Dogecoin is one of the numerous cryptocurrencies that later appeared on the market. But, unlike many other digital currencies, Dogecoin was established to mock Bitcoin and the absurdity of purchasing a digital asset that was not backed by any assets or cash flow. The tables have now flipped, and Dogecoin is now a valuable asset. Despite its price being wildly erratic, Dogecoin is a popular crypto choice, with a significant collapse in mid-2021 from its all-time high of little over 70 cents per coin. The following article will focus on how to buy Dogecoin and all you need to know about it.
Buying Dogecoin vs Trading Dogecoin
Buying Dogecoin can be simple – depending on wallets and exchanges – but it’s not the same as purchasing foreign cash when traveling abroad. It does not, however, necessitate a great deal of knowledge. You will be required to select an appropriate wallet and the exchange and payment of crypto coins.
On the other hand, Dogecoin trading is a more short-term endeavor; Getting into the market, remaining in it for a few months, then exiting when the price reaches its peak. As a result, Dogecoin traders have a reputation for being price sensitive and fleeing the market when it becomes unprofitable.
How To Buy Dogecoin Online?
You need an exchange account to buy Dogecoin, which is easier than you believe. Here are the 5 easy steps you’ll need to follow to buy Dogecoin quickly and easily.
- Choose which exchange or brokerage you want to use to buy Dogecoin.
- Create a user account.
- Carry out the required KYC checks.
- Deposit into your account.
- Purchase Dogecoin and keep it in a wallet.
How To Trade Dogecoin?
To invest in Dogecoin, you do not need to buy it. You can exchange Dogecoin instead if you prefer. Trading Dogecoin is slightly different from buying it; follow the procedures below.
- Look for a broker.
- Create a user account.
- Carry out the necessary KYC checks.
- Decide on a strategy.
- Once you’ve determined how you want to trade, fill your account with Dogecoin assets. You can use leverage to maximize your winnings but keep in mind that it also increases your risk of losses.
Various Ways To Buy Dogecoin
Select A Cryptocurrency Exchange
To acquire Dogecoin, you’ll need to register with a cryptocurrency exchange. A cryptocurrency exchange is where buyers and sellers meet to trade cryptocurrencies for dollars. Coinbase, Binance.US, and Kraken are all popular exchanges that offer a simple, easy-to-use interface with higher costs and a more advanced trader platform with lower fees.
You can also buy cryptocurrency using beginner-friendly financial applications like Robinhood, but keep in mind that you might not be able to transfer your funds out of the app. Some investors prefer to shift their crypto into different crypto wallets to secure their currencies from hackers.
You can buy Dogecoin using PayPal Holdings (PYPL), Inc., a payment processor. Using PayPal, you can buy Dogecoin in two ways.
- You can buy cryptocurrency with a PayPal account linked to a payment method like a debit card or a bank account.
- The second alternative is to purchase cryptocurrency from a third-party supplier using the funds in your PayPal account.
- Because few third-party sites allow customers to purchase Dogecoin via the PayPal button, this approach is not as convenient as the first.
To buy Dogecoin with a debit card, you have to enter the card details, and you’re ready to go. Remember that you must have funds in your bank account before purchasing Dogecoins with a debit card.
Buying Dogecoin with credit cards works similarly to buying it with debit cards or via automated clearing house (ACH) transfers. You must submit your credit card information and authorize the transaction with the exchange or online trading firm. Purchasing Dogecoin with a credit card, on the other hand, is generally not a brilliant idea–this is due to several factors. First, due to processing fees and the danger of fraud, not all exchanges allow credit card purchases of Dogecoin. The second reason is that using a credit card might be costly.
Things To Consider Before Buying Dogecoin
The deposit fees you pay will vary depending on the cryptocurrency exchange or brokerage. Although cryptocurrency transactions are usually cheaper, credit card and debit card fees are the most expensive. You’ll have to pay these fees every time you deposit or withdraw money from a cryptocurrency exchange.
