How To Invest Money In Dogecoin

With its playful canine mascot and endorsements from billionaires like Elon Musk and Marking Cuban, information technology’southward non hard to encounter why investors love Dogecoin. Since its creation as a Bitcoin spoof in 2013, the cryptocurrency has gained cult status, with enthusiasts even declaring themselves the #DogecoinArmy.

And buying in early has fabricated some very rich: Those who bought in before the meme coin exploded in popularity in late 2020 saw the value of their investments rocket past more than seven,000% to 77 cents by the middle of 2021. But Dogecoin has big risks as well. It dropped to less than 14 cents by the end of the year.

So exist careful not to invest more you tin beget to lose. If you’re ready, here is how you can get your paws on Dogecoin.

five steps to purchase Dogecoin

You tin can buy Dogecoin past opening an account with a crypto substitution like Coinbase, Binance.US and Kraken. You tin can also access Dogecoin through investment apps similar Robinhood, SoFi and Webull. Here is all you demand to know about buying Dogecoin in 5 uncomplicated steps.

Dogecoin trading is now bachelor on Coinbase.

See $DOGE Prices on Coinbase >

Decide how much to invest in Dogecoin

Financial planners generally recommend investing no more than 3% to 5% of your coin – an amount yous are willing to lose – in highly volatile assets such as cryptocurrencies.

Hither are some more points to consider when deciding how much to invest in Dogecoin:

Unlike a stock or bail, Dogecoin doesn’t pay dividends or interest. Information technology is not backed by whatsoever substantial assets, so if the public loses its fascination with Dogecoin, the toll could in theory autumn all the way to zero.

There is no limit on how many Dogecoins can be mined. In that location are already more than 100 billion Dogecoins. In the long run, Dogecoin’south price volition ascension only if investors purchase Dogecoins faster than miners can produce them.

Dogecoin’s hype-driven rallies can exist short lived. In mid-2021 Dogecoin’south price doubled in less than a month after Tesla founder Elon Musk tweeted he would host Saturday Night Alive, setting off rumors he would plug information technology on the testify. As it happened, Musk chosen the meme coin “a hustle” and during the show, its price plunged by well-nigh 30%.

With all this in heed, here’southward how to get started with Dogecoin.

Choose a crypto exchange or investing app

While not the only manner to admission Dogecoin, working through a cryptocurrency exchange is one of the easiest ways to purchase Dogecoin, Bitcoin, Ethereum and other crypto. A crypto exchange is a digital marketplace where people buy, sell and swap cryptocurrencies.

Most major crypto exchanges similar Coinbase and Gemini offer admission to Dogecoin. You tin likewise buy Dogecoin by downloading an investing app such equally Robinhood or Webull. These may be better options if y’all just want to buy cryptocurrency and and so sell for a profit in greenbacks. The downside to some crypto brokerage apps, however, is that you tin can’t do much else with your crypto. For example, y’all may not be able to apply your dogecoins on an investing app to buy products where crypto is accepted or motion coins to an external crypto wallet that may provide improve security.

While you lot tin can buy a few cryptocurrencies on the PayPal app, you can’t purchase Dogecoin through the PayPal app.

Open and fund your crypto account

You lot can sign upwardly for an account with a crypto exchange or brokerage online and in minutes. The sign-upwards procedure is relatively uncomplicated, simply yous may need to provide the post-obit data.

• Full, legal name
• Engagement of birth
• E-mail address
• Phone number
• Domicile address
• Social Security number
• Driver’s license, passport, or other regime-issued ID
• Banking concern account and routing numbers if you’re using a checking account to deposit money into your crypto account. This is the greenbacks you will utilize to purchase Dogecoin inside the crypto exchange or investing app.

Subsequently you open your cryptocurrency business relationship, utilise a checking account to deposit money which y’all will use to purchase cryptocurrency. The bank transfer may take between 3-to-5 business days.

Some crypto exchanges too let you use your credit card to buy cryptocurrency. But this is risky. The bank will treat the transaction as a greenbacks advance or as if yous borrowed cash from your credit card via an ATM. The average greenbacks advance interest rate is 20.79%. So you tin end up paying a lot more for your dogecoins than what they’re worth. And if Dogecoin’s value goes down, you lot’re left with high-interest credit menu debt and no crypto profits to pay information technology off with.

Place an guild for Dogecoin

To identify an order for Dogecoin, log into your crypto commutation or brokerage account. Find the search bar and blazon in “Dogecoin” or DOGE. Once yous detect Dogecoin, add the dollar amount you’d like to spend or the number of dogecoins you’d like to buy. Then press on the “buy” or “order” button and finalize your transaction.

Only go on in mind that your broker or crypto substitution may charge trading fees for ownership or selling cryptocurrency. You may see fees ranging from 0.05% to v% per trade, according to fiscal services firm SoFi. However, some investing apps that offer crypto such as Robinhood and Webull offer commission-free crypto trades.

Consider a crypto wallet

For added security measures and flexibility, some crypto enthusiasts move their dogecoins into a crypto wallet exterior i provided by the crypto commutation or brokerage platforms.

Crypto wallets are software or concrete devices that contain the keys or passwords that give you access to your crypto currency balance on the blockchain, a digital ledger where your cryptocurrency really lives. These keys also permit you to send, receive and spend cryptocurrencies similar Dogecoin and Bitcoin – a feature absent from many of the crypto wallets provided by brokerages.

Crypto wallet manufacturers claim to offering higher levels of protection than exchanges or brokerages do. On the other manus, many crypto exchanges offering some kind of insurance to protect cryptocurrency holdings.

Crypto wallets come up in two forms. Hot wallets are software continued to the cyberspace. Y’all create a countersign y’all use to access the digital wallet. For security, many hot wallets are encrypted and prompt two-factor hallmark earlier yous log in to your account.

Common cold wallets or hardware wallets are physical devices where y’all shop your crypto keys. Think of information technology as a flash bulldoze that holds the keys to your cryptocurrency instead of files. The just way a thief could steal cryptocurrency from a cold storage wallet is by accessing the device itself as well every bit your pin number and seed or redundancy phrase.

“The gold standard and safest manner to shop cryptocurrency is with a common cold storage wallet” says Nicole DeCicco, founder of CryptoConsultz, a blockchain and digital currency consultancy.

There are enough of crypto wallets competing for your coins out in that location. To make information technology easier to find the right crypto wallet, here is a list of the best crypto wallets.

How to Buy Dogecoin FAQ

What is Dogecoin?

Dogecoin is a cryptocurrency created in 2013 as a joke based on the popular meme of a Shiba Inu domestic dog that speaks broken English.

Despite its quirky origins and an initial price of less than a penny, Dogecoin boasted a market capitalization of more than $19 billion in Feb 2022. Its popularity is fueled by backers such as Elon Musk, Mark Cuban and Snoop Dogg. It’s also amassed a dedicated following across social media platforms like Reddit and Twitter.

When did Dogecoin start?

Dogecoin was created in 2013 as a joke past software engineers Jackson Palmer and Billy Markus. Palmer in 2018 admitted creating Dogecoin was nothing more than a “hobby project.” Dogecoin Co-creator Billy Markus told CNBC in 2021 that he had wanted to create a “fun and lighthearted” crypto community every bit opposed to the “elitist” one that existed at the time.

Dogecoin vs Bitcoin

Bitcoin is the most pop cryptocurrency out there with a market capitalization of more than $730 billion, compared to Dogecoin’s more than than $18 billion market cap.

Bitcoin and Dogecoin exist on a digital public ledger called a blockchain. Both are created on a proof-of-piece of work ground. This means cryptocurrency creators called “miners” compete with each other using powerful computers to solve complex mathematical codes that verify crypto transactions and earn themselves new coins.

Unlike with Bitcoin, there’due south besides no limit to how many dogecoins tin can exist created. Bitcoin’southward software ensures there volition never be more than 21 million bitcoins in apportionment. By contrast, as of January 2021, in that location were more 130 billion dogecoins in circulation, according to CoinMarketCap, a cryptocurrency analysis platform. About 10,000 dogecoins are created every minute.

Where tin I buy Dogecoin?

You can buy Dogecoin through a crypto exchange similar Coinbase or an investment app such as Public, which allows you to trade Dogecoin and other cryptocurrencies.

How much is Dogecoin worth?

As of January 2022, Dogecoin is trading for most 17 cents. Its record high was about 74 cents, a tiptop seen in May 2021, shortly after Elon Musk tweeted that he will host SNL, prompting rumors that he would mention Dogecoin on the pop show.

Why is Dogecoin dropping?

Because Dogecoin isn’t backed by claims on whatsoever asset, information technology tin can be difficult to say what drives its price up or downwardly. Yet, there are a few factors that appear to influence its toll.

Dogecoin’s price tends to move in concert with other cryptocurrencies. That’s what happened in early 2022, when worries that the Federal Reserve would hike short-term involvement rates sent cryptocurrencies tumbling across the lath. In the bridge of roughly a calendar month, Dogecoin’s price declined roughly 25%. The drib was similar to declines for Bitcoin and many other coins.

News and social media coverage tin can also drive Bitcoin’s price. For instance, in early 2021, Dogecoin soared to a high of nearly 77 cents from about 6 pennies later Elon Musk– who often expresses his enthusiasm for Dogecoin on Twitter — announced that he will host SNL, setting off rumors that he would mention the alt-coin. Withal, when Musk concluded up poking fun at Dogecoin instead, its cost quickly plunged to less than l cents.

“Permit’south exist honest. Information technology’south a media coin influenced by its hype,” says Saqib Iqbal, a crypto enthusiast and forex market annotator at FXStreet, a forex website.

How High will Dogecoin go?

Dogecoin reached a high of about 77 cents in May 2021, before dropping to nearly xiv cents by the end of the twelvemonth.

Advocates say the coin could regain traction in 2022 and beyond as more companies begin accepting Dogecoin for goods and services, making it more of a feasible currency than simply a speculative asset.

In January 2022, Dogecoin spiked by about 9% after Elon Musk announced Tesla would accept it equally payment for some of its merchandise. AMC plans to take Dogecoin as payment for online concessions and ticket purchases during the first quarter of 2022. Moreover, the Dogecoin community on Twitter has been encouraging McDondald’s to accept Dogecoin.

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