How to buy Dogecoin – Trading tutorial for new investors
- How to buy Dogecoin – Trading tutorial for new investors
- What is Dogecoin?
- Trading Dogecoin: All you need to know
- Buy Dogecoin in 3 easy steps
- How to Buy Dogecoin in US Dollars
Dogecoin is a digital currency that has been in circulation since 2013. On Reddit and Twitter, there is a vibrant community that enjoys gathering and utilizing Dogecoin to strongly suggest other subscribers. Although this cryptocurrency may not have a big edge over other coins, it appears to be on here just based on the expectations it has earned over the years.
If you’re unfamiliar with purchasing cryptocurrency, purchasing Dogecoin can be difficult. There are, nevertheless, many approaches that can be taken. You can buy Dogecoin with Dollars, credit card, or PayPal using the instructions given below.
What is Dogecoin?
Doge began as a humor cryptocurrency, however, a growing community quickly gathered around it. Billy Markus, a software engineer from Oregon, developed it in December 2013. Doge, which was initially launched as a crypto hoax, has earned great popularity online and has become a rather well-supported digital currency. It is also well-known for the Shiba Inu dog logo. The initial intention was to cap Dogecoin at 100 billion coins.
Even so, an unrestricted supply of Dogecoin was later determined. One of Dogecoin’s greatest assets is its zealous culture, which has been actively engaged in crowdfunding. Doge was also used for charity donations since its inception. These included a 2014 Jamaican bobsled team who couldn’t afford to go to the Sochi Winter Olympics, a NASCAR racer named Josh Wise, and a clean water project named Doge4Water in Kenya.
(Risk warning: Your capital can be at risk)
How Dogecoin trading works
This included a 2014 Jamaican Bob team Member that couldn’t afford to compete in the Winter Olympics in Sochi, a NASCAR driver named Josh Wise, and a Kenyan clean water initiative called Doge4Water.
Dogecoin is gaining popularity among blockchain fans all over the world, and it will be fascinating to see how digital currencies go from here. However, when purchasing Dogecoin online, it is critical to use controlled brokers. Check the various criteria listed in the tutorial to see if you can select a top-rated brokerage to assist you in achieving your trading objectives.
Learning the fundamentals of the Dogecoin trade is simple when you’re already experienced with investing in common equities and commodities. However, unlike conventional marketable properties, digital currencies have only been around for around ten years. As a result, the factors influencing price action differ slightly. For example, the advancement of blockchains and rules that exist in different markets, as well as supply and demand, should be taken into account. With this view, this part of the Dogecoin Trading Tutorial will go over certain fundamentals of trading.
Dogecoin’s price development
To effectively trade Dogecoin, you must first identify the factors affecting the price of your digital assets. Dogecoin is now available on the majority of cryptocurrency exchanges. When more players open long positions in the currency, the overall value of the coin rises.
In contrast, if the general perception of virtual money is negative, the coin’s value would fall. As you might be aware, the price of Dogecoin varies slightly depending on the cryptocurrency network. Nevertheless, this aspect is unimportant and has no bearing on the ability to run a successful career.
Dogecoin trading pair
Dogecoin is a crypto that can be traded or exchanged. Digital currencies can be exchanged for paper money and other cryptos. Now let us begin with a couple of crypto words that are frequently used in the Dogecoin trading room:
- For instance, the DOGE/USD pair indicates that Dogecoin is trading against the US dollar.
- Under this situation, the “crypto” is DOGE, and the “paper money” is the US dollar.
The most commonly used crypto exchange is the utilization of the benchmark paper money, the US dollar. Other crypto exchange pairs available via some online brokers include DOGE/GBP (British Pound), DOGE/EUR (Euro), DOGE/CAD (Canadian Dollar), and others.
Dogecoin trading against paper money has the benefit of high liquidity and narrow spreads. Traders can even more easily measure their profit or loss and predict the exchange rate. As a result, crypto is regarded as a more appropriate choice for novice investors. A further possibility is to swap Dogecoin for another crypto, such as Ethereum or Bitcoin. This, nevertheless, necessitates a thorough understanding of competitive coins and their corresponding markets. As you would expect, it can be challenging for novice investors.
What does that mean?
Finally, if you wish to swap Dogecoin for fiat or another asset, you should be prepared with information regarding your current assets.
Trading Dogecoin: All you need to know
Many who choose to trade Dogecoin in the short term with swing or day trading strategies must search for an online company that provides Dogecoin (Difference Contract) CFDs.
