How to buy Dogecoin online
Dogecoin has been a fixture among the most-traded cryptocurrencies in recent years. This beginner-friendly guide takes you through all the details so you can decide whether or not to invest in Dogecoin stock.
Compare where to buy Dogecoin, and open an account
If you want to buy Doge right away, simply follow any of the links below to visit one of our trusted partners. You can also keep reading below if you want more information about Dogecoin before deciding whether or not to invest.
What is Dogecoin?
Dogecoin (or Doge) is a cryptocurrency primarily used as a way of tipping content creators online, and it is also popular with crypto traders as one of the most commonly traded coins. Its name derives from the fact that the coin’s logo features the image of a Shiba Inu dog, which was popularly used as a meme that also went by the name Doge in the early 2010s.
The coin was founded in 2013 by Billy Markus and Jackson Palmer, two software developers who worked at IBM and Adobe respectively. The story goes that the pair founded Doge as a joke about the growing popularity of altcoins, but also to create a cryptocurrency that was more broadly accessible than Bitcoin.
Doge has enjoyed continued popularity in online circles, with Tesla CEO Elon Musk causing a sharp rise in the coin’s price when he tweeted “One word: Doge” in December 2020.
How does Dogecoin work?
Like all cryptocurrencies, Dogecoin works by tracking the movement of coins on a publicly visible blockchain. This means that Doge changes hands between users without the need for a centralised intermediary such as a bank.
In terms of the specifics of how Doge works, the coin is similar to both Luckycoin and Litecoin in that it uses scrypt technology to verify transactions on its blockchain. This is a simpler function than the SHA-256 algorithm used by Bitcoin and means that mining on the Doge network is less energy consuming.
If you’re feeling a little lost and are not 100% sure what terms like ‘mining’ mean, taking our free cryptocurrency courses will help you get your head around the basics of crypto.
How to buy Dogecoin online – a step-by-step guide
In order to buy Dogecoin you’ll need to go to find a cryptocurrency exchange where you can trade other cryptocurrencies – such as Bitcoin or Ethereum – for Doge. Here are the steps you need to go through.
Step 1. Find an exchange to buy Dogecoin
There are a huge number of online crypto exchanges to choose from when buying Dogecoin, and you can help narrow your search by either checking out our detailed reviews of all your options or selecting a service from the table at the top of this page.
If you’re looking for somewhere to buy Doge immediately though, here are two of the top exchanges around:
- Binance: One of the biggest names in the cryptocurrency trading space, Binance allows users to trade hundreds of different cryptocurrencies, including Dogecoin. You can open an account right now.
- Changehero: Offering a more user-friendly interface than larger crypto exchanges, Changehero allows you to exchange a range of cryptos for Doge quickly, easily, and anonymously. Buy Dogecoin with Changehero now.
Step 2. Sign up and fund your account
It’s common when using cryptocurrency exchanges to have to sign up for an account before you can fund your trades. This usually involves a level of identity verification that varies from platform to platform but can mean providing a copy of a photo ID.
The process of funding your account will depend on the exchange you select. Many of the larger platforms accept deposits in either fiat or cryptocurrencies, but some exchanges still only allow you to fund your account with crypto. If you’re looking to buy Dogecoin with one of these platforms but don’t yet have any cryptocurrency to use for payment, the best thing to do is use a cryptocurrency brokerage such as Coinbase to buy some Bitcoin and transfer that into your exchange account.
Step 3. Buy Dogecoin
Once you have set up and funded your exchange account, you’ll be able to exchange the cryptocurrency in your account for Doge. If you have loaded your account with Bitcoin then you will want to head to the exchange and look at the current price of Doge in the DOGE/BTC crypto pair and execute your trade.
Step 4. (Optional) Get a suitable wallet
For added security, you can get your own Doge wallet and transfer your coins into it for safekeeping. This step is not essential, and most exchanges will allow you to hold your coins within your account. The only real reason to consider this is if you’re planning on buying and holding a large amount of Dogecoin for the long term, but given the coin’s small price and popularity as a tipping method, this is unlikely to be necessary.
How to trade Dogecoin – a step-by-step guide
If you’re looking to trade Doge instead of buying and holding it for the long term, then you need to find a reliable broker which can execute your trades. The process of trading Dogecoin is the same as when trading Bitcoin or any other cryptocurrency, and often you’ll be able to find a broker that supports multiple coins.
Step 1. Find a broker
The most important thing to check before signing up to an online broker is that the platform supports Dogecoin trading. As well as cryptocurrency, brokers tend to offer trading on a range of other assets, such as stocks, forex, and commodities.
