You can find digital currency Dogecoin (DOGE) in most cryptocurrency exchanges these days, and if you think it’s time to think about how to invest in it, read on to learn more about:
- Dogecoin as an investment
- How you can buy Dogecoin
- The storage options you have for your Dogecoin
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Is Dogecoin (DOGE) a good investment?
Like most cryptocurrencies, Dogecoin is a volatile investment asset with the potential for significant gains. Historically speaking, if you bought DOGE before the beginning of 2021, your returns would be no less than 10x anytime after March 2021.
As all disclaimers state, past performance is no indication of future returns. Historical prices of Dogecoin have fluctuated dramatically, though the picture so far is one of the significant long-term gains.
The above applies, to some extent, to most cryptocurrencies. As an individual asset, there are a few unique arguments in the coin’s favor. Dogecoin is one of the easier coins for beginners to invest in, both in terms of its low price and its current market position.
In terms of popularity, Dogecoin isn’t as popular as bitcoin or other leading cryptos. However, it has a unique position as something that started as a joke but carried on to become incredibly popular. According to co-creator Billy Markus, the original intention was to create a parody of the many clone coins coming out at the time. Clone coins were essentially boring reiterations of the same model that failed to differentiate themselves. Ironically, Dogecoin, in its attempt to parody the rest, became a unique coin that quickly gained traction.
Unlike other popular cryptos, Dogecoin is an infinite resource. It doesn’t have limits placed by halving restrictions, as Bitcoin does. Combined with frantic mining, meme-fueled mania has created a unique and highly volatile asset. The ease of mining has unclear implications for its future price.
One promising factor is Dogecoin’s popularity among the young and its ease of access through finance apps used by the same demographic.
It’s wiser to see “investing” in Dogecoin as speculation. There are certainly profit opportunities, but the coin’s position makes it particularly volatile. If you can accept it for what it is and only take risks you find acceptable; there’s nothing wrong with buying it.
How to Buy Dogecoin (DOGE)
There are different ways how you can buy DOGE, here you can find an example of the steps to take:
Invest in over 30 cryptocurrencies from your checking account with no trading fees with the Current mobile app crypto feature.
Titan is an investment platform with a team of experts actively managing your portfolio based on your chosen strategy, including cryptocurrencies.
Alto IRA allows you to invest in stocks, bonds, mutual funds, ETFs, real estate, cryptocurrencies, and even gold for your retirement.
1. Decide the Investment Amount
Once you’ve found an exchange to buy your Dogecoin from, you will need to make a decision on how much to enter the market with. It’s your responsibility to make investment decisions based on your understanding of investment products. That includes understanding what moves its prices and the risks involved.
2. Find a Crypto Exchange to Buy Dogecoin
Several popular, safe, mainstream exchanges and trading platforms make it easy to buy Dogecoin for both expert and beginners crypto traders. Some also offer hosted storage solutions, making storing your Dogecoin easier for beginners. Platforms like Coinbase, Kraken, Binance, Gemini, Robinhood and Exodus all offer Dogecoin.
3. Choose from the Different Options to Pay for Dogecoin
Most exchanges accept a mix of fiat and cryptocurrencies to purchase Dogecoin. If you already have Bitcoin or other popular cryptos, you can easily trade them for DOGE on an exchange.
Most exchanges enable users to purchase cryptos with fiat payment methods. The range of accepted payment methods will vary from exchange to exchange. Some of them will only accept bank transfers, while others will accept PayPal and other payment methods.
4. Store your Dogecoin
Storing Dogecoin or any other cryptocurrency requires a crypto wallet.
Crypto wallets come in many forms. To learn everything you need to know about crypto wallets, click here.
If you purchase your Dogecoin on an exchange, you can typically just store it on your hosted wallet. Exchanges usually offer hosted wallets so their customers can easily store cryptos on their platform.
There are many more options for self-custody wallets. These can be harder to understand and use, but they offer better security and control over your assets.
Storing your DOGE offline is safer than using a hosted wallet. The track record for hosted wallets is not great, as security continues to be a problem.
How to Get Started with Buying Dogecoin
So far, we’ve gone over Dogecoin and the process of buying it. Now, let’s put it in more practical terms. Anyone can get started on any platform and start trading for Dogecoin. If you want to get started as well, you just need to follow a few steps:
- Download your chosen platform for desktop from their site or get their mobile app
- Add digital assets into the wallet
- Get on the Exchange App to trade for the cryptos of your choosing (DOGE included, of course)
- Send or receive DOGE easily with a secure DOGE wallet
- OPTIONAL: Take advantage of staking opportunities with SOL
