The people’s currency. The underdoge. Dogecoin cannot be stopped. This fan-favorite cryptocurrency has all but casually increased 50 times over in value, and the crypto has recently crashed below $0.20 for the 1st time since April. Since then, it’s been following the crypto market. Dogecoin is still under it’s all-time high prices, and it’s not out of the question for DOGE to reach $1 when the cryptocurrency bull market resumes.
If youâ€™re thinking about investing in DOGE, you must understand the risks. Our guide for beginners will help you learn more about DOGE and assist you in making your 1st investment in this doggy-themed crypto.
- What is DOGE?
- Brief History of DOGE
- How to Buy Dogecoin
- Best Crypto Exchanges for DOGE
- Best Crypto Wallets for Dogecoin
- Trade or Sell Your Cryptocurrency
- BlockFi: Leverage Your Crypto and Earn Interest
- Current Crypto Prices
- Getting Started With Cryptocurrency
- Frequently Asked Questions
What is DOGE?
Branding itself the â€œfun and friendlyâ€ internet currency, Dogecoin is a peer-to-peer and open-source digital currency introduced in December of 2013. Dogecoin was created in the early days of crypto, soon after major players like Bitcoin and Litecoin. The original idea behind Dogecoin was to create a more memorable cryptocurrency project to help the public understand the technology behind blockchains. Since then, Dogecoin has become an icon in the internet-powered retail investor era we live in today. The meme coin’s logo, the Shiba Inu, has been hard to avoid in 2021.
Dogecoin is built on the same basic technology as other cryptocurrencies like Bitcoin. However, DOGE introduces a few improvements to Bitcoinâ€™s technology to enable users to access faster and more affordable trading. While this is the case, other cryptocurrencies offer better, more innovative solutions to lessen transaction costs. Dogecoin isn’t groundbreaking by any means, but Dogecoin investors aren’t betting on the cryptocurrency’s technology. Instead, the so-called “Doge Army” is betting on the robust community around DOGE.
Brief History of DOGE
Dogecoin was introduced as a joke in 2013 to help raise public awareness of the capabilities of blockchain technology. Its mascot, the Shiba Inu, replicates the popular â€œdogeâ€ internet meme, which is also where the cryptocurrency gets its name.
Though Dogecoin was originally intended as a joke, DOGE quickly began gaining momentum thanks to its vibrant and passionate online community. Dogecoin has been involved in a number of highly public news stories, including its successful $50,000 fundraiser to send the Jamaican Bobsled Team to the 2014 Winter Olympics after they qualified but could not afford to attend.
DOGE is among the largest cryptocurrency project when measured by total market capitalization, with a market cap of more than $25 billion.
- Open an online account.
- Fund Account & Make your purchase.
After both your wallet and your exchange account are open, you can place a buy order to purchase DOGE. First, open your exchange’s trading platform and take a look at the current price of DOGE. Though the prices of cryptocurrencies always change, you can expect to pay near the market rate â€” you may want to track the price of DOGE and how itâ€™s moving to ensure that you donâ€™t overpay for your coins.
The best exchanges will offer you a wide range of order types to choose from. If youâ€™ve ever traded stocks before, youâ€™re likely already familiar with the basic types of orders. If you havenâ€™t, be sure to gain a basic familiarity with the most common order types before you invest. Choose an order type and calculate how much DOGE you want to buy based on your available funds and the current market price.
From here, your broker will take care of filling your order on your behalf. When you see your DOGE in your exchange wallet, it means that your order has been completed. If your broker cannot fill your order according to your specifications, they may cancel it at the end of the trading day.
- Buy a wallet (optional)
A cryptocurrency wallet provides you with a set of keys that you can use to store your DOGE off of an exchange. This helps keep your investment safer in the event that your exchange is targeted in a hack or theft.
Robinhood does not currently offer users access to send or receive their assets to another wallet. If you want to hold your own cryptocurrency, use a wallet that lets you control your own private key. Coinbase, eToro and Gemini all provide access to send and receive from their respective exchange wallets. For the best security, use a wallet that lets you manage your own private key.
