Want to learn how to buy Dogecoin? Read on!
Recently, the Techno king of Tesla, Elon Musk, reached a deal to acquire Twitter for about $44 billion. What makes this information relevant here? After the news of Elon’s acquisition, Dogecoin jumped 27% in a day!
Elon’s tweets have gained a reputation in the crypto space. A reputation for constantly changing the value of cryptocurrencies, including Dogecoin. Knowing this, the acquisition of Twitter could, in theory, continue to affect Dogecoin. That being said — and keeping in mind that this is not investment advice — you might want to learn how to buy Dogecoin.
Crypto Exchanges where you can buy Dogecoin
To get your hands on Dogecoin, you need to have an account on a cryptocurrency exchange.
So, what exactly is a crypto exchange?
Cryptocurrency exchanges or crypto exchanges are platforms that allow you to sell and purchase cryptocurrency. Basically, they provide brokerage services for crypto.
You can buy, sell, hold, and trade Dogecoin and other significant cryptocurrencies on these exchanges. In addition, they facilitate crypto transactions and other digital asset procurement.
There are three broad classifications of exchanges :
- Centralized exchanges (CEX)
- Decentralized Exchanges (DEX)
- Hybrid Exchanges
To buy Dogecoin, you’re going to need centralized exchanges. Some examples of more popular centralized exchanges include Coinbase, Binance, Kraken, Kucoin, and Gemini. These exchanges all have Dogecoin listed. Therefore, you can open an account and start buying as much as you want.
How to Choose a Crypto Exchange
There are many factors to consider when choosing an exchange to buy Doge. Centralized exchanges come in different forms. Some exchanges are targeted at beginners and are easy to navigate, while others are built/designed for more advanced crypto users.
When choosing a crypto wallet, you need to choose one that suits your current level.
Exchanges like Kraken, Binance, and Gemini are suited for beginner and intermediate users. They are easy to use, and there are guides beginners can use to get up to speed. These exchanges are your best bet if you are just starting.
On the other hand, exchanges like FTX, Gate.io, and Kukoin are for more advanced users. These exchanges offer complex tools that you can use to engage in activities beyond buying and selling. Some of these tools include leveraged trading, derivatives, and futures.
Steps to Buy Dogecoin
With that out of the way, here are the steps to purchase Dogecoin on a centralized exchange:
1. Sign Up/Registration
The first step to buying Doge is registering on the centralized exchange of your choice. You’ll mainly need an email address to register. You can choose an email address from your preferred email providers like Gmail, Yahoo Mail, or Proton mail.
Next, you will be required to create a strong password to secure your account. When creating your password, it is advisable to use upper and lowercase letters, including special characters and numbers. Doing this would increase your password strength and protect you from hackers.
Also, remember to protect your Sign-in information(email and password) at all times. Please do not share it with any third party. Do this to avoid your account getting compromised or your cryptocurrency stolen.
Once you have registered, the next step is to verify your identity. You do not necessarily need your identity to buy Dogecoin, but it helps when you want to withdraw it. And although the buying process differs among exchanges, these are the more common verification steps:
First, you select the location from which you are using the exchange. Doing this sets the tone for the rest of your verification. In fact, it could also give you some added perks when buying crypto. So, be honest when choosing your location.
Name and age
The next step is to verify your name and age. The age verification proves you are old enough to use the crypto exchange. On the other hand, the name verification proves that the name you registered matches your government name.
Next, you must upload an identity confirmation document issued by the government. The aim is to match the details you have provided to a trusted record. Ensure that this document is valid in the region you chose in step one.
Finally, you’ll upload the documents’ clear front and back photos to the crypto exchange for clear identification.
The final step before buying Dogecoin is the facial verification process. You’ll have to upload a clear selfie of your face at this stage. Ensure the photo is taken under clear lighting without glasses or filters. Also, make sure it matches the images on the documents you uploaded.
These verification processes comply with AML (Anti Money Laundering) regulations. These regulations are put in place to prevent bad people from using crypto.
Please note that you may have to wait for a few hours or days before the exchange finalizes the verification process. During this waiting period, you may be unable to buy Doge or any other cryptocurrency/digital assets on the exchange. Do not panic; this is normal.
Upon creating and verifying your crypto account, the next step is funding. You’ll have to use actual money to pay for or buy Doge. To do this, there will be a “deposit” icon somewhere on your home screen or dashboard. The amount you deposit is dependent on how many coins you want to buy.
You should use the most convenient payment method available to fund your account. Some of the more popular methods include:
- Bank deposit: Most exchanges support direct bank deposits from your bank account. All you have to do is send the money from your account to the account listed by your exchange. After that, wait a few minutes for the funds to reflect in your account.
- Debit or Credit Cards: You can use your American Express, credit card, or VISA card to deposit money into your crypto accounts. Enter your card details and the amount you’d like to deposit. Then, verify the transaction with the OTP you’ll get from your bank.
These are two of the most common funding methods among crypto exchanges. Other funding methods include PayPal, Peer to Peer transactions, bank transfers, and Venmo.
4. Buy Dogecoin
How many Dogecoins do you want to get? 2000? 40,000? You can now buy Dogecoin after the money you deposited is reflected in your crypto exchange balance.
First, search for Dogecoin and select the amount you want to buy in USD. Upon selecting the amount of Dogecoin you’d like to buy, you’ll see the corresponding value of Dogecoin you would receive.
Wait for a few minutes for your Dogecoin to reflect in your account after you pay. Your Doge will reflect on your account in a few minutes, and you will become a proud owner of Dogecoin.
The price of Doge can vary during purchase due to the volatile nature of crypto. It is always advisable to wait for price dips before making any doge purchases.
Repeat the purchasing process as often as you want to get more Dogecoin. Happy investing!
Consider a Crypto Wallet
There are different ways to keep your Dogecoin after purchase. After buying Dogecoin, you can decide to leave it on the exchange or send it to a crypto wallet. The exchange offers you a crypto wallet when you sign up, but you can transfer your Doge to a private wallet if you so wish. You can also transfer Dogecoin from a private wallet without an exchange.
You can download a doge wallet from the official website or use a third-party wallet such as Zengo and Trust wallet (hot wallets) or Trezor and Ledger (also known as hardware wallets or cold wallets). If you wish to engage in cryptocurrency trading (buying and selling crypto to profit from its volatility), you should leave your Doge on the exchange.
Alternatively, if you want to buy and hold (or in crypto terms HODL) for a longer period, your Doge is better off in a private hardware wallet.
If you decide to use a hardware crypto wallet, you should be extra careful. Please take note of your private keys and store them in a safe place. Your private keys are your password, and without them, you will not have access to your wallet. It is advisable to store these keys in an offline location.
Of note, offline hardware wallets are the safest way to store your crypto.
How Much Should I Invest?
Investing in Doge or other cryptocurrencies can be a risky endeavor. The prices of the Doge and other cryptocurrencies are volatile. Therefore, when you buy Dogecoin, you should only invest what you are willing to lose.
Doge is a digital currency, and like other cryptocurrencies, it does not earn returns or dividends like securities. The only way to make your money back from Doge after purchase is through a sale or similar transactions.
You should never invest more than you are willing to lose. Investing can be risky, and your crypto investment portfolio could be worth less than you paid for it. Dogecoin’s price will fluctuate occasionally. Hence, you should not fret if your digital wallet balance seems strange.
Most importantly, always know your reasons for investing in any cryptocurrency. Don’t just listen to anyone claiming to “advise investors.” Investing can be very tricky. Hence you should always conduct your research. Avoid putting your money into new coins that have not been well tested in the market.