How To Buy Dogecoin – Buy Dogecoin Stock In 3 Easy Steps
2021 has been the best year for Dogecoin ever since it was created in the year 2013. Dogecoin happens to be one of the most known cryptos following the free marketing by Elon Musk and other authority figures in the investment industry. The Gamestop craze also contributed to the popularization of Dogecoin, whose market capitalization rose to over $6 billion within a matter of months and now has a market cap of over $50 billion.
If you’re thinking about getting a piece of the action, you need to understand the risks, benefits, and what it takes to do so. So every beginner who plans to buy Dogecoin should go through this guide learn how to buy Dogecoin for the first time. Professional traders are welcome, too; let’s learn something new together.
Buy Dogecoin at eToro – The World’s #1 Broker
What is Dogecoin?
“The people’s coin,” officially called “dogecoin,” brands itself as a fun and friendly internet currency. It is a peer-to-peer open-source internet currency created in December 2013. The whole idea behind the name and concept of Dogecoin was memorable crypto that would quickly help the public to understand the technology that fuels it, blockchain. Dogecoin has become famous by day with its meme coin logo, the Shiba Inu trending across the internet. The Shiba Inu resembles the “doge” Internet meme, which is also the origin of the name cryptocurrency.
Just like other cryptos like Bitcoin and Ethereum, Dogecoin is built on blockchain technology. It, however, introduces some new concepts to enable users to access faster and much more affordable trading. The Dogecoin was introduced to the public as a joke, the DOGE, but gained popularity fast due to its passionate online supporters. The joke was mainly intended to raise awareness of the power behind blockchain technology but gave it a lot of momentum. As a result, it is currently ranked the 13th largest crypto, with a total market capitalization of over $50 billion.
How to Buy Dogecoin – 3 Easy Steps
One of the things you’ll love about buying Dogecoin is how easy-peasy it is. In just a few minutes, you can start your investment journey. Here’s how to do it:
STEP 1 – Open an Online Account: The first step is to sign up for a crypto account with a reputable online provider, usually referred to as a broker. There are many brokers where you can purchase Dogecoin, prime among them being; eToro, Coinbase and Robinhood.
STEP 2 – Fund your Account: The process of opening a crypto account will vary from one platform to another, but the differences are minimal. You’ll simply need to provide your details and verify them to get started. Once that is done, you can go ahead and fund your wallet using one of the funding methods available to you on the platform. The most common methods are crypto funding, eWallets like PayPal and Skrill, and Bank Wire transfer. Some platforms accept all these methods, while some, like Binance, only allow crypto funding. Make sure to check to select a dogecoin provider that offers flexibility when it comes to funding.
STEP 3 – Make a Purchase: Once your account is funded, you can purchase your first Dogecoin. Your provider will be responsible for filling your order. Your order will get canceled at the end of the day if there is no liquidity to fill it. You’ll learn more about this process of buying your first Dogecoin as you keep reading this guide.
Is Dogecoin a Good Investment?
A significant question that everyone asks when learning to buy Dogecoin is whether it is a good investment or not. Looking at the factors that define a good investment, we should certainly say that Dogecoin is not a good investment in any good traditional way of investing. But, on the other hand, that might just be the reason why we think you should buy it.
Billy Markus claims that he created Dogecoin by copying and pasting the original core code for Bitcoin in under three hours. Of course, he spent much more time later on alterations to make it what it is today and give it the Comic Sans text. Markus is the first one to admit that this coin sprouted out of what was supposed to be a joke. In the year 2015, he disposed of his entire position to buy a used Honda, just to emphasize that it was not that serious. Then comes a giant wave that pushes the prices of Dogecoin, and within no time, we are talking of an over $50 billion market capitalization. If you have ever copy-pasted anything online, you definitely can tell us that it wasn’t worth $1 billion. Here are a joke worth more than that; over $50 billion caps. Will you buy it or not? If you’re waiting for our answer, it’s a yes.
Dogecoin has gained value because people are willing to pay so much for the Shiba Inu, meme coin. For that reason, we think investing in this joke will make you good returns. There is a huge demand and a shrinking supply, which points the prices towards the sky. You had better jump in before it’s too late. Since 2017, Dogecoin has had a steady rise in price by over 1500% on three separate incidences.
To put things in perspective:
- If you had invested $1,000 in Dogecoin in any of these incidences,
- Your return would have been fifteen times or more.
- So you would have ended up with more than $15,000 within no time.
