How to Buy, Store and Sell Dogecoin (Beginner’s Guide)
Elon Musk sent Dogecoin soaring late Wednesday night with his tweet, “Doge Barking at the Moon.” Dogecoin’s morning rising above $0.40 after trading below $0.01 as recently as January.
What is DOGE?
Branding itself the “fun and friendly” internet currency, Dogecoin is a peer-to-peer and open-source digital currency introduced in December of 2013. The original idea behind Dogecoin was to create a more memorable cryptocurrency project to help the public understand the technology behind blockchains.
Dogecoin is built on the same basic technology as other cryptocurrencies like Bitcoin. However, DOGE introduces a few improvements to Bitcoin’s technology to enable users to access faster and more affordable trading. You can tap into an unlimited supply of Dogecoin and the cryptocurrency trades on a number of major exchanges.
Brief History of DOGE
Dogecoin was introduced as a joke in 2013 to help raise public awareness of the capabilities of blockchain technology. Its mascot, the Shiba Inu, replicates the popular “doge” internet meme, which is also where the cryptocurrency gets its name.
Though Dogecoin was originally intended as a joke, DOGE quickly began gaining momentum thanks to its vibrant and passionate online community. Dogecoin has been involved in a number of highly public news stories, including its successful $50,000 fundraiser to send the Jamaican Bobsled Team to the 2014 Winter Olympics after they qualified but could not afford to attend.
DOGE is currently the 13th largest cryptocurrency project when measured by total market capitalization, with a market cap of more than $5.9 billion.
Step 1: Open an online account.
The first step to buying Dogecoin is to open an account with a cryptocurrency broker that supports DOGE.
Some of the things you may want to consider when opening your crypto brokerage account include:
- The broker’s fee and commission schedule
Features and education tools you can access through each brokers’ trading platform - The type of coin and tokens available to buy and sell on the exchange
- Access to additional markets (some brokers focus on providing access to as many coins and tokens as possible, while others combine cryptocurrency market access with stock, forex and additional market choices)
Step 2: Fund Account & Make your purchase.
After both your wallet and your brokerage account are open, you can place a buy order to purchase DOGE. First, open your broker’s trading platform and take a look at the current price of DOGE. Though the prices of cryptocurrencies always change, you can expect to pay near the market rate — you may want to track the price of DOGE and how it’s moving to ensure that you don’t overpay for your coins.
The best brokers will offer you a wide range of order types to choose from. If you’ve ever traded stocks before, you’re likely already familiar with the basic types of orders. If you haven’t, be sure to gain a basic familiarity with the most common order types before you invest. Choose an order type and calculate how much DOGE you want to buy based on your available funds and the current market price.
From here, your broker will take care of filling your order on your behalf. When you see your DOGE in your exchange wallet, it means that your order has been completed. If your broker cannot fill your order according to your specifications, they may cancel it at the end of the trading day.
Buy Dogecoin through Binance
Binance, is a leading cryptocurrency exchange that supports the purchase of over 200 cryptocurrencies. The exchange has been around since 2017, is supported worldwide and allows users to buy Doge with a variety of traditional currencies and payment methods.
All you need to do is go to the exchange’s website, click on “Buy Crypto” on the top navigation bar and choose your payment method, as shown below
Buy Dogecoin through Bitpanda
Bitpanda is an Austrian exchange that was founded in October 2014. Bitpanda allows residents of the EU (and a handful of other countries) to buy Doge and other cryptocurrencies through a variety of payment methods (Neteller, Skrill, SEPA etc.). The daily limit for verified accounts is €2,500 (€300,000 monthly) for credit card purchases. For other payment options, the daily limit is €10,000 (€300,000 monthly).
Buy Dogecoin through Kraken
Kraken, Founded in 2011, the US exchange allows you to deposit funds via a credit card or a wire transfer. Users in Europe can benefit from the fast and free SEPA deposits. Once the funds are in your account you can easily buy Doge using the “Buy Crypto” tab in the exchange’s top navigation bar.
It’s important to note that Kraken uses the XDG ticker symbol for dogecoin and not the DOGE ticker symbol which is widely accepted on most exchanges.
