Do you know what a meme coin is? If not, you’re in luck! Meme coins are an interesting new way of holding value in the cryptocurrency universe. In this crypto tax calculator article, we will dive into the concept of meme coins and explore why they have become so popular among traders and investors alike.
A ‘meme coin’ is a digital asset that derives its value from the humourous, entertaining or relatable content popular on social media. These coins are often derived from memes, which have recently gained tremendous traction and become an effective way to communicate in the public sphere.
Just like Bitcoin, Ethereum, and Tether, a meme coin is powered by the blockchain and functions as its own digital currency. However what sets it apart from other cryptos is its connection to memes through its story of origin. This makes it a ‘meme coin’ unlike any other cryptocurrency in existence.
Dogecoin was the very first meme-based cryptocurrency, released in 2013 to joke about Bitcoin’s fluctuations. It earned its name from a popular Doge meme featuring a Shiba Inu dog that went viral after merely weeks on social media platforms like Reddit. With this sudden success and recognition, Dogecoin quickly became an enduring symbol of digital currency trading.
In a relatively short time, Dogecoin achieved mainstream status and is now the tenth most popular cryptocurrency by market cap as of June 2022. This success encouraged others to create meme-based cryptocurrencies; since then, hundreds have sprung up!
Born from the Doge meme, Shiba Inu (SHIB) debuted in 2020 as a rival to Dogecoin. Both SHIB and DOGE are two of the most iconic meme coins on today’s market. More recently, Dogelon Mars (ELON) has also gained notoriety – named after tech mogul Elon Musk and inspired by the enduring image of a shiba inu pup!
SafeMoon V1 earned its moniker as a meme coin due to the viral nature of memes, and its sudden rise in value after celebrity endorsements and social media hype. When the buzz dissipated so did people’s enthusiasm for this crypto token causing an equally abrupt drop in price – something that was met with humorous reactions within the cryptocurrency community. After all, it had mirrored how quickly memes often spread or fade away from public consciousness!
All in all, the term ‘meme coin’ is a broad phrasing applied to many cryptocurrencies that have ties with internet memes. When used in tangible applications, meme coins are very similar to any other cryptocurrency. They run on the blockchain and can be bought, sold or exchanged for goods/services (should they be accepted as payment).
When purchasing meme coins, select a cryptocurrency exchange that lists them and meets your investment needs. Compare the fees, features, and benefits of each crypto exchange platform to find one best suited for you. Additionally, verify that the chosen exchange is compliant with local laws by confirming it’s registration with AUSTRAC so you can make wise investments without worry.
Our Crypto Tax Calculator is an essential tool for any trader in the cryptocurrency market. By using our crypto tax calculator, you can be sure that you are staying compliant with your tax obligations and keeping on top of your finances.
With the ever-changing landscape of cryptocurrencies, it can be hard to keep track of your profits and losses. However, due to Crypto Tax Calculator Australia, you can rest assured that you are doing everything possible to stay informed and up-to-date about your taxes.