There are 2 major types of cryptocurrency wallets: hot software wallets and cold hardware storage wallets. Software wallets are free, but they must be connected to the internet in order to access your investments. Hardware wallets store your coins offline for maximum security but may cost up to $50. Consider our favorite software and hardware wallets when deciding how youâ€™ll store your DOGE.Â
Best Crypto Exchanges for DOGE
The following exchanges allow buying, selling and trading of Dogecoin.
1 Minute Review
Gemini is a cryptocurrency exchangeÂ and custodian that offers investors access to 26 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.
Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Geminiâ€™s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader.Â
In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.
- New investors looking for a simple mobile and web app
- Experienced investors who need a more advanced platform with more tools
- Users looking for a 1-stop-shop to buy, sell and store all of their coins
- Easy and quick signups â€” can get started in as little as a few minutes
- Multitude of platforms to accommodate traders of all skill levels
- Hot wallets include insurance to protect your from theft and hacking attempts
- Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app
1 Minute Review
eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since 2007. A major eToro plus is its social trading operations, including OpenBook, which allows new clients to copy trade the platformâ€™s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features
- U.S. based cryptocurrency traders
- Social and copy traders
- Simple user interface
- Community engagement and following other traders
- 25 cryptocurrencies
- Expansive network of social trading features
- Large client base for new traders to imitate
- U.S. traders can only buy cryptocurrency
Buying & selling Dogecoin
get started securely through Robinhood’s website
Intermediate Traders and Investors
Get started securely through Webull’s website
Intermediate Traders and Investors
1 Minute Review
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. Itâ€™s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webullâ€™s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.
Webull is widely considered one of the best Robinhood alternatives.
- Active traders
- Intermediate traders
- Advanced traders
- Commission-free trading in over 5,000 different stocks and ETFs
- No account maintenance fees or software platform fees
- No charges to open and maintain an account
- Leverage of 4:1 on margin trades made the same day and leverage of 2:1 on trades held overnight
- Intuitive trading platform with technical and fundamental analysis tools
- Does not support trading in mutual funds, bonds or OTC stocks
1 Minute Review
Voyager is a leading name in the sphere of cryptocurrency investing, giving you access to over 50 tokens and coins. Buy, sell and swap assets using Voyager Cryptoâ€™s simple mobile platform available as a free download for iOS and Android users.Â
When you invest through Voyager, youâ€™ll pay nothing in commissions, which is a major benefit when compared to other cryptocurrency brokers. Voyager is also one of the only brokers weâ€™ve seen that allows users to earn interest on their crypto investments.Â
Though the broker could do more to improve its customer service, itâ€™s an excellent option for beginner investors and seasoned professionals alike.
- Cryptocurrency investors looking for a wide selection of supported projects.
- Investors who prefer mobile trading.
- Anyone interested in earning interest on their crypto investments.
- Simple, straightforward and intuitive mobile platform
- Wealth of investment opportunities
- Allows users to earn interest on select crypto investments
- Only available for mobile users â€” no desktop platform
- Limited routes to contact customer service team
1 Minute Review
Coinbase is one of the Internetâ€™s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs.Â
You can even earn cryptocurrency rewards through Coinbaseâ€™s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.
Though Coinbase doesnâ€™t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.
- New cryptocurrency traders
- Cryptocurrency traders interested in major pairs
- Cryptocurrency traders interested in a simple platform
- Simple platform is easy to operate
- Comprehensive mobile app mirrors desktop functionality
- Coinbase Earn feature rewards you with crypto for learning about available coins
- Higher fees than competitors
Best Crypto Wallets for Dogecoin
It’s not recommended to store cryptocurrency on an exchange, as it increases your risk of being hacked. Since centralized exchanges hold custody of your funds, they’re large targets for cryptocurrency hackers. If a hacker is able to breach the exchange, they could steal the funds held on the platform. To mitigate this risk, you should use a cryptocurrency wallet that allows you to hold custody of your cryptocurrency. Here are our picks for best hardware and software wallet for DOGE.
Best Hardware Wallet: Ellipal Titan
The Ellipal Titan is a multicurrency wallet that supports DOGE, Bitcoin, Ethereum and over 7,000 additional digital assets. The Ellipal Titan features a large touchscreen that makes it easy to track your holdings without connecting to Wi-Fi. Since the wallet isn’t connected to the internet, it’s impossible for online hackers to steal your assets. To transfer your coins to your wallet, you can use the deviceâ€™s QR to send crypto in a matter of seconds. With a simple, streamlined interface and an easy setup process, the Ellipal Titan is an ideal choice for cryptocurrency investors.