What are CFDs?
CFDs are financial products that monitor the fundamental asset’s price. Trading CFDs provides competitive rates and leverage. CFD makes it possible for you to speculate on the increases and decreases of Dogecoin prices by taking long or short positions on your crypto assets. Before continuing, it is necessary to remember that CFD offerings are prohibited in the United States, associated with a greater risk. CFDs on normal assets are easily accessible in the UK, but CFDs on cryptos are no more a legitimate business.
Long-term or short-term trading
Before you begin speculating on Dogecoin, you should consider which financial instruments are ideally suited for your trading needs. In the future, there are two choices. It is about long-term cryptocurrency investment or short-term asset trading.
For instance, if you believe Dogecoin has a bright future, you will want to invest heavily in the virtual currency in the long term. In this scenario, tokens are bought and deposited in a wallet address in the typical sense. You can switch your money and save Dogecoin for months or years before its the moment to create profit.
Short-term plans, on the contrary, necessitate a thorough knowledge of technical research to aid in decision-making. This will be a challenging task, particularly for new traders. Learning to read charts and other technical analysis takes a long time. As a result, if you are a novice, the method of buying and holding would be simpler. This way, you won’t be thinking about the Dogecoin market’s short-term instability. The short-term approach, on the other hand, is better if you’d like to make a decent return on a consistent basis. It is best to use floating pairs such as DOGE/USD or DOGE/BTC in this situation.
If you’d like to buy and keep Dogecoin long-term, you can use a buy-and-hold approach. If you want to buy these virtual currencies, it is better to do so through an online broker instead of a crypto exchange.
There are numerous brokers online that sell Dogecoin on the web. Nevertheless, it is often preferable to work with a managed broker. We’ll go into this in greater detail in the following section of the guide. A long-term investment is appropriate for both novice and seasoned traders because it eliminates the need to think about short-term volatility in crypto prices.
(Risk warning: Your capital can be at risk)
Factors that play essential role in the earning potential of dogecoin
After you’ve mastered the fundamentals of Dogecoin trading, you’ll need to decide how much money you’re willing to spend on digital coins. Interest rates in the trading sector are the sum you are able to earn on the assets exchanged. The larger the bet, the greater the profit and the smaller the loss.
However, betting is difficult, particularly when you are emotionally invested in your trading decisions. As a result, traders often employ money management techniques to reduce risk. In a nutshell, think how much you stand to lose with each Dogecoin transaction. Many traders tend to spend no more than 2% of their trading capital at a time.
However, a few available brokers allow you to trade Dogecoin at reduced prices.
Before describing how leverage functions, it must be reiterated that CFDs are not permitted for US citizens. If dealing with Dogecoin CFDs is legal in your region, you might use leverage to boost your income. If you are speculating on the future DOGE process, leverage may also maximize your losses.
You will find an online broker that has a leverage of up to 1:100, maybe even more. Bear in mind, nevertheless, that these channels are unable to be controlled. When you trade in this risky environment, you are giving over your money to a brokerage that is unconcerned about your capital.
Dogecoin online transaction fees
You may have to pay a fixed fee if you are selling Dogecoin in the long or short term. These Cfees and other charges differ from one online broker to the next. You must be mindful of the possible costs involved with the trading phase before selecting an online broker.
Dogecoin Exchange Commission
When a buyer or seller places a buy or sells order, most brokers charge a transaction fee. This is defined as the proportion of the total bet. Many digital currencies, for instance, account for 1.49 percent of Dogecoin transactions.
Dogecoin Trading Commission
Most brokers charge a transaction fee whenever they place a buy or sell order. This is usually expressed as a percentage of the bet. For example, many cryptocurrency exchanges account for 1.49% of Dogecoin transactions. What this means is that if you bet 1,000 USD on Dogecoin, you would be charged a 14.90 USD fee. When you complete the transaction, the brokerage will charge you 1.49 percent again.
As you’ll see, they must charge a fee whenever you are entering the market, and you’ll pay another fee when you exit the market. You can, nevertheless, stumble upon an online company that enables you to exchange Dogecoin without paying a fee. Under this scenario, all that is needed is to accept the spread. I’ll go over this in-depth.
