7 Things to Know Before You Buy Baby Doge Coin

From how you can purchase it to whether you should, here's everything prospective buyers need to know about Baby Doge Coin.

Things move quickly in the world of cryptocurrency. It wasn't long ago that Dogecoin was the hottest crypto of 2021. Now, it's practically old news, and there's a Baby Doge Coin getting loads of hype.

Baby Doge Coin had big initial success, as its price rose by over 1,000% in about two weeks. But by the next day, it had lost nearly half that value.

Since Baby Doge Coin is so new and is getting quite a bit of attention, this might seem like the right time to buy. But before you do, there's a lot you should know about it.

1. Baby Doge Coin is only a few weeks old

True to the name, this crypto is still a baby right now. It was created on June 1, 2021. The earliest price on record wasn't until June 9, when it cost $0.000000000175. That quickly shot up thanks to social media and influencer marketing, but then it came back down.

Buying such a young cryptocurrency is a risky proposition. Baby Doge Coin doesn't have much of a track record, and the reality is that most cryptocurrencies don't make it.

2. It started with 420 quadrillion tokens

Baby Doge Coin's total supply was 420 quadrillion tokens, and the team behind it has manually burned (destroyed) over 125 quadrillion so far. Manual burns mean that the Baby Doge Coin team has full control of when and how many tokens get burned.

Large numbers of coins priced at a fraction of a cent are common with new cryptocurrencies. Baby Doge Coin is an extreme example, though.

3. Every transaction has a 10% fee

On every Baby Doge Coin transaction, the seller pays 10%. Here's where that goes:

• 5% is redistributed to everyone who currently holds Baby Doge Coin.
• 5% is split 50/50, with half remaining as Baby Doge Coin and the other half being traded for Binance Coin. These are used for a liquidity pool so people can trade those two coins for each other.

The 10% fee is an incentive to hold on to Baby Doge Coin. If you sell yours, you get charged 10%. If you keep it, you get rewarded with a portion of the fee anytime someone else sells. Baby Doge Coin didn't invent this idea. Safemoon, which launched in March, has the same type of fee.

4. Part of its mission is rescuing dogs

One of the goals listed in Baby Doge Coin's whitepaper is rescuing dogs in need. It also says that the team has a charity wallet with 2.2% of the total supply of Baby Doge Coin. Since 5% of the transaction fee with this crypto is redistributed to existing holders, the charity wallet receives 2.2% of that.

The charity wallet is used to support Baby Doge Coin's charity partners. On June 24, the crypto's Twitter account announced a $75,000 donation to PawsWithCause, a nonprofit that uses community paint days to bring more attention to animals in local shelters.

5. It's available on PancakeSwap -- but not any major crypto exchanges

For anyone who wants to get Baby Doge Coin, PancakeSwap is the recommended platform. PancakeSwap is one of the bigger decentralized exchanges (sites where users contribute and trade crypto).

To use PancakeSwap, you need to connect a crypto wallet. Then you can trade another crypto, such as Binance Coin, for Baby Doge Coin. There's a bit of a learning curve, but it's not too hard once you get the hang of it.

It's worth noting that Baby Doge Coin isn't listed on any of the best cryptocurrency exchanges, however. Getting listed is a longshot, given that this is a memecoin with a low trading volume.

6. The roadmap includes several unique goals

Baby Doge Coin has a six-phase roadmap. The first few phases are normal enough, with goals such as reaching 25,000 holders and completing a website redesign.

The final phase is where things get much more ambitious. It includes the community carving a Baby Doge into a mountain at a $100 billion market cap and the creation of a Baby Doge religion at a $500 billion market cap.

Only a handful of cryptocurrencies have ever passed a $100 billion market cap, and only Bitcoin has passed $500 billion. Odds are that we won't ever see Mount Baby Doge or the church of the Baby Doge.

7. Buying it is a gamble, and there's a high chance of losing money

Baby Doge Coin started strong, but it's hard to see any value in it as a long-term investment. Memecoins like this one -- with no notable future plans or advantages over the competition -- are a dime a dozen.

They rely on marketing to build hype and push up the price. The team behind them and the earliest investors make money, while everyone who gets in too late loses.

Anything can happen with crypto. There's always the slim chance that Baby Doge Coin has another hot streak and shatters its all-time high. But it's more likely that people forget about it and move on to the next memecoin with a funny name.