Dogecoin is one of the earliest cryptocurrencies to be launched in the market. Ironically, it was started as a joke and not a serious project in June 2013. One year later, the coin had reached a staggering market valuation of $60 million. The cryptocurrency is quite versatile in the way it is used. Several members of the community often make use of it for 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 individual players.
So, if you’re looking to make money with Dogecoin, you’re probably wondering how to go about buying this cryptocurrency. In this article, we will provide you with an easy to follow guide to buying dogecoins. However, before we get started, let us take a deeper look at its features.
What is Dogecoin?
Dogecoin is a decentralized, peer-to-peer digital currency that allows users to easily send money online. Dogecoin is an “inflationary coin,” while cryptocurrencies like Bitcoin are deflationary because there’s a ceiling on the number of coins that will be created. Every four years the amount of Bitcoin released into circulation via mining rewards is halved and its inflation rate is halved along with it until all coins are released.
Some of the key features of a doge coin are:
- Open source: The code is freely available for any programmer to change themselves
- Decentralized: Its blockchain, or database, exists on many computers around the world
- Peer-to-peer currency: Sending and receiving coins doesn’t need a central server or authority to work currency
- Vibrant community: Dogecoin is supported by a diverse and dedicated community
- Easy operation: You will be able to conduct transactions quickly and without any complications
How to buy dogecoin?
Step 1: Get a dogecoin wallet
Before you buy any kind of cryptocurrency, you will need a safe place to store it. This applies with dogecoin as well. There are various wallets available in the market today like hardware wallets, noncustodial wallets, and cloud wallets. However, out of these, the most commonly used wallets are non-custodial wallets. A noncustodial wallet refers to a wallet that enables you to personally generate cryptographic keys that only you will be in control of.
If you’re looking to buy a dogecoin wallet, there are four primary types that you can choose from-
- Software wallets: Dogecoin allows users to download two software wallets
- Dogecoin Core: This includes the entire Dogecoin blockchain. It generally takes a long time to download. By using this type of wallet, your computer becomes a Dogecoin node.
- MultiDoge: This is a relatively light wallet. It can store enough information to use Dogecoin, but your computer won’t become a full node.
- Online wallets: Wallets like Dogechain allow you to use the Dogecoin blockchain without storing any of it on your computer.
- Paper wallets: Such wallets are printable and can be held in your hand. This is a secure way to store your Dogecoin.
- Hardware wallets: These are removable hardware devices, like USB sticks.
Step 2: Choose a cryptocurrency exchange for your investments
Like most cryptocurrencies, Dogecoin is traded on multiple cryptocurrency exchanges. Generally, you will need to register and verify your account on these exchanges before you can start trading. There are several types of exchanges in the market, they include instant exchange, centralized exchange, decentralized exchange, and P2P Exchanges. Most of these exchanges only allow the purchase of bigger cryptocurrencies such as bitcoin, ethereum, or XRP. However, there are some exceptions. The direct purchase of Dogecoin using bank cards and bank transfer is limited but is available.
Some popularly used cryptocurrency exchanges that you can consider include:
- Crypto.com: This is a quickly growing international fiat-to-crypto gateway. Its app lets you buy and sell over 90 coins, including DOGE, without fees and extra markups and using most fiat currencies from all over the globe.
- Kraken: Kraken allows users to easily sign up and buy DOGE on its platform. It supports the trading of more than 150 coins, including Dogecoin (DOGE), Bitcoin (BTC), and other top cryptos. As a user, you just need to register an account, pass verification and make a bank deposit.
- ChangeNow.io: ChangeNow lets you buy cryptocurrency with a bank card and without account registration. All you need to have is a functioning Dogecoin wallet, and you can get one here.
- Binance: Binance lets you register quickly and buy cryptocurrencies without account verification. Binance offers a wide range of cryptocurrency services, and also supports buying cryptocurrencies with a bank card, bank deposit, and other third-party payment options.
Buying dogecoin with different payment methods
- USD: Changelly, a popular crypto exchange allows users to buy dogecoin with USD. The platform charges a 0.25% transaction fee, and you also have to bear the standard network fees. YoBit, Livecoin, and Exrates also support DOGE/USD pairing.
- Bitcoin: Most exchanges like 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 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.
- Paypal: Coindirect, the peer-to-peer marketplace supports Paypal payments in some countries. If the country you live in does not support this option, 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.
While buying dogecoin, or any other cryptocurrency, make sure that you choose a safe and secure cryptocurrency exchange for your transactions. Although dogecoin doesn’t have a significant advantage over other cryptocurrencies in the market, it has managed to acquire a loyal and dedicated community.
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