How To Purchase Dogecoin?
Every dog has its day, and recently, Dogecoin has been the luckiest dog in the world of cryptocurrencies.
Everyone from Elon Musk to Mark Cuban has talked about how excited they are about the original meme cryptocurrency. This has caused it to skyrocket by more than 7,000% in the first half of 2021.
Dogecoin is still a popular cryptocurrency, even though its price has been very unstable. Its all-time high was just over 70 cents per coin, but it dropped by a huge amount in the middle of 2021.
Here’s everything you need to know about how to buy Dogecoin.
How to Buy Dogecoin in 5 Easy Steps
1. Think about how much money you want to put into Dogecoin.
Even though there are stories going around the internet about people who put a small amount of money into DOGE and are now millionaires, investors should be careful.
Investing in cryptocurrencies is a very risky move, and Dogecoin is especially volatile because there is no limit to how much it can be made.
How does that work? If investors want the price of Dogecoin to go up or even stay the same, they have to keep buying more coins. If not, the amount of DOGE in circulation will grow quickly, which will lower the value of all the coins already in circulation (think inflation on steroids).
In fact, one of the people who made Dogecoin took away the limit on the number of them so that people wouldn’t keep them for a long time.
That’s very different from Bitcoin and other major cryptocurrencies, like Ethereum, where the number of coins that can be made is limited. This makes coins harder to find, which helps them keep their value.
When deciding how much to invest, you should think about your overall finances, the investments you already have, and how willing you are to take risks.
In general, experts say you shouldn’t put more money into cryptocurrencies than you’re willing to lose.
2. Choose a place to trade cryptocurrency.
To buy Dogecoin, you’ll need to open an account with a cryptocurrency exchange, which is a place where buyers and sellers of cryptocurrencies meet to trade them for dollars. Coinbase, Binance.US, and Kraken are all popular exchanges.
Each of them has both a simple, easy-to-use platform with higher fees and a more advanced trader platform with lower fees.
You can also buy crypto through easy-to-use investment apps like Robinhood, but be aware that you may not be able to move your coins out of the app.
Some investors like to keep their crypto coins safe from hackers by putting them in different crypto wallets. To do that with an investment app like Robinhood, you’d have to sell your coins and then buy them back on an exchange.
This kind of defeats the purpose of buying coins with an investment app in the first place. All of this means that if you even think you might want to move your coins to a different wallet, you’re probably better off starting with an exchange.
Dogecoin has become much more popular in recent months, but it is not available on all cryptocurrency exchanges. If you want to buy DOGE, make sure the exchange you’re thinking about has it for sale.
3. Choose a way to pay.
You must put money into your exchange or brokerage account before you can start trading cryptocurrencies.
Most of the time, you can put money into an exchange from a checking or savings account. Some will take wire transfers and transfers through PayPal.
Most of the time, you can trade right away with some of the money you deposit.
If you deposited a lot of money, usually more than $1,000, you may have to wait a few days for the transfer to clear before you can use the whole deposit.
Note: There are a few places where you can buy Dogecoin and other cryptocurrencies with a credit card.
Before you use a credit card to buy crypto, remember that your credit card company will treat the money as a cash advance and charge you extra fees and a higher APR.
This can make it more expensive and risky to invest in crypto. Because of this, most experts tell people not to buy cryptocurrency this way.
4. Put in a request for Dogecoin
You can buy Dogecoin once your money is in your account. You can buy or sell Dogecoin on the exchange by searching for it or by entering its ticker symbol, DOGE.
Then, choose the type of trade you want to make and enter either the amount of money you want to invest or the number of Dogecoins you want to buy.
The order should go through right away after you place it. Dogecoin can be bought and sold at any time, just like other cryptocurrencies. You can buy and sell Dogecoin 24 hours a day, seven days a week.
5. Think about your options for storage.
When you buy Dogecoin, it goes into the crypto wallet of your exchange or brokerage. Since these are usually connected to the internet, some investors prefer to take the crypto they buy from their exchange or broker and put it in a different wallet.
You can choose to keep your Dogecoin in a hot wallet or a cold wallet outside of your exchange.
Hot wallets are online and digital, while cold wallets are hardware that you can disconnect from the internet. This makes cold wallets much harder to hack.
Cold wallets, on the other hand, tend to be more expensive than hot wallets, and if you lose or forget the password to your cold wallet, you are more likely to be locked out of your crypto currency.
Read More:
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A Thorough Overview of Cryptocurrency Fees and How To Reduce Expenses
