How To Buy Dogecoin Online in 2022
Dogecoin (DOGE) is a popular cryptocurrency created in 2013. It entered the mainstream in 2021 thanks to support from Elon Musk, the founder and CEO of Tesla and SpaceX.
If you are planning to invest in cryptocurrency such as Dogecoin, this guide explores the various ways to buy Dogecoin, trade Dogecoin, store Dogecoin, and sell Dogecoin along with some other important considerations to keep in mind. Read on to find out more about how to get Dogecoins.
Best Brokers To Buy Dogecoin in 2022
Nowadays, there are plenty of platforms to choose from when it comes to buying Dogecoin and picking the right one can be a long and daunting process.
If you would like to know where to buy Dogecoin, to save you time and effort, we have listed the top platforms below that offer quick and easy sign-up, along with beginner-friendly features:
Key Takeaways For Buying Dogecoin
Best platform to buy Dogecoin: eToro
Top payment method to buy Dogecoin: credit/debit card, bank transfer
Security measures to buy Dogecoin: activate 2-factor authentication, never reuse passwords and store coins in a private wallet
Do not: invest with money you cannot afford to lose
What Is the Difference Between Owning Dogecoin VS a Derivative Product
There are different trading markets in the world of cryptocurrencies these days and it’s important to know the differences so you can make more informed decisions such as should I buy Dogecoin? This will be explained below:
When you buy Dogecoin from a cryptocurrency exchange through the spot markets, you own the underlying asset: DOGE. You can then withdraw and spend it anywhere you wish.
These are financial products that allow you to speculate on the price of an asset, without owning the underlying asset. Essentially, the aim is to buy low and sell high. You can even make money when the price goes down by “shorting” the market. These markets allow you to avoid the technical sides of crypto with regards to storing and securing assets on a wallet.
Different Ways To Buy Dogecoin
When looking for how to buy Dogecoin, there exists various ways such as:
Where To Buy Dogecoin
There are different platforms to buy Dogecoin. We mention some of them below:
How To Buy Dogecoin Online?
For most newcomers that ask themselves how can I buy Dogecoin, there are brokerage platforms such as eToro are preferred due to their easy sign-up process and beginner-friendly user interface. In this section, we have provided a step-by-step guide on how to make your first Dogecoin purchase:
Go to the official eToro website and sign up for an account
Provide the required identification documents for KYC/AML regulation
Add your desired payment method, this could be credit/debit card or a bank transfer, and deposit some fiat currency (USD, GBP etc) into your account
Use the search bar to find the Dogecoin markets, e.g. DOGE
Enter the number of DOGE coins you wish to purchase and confirm the transaction
The coins should appear in your open positions page shortly after
How To Trade Dogecoin?
You can trade Dogecoin on both exchanges and brokerage platforms however, it is perhaps easier to do on the latter due to the user friendly interface they have created. One of the most popular platforms is eToro and the steps below show you how to get trading:
Go to the official eToro website (beware of scams on Google) and create an account
Verify your details by providing ID and any other KYC requirements
Add your preferred payment method such as credit/debit card and deposit some money into the account
Use the search bar to find the Dogecoin markets and open a position
When the price reaches a point you are happy with, go to your portfolio to view your open positions
Press the small red cross and confirm that you want to ‘close the trade’
The fiat currency you purchased with, such as USD or GBP should appear in your account balance shortly after along with any profits you may have made.
Crypto Investment Strategy
Trading strategies can determine how long you hold your coins. For example, some people ask themselves "should I buy Dogecoin now?" Deciding what you want to do before investing your money can help you be better prepared in case something happens.
Short term: this is the process of buying and selling the coins in a short period of time for some quick profits. In essence, the aim is to buy low and sell higher.
Long term: if you believe in the future potential of a coin, then you can purchase and hold it for a long period of time as it could return greater profits in the long run.
How To Store Dogecoin?
There are different types of wallets to store Dogecoin and this will be outlined below.
These are applications that you can download for free on your PC or phone and they allow you to store a number of different coins including Dogecoin. Popular wallets include Trust Wallet and Coinbase Wallet.
Cold wallets are referred to as such because they are not connected to the internet. They can come in many forms including as simple as a piece of paper that contains the seed phrases / private keys to a wallet. Another popular form of cold wallet is a hardware wallet such as Ledger or Trezor. These wallets require users to physically approve transactions before they are sent out. That way, online attackers are unable to steal funds from the wallet without having direct access to the device.
What Are the Different Ways To Pay For Dogecoin
Nowadays, there are many different ways to pay for Dogecoin and fortunately, some of these may include methods you are already familiar with. The most popular ones have been listed below along with their pros and cons:
Credit / Debit card
Buy Dogecoin With Credit or Debit Card
Buy Dogecoin With Bank Transfer
Buy Dogecoin With PayPal
What To Consider When Buying Dogecoin?
Here are some important things to consider before parting with your hard-earned money:
Cryptocurrencies are volatile assets and Dogecoin is no exception. In fact, in 2021, DOGE saw massive price swings in a short period of time. You should know what to expect before investing in such a coin.
It’s worth checking the fees that platforms charge so you can get the best value for your money.
Different countries have varying stances when it comes to cryptocurrencies. Check the laws in your jurisdiction to ensure you stay on the right side of the law.
Not all platforms will offer Dogecoin markets. Do some research before creating an account to save yourself some time.
Long vs Short Term holding
As mentioned above, it’s imperative to have a strategy in mind before investing. That way, you can take timely profits and be better prepared in case something goes wrong. For example, if you are holding for the long term, then short time price fluctuations wouldn’t necessarily change your long term thesis as long as nothing fundamentally has changed.
Is It Safe To Buy Dogecoin Online?
The first step is to find a regulated platform such as eToro. These have industry-grade security in place as well protections in case something goes wrong.
When you are creating an account, make sure you don’t reuse passwords from other websites and activate 2-factor authentication as soon as possible. This can add an extra layer of security to your account.
Finally, consider withdrawing your coins and storing them in a private wallet if the platform allows you to do so. That way, if the platform gets hacked, your funds will not be affected.
How To Sell Dogecoin?
Selling Dogecoin is just as easy as buying the coins in the first place. Follow this guide to get you on your way:
Go to the eToro homepage and log in
Press the ‘portfolio’ button and here you will see all your open positions, including the one in Dogecoin
On the right hand side, you will see a small cross. To sell your Dogecoin holdings, simply press the cross and ‘close trade’
The funds you used to open the position will appear in your account balance shortly after along with any profits you may have made during this time
Is It Worth Buying Dogecoin Right Now?
Dogecoin is arguably the number one meme coin in the world in terms of market capitalization. It has achieved this through support from millions of people worldwide along with some billionaires including Elon Musk and Mark Cuban.
DOGE has limited utility, unlike some other projects in the market such as Ethereum and Solana. Some have suggested that this can limit its future potential.
Others believe that more use cases will be developed in the future and that the coin still has a long way to go. Of course, gains are not guaranteed and much of the market is based on speculation. It’s important to keep these factors in mind before making an investment.
For most people who are interested in cryptocurrencies, eToro is the go-to platform due to its beginner-friendly interface and numerous trading tools that help you make more informed decisions.
The most popular payment methods include debit/credit cards as well as bank transfers. After the initial set up, you can deposit and withdraw with ease.
It’s highly recommended that you never reuse the same passwords for different accounts and activate 2-factor authentication as soon as you sign up.
As always, only invest with money you can afford to lose because gains are not guaranteed.