Investing In Dogecoin: A Minor's Guide To Crypto

Dogecoin is a decentralised cryptocurrency that was initially created as a parody of Bitcoin. It has gained significant attention due to its meme-inspired branding and support from Tesla CEO Elon Musk. Investing in Dogecoin is risky, and it is considered a short-term investment due to its high volatility. To invest in Dogecoin, you must be over a certain age, depending on where you live. You will need to open an account with a cryptocurrency exchange, such as Coinbase, Kraken, or Binance, and verify your identification. You can then deposit funds and purchase Dogecoin.

Create a crypto exchange account

To create a crypto exchange account, you must first decide on the type of investment account you want to open. Custodial accounts, joint brokerage accounts, and premium custodial accounts are some of the options available. Custodial accounts are adult-managed investment accounts that allow a parent or guardian to open an account on behalf of a minor. Joint brokerage accounts are co-owned, usually by spouses, but can also be shared with a minor. Premium custodial accounts are another option, with fees ranging from $2.95 to $4.99 per month.

After deciding on the type of account, you will need to review the features of the various crypto exchange platforms. Consider the costs, such as opening fees, monthly costs, and transaction prices. Also, check that the crypto exchange platform offers the cryptocurrencies you are interested in, such as Dogecoin. Additionally, look into the security measures provided, as you can choose between hot wallets, which are connected to the internet, and cold wallets, which are physical hardware that can be disconnected from the internet.

Once you have decided on a platform, you will need to submit an application. This will require basic identification information, such as a birthday and Social Security number. You will also need to provide information about yourself as the parent or guardian. After your application has been approved, you can fund your account using fiat currencies, such as US dollars, which can be deposited from a checking or savings account.

It is important to note that while there are no age restrictions for using cryptocurrencies, most major crypto platforms require users to be at least 18 years old. Therefore, minors will need the assistance of a parent or guardian to create an account and invest in cryptocurrencies.

Verify your account

To invest in Dogecoin, you'll first need to verify your account on a cryptocurrency exchange platform. Here's a step-by-step guide on how to do that:

• Choose a Reputable Exchange: Select a well-known and trusted cryptocurrency exchange platform such as Coinbase, Kraken, or Robinhood. These platforms offer simple, user-friendly interfaces that are great for beginners. Make sure the platform you choose supports Dogecoin (DOGE) trading.
• Sign Up for an Account: Visit the website of your chosen exchange and look for the "Sign Up" or "Create Account" button. You will need to provide some basic personal information, such as your name, email address, and date of birth. Since you are a minor, you may need to provide additional documentation or have parental consent to open an account.
• Verify Your Email Address: After signing up, check your email inbox for a verification email from the exchange. Click on the verification link or enter the verification code sent to your email to confirm your email address.
• Set Up Two-Factor Authentication: To enhance the security of your account, enable two-factor authentication. This adds an extra layer of protection by requiring you to enter a unique code sent to your mobile device in addition to your password when logging in.
• Upload Identification Documents: Most exchanges will require you to verify your identity by uploading a government-issued ID, such as a driver's license, passport, or national ID card. Some exchanges may also ask for proof of address, such as a utility bill or bank statement. Make sure you have these documents ready and that the information on them matches the details you provided during sign-up.
• Wait for Verification: The verification process can take some time, depending on the exchange. In some cases, it may be instant, while other exchanges may take a few days to review and approve your account. You will usually receive an email notification once your account has been successfully verified.
• Add a Payment Method: Before you can start trading Dogecoin, you'll need to deposit funds into your account. Link a payment method, such as a bank account, debit card, or credit card, to your exchange account. Keep in mind that using a credit card for crypto purchases may incur additional fees and a higher APR.
• Start Trading: Once your account is verified and funded, you're ready to start investing in Dogecoin! Follow the platform's instructions to place your first Dogecoin order. Remember to consider your overall financial situation, investment goals, and risk tolerance when deciding how much to invest.

Remember that investing in cryptocurrencies like Dogecoin carries a high level of risk due to their volatile nature. Always do your own research and invest only what you can afford to lose.

Deposit funds

Once you have set up and verified your account on a cryptocurrency exchange, you can deposit money into your account through various methods, depending on the exchange's policies and your jurisdiction. In most cases, the exchanges will allow you to deposit money from a checking or savings account. Some exchanges, such as Coinbase, also accept wire transfers and PayPal transfers.

Typically, you will get instant access to a portion of the money from your deposit for trading. However, if you deposit a large amount—usually more than $1,000—you may have to wait a few days for the transfer to clear before you can use the entire sum.

