Dogecoin In Hawaii: Investing In The Meme Coin

Dogecoin has been among the top cryptocurrency searches in Hawaii, and while it is legal to buy and sell, there are some local laws that complicate its purchase from certain exchanges. In 2017, the Hawaii Division of Financial Institutions enforced a new law that required cryptocurrency companies to hold cash-on-hand equal to the value of cryptos that their customers hold. This led to major exchanges like Coinbase pulling out of the state. However, Hawaii has since become more welcoming towards cryptocurrencies, and in 2020, the state announced a digital currency regulatory sandbox initiative, allowing 11 companies to offer services without having to abide by the 2017 rules. These include BlockFi, Gemini, Kraken, Uphold, and Binance.US.

Choose a platform

There are a number of platforms that allow you to buy Dogecoin (DOGE). However, many of the major exchanges such as Coinbase, Binance, and Kraken are not available in Hawaii.

One platform that is available in Hawaii is BlockFi. BlockFi is a fully-fledged financial platform that offers more than simple cryptocurrency buying, selling, and trading. There are interest-bearing accounts where you can earn upwards of 8% APY annually, as well as the ability to take out crypto-backed loans with rates as low as 4.5% APR. BlockFi also offers a VISA credit card, which allows you to spend your cryptocurrency with global merchants that support VISA.

Another option for buying Dogecoin in Hawaii is Uphold. However, some users have reported issues with buying and selling certain cryptocurrencies, including Dogecoin, on this platform.

Other platforms that may be available in Hawaii include Gemini, Voyager, and Huobi.

Register and set up an account

To register and set up an account to invest in Dogecoin in Hawaii, you can follow these steps:

Firstly, you will need to choose a platform that is available in Hawaii. Some options include BlockFi, Gemini, Kraken, Uphold, and LocalBitcoins. Each platform will have its own registration process, but you will generally need to provide your name, email address, phone number, and create a password. You may also need to provide additional information such as your address, social security number, and the source of your funds to comply with AML (anti-money laundering) and KYC (know your customer) requirements.

After registering, you will typically need to verify your account by clicking a link sent to your email address and/or phone number. For added security, it is recommended to enable two-factor authentication, which will require you to enter a one-time code sent to your phone each time you want to authorize certain actions, such as withdrawing funds.

Once your account is set up and secured, you can move on to the next steps of funding your account and purchasing Dogecoin.

Fund your account

Funding Your Account

Once you have registered and set up your account, the next step is to start funding your account so you can purchase Dogecoin. There are three options for funding your account: ACH transfer, wire transfer, or depositing cryptos from another account or wallet. The first two options are best for those who don't already have cryptocurrencies and need to start with fiat currencies.

The setup process for ACH and wire transfers is simple. Just follow the on-screen instructions, starting from going to your "Profile Settings", then selecting "Bank Accounts", and later adding and linking your chosen account with a bank account of choice. When that's done, click on the "Deposit" tab, and then select which currency you want to deposit. For example, you could choose to deposit "USD (as Stablecoin)".

When it comes to choosing between ACH and wire transfer, ACH is a bit slower to process and finalize the transfer, taking 3-5 days for funds to reach your account, with a low daily deposit limit of $1,000 but is cheaper in terms of fees. Wire transfers are more expensive when it comes to transfer fees, but the funds will take just 1-2 days to reach your account, and there are no maximum daily deposit limits.

If you are already familiar with cryptocurrency exchanges or wallets and how they work, you can opt to fund your account using cryptocurrencies. Simply click on the "Deposit" tab, and take your pick of which crypto token you'd like to deposit. For example, you could choose "Bitcoin (BTC)".

Once you've selected this, you will be shown a QR code and a BTC deposit address. Either scan the QR code or manually copy and paste the Bitcoin address to deposit BTC into your account. Just make sure to type in the correct address. Some tokens may require additional data for the deposit. Also, depending on which service you're withdrawing from, it might take some time for the withdrawal to be reviewed.

Choose a cryptocurrency

When it comes to choosing a cryptocurrency to invest in, there are a few factors to consider. Firstly, it is important to diversify your investments across various asset classes, including cryptocurrency, and then further diversify across different cryptocurrencies to reduce risk. As of July 2022, there were over 20,000 cryptocurrencies available, so it is a crowded market.

One way to select a cryptocurrency is to look at the market capitalisation. This will show you which cryptos are ranked highest currently and how their value has changed over time. Be aware of world events that can affect the price of cryptos, such as Elon Musk's purchase of Twitter. Some cryptocurrencies are more volatile than others, so consider this when deciding.

It is also important to look at the supply of the coin. Find out how many are in circulation and how many can be mined. If there is a limited supply, like with Bitcoin, the demand will increase as more people invest, and this will affect the price.

Always look for a white paper when considering a cryptocurrency investment. This document will give you details about the coin, its utilities, and its purpose, as well as the technology behind it. It will also give you an idea of its legitimacy.

Finally, consider the use cases of the coin. The more use cases a coin has, the more its value will increase, and the more widely it will be accepted. For example, Ethereum has one of the best use cases in terms of technology, and this is reflected in its market capitalisation.

Make your purchase

Now that you have set up your account, it's time to make your first Dogecoin purchase. The process will differ slightly depending on the platform you have chosen, but the general steps are as follows:

• Navigate to the "Buy Crypto" or "Trade" section of your chosen platform.
• Select Dogecoin as the cryptocurrency you want to buy.
• Choose the payment method you want to use (credit/debit card, bank transfer, etc.).
• Enter the amount of Dogecoin you want to buy or the amount of fiat currency you want to spend.
• Review the transaction details, including any fees or charges.
• Confirm the transaction.

Once the transaction is confirmed, the Dogecoin will be deposited into your account or wallet on the platform. You can then choose to hold onto your Dogecoin, hoping that its value will increase over time, or you can use it to purchase goods and services from merchants that accept Dogecoin as payment.

Some platforms may also allow you to withdraw your Dogecoin to a private wallet for added security. Just remember to keep your private keys secure and never share them with anyone.

It's important to note that the cryptocurrency market is highly volatile, and the value of Dogecoin can fluctuate significantly. Always do your own research and invest only what you can afford to lose.

Frequently asked questions