How To Buy Dogecoin (DOGE)

Dogecoin has been on a lucky streak lately, with everyone from Elon Musk to Mark Cuban singing its praises. The original meme-based cryptocurrency has seen a meteoric rise of over 7,000% in the first half of 2021.

Dogecoin’s price has been highly volatile, with a massive drop in mid-2021 from its all-time high of just over 70 cents per coin. Despite this, Dogecoin remains a popular crypto option. If you’re wondering how to buy Dogecoin, here’s what you need to know.

How To Buy Dogecoin

Consider How Much You Want to Invest in Dogecoin

Dogecoin may have made some people millionaires, but be cautious when investing in cryptocurrencies as they are very risky. Dogecoin is especially volatile because there is no limit to the supply.

This is how it works: for Dogecoin’s price to increase or even stay the same, investors have to keep buying more coins. Otherwise, the supply of DOGE will go up quickly and decrease the value of all the coins that are already out there (like inflation, but worse). The limit on the number of Dogecoins was expressly removed by one of its creators to discourage people from holding onto it long-term.

Read More: The Cons of Investing in Cardano

That is the opposite of what other major cryptocurrencies like Bitcoin do. Which is to have caps on how many coins are issued. When there is less of something, it becomes more valuable. So when there is a limited supply of a coin, it helps it to keep its value.

When making investment decisions, always take into account your current financial situation, investment portfolio, and risk tolerance. Experts generally advise against investing more money into cryptocurrencies than you would be willing to lose.

Decide on a Cryptocurrency Exchange

In order to buy Dogecoin, you will need to set up an account with a cryptocurrency exchange. Here, buyers and sellers come together to trade cryptocurrency for regular currency. The most popular cryptocurrency exchanges are Coinbase, Binance.US, and Kraken. They all offer a simple and easy-to-use platform, but with different fee structures. Coinbase charges higher fees, while Binance.US and Kraken have more advanced trader platforms with lower fees.

If you’re just starting out with cryptocurrency, you can use investment apps like Robinhood to purchase coins. However, be aware that you may not be able to transfer your cryptocurrency off of the app if you decide to do this. Some investors prefer to store their cryptocurrency in a separate “wallet” to protect it from hackers.

If you want to move your coins to a separate wallet using a brokerage app like Robinhood, you would have to sell your coins and then rebuy them in exchange. This would kind of defeat the purpose of buying them with an investment app in the first place. In other words, if you’re considering transferring your coins to a different wallet, it’s probably a good idea to start with an exchange.

Dogecoin is gaining in popularity, but it is not yet available on all crypto exchanges. Be sure to check that an exchange you’re considering has DOGE available before you try to buy it.

Select a Payment Option

In order to trade cryptocurrencies, you must first deposit money into your exchange or brokerage account. Most exchanges will allow you to deposit money from a checking or savings account, though some also accept wire transfers or PayPal transfers.

You typically have immediate access to a portion of your deposited funds for trading. If you deposited a large amount of money – typically more than $1,000 – you may have to wait a few days for the transfer to clear before you can use the entire deposit.

Read More: The Pros of Investing In Cardano

There are a few exchanges that will let you use a credit card to finance your Dogecoin and other cryptocurrency purchases, but keep in mind that your credit card company will most likely treat the transaction as a cash advance. This means that you will be subject to additional fees and a higher interest rate. Investing in crypto can be expensive and risky. That’s why experts usually suggest that people avoid buying crypto this way.

Place Your Order for Dogecoin

Once your money is deposited into your account, you can begin purchasing Dogecoin. To do so, go to the exchange’s trading or purchase platform and search for Dogecoin, or enter its ticker symbol: DOGE. Then, pick your trade type and input either the dollar amount you want to invest or the number of Dogecoins you want to buy.

If you place an order, it will go through right away. Buying and selling Dogecoin can be done 24/7, just like with other cryptocurrencies.

Crypto Cash Flow is a term that refers to the amount of money that an individual or organization is able to generate from their cryptocurrency investments or activities.

If You Buy Some Crypto Cash Flow Click Here

Consider Your Storage Options

If you purchase Dogecoin, it is typically kept in your exchange’s or brokerage’s cryptocurrency wallet. Some investors prefer to withdraw their crypto from their exchange or brokerage and store. It is another wallet because these wallets are generally connected to the internet.

There are two options for storing your Dogecoin- a hot wallet or a cold wallet. A hot wallet is digital and connected to the internet. While a cold wallet is a physical piece of hardware. That can be disconnected and is less vulnerable to hacking. Although cold wallets may cost more than hot wallets, they also provide greater security for your cryptocurrency. If you lose or forget the password necessary to access your cold wallet, you may be unable to retrieve your cryptocurrency.

How to Sell Dogecoin

If you want to sell your Dogecoin, the process is very easy. You’ll go to your holdings on your crypto exchange or brokerage platform and enter the amount you want to sell. Then your order will be processed.

If you’re profiting from Dogecoin investments, you’ll probably have to pay capital gains tax. Not paying taxes on your cryptocurrency earnings can come with some hefty consequences, like costly penalties. If you’re unsure of how to report your Dogecoin profits, seek out a tax professional for help.

Should I Buy Dogecoin?

-Dogecoin, which starts as a joke, is now taken more seriously by investors. Though it is still a very risky investment. Experts recommend investing no more than 3-10% of your portfolio in cryptocurrencies.

The amount of money you invest in Dogecoin should be based on how much risk you are willing to take and your current financial situation. If you are behind on your retirement savings and do not have an emergency fund, you should invest less money in Dogecoin. If you’re financially stable, on track to reach your retirement goals, and have a large financial cushion in the bank, you may be willing to invest more of your portfolio in Dogecoin.