Webull Guide: Investing In Dogecoin

Dogecoin has gained a lot of attention in recent years, with its value skyrocketing due to celebrity endorsements and viral social media posts. If you're looking to invest in Dogecoin, one of the popular platforms to do so is Webull, a commission-free investment platform that offers a variety of assets, including stocks, ETFs, and cryptocurrency. Here's an introduction to investing in Dogecoin on Webull, including the steps you need to take to get started.

Setting up a Webull account

Step 1: Visit the Webull Website or Download the App

You can choose to set up your Webull account either through their website or by downloading the Webull app on your smartphone. Both options provide a convenient way to initiate the account creation process.

Step 2: Fill Out the Registration Form

When you first visit the Webull website or open the app, you'll be prompted to sign up. This typically involves providing personal information, such as your name, date of birth, social security number or Individual Taxpayer Identification Number (ITIN), address, and other relevant details. You will also need to be at least 18 years old and meet residency requirements, including being a US citizen or having a permanent residency card or visa.

Step 3: Provide Employment and Financial Information

As part of the account setup process, Webull will ask you about your employment status and financial experience. This includes questions about your current income, the value of your liquid assets, and your financial goals. This information helps Webull understand your investing objectives and determine the types of assets that may be suitable for you.

Step 4: Verify Your Identity

To comply with regulatory requirements, Webull will request that you verify your identity. This typically involves providing a photo or scan of your government-issued ID, such as a driver's license or passport. This step ensures that you are who you say you are and helps prevent fraud and identity theft.

Step 5: Choose Your Account Type

Webull offers different types of accounts, such as cash or margin accounts. A cash account is a standard brokerage account where you pay for the securities you buy. A margin account, on the other hand, allows you to borrow money against your existing investments to increase your buying power, but it also comes with higher risks. You can also opt for an individual retirement account (IRA), such as a Roth or traditional IRA.

Step 6: Review and Submit Your Application

Once you have completed the registration form and provided all the necessary information, carefully review your application to ensure that all the details are accurate and up to date. After submitting your application, Webull will typically take around one business day to review and verify your account information.

Step 7: Fund Your Account

After your Webull account has been successfully verified, you will need to fund your account before you can start trading. Webull offers various funding methods, including wire transfer, microdeposits, and ACH deposit. There is no minimum deposit required, and you can start trading with as little as you wish.

By following these steps, you'll be well on your way to setting up your Webull account and taking advantage of the platform's trading features. Remember to do your research, understand the risks involved, and make informed investment decisions.

Verifying your identity

To verify your identity on Webull, you will need to follow a few steps. Firstly, ensure you have a valid form of identification. This can be a passport, a national identity card, or a driver's license. You will also need proof of address, such as a recent utility bill or bank statement. For clients who hold a Hong Kong or Macau ID card, you will need to provide residential address proof from the last three months.

The next step is to fill out the application form with your personal information. This will include your name, date of birth, contact details, and other relevant information. After you have completed the form, you will need to choose your account type and read and confirm the risk disclosures.

The final step is to complete the identity verification process. This usually involves an online transfer authentication with an initial deposit from a bank account under your name. The amount required for this step varies depending on your location and account type. For example, for clients with a Hong Kong or Macau ID card, the initial deposit must be HK$10,000 or more.

Once you have completed these steps, your identity should be verified, and you can proceed with using Webull's services.

Linking your bank account

To link your bank account to Webull, you must first download the app and create an account. Once you have the app downloaded, you can register for your own account. You will need your bank account information to link your account and start trading.

After setting up your Webull account, you can begin the process of linking your bank account. Go to the app homepage and click on "transfers" at the top of the screen. From there, select the "link a bank account" option. At this point, you will need to make a wire or ACH transfer and go through either a micro-deposit or real-time verification to finish the process.

An ACH transfer is free of charge but takes longer than a domestic wire transfer, which is a paid service. ACH transfers are only available to those with US bank accounts. If you are outside of the US, you will need to use a wire transfer.

After choosing your transfer type, you will need to select your verification type. For micro-deposit verification, you must enter your routing and account numbers, and Webull will send two transactions to your bank account. These will be processed within one to two business days. Once the sum is transferred, Webull will withdraw the money, and you will need to verify the transactions.

For real-time verification, you will be directed to Plaid, which ensures secure and encrypted transactions. You will need to choose your bank, enter your bank user ID and password, and provide text, phone, or email verification. You will then receive a code to submit. If you have multiple bank accounts, you will need to choose one.

Deciding how much Dogecoin to buy

When deciding how much Dogecoin to buy, it is important to remember that cryptocurrencies are very risky investments. Dogecoin is particularly volatile because it has an unlimited supply. For its price to increase or even remain steady, investors have to continually buy more coins. Otherwise, the supply of Dogecoin rises rapidly, and the value of all coins in circulation decreases.

Consider your overall financial situation, investment portfolio, and risk tolerance. It is generally recommended that you should not invest more than you are willing to lose. If you are behind on your retirement savings and don't have an emergency fund, consider investing a smaller amount. On the other hand, if you are financially stable, on track to meet your retirement goals, and have a large financial cushion, you may be willing to invest a larger amount.

Dogecoin gained more than 8,000% in 2021. If you had invested $1,000 in Dogecoin on January 1, 2021, you would have had nearly $50,000 by the end of the year. However, past performance does not guarantee future results, and the value of Dogecoin can fluctuate unpredictably.

It is also important to keep in mind that buying Dogecoin is different from investing in stocks or other traditional assets. Dogecoin does not derive value from another asset, nor does it add value to any financial system. Its value is largely determined by its popularity, which can produce exciting short-term gains but is not a reliable strategy for long-term investing success.

Placing the order

Once you have set up your Webull account, you can start the process of buying Dogecoin.

Firstly, decide how much Dogecoin you want to buy. Remember, Dogecoin is a meme cryptocurrency that has seen outsized gains in 2021. You should only invest money that you can afford to lose. Once you have decided how much money you want to put into Dogecoin, start looking for a good price to enter into your Dogecoin position.

Now that you have funded your account and know how much Dogecoin you want to buy, simply search for the ticker DOGE on Webull Crypto. Indicate the quantity of DOGE you want to buy and select the order type.

There are two main order types to choose from: market orders and limit orders. Market orders allow you to execute a buy or sell order at the current available price. If you want to make an immediate trade at the current market price, click 'open now', and your order will be executed immediately.

Limit orders allow you to buy or sell at a specified price. The order will only be executed once the price reaches your set limit. For example, if the current price of Dogecoin is $0.1868 and you set a limit order of $0.20, the order will only occur once the price of Dogecoin reaches $0.20. Limit orders are preferred if you want to make a trade at a set price, allowing you to have greater control over your trading prices. However, there is no guarantee that the market price and your limit price will match. Click 'open now', and your limit order will be active until the end of the day. If the market price reaches your limit price, your order will be executed. If it does not match by the end of the day, Webull will cancel your order.

After you have reviewed the order details, click 'buy' to confirm.

Frequently asked questions