The simplest style to buy Dogecoin (DOGE) is on a
cryptocurrency substitution
, where you lot tin can purchase tokens with U.Southward. dollars or sometimes with other digital assets. But before you add Dogecoin to your portfolio, make sure you know what you lot’re getting into.
one. Determine whether to buy Dogecoin
Dogecoin is a risky, volatile investment, and should only be purchased if y’all’re in a strong financial position and tin afford to lose whatever money you might put in. Investment rules of thumb say risky assets like these should make up no more than 10% of your investment portfolio.
|
|
|
|
|
|
|
The traditional advice says you should endeavor to contribute to tax-advantaged retirement accounts, such as an IRA or, if bachelor, a workplace 401(k). If y’all’re already contributing to or maxing out either of these accounts, y’all could consider opening a supplemental
taxable brokerage account
, as well.
And what can you invest in with these accounts? A skillful place to start may be using these accounts to invest in highly diversified, depression-cost
index funds
. They may not be as exciting equally Dogecoin — don’t expect any thirteen,000% gains here — but they’re a lot less volatile and, in the long term, returns are more than consistent. Over the past several decades, the Southward&P 500’due south annualized boilerplate returns comes out to near ten%.
If y’all’ve already built a
diversified portfolio
of low-toll index funds via tax-advantaged accounts or taxable brokerage accounts — and have a plan to regularly contribute to these accounts — you may be in a good position to add alternative investments like cryptocurrencies to your portfolio.
2. Notice a identify to purchase Dogecoin
The easiest way to purchase Dogecoin is on a centralized exchange. As Dogecoin is ane of the more than pop cryptocurrencies, you should be able to find Dogecoin as an available option on most of the more than pop exchanges. Equally with any crypto, be sure to check if the platform allows y’all to access your ain digital wallet, which means y’all can send and receive Dogecoin. Some brokers only let you buy and sell Dogecoin with USD.
Dogecoin tin can exist bought and sold on the following exchanges:
Dogecoin can also be found on decentralized exchanges, where you can coordinate peer-to-peer transactions. While decentralized exchanges are oft much cheaper to use, they also crave a bit more than technical know-how, and should simply be used by investors who take some expertise in the world of crypto.
Advertisement
|
|
|
---|---|---|
NerdWallet rating
4.2 /five |
NerdWallet rating
3.six /5 |
NerdWallet rating
3.ix /5 |
Fees 0.5% – 3.49% depending on payment method and platform |
Fees $0 per trade |
Fees $0 per trade |
Business relationship minimum $0 |
Account minimum $0 |
Account minimum $0 |
Promotion $20 of BTC for new users after trading $100 or more within 30 days |
Promotion None no promotion available at this fourth dimension |
Promotion Get $five in Crypto after opening a Webull account, activating crypto trading, and completing ane crypto trade before ane/4/2023. |
Acquire More than |
Learn More |
Learn More |
iii. Decide how to pay for Dogecoin
Generally, at that place are two means to pay for Dogecoin:
Greenbacks:
Exchanges will generally accept fiat currencies similar the U.Southward. dollar for investors who wish to purchase Dogecoin directly. In order to brand a purchase, yous’ll need to create an business relationship at the exchange you choose, and more often than not fund that account from a bank account.
Cryptocurrency:
If you already own cryptocurrency, you may exist able to merchandise some of your existing digital assets for Dogecoin. Notwithstanding, not all cryptocurrencies tin be exchanged for Dogecoin, and each platform tin be different in terms of what’s allowed. Yous’ll need to make sure that the platform y’all’re using allows yous to pair Dogecoin with another cryptocurrency before you identify a merchandise.
4. Decide how to store your Dogecoin
Once you’ve purchased some Dogecoin, y’all’ll have a few unlike options on how to store it:
Use an exchange.
Most exchanges will let you to store digital assets direct on the commutation itself. While this is the simplest and about straightforward way to store your crypto, it tin also leave your assets exposed in cases of crashes or hacks. Major cryptocurrency exchanges FTX and FTX.U.s.a., for case,
crashed
and filed for Chapter eleven bankruptcy, leaving investors without admission to funds. For an additional layer of protection, you might consider using a digital wallet to shop your assets.
Use a digital wallet.
Storing your digital assets in a
cryptocurrency wallet
tin can be a good mode to increase security, but it also requires more responsibleness on the part of the investor. At that place are two different types of digital wallets to choose from:
-
Hot wallets
remain connected to the cyberspace at all times. This makes them more convenient, every bit the owner of a hot wallet tin admission the contents of the wallet from anywhere, any time. Withal, their internet connexion may make them more susceptible to a hacking incident. -
Cold wallets
do not remain connected to the internet. This makes them less user-friendly to employ, as the owner of a cold wallet has to have physical possession of the wallet in order to access its contents. Withal, their lack of internet connectedness makes them less vulnerable to online hacks.
Disclosure: Author Andy Rosen endemic DOGE, BTC and ETH at the time of publication.
Source: https://www.nerdwallet.com/article/investing/buy-dogecoin