Your step-by-step guide to purchasing the infamous meme crypto, DOGE.
Looking to invest in one of the most well-known lesser-known cryptocurrencies currently on the market? We’ve got you covered. See below for our handy guide to what Dogecoin (DOGE) is, and our 5 simple steps on how to buy it.
What is Dogecoin?
Like Bitcoin (BTC) or Ethereum (ETH), Dogecoin is a cryptocurrency. It was started in 2013 and based on the popular meme of the Shiba Inu dog, a Japanese breed of hunting dog (pictured). It was originally launched by crypto enthusiasts to poke fun at Bitcoin, but quickly gained traction and became one of the most popular niche decentralised currencies on the market.
Dogecoin’s success was partly down to big names such as Elon Musk and Mark Cuban publicly professing their support for the coin, with Musk even claiming it to be his favourite cryptocurrency back in 2021. That being said, its recognisability due to its origins as the first ever memecoin, as well as other forms of media attention, have also facilitated its meteoric rise which has, at times, brought it into the top 10 cryptocurrencies on the market.
While Dogecoin has been overall a success story, like most other cryptocurrencies, it has also seen its fair share of dramatic lows alongside the surging heights. Dogecoin is currently ranked as the 11th most popular cryptocurrency.
Before you start the buying process
Before you get into the logistics of actually purchasing Dogecoin, it’s imperative that you carefully consider how much you actually want to invest. While it may have made some people millionaires overnight, it’s still a very volatile currency with high risks attached.
To help you to better understand how Dogecoin is currently performing and how it is expected to perform over the coming months/years some websites, such as Finder, have made price predictions which are based on expert opinions and analysis. These predictions currently anticipate that Dogecoin’s “value should increase by roughly 16.5% by the end of 2022” which would make it a profitable investment, if proved accurate.
While these price predictions are based on the opinions of the best informed experts, and are therefore as accurate as they can be, some factors that affect the coin’s cost aren’t possible to estimate. One major such factor is how heavily its price is affected by Elon Musk’s tweets. Sadly, unless you are somehow a close friend of Musk’s, his tweets of endorsement for Dogecoin can’t be anticipated, and neither can their affect on the memecoin’s price.
When is a good time to invest in Dogecoin?
When exactly you invest in Dogecoin is still a crucial component to how much profit you will make. This is because the market fluctuates so much daily. This is partly due to the fact that unlike the stock market, which closes during non-business hours, the cryptocurrency market never sleeps – trading is active 24/7, 365 days per year.
Generally it is considered better to invest when the market is bullish, although a bearish, and even a neutral market can still prove profitable, depending on your level of trading experience.
Whatever your level of trading experience and whenever you choose to invest, it is important to never put in more money than you can afford to lose. No amount of trained experts can give you an 100% fool-proof price prediction. There’s always a chance, however small, that you could lose everything. So, don’t set the stakes too high.
How do you buy Dogecoin?
Buying Dogecoin is the same as buying any other cryptocurrency. While somewhat fewer exchanges might offer it due to its reduced popularity in comparison to bigger cryptos like Ethereum and Bitcoin, it is still a widely circulated coin that’s easily accessible to most.
You can purchase DOGE by following these simple steps:
- Choose an exchange
Opt for either a centralised exchange (CEX) such as Coinbase Pro or Binance, or a decentralised cryptocurrency exchange (DEX) such as Uniswap, Bithumb, or PancakeSwap. There are also many more exchanges that offer Dogecoin.
There are benefits and and drawbacks to each of these exchange types. The main difference between the two is that centralised exchanges are middle-man service providers and decentralised exchanges are peer-to-peer.
Platform costs, such as service fees, and even the price of Dogecoin, will vary between platforms. So, it’s important to do your research and compare exchanges to find the right exchange for you.
- Create and verify an account
Once you’ve researched and found an exchange that you think suits you, it’s time to set up an account. This process will vary depending on the provider you choose, but it usually only involves giving a few personal details to the service provider.
You may also be required to verify your identity with the exchange platform. This is known as a KYC (Know Your Customer) process. This might include submitting a photo of your driver’s licence or passport, and possibly a selfie to prove that you match your documentation.
- Choose a payment option
In order to purchase Dogecoin, you will need to deposit money into your exchange. To do this you will need to link a bank account, or a debit/credit card to your account. If you already possess cryptocurrency, you will likely be able to trade your current crypto of choice for DOGE, depending on the currency you own and the exchange platform that you are using.
- Start trading
Once you have successfully added funds to your account, you can purchase DOGE, as well as other cryptocurrencies via your chosen exchange. Processing times will vary, but are usually pretty instantaneous. Remember, as mentioned earlier, that you can trade Dogecoin at all hours of the day, 7 days a week.
- Store and/or withdraw your DOGE
To store your Dogecoin, you will need a cryptocurrency wallet. Some exchanges will offer these built in, but it’s still a good idea to compare your options to find the most convenient and secure way to manage your DOGE.