Spreads are sometimes regarded as an indirect fee paid by online trading platforms. This is the disparity between the purchasing and selling price of a digital asset. The greater the gap between the two rates, the greater you charge from the cryptocurrency broker in the form of a spread. As a result, it’s easier to look for a tighter distribution to hold the majority of your future benefit on yourself.
For instance, if a broker charged 1.9 percent through a spread, they begin trading with a 1.9 percent loss. This means you need to gain 1.9 percent in order to offset your trading expenditure. Anything beyond this 1.9 percent is considered a benefit.
Dogecoin’s other transaction fees
When trading online with Dogecoin, you can incur additional fees in addition to the ones mentioned above. Fees for deposits and withdrawals are included. To process deposits and withdrawals, some sites charge a transaction fee:
- Operating Fee: This is another form of fee that crypto brokers commonly charge. If the account’s required trading activity is not reached within 12 months, a cost is usually levied. Fees are deducted directly from your account each month before you make withdrawals or resume trading.
- Overnight Charge: If you have exposure to the CFDs in which you lawfully live, you must also pay a loan fee every night.
All trades that are open overnight are subject to a fee. On weekends, several sites also charge a higher fee. All in all, it really should be stressed before registering on the exchange, it is critical to verify the fees and fees owed to the Dogecoin online trading company.
Buy Dogecoin in 3 easy steps
There is no other option when it comes to Dogecoin wallets. There are various types of wallets to remember, and each wallet can vary in terms of function, usability, and protection. The following are the most common Doge wallets:
1. Web wallets/software wallets
The best wallet form accessible is the hardware wallet. It is a pricey wallet that necessitates an initial outlay of funds. Software wallets, on the other hand, are almost always free. Since they save Doge private keys offline on a physical computer, hardware wallets are deemed safe. The Ledger Nano S and Nano X are common models that promote Dogecoin and also over 1000 other cryptocurrencies. My analysis can be found here. Likewise, the TREZOR One and TREZOR Model T are also viable options. Wallet for Dogecoin Apps A software wallet saves your Doge private key on your screen, whether it’s a smartphone, desktop computer, or laptop.
These wallets can be infected with a virus, so take precautions and only download approved or strongly recommended wallets. With MultiDoge, you can pick a wallet for Doge. This wallet is compatible with Windows, Mac, and Linux.
You may also use a multiple-currency wallet, such as Exodus or Coinomi. adamant Dogecoiners can also download the complete Dogecoin client from their main website, but this is not suggested for newcomers (or if you are unfamiliar with the full client). There is typically an official Dogecoin mobile wallet for Android devices that receives positive user feedback. Sadly, there is no iOS model.
Finding your Dogecoin address
Once you’ve obtained a Dogecoin wallet, you’ll need to obtain your Dogecoin address. The Dogecoin address consists of a long string of letters and numbers beginning with an uppercase D and ending with yet another number or letter.
Here’s an illustration: DBXu2kgc3xtvCUWFcxFE3r9hEYgmuaaCyD
(Risk warning: Your capital can be at risk)
2. Check for Doge Exchange
Dogecoin, ironically, does not get much assistance when it comes to selecting a reliable platform to buy from. There are only a few regulated exchanges that allow you to buy Doge in dollars or euros. The most reputable markets where you can buy Doge are as follows:
What this means is that if you bet 1,000 USD on Dogecoin, you would be charged a 14.90 USD fee. When you complete the transaction, the brokerage will charge you 1.49 percent again. As you’ll see, they must charge a fee whenever you are entering the market and another fee when you exit the market. You can, nevertheless, stumble upon an online company that enables you to exchange Dogecoin without paying a fee. Under this scenario, all that is needed is to accept the spread.
For credit card transactions, the regular cap for checking accounts is 2,500 euros (300,000 euros per month). The daily cap for other online services is 10,000 euros (300,000 euros per month). eToro is an online trading platform. eToro is a good place to buy Dogecoin. If you are only engaged in the return of Dogecoin price fluctuations and do not wish to own coins, eToro is likely the simplest and cheapest choice. To enable you to exchange DOGE for fiat money, the company provides a user-friendly and intuitive user interface (US dollars, euros, etc.). eToro is not suggested for purchasing and using real coins due to the extremely complicated drawing process.
So, if you’re just using eToro for assets holding purposes, you won’t be using the coins you want to purchase, so you can skip phase 1 and get a Dogecoin wallet. Market rates will fluctuate greatly and are not ideal for all investors. EU rules do not apply to digital currencies. So keep in mind that your money is on the line. CFD is not open to users in the United States. Consumers in the United States can only exchange current (long-term) assets without using leverage.
