Investing in Dogecoin: How To Buy It and What To Be Aware Of
Dogecoin started off as a bit of a joke. But thanks to its humorous name and high-profile publicity champions, such as Elon Musk, it’s risen in value significantly.
Because of this, many people ask the same question about Dogecoin: how to buy it? We list some popular crypto exchanges below:
eToro is a cryptocurrency broker that also lets you buy Dogecoin on exchange. You can buy Dogecoin with PayPal for a more convenient experience. The brokerage has the advantage of being regulated by The Securities and Exchange Commission (SEC) and registered by the Financial Industry Regulatory Authority (FINRA). It also works with licensing bodies in the EU and Australia. Depositing or withdrawing money using US dollars doesn’t incur transaction fees, which is a nice perk.
Crypto.com is the best way to buy Dogecoin in five minutes or less. The platform, founded in 2016, is now one of the largest in the world and prides itself on quick transactions and ease of use. It attracts millions of dollars in daily trading volume and offers a fast “know your customer” experience, which reduces hassle for new users.
Learning how to buy Dogecoin on Robinhood is easy. Go to the site’s Dogecoin page, enter the amount you want to buy in the order window, and then review and confirm your order. Robinhood also offers commission-free trading on various ETFs, stocks, and bonds, making it a popular platform.
Binance lets you buy and sell Dogecoin in a matter of minutes. It’s currently the largest cryptocurrency exchange in the world, with an estimated 28.6 million users, a figure that grows every year. Alongside DOGE, users have the opportunity to buy dozens of other rare cryptocurrencies and can deposit funds with either a debit or credit card.
Coinbase is one of the world's biggest crypto trading exchanges, and lets users easily buy and sell Dogecoin. Unlike other platforms, it’s set up for beginners, so learning how to buy dogecoin on Coinbase is easy. Just create an account, enter some basic details and then buy Dogecoin using any of the various payment methods.
What Is Dogecoin?
Dogecoin is a cryptocurrency similar to other major tokens, like Bitcoin and Ethereum. It was originally created as a tongue-in-cheek joke, named after a popular meme that deliberately misspelled the word “doge” to describe a Shiba Inu dog.
Originally, DOGE’s founders, Billy Markus and Jackson Palmer, created the coin to poke fun at Bitcoin. The idea was to prove that anyone could set up a cryptocurrency, no matter how outwardly hilarious it was.
However, after 2018, the public began to really get into the Dogecoin craze, and many began to view it as a serious investment, something that might rise in value in the future. By May 2021, Dogecoin rose to a high of $0.68, putting it squarely in the top 20 global cryptocurrencies by market cap.
How To Buy DOGE
In this section, we explore how to buy Dogecoin. Here’s our step-by-step guide on what you need to know before the purchase:
Step 1: Consider What Percentage of Your Portfolio Should Be Cryptocurrency
The internet abounds with stories of people who invested small sums of money in Dogecoin only to become millionaires later when the value rose. However, these lucky individuals tend to be the exception, not the rule. The vast majority of people who invest in experimental cryptocurrencies never see significant returns. Therefore, you’ll want to think hard about the percentage of your investment portfolio you want to allocate to cryptocurrency.
Dogecoin also has some inherent disadvantages compared to, say, Bitcoin. For instance, the token’s creator says that the supply of Dogecoins will rise indefinitely, causing prices to fall over time.
Step 2: Choose the Cryptocurrency Exchange You Want To Use
The next step is to choose the right crypto exchange for you. We list several above, but you can use any that is legal in your country.
You can also use crypto-friendly brokerages, such as Robinhood. However, be mindful that you usually can’t store coins in a separate, third-party wallet on these platforms – a potential security risk.
Step 3: Choose Your Payment Option
Most exchanges and brokerages offer multiple ways to buy Dogecoin. These include:
- Bank transfers
- Wire transfers
- PayPal transfers
- Debit card transactions
- Credit card transactions
When you transfer money, you deposit it into an account on the exchange. You then use available funds to purchase Dogecoin. In some cases, you may have to wait a few days for funds to clear, for instance, if you deposit over $1,000.
Step 4: Place Your Dogecoin Order
Once you have money in your account, you can go ahead and buy Dogecoin. Either search the exchange’s website by typing in “DOGE” or click on the Buy option from the drop-down menu.
Orders should go through immediately. Unlike conventional stock trading, you don’t need to wait for opening hours to trade.
Step 5: Store Your Coins Safely
Lastly, you’ll want to consider storage. Ideally, you want to keep your DOGE offline until you come to sell. You can do this using “cold wallets” that are physically disconnected from the internet.
“Hot wallets” are also an option. Custodians maintain them, which means you may still be able to access your account if you lose your login details. However, these wallets remain connected to the internet, so security is not as good.
How Much Should You Invest in Dogecoin?
Now that you know where to buy Dogecoin, the next question is how much to invest. DOGE started as a joke; however, billions of dollars have been poured into it, making it a much more serious investment.
That doesn’t necessarily mean you should immediately go and buy the currency. With unlimited supply, the risk of price volatility remains extraordinarily high.
Most experts recommend investing no more than three to ten percent of your portfolio in cryptocurrencies. Hence, if you invest in Dogecoin, it should only comprise a small chunk of your net worth.
Does Dogecoin Fit Your Portfolio?
You’ll also want to figure out whether Dogecoin actually fits your portfolio. Financial experts widely regard cryptocurrencies as alternative investments that should only make up a small proportion of your wealth. Their emerging status and lack of regulatory oversight make the crypto future uncertain.
Traditional investment advisors recommend people put their money into tax-advantaged retirement and savings accounts instead, such as 401(k)s and Roth IRAs. They also recommend against buying exciting assets, like Dogecoin, and suggest conventional, low-cost index funds instead (which typically return eight to 10 percent per year).
With that said, if your portfolio is already well-diversified, there may be room for Dogecoin in it. Unfortunately, you can’t buy Dogecoin stock because DOGE is not a company.
If you are still struggling to figure out whether Dogecoin is for you, ask yourself what would happen if the value of the token went to zero tomorrow. If you’d still be financially sound, then buying DOGE might be a good idea. You’d be upset but still have plenty of financially sound investments paying you dividends every month.
So there you have it, an all-encompassing guide on Dogecoin: how to buy it, where to get it, how much to buy, and whether it has a place in your portfolio.
Where can I buy Dogecoin legally?
You can buy and sell Dogecoin legally on any cryptocurrency exchange or brokerage permitted to operate by the SEC and US law, including Coinbase, Binance, Kraken, eToro, Robinhood, and Crypto.com.
How do I buy a beginner Dogecoin?
If you’re a beginner DOGE enthusiast, you’ll need to find a wallet that supports Dogecoin, as not all digital wallets do. You’ll then need to find an exchange that lets you trade with DOGE (again, a few minor exchanges might not provide this service). Finally, you’ll need to submit the necessary personal information before setting up an account and carrying out your first trade.
Is Dogecoin on Coinbase?
Yes, Dogecoin is on Coinbase, along with dozens of other cryptocurrencies.
I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.
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