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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 about its rollercoaster rise to popularity and how to get your hands on some coins.
Compare where to buy Dogecoin, and open an account
To get started straight away, follow any of the links to find a broker from one of our trusted partners. You can also keep reading below if you want more information to help you decide whether 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 increasing popularity in online circles, often driven by the tweets of Tesla CEO Elon Musk. Since December 2020, when he tweeted “One word: Doge”, he has sent the coin to ever-increasing highs on a regular basis. Most famously, he has referred to himself as the “Dogefather” and spoken about the coin while presenting Saturday Night Live.
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 DOGE online – a step-by-step guide
Step 1. Find an exchange
The best place to buy Dogecoin in the UK is on a crypto exchange. You can choose one by checking out our reviews, or you can select a platform from the table at the top of this page. Here are two of the platforms we most highly recommend:
- FXTB: Offering in excess of 300 tradable assets across 6 asset classes, FXTB is a great option to consider for cryptocurrency, as well as the likes of stocks and commodities too. Open an account with FXTB now >
- Skilling: Founded in 2016 by veterans in the financial sector, Skilling enables users to trade numerous cryptocurrencies and assets via a clear interface. Sign up with Skilling today >
Step 2. Sign up and fund your account
Once you have selected a platform, it’s common 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 invest with one of these platforms but don’t yet have any cryptocurrency to use for payment, the best thing to do is use a service such as Coinbase to buy some Bitcoin and transfer that into your exchange account.
Step 3. Purchase
Once you have set up and funded your exchange account, you’ll be able to exchange the GPP or cryptocurrency in your account for Dogecoin. If you have loaded your account with Bitcoin then you will want to head to the exchange and look for the DOGE/BTC crypto pair and execute your trade.
Step 4. (Optional) Get a suitable wallet
For added security, you can get your own Dogecoin wallet and transfer your coins into it for safekeeping. This step is not essential, and most exchanges will allow you to hold 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 trading 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 for Dogecoin trading, so they’re a good starting point for new traders.
Step 2. Deposit money
Once you have decided on a particular broker, you can usually fund your account using fiat currency (for example GBP, EUR, and USD). Make sure you 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.
Still undecided?
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.
Pros
- 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
Cons
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.
1. Is now a good time to buy Dogecoin stock?
The answer to this question depends on why you want to invest. 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 has experienced plenty of volatility in recent years, so make sure to check out its current price to see how it is performing.
If, however, you want to hold the cryptocurrency as a form of investment, then you’ll want to consider the cryptocurrency markets more broadly. You can pick up some Doge very cheaply, though 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 analysis for May
Dogecoin (DOGE) price down 10% as pullback continues
Dogecoin price explodes over 100% on a viral TikTok challenge
2. 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, although Elon Musk – one of the richest people in the world – is on that mission, and he’s a keen adopter.
This doesn’t mean Dogecoin 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:
Why buy Dogecoin, Litecoin, and XRP in July? Looking at their recent growth
Meme-based token Dogecoin (DOGE) now accepted on Coinbase Commerce
Former DOGE millionaire buys its dip; Says DOGE is his savings account
3. 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 should sign up to a reliable cryptocurrency exchange 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.
Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
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