A few exchanges permit the use of a credit card to buy Dogecoin. However, before using a card to finance your crypto purchases, be aware that your credit card company will treat the transaction as a cash advance, charging additional fees and a higher APR. This can make investing in cryptocurrency even more expensive and risky. Consequently, experts generally advise against buying crypto with a credit card.

Alternative methods

An alternative way to buy Dogecoin is through peer-to-peer (P2P) marketplaces, which allow you to buy DOGE directly from other individuals instead of using a centralized exchange. These platforms match buyers and sellers and provide a secure escrow system to facilitate the transaction.

Another way to acquire DOGE is by exchanging it with other forms of crypto in your wallet. For example, if you have Bitcoin or Ethereum, you can trade them for Dogecoin on exchanges like Uniswap and Kraken. This method can be faster and more cost-effective than buying DOGE with fiat currency.

Find DOGE and check the market price

Dogecoin (DOGE) is a cryptocurrency based on the "doge" internet meme, featuring a Shiba Inu on its logo. It was created by Billy Markus and Jackson Palmer and introduced in December 2013 as a lighthearted alternative to traditional cryptocurrencies like Bitcoin. Dogecoin is intentionally abundant, with 10,000 new coins mined every minute and no maximum supply.

To find Dogecoin and check its market price, you can refer to cryptocurrency exchange platforms or crypto price tracking websites. Here's a step-by-step guide:

• Visit a cryptocurrency exchange platform like Coinbase, Kraken, or Robinhood. These platforms allow you to buy and sell cryptocurrencies, including Dogecoin. Sign up for an account if you don't already have one.
• Navigate to the market or trading section of the platform. This is where you can view the current prices of different cryptocurrencies.
• Search for Dogecoin using its ticker symbol, DOGE. You should be able to see the current market price of Dogecoin in US dollars or your preferred currency. This price represents the cost of one Dogecoin at the moment.
• Additionally, you can explore crypto price tracking websites like CoinMarketCap, CoinGecko, or similar platforms. These websites aggregate data from multiple exchanges to provide real-time price information.
• On the chosen website, simply search for "Dogecoin" or "DOGE" in their search bar. They usually provide a dedicated page for Dogecoin, displaying its current price, market capitalization, trading volume, and historical price charts.
• By visiting these exchange platforms or price-tracking websites, you can stay updated with the latest market price of Dogecoin. Remember that cryptocurrency prices fluctuate, so be sure to check the price at the time of your investment or trading decision.

Consider storage options

When you buy Dogecoin, it is usually kept in your crypto exchange's or brokerage's crypto wallet by default. Because these wallets are generally connected to the internet, some investors choose to withdraw their crypto and store it in a different wallet.

You can store your Dogecoin in a hot wallet or a cold wallet outside of your exchange. 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.

Cold wallets are generally more expensive than hot wallets, and there is a greater risk of being unable to access your cryptocurrency if you lose or forget the password to your cold wallet.

• Ledger Nano S Hardware Wallet: Ledger Nano S is one of the top hardware wallets, offering a wide array of security features to keep your coins safe and out of the reach of hackers. The device stores your Dogecoin private keys and supports the storage of more than 700 different cryptocurrencies.
• Trezor One Hardware Wallet: A slightly cheaper hardware wallet option that supports Dogecoin and over 700 other tokens. The private keys to your Dogecoin wallet are kept on your device, making it difficult for hackers to access them through online connections.
• Exodus Wallet (Desktop and Mobile Wallet): A popular and well-designed wallet in the crypto industry, offering compatibility with Windows, Linux, Mac, iOS, and Android.
• Official Dogecoin Wallet: The official Dogecoin wallet is a quick and easy-to-use option for storing and transferring Dogecoin. It is available for Windows, OSX, Linux, and Android devices. However, it lacks support for iOS, and it is a Dogecoin-only wallet.
• Dogechain Wallet (Online Wallet): An online wallet that can be accessed from any browser. While this type of wallet is less secure, the Dogechain wallet is a solid choice for storing small amounts of Dogecoin. It encrypts all information and your wallet data is never accessed by Dogechain.
• Dogecoin Paper Wallet: A physical paper wallet is a secure way to store your cryptocurrencies. Your private keys are printed on a piece of paper, and you can use QR codes to make transferring coins easier. Paper wallets are not connected to the internet, making them less vulnerable to hacking. However, it is important to keep your paper wallet safe to prevent theft or destruction.

Frequently asked questions