Best Dogecoin Brokers
The broker you choose to trade cryptocurrency is important. Dogecoin is now one of the most popular tradable cryptocurrencies on today’s market, which means more brokers are offering it than ever before. With such a wide choice on offer we have put together a complete guide on what the best brokers to buy Dogecoin are, what makes a good Dogecoin broker and how to use them.
Best Dogecoin Brokers in 2022
There are plenty of platforms to choose from when it comes to buying Dogecoin, so we’ve listed the top beginner-friendly platforms below to help you get started right away. Dogecoin is now quite widely accepted by brokers due to its increased popularity, so when choosing which broker is right for you you should look for ease of use, good rates and a platform with a good reputation.
Here is our list of the best Dogecoin brokers in 2022:
What is a Broker?
Brokerages are an interface that allows users to trade financial assets. They are available on desktop, web and mobile devices and provide a trading service, a value storing service and offer help and support to its users. Brokerages are perhaps understood as more trustworthy, especially big institutions like eToro, mainly due to the fact they have been around for many years and are regulated by financial institutions. Traditionally, they were in the business of financial products like CFDs, stocks and bonds, but nowadays we are seeing the introduction of digital assets like cryptocurrencies. Some brokerages now also offer alternative financial products like CFDs for cryptocurrencies.
How Do Brokerages Work?
When you wish to make a trade there are a few different entities you can interface with. Brokerages are the most centralized option available to you as they set the prices of the assets that you trade and also will charge a fee for a range of different activities. Some other platforms link traders together, whether here a brokerage does all of the work. They execute the trade on behalf of the client and set the rate those trades will be executed at - this is where a broker claims its commission. Equally, this means users can shop around different brokers to find the best rates and model that suits their needs.
What is the Difference Between a Broker and an Exchange?
An exchange is the next most popular method of trading. Whereas a broker is a centralized individual or business making trades on behalf of its users, and exchange is a mediated arena for users to make trades between themselves via an order book or ledger.
Controlled by one entity, whether that is a business or even an individual
Usually charge commissions for the trades made on their platform
Trading via prices set by the broker
A more traditional avenue for financial trades
Still a business, but this time with a smaller degree of control over the trades on the platform
Prices are set by the buyers and sellers, with the transactions mediated by the exchange
Usually no commission fees, but instead charge maker/taker fees (these charge a fee for removing liquidity from the platform’s pool)
Usually offer a better range of cryptocurrencies, but perhaps can be less regulated
What are CFD brokers?
CFD brokers are a new way in which users can interact with cryptocurrency assets. They are essentially a contract you agree to when you complete your purchase rather than the actual asset itself. The terms of the contract stipulates that it pays you rewards if the asset price rises or you incur losses if it goes down. You do not own or hold the asset with derivative products like CFDs.
Most derivative products are only for the core group of coins, meaning altcoins are often not supported or applicable. You need to check with the relevant brokerage to see if they offer these products. Also, some countries do not allow the sale of cryptocurrency CFD products - for example this is not allowed in the USA.
Advantages and Disadvantages of Using a Broker?
Find here a complete list of all the advantages and disadvantages of using a broker:
Advantages of a Dogecoin broker
Reputation and Security: Cryptocurrencies are risky assets that are subject to high levels of volatility; therefore, it can be preferable for traders to choose an established broker with a successful reputation.
Simple Interface: Brokerages are well-known for their simplicity and easy-to-use platforms. Usually you can access these services across a range of devices also, from mobile to desktop.
Easy Access: It is simple and straightforward to make an account with a broker. All you will need is a copy of your ID and some personal information.
Trading with Leverage - Trading with leverage carries a lot of risk and users should only engage with this if they are confident they understand what they are doing. But for those experienced traders leverage offers a great way to increase your profit margins.
Regulation: Not only are these platforms generally more secure to system issues, but usually they are highly regulated by the relevant financial institutions.
Disadvantages of a Dogecoin Broker
Trading Fees: One of the biggest issues traders have with brokers are the trading fees. They charge a commission for the trades you make and often have other fees like holding fees.
Pricing: In addition to fees, the broker is also setting the price of your crypto asset. This means it may be less competitive than some alternative platforms or exchanges.
Not Specialized: While brokerages have been around for many years, it has to be said they are not crypto specialized institutions. Sometimes this can mean they lack educational materials or even applicable advanced trading tools for cryptocurrency products.
CFD Risk: If you hold your cryptocurrency asset in CFD form it means you essentially hold a stake in that brokerage. If a brokerage goes bust, your contract could potentially go with it.
How Do I Get Started With a Dogecoin Broker?
