Dodge Coin Investment: A Beginner's Guide To Crypto Investing

Dogecoin (DOGE) is a cryptocurrency that was started as a joke in 2013. It was created by software engineers Jackson Palmer and Billy Markus, who had no intention of creating a serious investment coin. However, Dogecoin has since gained a passionate following, with its value increasing by more than 15,000% in the first half of 2021. Despite its popularity, Dogecoin is considered a risky investment due to its high volatility and unlimited supply.

If you are considering investing in Dogecoin, there are several steps you should take. Firstly, you should decide how much you want to invest, keeping in mind that cryptocurrencies are generally very risky investments. Next, you will need to choose a cryptocurrency exchange, such as Coinbase or Kraken, and select a payment option. Once your payment has been processed, you can place your order for Dogecoin. Finally, you should consider your storage options, either keeping your Dogecoin in your exchange's crypto wallet or transferring it to a separate hot or cold wallet.

How much to invest in Dogecoin

Dogecoin is a highly volatile and risky investment. It is a 'meme' cryptocurrency that was started as a joke in 2013, and its value is based on hype and social media. It has no supply cap, unlike other cryptocurrencies such as Bitcoin, and its value is extremely unpredictable.

When deciding how much to invest in Dogecoin, it is important to consider your overall financial situation, investment portfolio, and risk tolerance. Experts recommend investing no more than 3% to 10% of your portfolio in cryptocurrencies.

If you are determined to invest in Dogecoin, only invest what you can afford to lose. It is a risky and unpredictable investment, and you may lose all of your money. Do not take on debt to invest in Dogecoin, and do not use margin to amplify your investment. Keep your Dogecoin investment separate from your regular investing budget.

Dogecoin is not available on all crypto exchanges, so make sure any exchange you are considering offers Dogecoin if you want to purchase it. Some popular exchanges that offer Dogecoin include Uphold, Webull, Robinhood, Kraken, and Crypto.com. You can also use investment apps like Robinhood.

Once you have decided how much to invest, you will need to open an account with a cryptocurrency exchange and select a payment option. You can then place your order for Dogecoin. It is recommended to then transfer your Dogecoin from the exchange to a separate crypto wallet to protect your coins from hackers.

Choosing a cryptocurrency exchange

When deciding where to buy Dogecoin, you should consider a few factors. Firstly, make sure that the exchange you're considering has Dogecoin available for purchase. While it is one of the most popular cryptocurrencies, it is not universally available on all crypto exchanges.

You should also consider the fees charged by the exchange. Credit card purchases are the most expensive option, with fees ranging from just under 2% up to 3%, plus a flat fee. Bank transfers are the cheapest option, but they are also the slowest, often taking 2-3 days to complete. Cryptocurrency exchanges that offer direct trading between crypto traders will also have lower fees, but this option may be more complex and intimidating for beginners.

It is also important to consider the security of the exchange. Cryptocurrency exchanges are prime targets for hackers, so you may want to consider transferring your Dogecoin to a separate crypto wallet for safekeeping. Some investors prefer hardware wallets, which are not connected to the internet and therefore less susceptible to hacking. However, these can be expensive, and unless you're buying large amounts of crypto, you probably don't need one.

Some of the most popular exchanges for buying Dogecoin include Uphold, Webull, Robinhood, Kraken, Crypto.com, Coinbase, Gemini, Binance, and eToro.

Payment options

The easiest way to buy Dogecoin is from a cryptocurrency exchange. You can use a credit or debit card, or a bank transfer to deposit money into your account. You can also use PayPal to buy Dogecoin, but there are very few exchanges that accept this payment method due to the high risk of fraud.

If you want to buy Dogecoin with a credit card, be aware that purchases usually have higher fees than with a bank transfer, but are processed faster.