Dogecoin price skyrocketed from $0.06 to just under a dollar in the second quarter of 2021. Such kinds of price movements are shaking central banks as more investors get attracted to the crypto market. The million-dollar quiz is, where does this stop? No one has the correct answer. No one ever thought that a $1 coin would yield a market cap as high as that of IBM, Blackrock, and even Goldman Sachs, but as we speak, it’s already ahead of many big names like E-trade and Levi Strauss, so no one really knows where all this is going to stop. Instead of trying to figure that out, we had better start to buy Dogecoin now.
We should make it clear that the best investment in Dogecoin would not be about making quick money. While we understand that this could happen accidentally, the whole idea is to be part of something big. Imagine if you were one of the investors who bought Bitcoin at $500? Dogecoin is giving you an equal chance.
Where to Buy Dogecoin in 2021
An over $50 billion meme that shakes the core of the traditional investors and even scares institutions like central banks is not only powerful but must have a bright future. Gone are the days when traditional investors questioned the viability of cryptos based on acceptability. Treasury bonds are losing their fashionable place.
There are several online brokers offering Dogecoin. Most of them may not meet your investment objectives and goals. To help you find the best platform to buy Dogecoin today, we will introduce you to three top crypto providers.
1. eToro- Best Overall Crypto Provider
eToro is our best-rated and highly reputable platform to buy Dogecoin. You have access to 15 varieties of cryptocurrencies on this platform at zero commission. All crypto traders are 100% free when trading with eToro. The platform is licensed by the Commodities Futures Trade Commission (CFTC) and the National Futures Association (NFA).
eToro is popular among beginners because it gives you access to a social trading network. This gives you a chance to share tips or borrow from already successful traders for better decision-making. However, if you struggle to find the right trades, eToro has another solution: find a successful trader and copy their trades. It is a win-win situation. So if you find a trader who has a successful track record of buying and selling Dogecoin, you can commit part of your capital to trade automatically based on their trades.
|Low spreads for Dogecoin and other cryptos.||The cryptocurrency order book is hidden.|
|Advanced social trading network.|
|Allows and facilitates copy trading.|
|Good for beginners.|
|0% commission charged on cryptos.|
67% of all retail investor accounts lose money when trading CFDs with this provider.
2. Binance – Buy Doge
Binance is one of the most well-known platforms for anyone looking to get into crypto trading. It’s perfect for buying Dogecoin and allows both day trading and swing trades. Binance was opened to comply with the U.S regulation after the original company was banned on regulatory grounds. It is only regulated in the U.S so be sure to use “Binance US.” The Binance platform comes with a powerful package of analysis tools that can help you make an informed decision on buying and selling Dogecoin. There is also room for your own customized tools such as indicators and trading robots, meaning you can deploy 100% auto-trading strategies.
Unlike eToro, the entire order book for each crypto is visible in the Binance platform. This allows you to view the real-time momentum of prices. The cost of trading is minimal, at 0.10 commission only. However, credit card transactions when buying Dogecoin will cost you an extra 2% for commission or more.
|Great analysis tools||Not widely regulated|
|The order book is visible||High commissions for card transaction|
|Connects to custom tools, including trading robots||Slow customer support- by email only|
|Low trading commission|
|0% commission charged on cryptos.|
67% of all retail investor accounts lose money when trading CFDs with this provider.
Coinbase is one of the most popular crypto exchange platforms globally, boasting a client base of over 30 million users. The leading competitive edge is that it has made it very easy to buy a cryptocurrency for the first time. For example, it will take less than five minutes to get your account set up and buy Dogecoin for the first time. Supported payment methods are debit/credit cards and bank wire transfers. You’ll pay a commission of 1.49% for every crypto transaction you make on Coinbase, making it one of the costliest platforms. If you intend to use the card deposit method, get ready with a commission of 3.99%.
|Great reputation- over 30 million customers||99 fee charged on card deposits|
|Fast account setup||49 Dogecoin trading fee|
|Regulated by CFTC and NFA|
|Supports debit/credit cards and bank wire transfer|
67% of all retail investor accounts lose money when trading CFDs with this provider.
How to Buy Dogecoin Stock with PayPal
PayPay is hardly used by investors in the U.S as most of them prefer to buy Dogecoin using credit/debit cards. For that reason, you may be wondering how to buy Dogecoin with PayPal. The procedure is simple if your broker supports PayPal, you simply need to select it as your preferred mode of payment and follow the automatic directions of your platform. Most crypto providers do not support eWallets. eToro allows you to make deposits using Wire Transfer, and debit/credit cards.
