Reddcoin (RDD) Review (UPDATED 2018): A Beginner’s Guide | VKOOL

776 Review(s)
AVG Rating: 8.5/10

While cryptocurrency was initially developed as a way to send and receive money that was purely user-driven, without any central financial institutions involved, developers have been coming up with new ways to implement digital coins. From tokens that can be used to power smart contracts to coins that represent stakes in gold, there's a coin for everything.

Now there's Reddcoin, a social media-centered cryptocurrency that allows you to send money to people you're connected with on social media platforms.

Using our guide below, you'll get acquainted with what Reddcoin is and how it works. You should also be sure and check out  our new list of the best altcoins of 2018 to see which coins made the cut.

The Features of Reddcoin

As we mentioned above, Reddcoin is a cryptocurrency for use on social media services. It comes with several exciting features.

The first is that it easily integrates with existing social media accounts, on everything from Reddit to Facebook, Twitter and others. There are no transfer fees.

The next feature is that it's open-source, and was developed out of Litecoin.

Reddcoin allows users to “tip” people based on their social media posts, much in the same way you can “like” a post on Facebook or “love” something on Twitter.

The best part is that its tipping system is already functional: you can already “tip” people on Reddit, Twitch, Justin.tv, and Twitter.

Another great feature is that this currency uses an algorithm called proof-of-stake-velocity, a process that allows users to receive Reddcoins when they “stake” their existing Reddcoins. No power-consuming mining necessary.

How Reddcoin Works

Reddcoin can be connected to virtually any social media platform you're on. Once set up, you can send RDD to anyone, with no fees. And, as listed above, the service creates a “tip” button on posts that you can use to send people a small amount of RDD in return for their post.

Since Reddcoin uses a proof-of-stake-velocity algorithm, it makes it so that people don't need energy-intensive rigs set up to mine it. Instead, all you have to do is own RDD, stake them, and then get RDD in return. The more you have staked, the more likely you'll get a reward. This system rewards active participation and makes mining more inclusive. Another result of the PoSV algorithm is non-linear coin aging, seen in the chart below.

Reddcoin's History

This currency started in 2014, and back then it was a purely proof-of-work cryptocurrency (like Bitoin). They held their ICO a month after announcing it, and soon after they moved to the proof-of-stake-velocity algorithm. In the intervening years development continued on it, but it didn't attract the sort of attention that other coins like Bitcoin were getting. Then in 2017, they started making more of an effort to be more transparent and active with their PR, with an active Twitter account and Github page.

The Supply of RDD

Unlike some other coins, RDD has no built-in hard limit to the amount of coins that can be minted. While there are currently about 28.7 billion RDD in existence, there's an unlimited amount of RDD that can be minted. This is in stark contrast to other coins that set “hard caps” at a certain amount (usually in the millions or billions) after which no more coins can be mined.

There are advantages and disadvantages to this approach. On the one hand, it ensures that there will always be a reward for staking, so it doesn't matter if you're an older user or a newer one – you'll never miss out on getting RDD in rewards. On the other hand, the problem with this approach is that it causes inflation: with every increase in coins, the value of RDD goes down. Hard caps prevent inflation since the increasing rarity of mining coins makes them more valuable.

The Trading History of Reddcoin

The past year (2017-2018) has been the best ever for Reddcoin, but it still hasn't been “great.” Until 2017 the price of RDD was around $0.00007, but in May 2017 it “shot up” to $0.001 – which is still not great – and the price never really saw a huge increase for a couple months after. In December, however, things changed. Like most other cryptocurrencies the value shot way up, getting up to a cent and then three cents in January.

Since then, unfortunately, the price has fallen yet again, all the way down to $0.006 where it resides now.  Other coins that are trading low (but show promise) can be found on our new list of the best altcoins to invest in in 2018.

Buying RDD

There are lots of places to buy RDD. If you want to trade with Bitcoin or Ethereum, you can trade them for RDD on Bittrex, Upbit, or Cryptopia, three of the bigger exchanges out there. If you want to trade for them with fiat cash, however, you're out of luck. You can get Bitcoin or Ethereum at Coinbase and Bitstamp for fiat, and then go to the exchanges carrying RDD and buy them there. That's the only way to do it at the present time.

Storing RDD

Reddcoin offers their own native wallet with RDD support, which you can download from the main site. There are versions for Windows, Linux, and Mac. From the looks of it, it doesn't seem like they have a browser-based wallet.