Like maker and taker fees, trading fees are present on almost every platform. Most of them have a tier-based structure dependent on your monthly trading volume. Your charge percentage decreases as you trade more.
Volatility is another factor to consider. It refers to the quick change in the price of cryptocurrency tokens. If you acquire Dogecoin now at a specific price, it may be significantly higher or lower tomorrow.
You’ll need to follow various restrictions depending on where you are and what type of crypto exchange you use. As a result, many exchanges will request KYC and AML documentation from you.
Long-Term Holding (HODL)
A HODL investment lasts for at least six months. You’ll adopt this technique when predicting the price to rise over time.
Any investment you can hold for less than a year is considered short-term holding. The goal with Dogecoin is to sell as soon as the value rises rather than wait.
Is It Safe To Buy Dogecoin Online?
Buying Dogecoin online is risk-free if you choose a crypto exchange with stringent security measures.
Before anything else, keep your coins separate from your exchange in a wallet. You can use two-factor authentication (2FA) to add an extra degree of security to your account.
We advocate using a hardware wallet to store your money when it comes to wallets. You’ll be able to keep them off the internet— and away from prospective hackers — in this manner.
If you use a peer-to-peer P2P exchange, it’s also worth remembering that you should communicate to sellers before buying. Other measures you can take to safeguard yourself include:
- Not disclosing your account password to anyone.
- Only use authorized forums and websites to seek advice.
- Before selecting an exchange, read customer reviews.
- Not buying Dogecoin on public internet connections.
How To Store Dogecoin
When you acquire Dogecoin, it is automatically stored in the crypto wallet of your exchange or brokerage. Some investors prefer withdrawing crypto from an exchange or brokerage and putting it in another wallet because these are often connected to the internet.
Hot wallets are another term for online wallets. They are digital wallets that run on Internet-connected devices, including PCs, smartphones, and tablets. Because these wallets generate the private keys to your money on these Internet-connected devices, this can pose a risk. Though a hot wallet can be helpful for quickly accessing and transacting with your assets, putting your private key on an Internet-connected device makes it more vulnerable to hacking.
A cold wallet has a far lower risk of being hacked as it is not linked with the internet. These wallets are also known as hardware wallets or offline wallets. These wallets hold a user’s private key on a device that isn’t connected to the internet, and they can include software that runs in the background so that the user can browse their portfolio without risking their private key.
How To Sell Dogecoin?
Register With A Cryptocurrency Exchange
Create an account with a cryptocurrency exchange that supports Dogecoin. Find out which exchanges accept Dogecoin and sign up for an account. As part of their KYC procedure, you will be required to produce government-issued identification and an email address, a phone number, and other information related to your identity.
Make a Deposit
Make a DOGE deposit into your account. To receive funds, go into the exchange and copy your Dogecoin address. Copy the address and paste it into your DOGE wallet, then send it. If you don’t double-check the address, you risk losing all of your tokens.
Sell Your Dogecoin
You can sell your Dogecoin for US dollars or any supported fiat money once successfully transferred to the exchange.
Is It Worth Buying Dogecoin Right Now?
Like most cryptocurrencies, Dogecoin is not backed by any assets or cash flow. That is to say, its price is decided by what others are prepared to pay for it; this is in stark contrast to a stock whose long-term underlying business’s performance determines price appreciation. So, aside from being a force for good globally, Dogecoin was not developed to benefit any individual or company. In terms of US dollars, the currency’s worth is entirely dependent on the market because there is no meaningful method to value it in any traditional sense.
Traders can trade Dogecoin directly on multiple websites or invest in the companies making it and other cryptocurrencies a reality. Traders might profit regardless of which cryptocurrency wins, eliminating the need to pick a winner.
It’s critical to understand the dangers and opportunities before purchasing cryptocurrencies or any other investment. And because many cryptos aren’t backed by anything, traders risk losing their entire investment. As a result, anyone interested in crypto should approach prudence and avoid investing in a position they cannot afford to lose. You can take help from the above guide on how to buy Dogecoin to make an informed decision before investing your hard-earned money.