Buy Dogecoin – 3 Steps Guide by CoinGape
Dogecoin is among the early cryptocurrencies. Most cryptocurrency enthusiasts will know about the amusing story behind the coin but are at a loss when you ask them about how to buy dogecoin or even why to buy it.
In this article, we will answer all the important questions around Dogecoin to help you to make a wise investment decision.
What is Dogecoin?
Dogecoin was created by Billy Markus, a software engineer and Jackson Palmer, former product manager at Adobe Systems in June 2013. The coin was actually meant to be a joke, but massive adoption by the community turned it into a major altcoin.
Palmer purchased the domain name dogecoin.com and put the image of Shiba Inu dog on it. Markus tweaked an existing cryptocurrency, Luckycoin. And, that’s how Dogecoin came into being. By June 2014, the coin had reached a market valuation of $60 million.
Now, Dogecoin enjoys the 29th position on CoinMarketCap and has a market valuation of over $300 million. Its ticker symbol is DOGE. And, you just can’t imagine Dogecoin without the iconic Shiba Inu dog.
What Can Dogecoin be Used for?
Dogecoin has no defined utility. However, it has been used by the community for several charitable purposes. Its most popular use case is “tipping” content creators and sharers. It has also been used for raising funds for sports teams and individuals players. In 2014, the Dogecoin community managed to raise 67.8 million Dogecoins which were worth around $55,000 at that time to sponsor Josh Wise, a NASCAR driver.
Should You Invest in DogeCoin?
Dogecoin is a well-known altcoin among seasoned cryptocurrency enthusiasts, and it has survived the ups and downs of the market.
This year, it has been trading between the $0.0019 to $0.0037 range, which is a fairly broad range. The coin does not get much affected by hype and is relatively stable. The coin has come so far because of the community support it has, and it can be assumed safely that this support will continue. Therefore, investors of dogecoin have a chance of earning profit from the coin. However, investing in dogecoin may not be as profitable as investing in other coins.
You might also like: Is Dogecoin a Good Investment: The Future of Dogecoin
How to Buy and Sell Dogecoin
If you are looking to buy Dogecoin, then these are the three steps you need to follow.
Step #1 – Getting a wallet
Before you buy Dogecoin, you must have a wallet to store it. It is always a better option to store your cryptocurrencies on external wallets than on the exchange. Exchanges are susceptible to getting hacked, so your coins are not sufficiently secure when stored on an exchange. When you buy dogecoin on an exchange, we suggest that you move it to an external wallet immediately.
There are several ways to store Dogecoin. Let us look at some of those ways –
- Dogecoin Wallet – This wallet is from the dogecoin company itself. It is a soft wallet designed especially for DOGE. It is among the top options for storing DOGE as it is easy to use.
- Dogecoin Paper Wallet – A dogecoin paper wallet is simply you writing down your private key on a piece of paper and storing it securely. While paper wallets are great against protecting the user from attacks, they are also inconvenient. They can get lost, misplaced or destroyed easily.
- Hardware Wallets – Hardware wallets are USB-type wallets which help store private keys digitally. They are very secure because they store your private keys separately from the computer system and are protected by two-factor authentication in most cases. The top hardware wallets for Dogecoin are Ledger NanoS, KeepKey, and Trezor. Their downside is that they can be expensive for the average user. (You can also look into our Trezor Vs Ledger wallet review)
- Soft Wallets – There are soft wallets other than the dogecoin wallet which can easily store your coin holdings. Jaxx, Coinomi, Exodus, and Atomic are a few popular soft wallets which support Dogecoin.
Step #2 – Finding an Exchange to Buy Dogecoin
The best way to buy dogecoin would be from an exchange. Several major exchanges offer DOGE for BTC, altcoins or stablecoins. These exchanges include Poloniex, Upbit, Kraken, Changelly, and Binance. We will discuss how to buy dogecoin with different payment methods in the sections to come.
For buying DOGE from an exchange, register your account on the exchange and deposit funds into it. If the exchange allows you to buy DOGE directly with USD, then you can easily deposit USD on the exchange. But, if the exchange only allows trading in cryptocurrencies, then you will first have to buy the cryptocurrency that is paired with DOGE and deposit it into your account.
Step #3 – How to Sell/Trade/Withdraw/Exchange your Dogecoin
You can sell DOGE on the exchange you bought it on. Go to the “Sell DOGE” tab and trade it for the cryptocurrencies available. If you have received BTC or ETH in exchange for your DOGE, then you can convert it into USD on an exchange that supports crypto-fiat pairs.
How to Buy Dogecoin with Different Payment Methods?
There are several payment methods with which you can buy dogecoin. Let’s look at some of the most popular methods for buying DOGE.
1. Buy Dogecoin With USD
Not many exchanges give the option of buying DOGE with USD. Changelly, however, will help you to buy the coin with USD. It is an instant cryptocurrency exchange that has partnered with other major exchanges such as Binance and Poloniex to facilitate quick crypto transactions. The platform charges a 0.25% transaction fee, and you also have to bear the standard network fees. But, with Changelly, you will be able to buy DOGE with USD in just a few clicks.
2. Buy Dogecoin with Bitcoin
It is easier to buy DOGE with BTC than it is with USD. Several major exchanges including Kraken and Binance support the DOGE/BTC pair. So, if you have BTC, then all you have to do is deposit it on the exchange and buy DOGE.
For example, if you want to buy DOGE on Kraken, then here’s how you could do it. If you already have BTC, then you can simply set up your account on the exchange and deposit the BTC on it. Or, you can buy BTC with fiat on the exchange itself. With BTC, you can easily buy dogecoin on the exchange.
For buying dogecoin on the exchange, go to the “New Order” tab and select the “Simple” trade option. Choose the pair DOGE/BTC and put in the amount that you want to spend. After ensuring that all the values have been entered correctly, place the order.
3. Buy Dogecoin with Credit Card
As per our information, there are no major exchanges which allow dogecoin to be bought with Credit Cards. But, BTC can be easily bought with the credit card on several exchanges and then it can be converted to DOGE.
AtomicWallet lets you buy BTC with a credit card and convert the BTC to DOGE quickly. Coindirect is a peer-to-peer marketplace that helps you buy various cryptocurrencies including dogecoin with ZAR, EUR, GBP, NGN, KSH.
Buy Dogecoin with Paypal
Coindirect, the peer-to-peer marketplace offers Paypal payments in the countries it supports. If you live in South Africa or Europe, you can buy dogecoin with Paypal.
If you live in the US, you could use Paypal to buy BTC on an exchange like localbitcoins.com and eToro. You can then transfer the BTC to an exchange which offers DOGE to make your purchase.
Some Quick FAQs on DogeCoin
You can store dogecoin in the following ways –
In a paper wallet
In a hard wallet like Trezor, Ledger NanoS, or KeepKey.
In a soft wallet like dogecoin wallet, Jaxx Wallet or AtomicWallet.