Dogecoin may have started as a joke, but it has now become one of the most resilient crypto-assets. The history of this amazing coin dates back to almost the same time cryptocurrency came into vogue.
This article explains what you need to know about Dogecoin, as well as the best ways to buy and hold the coin.
What is Dogecoin?
Dogecoin is a peer-to-peer digital currency that operates an open-source model. The currency was launched in December 2013 by Billy Markus, a programmer from Oregon.
Dogecoin was meant to be a “joke cryptocurrency” in the sense that it didn’t follow the same proof-of-concept pattern used by Bitcoin.
The currency may have played to its full designation of being a joke cryptocurrency, but there is much more that makes it interesting.
Dogecoin has one of the most loyal holders, who are bullish on the value of the coin. It has at different points been protected by impressive figures in the industry such as, including Elon Musk and Mark Cuban.
How to Buy Dogecoin in 2021
Dogecoin had been on an intensive rally, especially with the voiced enthusiasm of Elon Musk, the CEO of Tesla.
The coin had hit an All-Time High (ATH) of 7 cents in 2021 before a sharp drop that sent it back to a healthy rally with other cryptocurrencies.
Wondering how to buy Dogecoin in 2021? Here are the steps to take:
1. How Much are You Risking
The fact is that cryptocurrency trading is a risk. Trading a coin like Dogecoin is riskier because it is more volatile than Bitcoin and some other cryptocurrencies. This is mainly because of the infinite or unlimited supply of Dogecoin.
Although the early investors have cashed out a long time ago and become millionaires in the USD, the same might not work for you.
Thus, decide on how much you want to invest in buying Dogecoin. Ensure that it is an amount you can lose comfortably.
2. Open an Account with a Cryptocurrency Exchange
The next step is to open an account with a cryptocurrency exchange. There are two reasons for doing this. The first is to help you acquire or purchase Dogecoin easily. The second is to allow you to transfer your Dogecoin to a separate wallet if you want to do so.
Several cryptocurrency exchanges support the trading of Dogecoin. Some of these exchanges are user-friendly, while some are a bit advanced. Find the one that is intuitive enough, charges lower fees, and has lots of Dogecoin available for sale.
Some of the cryptocurrency exchanges that have the Dogecoin readily available for sale are:
You will also be required to verify your identity before you can be allowed to buy Dogecoin on the exchange. You can learn more about cryptocurrency identity verification at CoinList.
3. Deposit Money and Buy the Dogecoin
It is time to fund your new account on the exchange so you can buy the Dogecoin. There are several ways to do this, but fiat money deposit is the most popular. To do this, you will have to make a bank transfer to your exchange account.
Typically, the funds you transferred will be converted to the Tether USD coin (USDT). This can then be used to buy the Dogecoin or re-converted to another trading pair for the same purpose.
Asides from a fiat money deposit, there are several other ways to fund your account on the exchange before buying the Dogecoin.
These other alternatives include:
Some cryptocurrency exchanges may allow you to transfer some funds from your PayPal account. Find out if the exchange you want to use supports this.
Some exchanges like Binance have a Peer-to-Peer (P2P) payment system that allows the users to buy and sell crypto on a peer or intermediary-free basis.
You can also buy Dogecoin via credit or debit cards. Binance is one of the cryptocurrency exchanges that support this.
4. Place Your Order for the Dogecoin
You can now place your order for Dogecoin. Ensure that you searched for the ticker or symbol for Dogecoin, which is “DOGE.”
Once you find it, choose a trading pair. It could DOGE/USDT, which is trading the Dogecoin against the USDT pair. You can also trade with the Bitcoin pair that is represented as DOGE/BTC.
You can then go ahead to either set the price you are willing to buy the Dogecoin (Limit Order) or buy at the current price (Market Order).
5. Where Do I Keep My DOGE?
You have now purchased Dogecoin. Your next step is to consider the storage options. This is important if you want to hold the coin for many months or years. Leaving it on an exchange is not advised in this case, because the exchange might be susceptible to hacks or financial challenges.
Consider storing your Dogecoin in either a Software/Hot Wallet or a Hardware/Cold Wallet.
A Software Wallet often requires an Internet connection before it can be accessed. This type of cryptocurrency wallet is typically downloaded as an application for mobile devices and desktops. Examples of Software Wallets are Trust Wallet, Coinomi, and Exodus.
Hardware Wallets are usually preferred by many cryptocurrency investors because it helps them to take their crypto-assets out of the exchange. Examples of Hardware/Cold Wallets are Trezor, Ledger Nano S, and Ledger Nano X.
Transfer your Dogecoin to any of those wallets for safekeeping pending when the value appreciates and you want to sell.
Conclusion: Buy Your DOGE Easily
Buying the Dogecoin is as easy as the 5 steps covered in this guide. Note that investing in cryptocurrency is risky and investors are advised to make independent researches of the coin they want to invest in before going ahead.
Have you purchased Dogecoin? What steps did you take to have the DOGE in your wallet?