Kraken, an American crypto exchange established in 2011, accepts credit card and bank transfer deposits. SEPA deposits are fast and free for European consumers. After the funds have been transferred into your account, you can simply buy Doge by clicking the Buy Crypto tab in the broker’s menu navigation bar. It’s worth noting that Kraken is utilizing the XDG ticker symbol for Dogecoin, rather than the DOGE ticker symbol that most platforms use.
Buying Dogecoin with Changelly is just one of those places where you would do so in nearly every single currency (fiat or cryptocurrency). Changelly is a quick transfer service that only needs an email address to sign up for. The disadvantage is that the cost can be prohibitively costly (particularly if you buy Doge with a credit card).
Bittrex is a digital currency based in the United States that has risen in popularity over the years. They, like Kraken, have DOGE/BTC pairs. This implies that you must purchase or deposit bitcoins in order to exchange them for Doge.
How to purchase Dogecoin using a Credit or Debit Card
The Crypto Binance Buying segment is the simplest way to purchase Dogecoin with a credit card. Credit/debit card transactions are typically more expensive than bank transfers, and they are issued more quickly. If Binance does not work for you, Kraken is a good alternative. DOGE/USD pairs are available on a number of crypto exchanges, including Exrates, YoBit, and Livecoin. LiteBit.eu, Bittylicious, and Cryptomate all have Dogecoin trading platforms in euros or pounds. It’s often a good idea to read digital currency exchange feedback before registering and purchasing.
3. Withdraw your Dogecoin
It’s often best to keep cryptocurrencies in your pocket rather than on the stock exchange. This reduces the possibility of losing or stealing your crypto. So, remember to withdraw Dogecoin bought on the exchanges to your wallet using the address you got in Step 1.
In theory, leaving Dogecoin on the exchange means giving up ownership of the coin. You will lose it if it is hacked or broken. Binance and Bitpanda are two exchanges where you can convert BTC to Doge.
How to Buy Dogecoin in US Dollars
There aren’t many places where you can buy Dogecoin directly for dollars. Some digital currencies exchanges, however, include DOGE and fiat pairs. The most reputable exchange for purchasing Dogecoin is:
- Binance is a cryptocurrency exchange (you can purchase DOGE by credit or debit card and other means). Exrates, YoBit and Live Coin are several lesser-known alternatives.
Please follow these steps to purchase Dogecoin on one of these platforms: Each interchange is unique, but in most cases, this phase applies to all:
- Sign up for the desired trade. For instance, I use Binance. Fill out the form by clicking “Register” at the top right of the change tab.
- When signing, make a deposit. In the upper right corner of the site navigation bar, press Wallet, then Fiat & Place.
- Select “Deposit” from the drop-down menu. You can choose from the following scenarios: Click on the deposit number you want to give to the stock exchange.
- Follow the on-screen prompts to enter the details requested by Binance.
- Next, search for the “DOGE/USD” currency pair. To do so, type “Doge” into the search line. Select the DOGE/USDT currency pair. The USDT is a stable currency. The price is always set in US dollars (if you intend to buy USDT at a 1:1 ratio for the first USD deposited). Finally, enter the amount of Dogecoin you want to purchase, then press the Market tab and Buy DOGE.
- DOGE must be transferred to a non-exchange wallet at the end of the transaction. To do so, go to your DOGE balance and press “Withdraw.” After that, you must enter your safe wallet address.
It is critical to withdraw DOGE using a wallet that has access to your private key. Crypto exchanges are a risky environment for cryptocurrencies. They are often hacked. Download a wallet that supports multiple properties, such as Jaxx. A hardware wallet, such as the Ledger Nano X, is a better option. This is true for all the Dogecoin purchasing methods mentioned below.
Each exchange that allows customers to buy Dogecoin in USD offers a variety of USD deposit options:
- Binance accepts Visa/Mastercard, bank transfers, ACH transfers, SWIFT, and AAA.
- Livecoin accepts the following payment methods: Visa/Mastercard, Payeer, Perfect Money, Capitalist, AdvCash, and Qiwi.
- Payer, Perfect Money, AdvCash, and NixMoney are examples of Exrates payment options.
- YoBit accepts the following payment methods: OkPay, Payeer, and AdvCas.
