How To Buy Dogecoin (An Updated Guide)
The Dogecoin cryptocurrency (pronounced dowzh-koyn) has existed for years as a joke cryptocurrency that trades for less than a penny. However, in recent years, the Shiba inu-themed coin has become one of cryptocurrency’s most valuable assets.
The easiest way to buy Dogecoin is on a cryptocurrency exchange. You can purchase Dogecoin for U.S. dollars or other digital assets. As an alternative to receiving Dogecoin as payment, you can receive it as a gift.
The Dogecoin network also offers rewards for helping verify transactions, but beginners may have difficulty mining it.
The Dogecoin community is one of the most passionate in the cryptocurrency world. Be careful not to get caught up in the hype. Be sure you understand Dogecoin before adding it to your portfolio. If you are considering buying Dogecoin, here are some things you should consider.
What is Dogecoin?
Dogecoin was created as a fun parody of the more popular cryptocurrency Bitcoin. It was created by Jackson Palmer and Billy Markus, both of who are known in the community for being involved with the online content-sharing site Reddit. The project was launched on 31 December 2013 and was released on GitHub under the MIT license. Dogecoin is an open-source, peer-to-peer currency that is based on the Scrypt hashing algorithm. It has been named “the most awesomely ugly digital currency” by the Wall Street Journal.
4 Steps: How to Buy Dogecoin
Consider Your Investment Goals for Dogecoin
DOGE has been the subject of viral stories about people who invested trivial amounts but became millionaires. The unlimited supply of Dogecoin makes it one of the most volatile cryptocurrencies.
Dogecoin’s price increases or even stays steady only if investors keep buying more coins. As the DOGE supply increases, the value of all coins already in circulation diminishes (imagine inflation on steroids). In fact, the limit on the number of Dogecoins was expressly removed by one of its creators to discourage people from holding onto it long-term. For instance, Bitcoin limits how many coins can be issued, whereas other major cryptocurrencies like Ethereum don’t. It creates scarcity, which makes coins more valuable.
Decide on a Cryptocurrency Exchange
Buyers and sellers must meet on a cryptocurrency exchange to exchange cryptocurrency for dollars in order to purchase Dogecoin. There are a number of popular exchanges, including Coinbase, Binance.US, and Kraken, all of which offer simple, easy-to-use platforms with higher fees and more advanced trader platforms with lower fees.
It is recommended that investors move their cryptocurrency to separate crypto wallets in order to protect themselves from hackers. Investing in crypto through beginner-friendly apps like Robinhood may also be an option, but you won’t be able to transfer your coins. Robinhood requires you to sell your coins and then rebuy them in exchange for moving them to a separate wallet, which defeats the purpose of buying them with an investment app. It’s probably better to start with an exchange if you even think about moving your coins to a separate wallet.
Select a Payment Option
Your exchange or brokerage account must be funded before you can begin trading cryptocurrencies. Your checking or savings account will generally be able to deposit funds on the exchange. In some cases, it is possible to transfer funds via wire transfer or PayPal.
The money from your deposit is usually available for trading immediately. The transfer of money may take a few days to clear if you deposited a large amount of money—typically more than $1,000.
Place Your Order for Dogecoin
Dogecoin can be purchased as soon as your money is in your account. You can search for Dogecoin on the exchange’s trading or purchase platform by entering its ticker symbol: DOGE. Pick your trade type and specify either the dollar amount or the number of Dogecoins you wish to purchase.
Your order should be processed immediately after you place it. Dogecoin can be bought and sold 24 hours a day, 7 days a week, as with other cryptocurrencies. Dogecoin is not limited by trading hours like other cryptocurrencies.