• Binance: a leading cryptocurrency exchange that supports the purchase of over 200 cryptocurrencies. It allows users to buy Doge with a variety of traditional currencies and payment methods.
• Bitpanda: an Austrian exchange founded in October 2014. It allows residents of the EU and a handful of other countries to buy Dogecoin and other cryptocurrencies through a variety of payment methods.
• Uphold: a New York-based platform that offers trading for cryptocurrencies, commodities, equities, and fiat currencies. Uphold doesn't offer any fancy crypto features like lending or staking, but you'll be able to fund your account easily with a bank card or bank deposit.
• EToro: if you're only interested in making a profit from Dogecoin's price changes and aren't into actually owning the coins, eToro is probably the easiest and cheapest option. However, due to their relatively complicated withdrawal process, eToro is less recommended for accessing and using the actual coins.
• Kraken: a US exchange that allows you to deposit funds via a credit card or wire transfer. Users in Europe can benefit from fast and free SEPA deposits.
• Changelly: one of the few places that will allow you to buy Dogecoin with almost any currency (fiat or crypto). The downside is that it can be quite expensive in fees, especially if you buy Dogecoin with a credit card.
• Gemini: an exchange based in New York, most well-known for being founded by the Winklevoss twins. Traders on Gemini can make instant purchases using a bank card or deposit fiat currency using wire transfers or ACH.
• Bittrex: a US-based cryptocurrency exchange that offers a DOGE/BTC pair, meaning you will need to either buy Bitcoin or deposit Bitcoin in order to exchange it for Dogecoin.
• Coinbase: a regulation-friendly US-based cryptocurrency exchange that has been around since 2012. Users can easily buy cryptocurrency on Coinbase using a linked credit card or bank account.

It's important to note that not all exchanges support the same payment methods, so be sure to check before signing up. Also, remember that it's always sensible to store your cryptocurrency in a wallet rather than on an exchange, as this reduces the risk of your cryptocurrency being lost or stolen.

Placing your order

Once you've decided how much to invest, chosen a cryptocurrency exchange, and selected a payment option, it's time to place your order for Dogecoin.

On the exchange's trading or purchase platform, search for Dogecoin or enter its ticker symbol, DOGE. Then, decide whether you want to specify the dollar amount you want to invest or the number of Dogecoins you want to buy.

Keep in mind that Dogecoin is highly volatile, so only invest an amount you are comfortable losing. Dogecoin's value is largely driven by social media hype and can fluctuate significantly based on tweets from high-profile individuals like Elon Musk.

After you've decided on the amount, place your order. Unlike stocks, Dogecoin can be traded 24 hours a day, seven days a week, and your order should go through immediately.

If you've purchased Dogecoin through an exchange, consider transferring it to a crypto wallet for added security. Crypto wallets can be digital (hot wallets) or physical hardware (cold wallets). While hot wallets are more convenient and less expensive, cold wallets offer greater protection from hacking attempts but come with a higher price tag and the risk of losing access to your coins if you forget your password.

Storing your Dogecoin

When you buy Dogecoin, it is initially kept in your exchange's or brokerage's crypto wallet. However, because these wallets are generally connected to the internet, some investors choose to withdraw their crypto and store it in a separate wallet.

You can store your Dogecoin in a hot wallet or a cold wallet. Hot wallets are digital and connected to the internet, while cold wallets are physical hardware that can be disconnected, making them less susceptible to hacking.

Examples of hot wallets include the Official Dogecoin Wallet, which is available for Windows, OSX, and Linux. There is a core wallet that downloads the entire blockchain and helps secure the network, as well as a lite version called MultiDoge, which is suitable for storing and transferring Dogecoin. There is also a mobile version for Android devices. Another hot wallet option is the Dogechain Wallet, an online wallet that can be accessed from any browser. While this type of wallet is less secure, it may be a good choice for those dealing with small amounts of Dogecoin.

If you prefer a cold wallet, there are several hardware wallet options available, such as the Ledger Nano S and the Trezor One. These wallets store your private keys on the device itself, making it difficult for hackers to access them through online connections. The Ledger Nano S also features a built-in OLED display that allows you to manually verify transactions.

Another option for storing your Dogecoin is a paper wallet, which is a physical piece of paper with your private keys printed on it. This method ensures that your coins are not connected to the internet and are safe from hackers. However, it is important to keep your paper wallet in a safe place to prevent theft or destruction.

When choosing a wallet, it is important to prioritise security to protect your Dogecoin from hackers, incorrect address typing, or forgotten passphrases. Always research and verify the wallet with the crypto community before use.

Frequently asked questions