If you prefer a mobile-accessable wallet, you're in luck. RDD works with the Coinomi wallet, a mobile wallet that currently works only for Android. However, Coinomi is working on an iOS version for users of Apple products as well.

Reddcoin vs Steem

These are similar projects. Both are blockchain platforms that offer ways to “monetize” their online content. Both offer no fees and both can be used as a way of “tipping” people for their social media posts and accepting payments for virtually anything. Reddcoin is primarily focused on social media content, however, while Steem is a way for people to advertise their business, or even to create their own token to encourage more activity on an internet forum. Reddcoin therefore seems more focused on the average internet user, while Steem seems more for entrepreneurs, developers, and webmasters.

Reddcoin vs Verge

These are very different platforms. Reddcoin is a cryptocurrency with a focus on allowing people to send each other tokens on social media services and either give or receive money for social media content. Verge, on the other hand, is a cryptocurrency that's focused on user privacy and anonymity. One thing they do share in common is their commitment to making it easier for people to use cryptocurrency in everyday settings. Verge seems to put more focus on business use, while Reddcoin is clearly for regular internet users.

Reddcoin vs Dogecoin

There aren't a lot of things in common between these different coins. Both are cryptocurrencies that have a “casual” focus, but that's about it. Reddcoin is a social media token that can be used to “pay” people (like with Venmo), while Dogecoin is a standard cryptocurrency whose main distinguishing characteristic (as far as we can tell) is their user-friendly branding and fun logo. Reddcoin has an algorithm based on proof-of-stake mining, while Dogecoin uses proof-of-work, an algorithm that requires GPU power to work and which can consume large amounts of electricity. Dogecoin has been out since 2013, while Reddcoin has been in existence since at least 2014.

Frequently Asked Questions

  1. Where can I read Reddcoin news?
    You can read news on their main website, crypto blogs, Twitter, or even on Reddit.
  2. What's the value of Reddcoin?
    Last we checked, it was around $0.0066.
  3. What's in Reddcoin's future?
    You can check out their roadmap on their Trello page.
  4. Do you know how to buy Reddcoin?
    You can buy it with Bitcoin on Binance and Bittrex, or at AEX with BITCNY.
  5. Is there a Reddit for Reddcoin?
    Yes, there's a community of people discussing it there.
  6. Is there a wallet for Reddcoin?
    Yes, you can download it from their website.
  7. Was Reddcoin in the news today?
    You'll have to check the crypto sites to see!
  8. How does Reddcoin mining work?
    It uses a proof-of-stake algorithm that doesn't require a lot of computer power.
  9. What is Reddcoin?
    It's a platform for sending and receiving coins via social media services.
  10. Can I buy Reddcoin with USD?
    Not right now, no.
  11. Should I buy Reddcoin?
    It depends on what your overall investment strategy is. Read up on it and see for yourself.
  12. Is Reddcoin an exchange?
    No, it's a cryptocurrency platform.
  13. Does Reddcoin use CPU mining?
    Yes.
  14. Where can I read a review of Reddcoin?
    You're reading one! You can probably find more on Medium or Reddit.
  15. Is there a Reddcoin wallet for Android?
    Reddcoin works with Coinomi, an Android mobile wallet.

Conclusion

Social media is here to stay, and with hundreds of millions of people using their social media accounts every day, it's not surprising that someone came along and found a way to insert blockchain cryptocurrency into it. Despite being a great idea, the price of Reddcoin has never gotten above four cents per RDD, and it's not exactly the most-talked-about cryptocurrency. It's already been implemented in some social media services, however, which is a good sign.

The price of Reddcoin may shift if they end up announcing new partnerships, or if they become officially integrated with a service like Instagram or Facebook, where views can quickly mount into the hundreds and thousands. If that many people used Reddcoin, there could soon be a thriving content economy – and the RDD would be the face of it.

If you liked our review of Reddcoin, you'll love our new list of the best altcoins to invest in in 2018.

Peter Lehmann

Peter is a blockchain investor and cryptocurrency writer at Vkool.com. Since 2014 Peter has advised blockchain startups and ICOs on content marketing, strategy and business development.

No comments yet.

Your email address will not be published. Required fields are marked *

Advertising Disclosure

Displayed content is offered by businesses which have been compensated. There is a potential effect on how, what, and where products may appear. All effort is made into providing full transparency, not all available products or companies are highlighted. Published material is offered without any slant or bias no matter what affiliation there is with sponsorship or association.