The benefits and drawbacks of purchasing Dogecoin with USD Direct:
Cons (only applicable to small transactions):
It is quick and simple, and only one piece of equipment is needed.
Smaller exchanges (such as those mentioned above) are often entirely unregulated. Having said that, it can vanish at any time and there is nothing you can do about it. You absolutely lose all of the money you have invested in the cryptocurrency sector!
Avoid leaving a cryptocurrency on the crypto market.
These tiny swaps will result in significant fees if you deposit in USD directly. Any of the methods mentioned above are completely free. Others can charge a fee of 1-2 percent.
Liquidity is usually lower on smaller exchanges. However, if you’re trying to buy a large amount of Dogecoin, it may not be sufficient to sell. The method described below is much better suited for large orders.
Exchange rates and trading fees can be extremely high. Before making a purchase, always check the rates on websites such as Coinmarketcap.
How to buy Dogecoin using a Credit Card
Binance is your best option if you want to buy Dogecoin in paper money (e.g., USD or EUR). This trading platform provides secure stability, high liquidity, low fees, and many other advantages!
There aren’t many other places to buy Dogecoin with a credit or debit card. Credit card purchases are said to be accepted by Livecoin. Since this is a small, unregulated transaction, you must trust them with your credit card details.
(Risk warning: Your capital can be at risk)
How to buy Dogecoin using Bitcoin
We’ve mentioned how to buy Dogecoin with Bitcoin. Coinbase is used in this instance.
- Go to Coinbase and press the Register button
- Finish the registration tab
- When you sign up, you must enter your credit card details
- Then, on the Buy/Sell page, purchase the bitcoins
- Next, decide the number of bitcoins you want to purchase
- To complete the transaction, select your payment method (credit card) and enter your details
- Go to the Account tab to see how many bitcoins you just bought with your bitcoin wallet
Then you must swap your bitcoins for DOGE. For instance, you can use Binance. The measures are as follows, once more:
- Fill out the standard registration page with your details
- Once your registration is complete, go to the top menu and choose “Funds,” then “Deposits.” You will be given a bitcoin receipt address if you want to deposit bitcoin
- Return to Coinbase and copy the text
- After logging into Coinbase, go to the Account page
Your bitcoin wallet can be found in the “My Account” section. There, you can see how many bitcoins you have bought from Coinbase. You must press “Submit.” (In this case, you did not purchase bitcoin. As a result, the send option has been withdrawn. You can click it if you have bitcoin.)
- When you click “Submit,” the fields will appear
- In the “To” field, paste the Binance address you copied earlier
- Enter the amount of bitcoins you wish to send to your Binance wallet
- Press the Send button
- On Binance, you can gain BTC in minutes
- Return to Binance and select the Markets tab at the top of the list
- Next, look for the currency pair “DOGE/USD.” Enter “Doge” into the search bar to get started. Choose the USDT/DOGE currency pair. The USDT is a relatively stable currency. The cost is always expressed in US dollars (if you intend to buy USDT at a 1:1 ratio for the first USD deposited). Finally, enter the number of Dogecoins you want to buy, then click the Market tab and Buy DOGE
- At the end of the transaction, DOGE must be moved to a non-exchange wallet. Go to your DOGE balance and choose “Withdraw.” Following that, you must enter your secure wallet address
How to Buy Dogecoin with PayPal
PayPal is accepted by fewer cryptocurrency exchanges than credit cards. This is due to the fact that customers will report purchases to PayPal and receive their money back. Evidently, the exchange does not want people stealing cryptocurrencies. As a result, PayPal deposits are uncommon. There is, nevertheless, a way to purchase Dogecoin using PayPal.
The simplest and easiest way to buy Dogecoin with PayPal is to also use it to purchase bitcoins. Sadly, Coinbase and some listed exchanges do not yet accept Cash. Nevertheless, on genuine peer-to-peer exchanges such as LocalBitcoins, traders often attempt to accept PayPal. You’ll be surprised how much they charge for the operation.
(Risk warning: Your capital can be at risk)
In conclusion: Dogecoin can be traded in several ways
As you can see, Dogecoin is distinct from the majority of the cryptocurrencies we examined. This is not a deflationary currency (supply always increases). Unlike many modern coins, Dogecoin serves a useful function.
It discovered a good use case with coins that provided internet users with some hints that could be used to create interesting material. A valuable usage explanation is the new development team, which uses currency for charities and societies centered on DOGE.
Learn more about cryprocurrencies: