If you are new to buying crypto, check out Benzinga’s guide to the Best Cryptocurrency Exchanges.

Best For

Buying & selling Bitcoin

1 Minute Review

Gemini is a cryptocurrency exchange and custodian that offers investors access to 26 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.

Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader. 

In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.

Best For
  • New investors looking for a simple mobile and web app
  • Experienced investors who need a more advanced platform with more tools
  • Users looking for a 1-stop-shop to buy, sell and store all of their coins
Pros
  • Easy and quick signups — can get started in as little as a few minutes
  • Multitude of platforms to accommodate traders of all skill levels
  • Hot wallets include insurance to protect your from theft and hacking attempts
Cons
  • Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app

Best For

Crypto Investing

Best For

Crypto Investing

1 Minute Review

Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs. 

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.

Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.

Best For
  • New cryptocurrency traders
  • Cryptocurrency traders interested in major pairs
  • Cryptocurrency traders interested in a simple platform
Pros
  • Simple platform is easy to operate
  • Comprehensive mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto for learning about available coins
Cons
  • Higher fees than competitors

1 Minute Review

Maybe you think cryptocurrency is the future, or perhaps you were swept up in the initial waves of Bitcoin. BlockFi may be your next step if you’re ready to evolve as a crypto investor.

Whether you’re a native crypto user or curious enough to start investing, BlockFi seeks to bring institutional-grade financial products to crypto markets that often face restricted access. It strives to bring clients low-cost, simple applications designed to maximize the potential of crypto assets. Learn more in our BlockFi review.

Best For
  • Crypto native clients. You own Bitcoin now. You’re the friend who fills in the blanks when conversation turns to cryptocurrency, and you devour crypto literacy content like it’s your job (and maybe it is). BlockFi’s platform can help take your crypto assets to the next level.
  • Crypto fringe clients. If you’ve dabbled in buying alternative assets like crypto or know enough to be interested, BlockFi can help you take the next step.
  • Crypto curious clients. If you’re both intrigued by bitcoin and the type of person who obsessively learns everything you can about things you’re new to, BlockFi’s crypto asset platform might be the entry point you’re looking for.
Pros
  • Mostly fee-free platform
  • Market-best interest rates
  • Earn interest, trade and borrow from a centralized hub using the BlockFi app
Cons
  • Mostly restricted to those with a base knowledge of cryptocurrency
  • No dedicated relationship with an investment advisor, so best for those who have a solid handle on crypto trading

People Also Ask

Is dogecoin or Ethereum better for sending money?

1

Is dogecoin or Ethereum better for sending money?

asked

Logan Ross, President, Wolverine Blockchain

1

Dogecoin is cheaper and faster than Ethereum at processing transactions, however, much less secure.

Answer Link

answered

Benzinga

Is Dogecoin or Ethereum a better long term Investment?

1

Is Dogecoin or Ethereum a better long term Investment?

asked

Logan Ross, President, Wolverine Blockchain

1

While you’ll have to make any investment decisions for yourself. It appears that anyone searching for long term gains would be better off opting for Ethereum. While, those looking to get rich quick might be more suited for Dogecoin.

Answer Link

answered

Benzinga

Gemini builds crypto products to help you buy, sell, and store your bitcoin and cryptocurrency. You can buy bitcoin and crypto instantly and access all the tools you need to understand the crypto market and start investing, all through one clear, attractive interface. Gemini Crypto Platform offers excellent account management options. You can manage your account at a glance, view your account balance 24-hour changes and percent changes. Get started with Gemini now.



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