How To Buy Dogecoin (DOGE)

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Dogecoin is one of the oldest cryptocurrencies. While it started out as a joke, it quickly gained popularity and a devoted following. This guide will teach you how to buy Dogecoin and provide some background information on the coin.

What is Dogecoin?

Dogecoin is one of many cryptocurrencies that exist today. Like many cryptocurrencies, it is peer-to-peer and open-source. The Shiba Inu logo on the coin stands out as well.

Jackson Palmer, an Adobe product manager from Sydney, Australia, founded Dogecoin in 2013. All of the excitement surrounding new cryptocurrencies was a bit of a joke. Palmer started tweeting about Dogecoin and was surprised by the positive response. Billy Markus, an IBM developer, thought Dogecoin was a cool idea. Markus approached Palmer to see if he could develop the necessary software to support the coin. As a result, the two worked together to create Dogecoin.

Aside from that, Dogecoin is a cryptocurrency, like many others. It is a coin that is mined using a proof-of-work (PoW) consensus algorithm, and miners receive it in exchange for solving blocks. It makes use of blockchain technology, but unlike Bitcoin, there is no cap on the number of Dogecoin that can be mined. As a result, unlike Bitcoin, it is an inflationary coin rather than a deflationary coin.

Overall, Dogecoin is a viable investment; however, those interested in purchasing DOGE as an investment should be aware of the coin’s extremely volatile nature as well as its limited use cases. Investigate Dogecoin and cryptocurrency trading on your own. Dogecoin should only be bought and sold at your own risk.

Before you buy Dogecoin

Although purchasing is clearly a viable investment for many people these days, all factors must be considered. These include where to buy Dogecoin, how to buy it, and whether to buy or trade this asset. On that note, here are some additional considerations:

Regulation

Dogecoin is available on a number of platforms, though not all of them. As a result, if you want to buy Dogecoin, you must first find a platform that sells it. Keep in mind, however, that regulations governing Dogecoin availability are subject to change at any time.

HODL

You must decide on a strategy before purchasing Dogecoin. Determine whether you intend to buy it as a long-term investment, a store of value, or actual currency.

Short Term Holding

This is for Dogecoin traders, not Dogecoin buyers. Those who hold for a short period of time are probably looking for quick profits, which is a risky strategy that should only be used by experienced traders.

Volatility

Volatility is unavoidable when it comes to investing, and cryptocurrency is by far the most volatile of all asset classes. Dogecoin is included in this, and while large pumps do occur, so do large corrections.

Trading Fees

In some cases, your preferred platform will take a small commission every time you execute a Dogecoin transaction. Until commission-free platforms like eToro came along, that was just part of the game.

Deposit Fees

Some platforms will even charge you to fund your account before allowing you to purchase Dogecoin. Of course, no one wants to pay unnecessary fees, so look for a broker who does not charge deposit fees.

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How to buy Dogecoin

Step 1: Find an exchange

The most convenient way to purchase Dogecoin is through a centralized exchange. Because Dogecoin is one of the more popular cryptocurrencies, it should be available on most popular exchanges. As with any cryptocurrency, make sure the platform allows you to send and receive Dogecoin from your own digital wallet. Some brokers will only let you buy and sell Dogecoin in US dollars.

Dogecoin is available for purchase and sale on the following exchanges:

• Kraken
• Gemini
• eToro
• Coinbase
• Binance

Dogecoin can also be found on decentralized exchanges, which facilitate peer-to-peer transactions. While decentralized exchanges are often less expensive to use, they also require a bit more technical know-how and should only be used by investors who have some experience in the crypto world.

Step 2: Store your Dogecoin

There is no shortage of Dogecoin wallets to choose from. There are different types of wallets to consider, and each wallet has different features, usability, and security.

Hardware Wallets

While a hardware wallet is one of the most secure wallet options, it does require an initial investment. In contrast, software wallets are almost always free. Hardware wallets are regarded as secure because they store your Doge private key on a physical device. The Ledger Nano S and Nano X are popular choices because, in addition to Dogecoin, they support over 1000 different crypto assets. The TREZOR One and TREZOR Model T are two other options.

Software Wallets

A software wallet stores your Doge’s private key on your device, whether it’s a phone, desktop computer, or laptop. Because these wallets may contain malware, exercise caution and only download official or highly recommended wallets.

A Doge wallet, such as MultiDoge, can be used. This wallet works with Windows, Mac, and Linux. Alternatively, you could use a multi-currency wallet such as Exodus or Coinomi.

The official Dogecoin Mobile Wallet for Android devices has received generally positive user feedback. Unfortunately, no iOS version is available.

Step 3: Buy Dogecoin

Exchanges typically accept fiat currencies such as the US dollar from investors looking to buy Dogecoin directly. To make a purchase, you must first open an account with your preferred exchange and fund it with funds from a bank account.

You may be able to exchange some of your existing cryptocurrency for Dogecoin. However, not all cryptocurrencies can be exchanged for Dogecoin, and the restrictions vary by platform. Make sure the platform you’re using allows you to pair Dogecoin with another cryptocurrency before you place a trade.

Other ways to invest in DOGE

Buying stock in a company that uses or owns cryptocurrencies and the blockchain that powers them is another way to invest in cryptocurrency. You may believe that investing in a company that is under regulatory scrutiny is a safer option.

Nvidia (NVDA) is a manufacturer of graphics processing units (GPUs) used by cryptocurrency miners. Meanwhile, Paypal (PYPL) enables users to purchase and sell specific cryptocurrencies.

Disclaimer: Nvidia and Paypal are just examples and are not recommendations. Investing in publicly traded companies does not guarantee a profit or even a return on your investment. You’ll need an online investing platform or trading app to get started.

Should you buy Dogecoin?

There is no simple yes or no answer to this question. Investing in Dogecoin may be suitable for some people, but it may not be suitable for others. As with any form of investing, there is risk. Prices for cryptocurrencies can change dramatically in a matter of seconds. If you’ve been paying attention to market news, you’ve probably heard about people who became millionaires in a matter of days and others who lost large sums of money in the same amount of time.

Overall, Dogecoin could be considered an investment because it has been around for a long time, has a dedicated community, and its price has risen over time. Having said that, you must be able to withstand price drops from time to time. You must be willing to accept risks and watch the price fluctuate in unpredictable ways if you want to make money investing in Dogecoin.

Finally, conduct your own research to find the best wallet for your needs, as well as compare exchanges to find one that meets your needs.

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