Buy Dogecoin through Changelly
Changelly is one of the few places that will allow you to buy Dogecoin with almost any currency (fiat or crypto). Changelly is a conversion service that works relatively quick and doesn’t require anything more than an email to sign up. The downside is that it can take up a lot in fees (especially if you buy Doge with your credit card).
Buy Dogecoin through Bittrex
Bittrex is a US based cryptocurrency exchange that has grown in popularity in recent years. It offers a DOGE/BTC pair similar to Kraken. This means that you will need to either buy Bitcoin or deposit Bitcoin in order to exchange it for Doge.
How to Buy Dogecoin with a Credit Card or Debit card
The easiest way to buy Dogecoin with a credit card would be through Binance’s “Buy Crypto” section. Be aware that purchases with a credit/debit card usually have higher fees than with a bank transfer, but are also processed faster. If Binance doesn’t work out you can always use Kraken as another reputable option.
How to Buy Dogecoin with PayPal
There are very few cryptocurrency exchanges that accept PayPal payments. For this reason, there are no options when it comes to buying Dogecoin with PayPal. However, you can use LocalBitcoins, which let you use PayPal to buy Bitcoin. Then you can transfer the Bitcoin to Changelly and trade it for Dogecoin.
Additional buying options
A number of smaller cryptocurrency exchanges, Exrates, YoBit, and Livecoin, all have DOGE/USD pairs. LiteBit.eu and Bittylicious and Cryptomate offer brokerage services for Dogecoin via EUR or GBP.
Remember, it’s always worth checking out reviews of cryptocurrency exchanges before signing up and buying.
Trade or Sell Your Cryptocurrency
After you see your DOGE in your exchange wallet, you will now need to decide how you want to earn a return on your investment. There are 2 major strategies you can take:
1. Long-term holding: Investors who believe that the price of Dogecoin may hold it for months or even years at a time. If this is your strategy, transfer your DOGE to your wallet as soon as possible to keep your investments safer.
2. Short-term scalping: Short-term investors capitalize on small price movements by buying and selling DOGE when it’s advantageous for them.
If you plan on becoming a short-term investor, it’s important to have access to a reliable and fast-executing trading platform.
Current Dogecoin Prices
The price of cryptocurrencies can change on a minute-to-minute basis. Some of the factors that may influence the price you’ll pay to invest in DOGE or another cryptocurrency may include:
- Current supply: Though there is an unlimited supply of DOGE available, not every investor is willing to sell his or her shares. The number of shares available on exchanges can cause the price of DOGE to shift.
- News: New announcements can shift the price of DOGE in a positive or negative direction. For example, if a popular exchange announces that it will be adding DOGE trading, the price of DOGE is likely to rise.
- Current financial conditions: Investors tend to flock to alternative investments like cryptocurrency when the overall market is showing a downtrend. Poor economic conditions may raise the price of DOGE.
Monitoring how the prices of other cryptos are moving can help you decide when you should place your buy order.
Getting Started in Cryptocurrency
Whether you decide to invest in Dogecoin, Bitcoin or another major cryptocurrency, remember the risks that come with buying a volatile asset. The cryptocurrency market is still largely unregulated and the price of any cryptocurrency can decline in value at any time. Never invest more money than you can afford to lose and use cryptocurrency as an add-in to a diversified portfolio.
Try Gemini
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Frequently Asked Questions
Is Dogecoin on Coinbase?
No, Dogecoin is not listed on Coinbase.
Can I Mine Dogecoin?
Yes you can mine Dogecoin. Like Bitcoin, Dogecoin has a blockchain that’s maintained by a mining system. The key difference is that Dogecoin uses Scrypt, a different mining algorithm than Bitcoin’s SHA-256. Originally, the Scrypt algorithm was designed to be ASIC-resistant, however by now ASIC manufacturers found a way around that, so it is only profitable nowadays to mine Dogecoin with ASIC miners.
How do I Convert Bitcoin to Dogecoin?
You can use Binance or Bitpanda to exchange BTC to Doge.
Conclusion
Dogecoin is an established cryptocurrency that has been around since 2013. It has a passionate community that enjoys fundraising and using Dogecoin to tip other users on Reddit and Twitter.
While this cryptocurrency doesn’t have any significant advantage over other coins, the adoption it mustered throughout the years makes it seem like it’s here to stay.
Have you used any of the above wallets or exchanges? What do you think of Dogecoin? Let me know in the comments below!