The digital currency, which started as a joke, reached an all-time high of more than £1.55million ($2.1billion) over the weekend, though it has now slipped back to just over £12.5million ($1.7billion). 

This time last year, a single Dogecoin (DOGE) token was worth just $0.00023 and the currency as a whole had a market cap of just over £17.4million ($23.5million). 

But a remarkable 12 months has seen DOGE surge by more than 6,400 per cent, putting the cryptocurrency at $0.014954.

Here is everything you need to know about the wildest digital currency on the market. 

What is Dogecoin?

Set up in 2013 by Jackson Palmer and Billy Markus, Dogecoin was inspired by the then-popular Shiba Inu “Doge” internet meme. 

It was initially introduced as a parody currency but quickly gained a cult following and has since soared in value. 

The Dogecoin website describes the currency as a “decentralised, peer-to-peer digital currency that enables you to easily send money online.”

The website explains: “Dogecoin is a fun, new and rapidly growing form of digital currency.

“This form of digital currency is called ‘cryptocurrency’; a type of digital currency. Cryptocurrency is completely anonymous, decentralised, and extremely secure.

“Dogecoin is used with a wallet on your computer, your smartphone, or a website.

“You can use it to buy goods and services, or trade it for other currencies - both other cryptocurrencies or traditional currency like US dollars.

“One of the most popular uses for Dogecoin is ‘tipping’ fellow internet-goers who create or share great content. Think of it as a more meaningful ‘like’ or upvote, with real value that can be used all across the internet.”

Dogecoin grew rapidly in its early days, though it shot into the public eye during the 2014 Winter Olympics, when a fundraiser was established by the Dogecoin community to raise $50,000 for the Jamaican bobsled team who could not afford to travel to Sochi. 

Dogecoin users raised more than $36,000 in just two days and extensive media coverage helped push the DOGE/BTC (bitcoin) exchange rate up 50 per cent, according to reports at the time. 

Unlike deflationary cryptocurrencies, like bitcoin, there is no limit to how many Dogecoins can be produced.  

How to buy Dogecoin 

Getting started with Dogecoin is a relatively simple process, that involves downloading a crypto wallet, setting up a crypto exchange account and then trading away for your desired crypto currency.

Once you have set up an account with a DOGE currency exchange and deposited some funds, you are ready to start trading. 

The process may vary between exchanges but the main principle is that you use your deposited currency to buy another.

For example, if you have $100 into your exchange account then you will need to select the correct market to trade. In this case this would be DOGE/USD.