How to Buy Dogecoin with Bitcoin
You can buy Dogecoin with Bitcoin by performing a crypto exchange. This is also called crypto-to-crypto or cross crypto trading. Some platforms such as Binance only support deposits via cryptos. To buy Dogecoin with Bitcoin, you first need to fund your crypto wallet with Bitcoins. Once you’re done, wait for it to reflect and search for the pair “Doge/BTC,” Key is the amount of BTC to invest and place your order. Your order will be filled in no time and the Dogecoins will be added to your wallet. You can decide to hold them until they gain value, or withdraw them from your Dogecoin wallet.
Buy Doge: Key Tips for a Beginner looking to Buy Dogecoin today
Choosing an Online Broker or Exchange
This is an essential step for anyone thinking about buying Dogecoin. It would help if you found an online broker or exchange that guarantees transparency, reliability, and security for your funds. There are third-party crypto providers that allow you to purchase Dogecoin using another crypto. Most of these platforms, however, lack a proper license and so it’s best to avoid them. Look for well-regulated platforms when deciding on how to buy Dogecoin today in the U.S.
Unregulated platforms can be unethical because no one monitors their actions, meaning your capital can be at risk. Regulated brokers protect your funds and, in some cases, even insure clients’ money. Find a CFTC regulated broker in the U.S if you want to buy Dogecoin. We recommend eToro. This broker keeps client’s funds in a segregated bank account, which means that even if they run out of funds to sustain their operations, they will never touch their client’s money.
It’s essential to choose an online broker that permits you to use your preferred payment method to purchase Dogecoin and withdraw money. The best Dogecoin platforms support various payment gateways like wire transfer, eWallets, and debit/credit cards. eToro allows you to deposit your trading capital with Neteller, PayPal, Skrill, debit/credit cards, and bank wire transfer.
Fees and Commissions
Think about how much costs you are willing to incur before getting on board with a crypto provider. This might depend on your initial capital and investment goals, among other factors. Dogecoin platforms make their money by charging fees and commissions to their clients. You will come across different broker fees and commissions as you research the best online broker to buy Dogecoin.
Here is a clear picture with examples:
- Coinbase charges you 49% commission on all your trades
- This means you will pay the commission when you buy and when you sell your Dogecoin since those are two separate transactions
- If you place an order worth $1,000, your commission will be $14.90
- If you increase your stake to $10,000, you will end up paying $149.90 in commissions.
Here’s a full illustration of a typical Dogecoin trade
- You buy $1,000 worth of Dogecoin
- If your commission is 1.49%, like in Coinbase, you will hand over $14.90 to your broker
- After a while, you decide to cash out when your investment has grown to $2,000
- Again, you will pay the broker another 1.49%, this time being $29.80, which brings your total cost to $44.70
What might look like a nominal fee can quickly accumulate to a tremendous amount over time. That’s why it’s necessary to consider the cost of trading as a serious issue. Some online Dogecoin platforms charge you zero commissions- such as eToro. You should also be aware of any other hidden charges, such as fees on deposits and withdrawals.
You need to worry about how you are going to be storing your coin. Some brokers will give you an all-in-one wallet where you can keep your Dogecoin at no extra charges, while others will not. You want a broker that will not have you worrying about finding a safe wallet to store your crypto.
Develop a Dogecoin investment Plan
Successful investors work with a strategy and plan that guides them while making critical decisions. Dogecoin is highly volatile and might lead to huge profits within a short time. But, on the flip side, the high volatility experienced in this market could be the cause for your downfall. Here are some strategies you may consider when developing your investment plan.
- Longterm and Short-term trading: Ask yourself whether you want to buy Dogecoin as a long-term or short-term investor. Short term investor targets to make money from short-term price movements while a long-term investor waits for the big moves and might be in the market for weeks or even months.
- Targeting Dogecoin price: – This is an investment strategy where the traders analyze the price movement on Dogecoin and sets a price target before placing an order. For instance
- You buy Dogecoin at a price of $0.05
- Your goal is to double the investment
- So you have to hold your investment until the price grows to $0.10
- If your aim is to triple it, you wait for the price to get to $0.15 then you cash-out
This might seem hard, in the beginning, considering the uncertainty and questions that you may have on the future of Dogecoin. Remember you are investing in this asset because you believe that it will grow in value. There are many online resources that you may read to help you get a rough idea of where prices are heading before you can set your price target.
