Dogecoin (pronounced “doj – coin”) has made headline after headline in the past few weeks.
But why? Short answer: Elon Musk, a surge and more memes.
Elon Musk has continued to voice his support of the currency. Doge is up nearly 50% year to date, another reason for the press and interest. Twitter influencers like Gene Simmons and Snoop Dogg have joined in on the fun, creating their own personas attached to the coin. Is the doge movement here to stay or are you barking up the wrong tree?
If you’re thinking about investing in DOGE, understand the risks. Our guide for beginners will help you learn more about DOGE and make your first investment.
What is DOGE?
Branding itself the “fun and friendly” internet currency, Dogecoin is a peer-to-peer and open-source digital currency introduced in December of 2013. The original idea behind Dogecoin was to create a more memorable cryptocurrency project to help the public understand the technology behind blockchains.
Dogecoin is built on the same basic technology as other cryptocurrencies like Bitcoin. However, DOGE introduces a few improvements to Bitcoin’s technology to enable users to access faster and more affordable trading. You can tap into an unlimited supply of Dogecoin and the cryptocurrency trades on a number of major exchanges.
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 “doge” 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 currently the 13th largest cryptocurrency project when measured by total market capitalization, with a market cap of more than $5.9 billion.
Step 1: Open an online account.
The first step to buying Dogecoin is to open an account with a cryptocurrency broker that supports DOGE.
Some of the things you may want to consider when opening your crypto brokerage account include:
- The broker’s fee and commission schedule
- Features and education tools you can access through each brokers’ trading platform
- The type of coin and tokens available to buy and sell on the exchange
- Access to additional markets (some brokers focus on providing access to as many coins and tokens as possible, while others combine cryptocurrency market access with stock, forex and additional market choices)
Step 2: Fund Account & Make your purchase.
After both your wallet and your brokerage account are open, you can place a buy order to purchase DOGE. First, open your broker’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 — you may want to track the price of DOGE and how it’s moving to ensure that you don’t overpay for your coins.
The best brokers will offer you a wide range of order types to choose from. If you’ve ever traded stocks before, you’re likely already familiar with the basic types of orders. If you haven’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.
You’ll find an unlimited number of DOGE on the market at once. Though the coin might see sporadic media attention, it’s important to remember that there are currently no active use cases for this cryptocurrency project.
Step 3: Buy a wallet (optional)
A cryptocurrency wallet provides you with a private 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, do not purchase it on Robinhood. 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 you’ll store your DOGE.
Best Hardware Wallet: SecuX W20
The SecuX W20 is a comprehensive option that supports DOGE, Bitcoin, Ethereum and a wide range of additional digital assets. The W20 features a large 2.8-inch touchscreen that makes it easy to track your holdings without connecting to Wi-Fi. To transfer your coins to your W20, you can use the device’s Bluetooth compatibility or you can manually link your device to your desktop computer or laptop. With a simple, streamlined interface and an easy setup process, the SecuX W20 is an ideal choice for new investors.
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, it’s important to have access to a reliable and fast-executing trading platform. A couple of our favorite platforms are below.
Current Crypto Prices
The price of cryptocurrencies can change on a minute-to-minute basis. Some of the factors that may influence the price you’ll pay to invest in DOGE or another cryptocurrency may include:
- Current supply: Though there is an unlimited supply of DOGE available, not every investor is willing to sell his or her shares. The number of shares available on exchanges can cause the price of DOGE to shift.
- News: New announcements can shift the price of DOGE in a positive or negative direction. For example, if a popular exchange announces that it will be adding DOGE trading, the price of DOGE is likely to rise.
- Current financial conditions: Investors tend to flock to alternative investments like cryptocurrency when the overall market is showing a downtrend. Poor economic conditions may raise the price of DOGE.
Monitoring how the prices of other cryptos are moving can help you decide when you should place your buy order. Browse cryptocurrency market conditions using our table below.
Getting Started in Cryptocurrency
Whether you decide to invest in Dogecoin, Bitcoin or another major cryptocurrency, remember the risks that come with buying a volatile asset. 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 use cryptocurrency as an add-in to a diversified portfolio.
Gemini builds crypto products to help you buy, sell, and store your bitcoin and cryptocurrency. You can buy bitcoin and crypto instantly and access all the tools you need to understand the crypto market and start investing, all through one clear, attractive interface. Gemini Crypto Platform offers excellent account management options. You can manage your account at a glance, view your account balance 24-hour changes and percent changes. Get started with Gemini now.