The Ellipal Titan usually comes in at a premium over other cryptocurrency wallets, as it has several premium features that improve user experience. However, the hardware wallet is currently on sale, so you can save $30 on your Ellipal today.
Best Software Wallet: Dogecoin Wallet
The fun and friendly internet currency also offers its own simple, intuitive wallet option for both desktop and mobile. Getting started with the Dogecoin Wallet takes about 5 minutes. Simply click on your operating system, download and execute the wallet and start safely storing your DOGE online. You can also download the Dogecoin Wallet for free on the Google Play store.
Trade or Sell Your Cryptocurrency
After you see your DOGE in your exchange wallet, you will now need to decide how you want to earn a return on your investment. There are 2 major strategies you can take:
- Long-term holding: Investors who believe that the price of Dogecoin may hold it for months or even years at a time. If this is your strategy, transfer your DOGE to your wallet as soon as possible to keep your investments safer.
- Short-term scalping: Short-term investors capitalize on small price movements by buying and selling DOGE when it’s advantageous for them.
If you plan on becoming a short-term investor, itâ€™s important to have access to a reliable and fast-executing trading platform.
BlockFi: Leverage Your Crypto and Earn Interest
Cryptocurrency investors are always looking for ways to lower their tax bills, especially in the United States where capital gains taxes may soon double due to a newly proposed bill. BlockFi provides the best way to make use of your crypto profits without having to realize them and pay capital gains.
BlockFi offers loans without approval by requiring cryptocurrencies like Bitcoin as collateral. As long as you pay back the loan, you will be able to reclaim your crypto. This is perfect for crypto holders who strongly believe their token of choice will perform well because they can use the cash from the loan while still having the exposure they want.
Some BlockFi users use the loan to buy more cryptocurrency to leverage their position even more, although this can be risky for volatile assets. Users with lower risk tolerance on BlockFi may instead choose to simply keep their assets in BlockFiâ€™s high interest bearing accounts to earn 5% to 10% interest. If any of BlockFiâ€™s services are for you, check it out and set up an account to start earning!
Current Crypto Prices
The price of cryptocurrencies can change on a minute-to-minute basis. Some of the factors that may influence the price youâ€™ll pay to invest in DOGE or another cryptocurrency may include:
- Current supply: Dogecoin is an inflationary cryptocurrency. 10,000 new Dogecoin are minted every minute.
- News: Elon Musk has pumped DOGE several times, including the cryptocurrency in his SNL skit.
- Current financial conditions: Like most altcoins, Dogecoin follows the trend of Bitcoin’s price. More investors flock to altcoins for higher returns during bull markets, but these cryptocurrencies typically underperform in cryptocurrency bear markets.
Getting Started With Cryptocurrency
Whether you decide to invest in Dogecoin, Bitcoin or another cryptocurrency, remember the risks that come with buying a volatile asset. Most investors would agree Dogecoin is a much more risky investment than Bitcoin. With Bitcoin being added to corporate balance sheets and becoming legal tender in El Salvador, it’s likely here to stay. However, the cryptocurrency market is still largely unregulated and the price of any cryptocurrency can decline in value at any time. Never invest more money than you can afford to lose and it may be smart to use cryptocurrency as an add-in to a diversified portfolio.
Frequently Asked Questions
Is Dogecoin a scam?
No, Dogecoin isn’t a scam. Dogecoin is a currency, so its value is derived from user adoption and utility. This being said, many investors agree that Dogecoin is a bubble, so you should still be weary of investing in a meme coin with a multi-billion dollar market capitilization. While there may still be room for Dogecoin to grow, there is certainly room for Dogecoin to fall in price.
Why is Dogecoin so cheap?
The per token price of Dogecoin is cheap solely due to the enormous supply of Dogecoin in circulation. Since there are over 130 billion DOGE in circulation (compared to just 21 million bitcoin) the per token price is lower. When investing in crypto, a cryptocurrency’s market capitalization (token supply x token price) is much more telling of whether or not a cryptocurrency is “cheap.”