- Regular Investment Strategy: You can pick a strategy for staking smaller but consistent amounts of money on Dogecoin. Instead of risking a huge amount at one go, you could keep buying in small quantities as the price rises. This approach gives you slow profits but is steady and very safe. It’s possible that you can earn decent profits within months when using this strategy to trade cryptos, considering their volatility.
- Other important factors: We have grouped these tips together because although they might look insignificant, they carry a certain level of weight, according to individual traders.
- User interface: The user interface is what you will interact with when you want to buy Dogecoin. A user-friendly platform is what you should be looking for if you want to have seamless trading.
- Minimum investment: Different brokers differ in terms of the minimum amount they require you to deposit before you can buy Dogecoin for the first time. While some platforms have low minimums, others may require you to deposit a stake in thousands of dollars. Be wary of this.
Buying DOGE: Full Step-by-Step Guide
Step 1: Open a Dogecoin trading Account
eToro is our top-rated recommended broker. It has an easy registration process and is a CFTC regulated broker with over 20 million users across the globe. Go to the eToro website, click on “Join Now,” and fill in the registration form, then submit it.
Step 2: Account ID Verification
If you intend to trade invest more than $2000 in your eToro wallet, you will be required to verify the details you provided during registration. Submit a picture of your identification documents and any proof of address to complete this stage. This procedure is not mandatory for smaller deposits than that.
Step 3: Fund your eToro
You can buy Dogecoin with a debit/credit card, wire transfer, or by eWallets like Paypal on your eToro account. eToro deposits are free so you do not have to worry about charges.
Step 4: Place your first Dogecoin order
Now that your account is fully set and funded, you can proceed to place your first Dogecoin trade. We assume by this time you have done some research on the trend and you have made your mind in regards to your entry price and target levels.
- Decide on the amount to invest.
- Go to the search bar on eToro and search for Dogecoin.
- Click on “Trade”.
- Key in the amount you want to invest.
- Click on buy or sell, depending on your intentions.
- The submit order.
You now have just made the Dogecoin trade. You should feel proud of yourself; it was not difficult, was it?
What you should know about Crypto Prices
Cryptos are among the most volatile assets to trade. They have volatile prices that can shift on a minute-to-minute basis. So expect this kind of volatility when you start investing in Dogecoin. Some of the main factors that cause these sudden price movements in cryptos are:
Supply and Demand: As a basic rule of economics, prices rise when demand is higher than supply and fall when there is more supply than the demand. Although 10,000 blocks of this coin are minted every minute, the supply for Dogecoin is quickly diminishing as more investors start to get wooed to its popularity. The prices will keep rising as new investors contribute to the increasing demand for Dogecoin
News: News is the fundamental bit of trading where traders rely on information about an asset to value it. We call this intrinsic value. For example, Bitcoin prices have been affected a couple of times by Elon Musk’s tweets. The same case applied for the doge. Positive news, such as a plan for Tesla to start accepting it as a payment method, will drive prices skywards, while negative information will cause the prices to fall. Take time and study the major events that affect Dogecoin’s prices before investing in it. You can find a way of tracking them so you can always be up to date. You may also want to subscribe to financial news websites such as Yahoo! Finance to get regular information.
Current financial situation: The idea of buying low and selling high plays a significant role in fuelling demand and supply, affecting prices. Investors tend to flock to cryptos whose prices are falling with the perception that it is the right time to buy cryptocurrency. The more they do that, supply diminishes, and demand continues to rise, causing a sharp bullish spike. You might not want to buy Dogecoin after a very strong bullish rally until it makes a bearish pullback.
Monitoring the behavior of crypto prices can help you learn when best to buy or sell them.
Buying Dogecoin 2021 – Final Verdict
We believe this extensive guide has given you enough information on what you need to buy Dogecoin and develop an appropriate investment strategy. Although “the people’s coin” was created out of a joke, it has been successful for over eight years, and it promises an even better future. With endorsements from industry leaders like Mark Cuban and Elon Musk, you should not ignore this coin. No one can know how far the value of Dogecoin will go, but it is without question that early investors will make a fortune in the future.
The most important thing is to get yourself a good broker like eToro and start investing. Remember the volatility in the crypto market can work against you or in your favor. Whether you want to buy Doge as a long-term investment or for short-term gains, avoid nasty surprises by starting with a sound investment strategy and growth plan. Remember to consider critical factors such as transaction costs, regulation, user interface, payment methods, and support, while finding a broker to buy Dogecoin.