More often than not, all brokers will require you to follow the same kind of steps to open an account with them. We have formed a quick and simple 3-step guide to help you get started with any broker you may wish too. Here it is:
Step 1: Visit the official website or download the app of your chosen broker. Then, create an account by inputting all of your personal information.
Step 2: Provide ID and proof-of-address to begin authenticating your account. You will need to do this to adhere to the relevant KYC regulations.
Step 3: Once verified, you will need to deposit some funds to your account. Brokers offer a range of different ways in which you can do this from credit cards to bank transfers. Then, begin trading.
The Best Dogecoin Trading Platforms
Most brokers these days support Dogecoin because of its popularity - so there is a wide range of choice. Here’s a breakdown of which are the best for beginners, day traders and of course the best to earn interest.
Not all of you are full-time experienced traders, so it is important to know what is the best platform for you to learn how to trade Dogecoin and one that will offer good features to make it as simple as possible.
One of the biggest players in the crypto space, offering a huge range of coins and great educational material for beginners.
Low fees, paid educational material, and almost 100 coins on offer.
One of the most popular brokers with new-comers. Now offering crypto products as well Robin Hood is a great option for users in the United States.
Easy sign-up, beginner-friendly, and commission free.
For Day Traders
Day trading will demand a different priority of features as users look to make advanced trades, in high volumes and with a good range of cryptocurrencies.
One of the market leaders in the brokerage space - eToro offers users a social trading network and access to one of the biggest ranges of cryptocurrency CFDs (currently offering over 40).
Low fees, easy sign-up, and beginner-friendly interface.
One of the leading figures in crypto to fiat exchange, Kraken offers advanced tools for a crypto specialized platform.
Simple interface, high liquidity, and market rates.
NAGA offers an extremely competitive social trading network that comes with a host of advanced trading tools and instruments. NAGA prioritizes balancing simple trading with speed and efficiency. They also support over 40 cryptocurrency products.
Many coins supported, demo account, and advanced charting tools.
Best For Earning Interest
Some platforms now allow users to make money in alternative ways, earning interest is one of these.
BlockFi offers a range of different crypto-based financial products and has good customer support for its users.
Wide range of financial products, good customer support and earn interest rates.
What to Look for in a Dogecoin Broker?
Here is a list of the key things to look out for when you are choosing a Dogecoin broker:
Fee Charges: There are a range of charges you can be subject to so you need to do your due diligence to get the best deal possible. For example, some of the fees you may face are: commissions, holding fees, deposit/withdrawal fees and bad spreads.
Variety of Trading Pairs: While a good broker may offer a wide range of cryptocurrencies to trade with, it is also important they offer a good range of pairs to give you the most flexibility possible. As many brokers now accept Dogecoin it can be a good idea to see which are offering the most options with that particular product.
Speed and Ease of Use: When you are buying Dogecoin you want transactions to be as simple to make as possible, and for them to be executed quickly and efficiently. Popular broker eToro for example has a friendly interface and good transaction speeds.
Trust and Security: Arguably one of the most important elements of trading, your broker must be trustworthy and have good security measures in place. Look out for features like 2-factor authentication, loss insurance and KYC regulations to improve your level of protection.
Cross-device Compatibility: Most platforms now offer services on mobile, web and desktop. Not only is this convenient for you, but also it is a sign of a good broker. For example eToro supports all of these devices.
What Are the Alternatives to Dogecoin Brokers?
Brokers offer you one of the simplest ways to trade Dogecoin. They are simple to use and do not require you to have an external wallet - which can be confusing to beginners. Here are some of the other options available to you which may be more complicated:
Cryptocurrency Exchange: Provide slightly lower fees than most brokerages but can be more complicated.
Decentralized Exchange (DEX): These operate in the same way as a traditional exchange, but are unregulated and are not owned/operated by a singular entity.
P2P: Person to person exchanges offer great rates as they have no middle man; it's best to think of this as swapping rather than trading.
Final Thoughts on Dogecoin Brokers
Dogecoin brokers are a simple and easy-to-use way to buy Dogecoin and offer a good range of products that other options do not. The best broker for you depends on what you want to use it for, but eToro is a great all-round platform so we would recommend this.
We advise not reusing the same passwords with the same websites and using 2-factor authentication to best protect your account from online hackers.
Do I have to verify my identity?
Yes, to adhere to KYC regulations.
Do I need a wallet to use a broker?
No, not with most brokers.
How do you safely store Dogecoin?
Your Dogecoin will be stored in your account.
Can I deposit / withdraw money to PayPal using a broker?
Some platforms support Paypal and others don't.
Is Dogecoin available 24/7?
Some platforms offer 24 hour service, but it is common for brokers to not offer this.
Can I use multiple brokers?
Are brokers legal?
Yes, registered brokers are legal.
Are brokers regulated?
Most brokers are regulated, but you need to double check before you register.