Currently, because of the relatively low price of the coin, it’s hard to find platforms that allow you to trade Doge. That being said Plus500 and eToro are two of the best crypto brokers around, so they’re the best places to keep your eye on.
Step 2. Deposit money
Unlike with some exchanges, brokers usually allow you to fund your account using fiat currency (for example GBP, EUR, and USD) and use this to trade crypto. You’ll want to watch out for trading fees when using these services in order to ensure you can use most of your money for making your trades.
Step 3. Decide how you’d like to trade
When it comes to trading with an online broker, the two most commonly used methods are spread betting and contracts for difference (CFDs). Learn more about these methods before starting trading so you can work out an approach that works for you.
Step 4. Start trading
Once you’ve set up and funded your trading account, you’re good to go. If you’re totally new to online trading then we recommend starting out with a demo account so you can learn the basics of cryptocurrency trading without risking any of your money at the start when you’re most liable to make mistakes.
When trading Doge you can either go long or short. A long position is when you invest your money in the belief that an asset (in this case Dogecoin) will rise in value, going short (or shorting) is when you believe its value will fall and you try and sell it early and buy your coins back at a lower price – pocketing the difference.
One other trading strategy available when using online brokers is trading with leverage. This technique allows you to make large trades while only having to put up a small amount of the trade value (known as the margin). We recommend that beginner traders avoid using leverage as it massively increases the risks of losing large amounts if the market moves against you.
It’s always best to take time to think over any potential investment, and this is especially true when it comes to cryptocurrency. Here are some pros and cons to consider when it comes to investing in Dogecoin, along with some key questions to think about below.
- The low cost of DOGE means it’s a great entry-level coin
- Low transaction fees encourage regular use
- The Dogecoin community is welcoming and fun
- With a block time of 60 seconds, DogeCoin is a lot faster than some other altcoins
- DOGE started life as a novelty and is still a little tarnished in that respect
- Not profitable to mine
- Unstable price
If you’re still undecided after these pros and cons, then here are three more things it’s central to consider before investing in Dogecoin.
Is it a good time to buy Dogecoin?
The answer to this question depends on what you want to buy Doge for. If you simply want to get involved in the community and use Dogecoin to tip people online, then it’s rarely a bad time to invest. The coin’s all-time-high price was achieved in 2018 and was still under 2 cents, so you won’t have to bust the bank to buy a few Dogecoins.
If, however, you’re thinking about buying Doge as an investment, then you’ll want to consider the cryptocurrency markets more broadly. You can pick up some Doge very cheaply, but it’s a good idea to keep on top of our latest analysis to see if your coins are likely to climb to a higher price:
Dogecoin (DOGE) price down 10% as pullback continues
Dogecoin price explodes over 100% on a viral TikTok challenge
What problem does Dogecoin solve, and what are the coin’s investment prospects?
Some cryptos have an overarching vision driving them, such as Theta, which is looking to revolutionise online streaming. Doge is not one of these coins, however, and so if you’re looking for a coin that could achieve success through the growth of an innovative platform it’s best to look elsewhere.
Dogecoin’s appeal is in its simplicity and humour. Having originally been founded as a joke in the early days of cryptocurrency experimentation, it holds value today mainly because people enjoy it and it’s regularly traded between users. Dogecoin is certainly not on a mission to change the world.
This doesn’t mean Doge has no investment prospects though, and it’s undeniably had more longevity than some early cryptos. Keep up to date with the latest news to see if anything is coming up that could impact Dogecoins’s value:
DOGE popularity on Twitter exceeds Bitcoin (BTC)
Coinflip adds DOGE to its 1,800 crypto ATMs in 45 US states
Transaction fees on Dogecoin (DOGE) surge to unprecedented levels
Do you want to hold Dogecoin for the long term?
If you’re thinking about Dogecoin as an investment, then the central consideration is what kind of investor do you want to be. Whether you eant to take a long-term view and hold Dogecoins in order to sell later on (hopefully at a higher price), or your focus is on short-term trading gains will determine your approach.
Considerations for a long term investment strategy
If you think that Dogecoin’s best days lie ahead and you want to get in on the ground floor, then you’ll want to sign up for a reliable cryptocurrency exchange and buy some coins right away. Depending on how long your time horizon is, you might also consider getting a personal wallet to hold your coins.
Considerations for a short term trading strategy
If you’re aiming to trade Dogecoin quickly in order to profit from fluctuations in the crypto market, then the overall strength and long term trend of the coin’s price doesn’t matter so much. The important thing to do is familiarise yourself with technical analysis and signing up with a broker that offers low trading fees. Anticipating price movements by reading a variety of charts accurately gives you the best chance of trading success.