5 Easy Steps to Buy Dogecoin (2024)

With its playful canine mascot and endorsem*nts from billionaires like Elon Musk and Mark Cuban, it’s not hard to see why investors love dogecoin. Since its creation as a bitcoin spoof in 2013, the cryptocurrency has gained cult status.

Buying in early has made some people very rich: Those who invested before the meme coin exploded in popularity in late 2020 saw the value of their holdings rocket by more than 7,000% to 74 cents by the middle of 2021. But dogecoin has big risks too. It dropped to less than 14 cents by the end of that year, and prices are now hovering around just 7 cents per coin.

That’s why it’s so important not to invest more than you can afford to lose.

If you do choose to buy dogecoin, here’s everything you need to know.

Choose an investing app

Using a cryptocurrency exchange is one of the easiest ways to buy dogecoin, bitcoin, ethereum and other crypto assets. A crypto exchange is a digital marketplace where people buy, sell and swap cryptocurrencies.

Most major crypto exchanges like Coinbase and Gemini offer access to dogecoin, but not all exchanges do the same. You can also buy dogecoin by downloading a mobile app such as Robinhood or Webull (but again, not every brokerage will offer dogecoin as an asset). These may be better options if you simply want to buy cryptocurrency and then sell for a profit in cash.

The downside to some crypto brokerage apps, however, is that you can’t do much else with your crypto. For instance, you may not be able to use your dogecoins to buy products where crypto is accepted or move them to an external crypto wallet that may provide better security.

Create an account

You can sign up for an account with a crypto exchange or brokerage online and in minutes. The sign-up process is relatively simple, but you may need to provide the following information.

• Full, legal name

• Date of birth

• Email address

• Phone number

• Home address

• Social Security number

• Driver’s license, passport, or other government-issued ID

• Bank account and routing numbers if you’re using a checking account to deposit money into your crypto account. This is the cash you will use to buy dogecoin within the crypto exchange or investing app.

Decide how much to invest

Financial planners generally recommend investing no more than 3% to 5% of your money — an amount you are willing to lose — in highly volatile assets like cryptocurrencies.

This is especially true when it comes to dogecoin, which is a highly volatile and unpredictable asset. Keep that in mind as you decide how much to invest.

Choose a payment method

After you open your cryptocurrency account, you can use a checking account to deposit money which you will use to purchase dogecoin. The bank transfer may take several days.

Some crypto exchanges also let you use your credit card to buy cryptocurrency, but be aware of the risks. The bank will treat the transaction as a cash advance, the same as if you borrowed cash from your credit card via an ATM and,. Because that kind of transaction carries a hefty interest rate, you could end up paying a lot more for your dogecoins than what they’re worth. And if dogecoin’s value goes down, you’re left with high-interest credit card debt and no crypto profits to pay it off.

Purchase Dogecoin

To place an order for dogecoin, log into your crypto exchange or brokerage account. Find the search bar and type in “dogecoin” or DOGE. Once you find dogecoin, add the dollar amount you’d like to spend or the number of dogecoins you’d like to purchase. Then click the “buy” or “order” button and finalize your transaction.

Keep in mind that your broker or crypto exchange may charge trading fees for buying or selling cryptocurrency. You may see fees ranging from about 0.05% to 5% per trade, though every exchange is different. However, some investing apps that offer crypto such as Robinhood and Webull offer commission-free crypto trades.

Advantages and disadvantages of buying Dogecoin

Advantages of Dogecoin

Investors are often attracted to dogecoin by the potential for massive returns, but it’s important to remember that these returns are never guaranteed and impossible to predict.

Dogecoin is also easier to mine than bitcoin — the mathematical equations necessary to create new coins are easier and cheaper to complete. That means new dogecoins can be mined faster than new bitcoins, too. But this is a double-edged sword: Too many new coins and insufficient investor demand can drive down the price of dogecoin.

Disadvantages of Dogecoin

Unlike stocks or bonds, dogecoin doesn’t pay dividends or interest. It is not backed by any substantial assets, so if the public loses its fascination with dogecoin, the price could in theory fall all the way to zero.

And since there is no limit on how many dogecoins can be mined, dogecoin’s price will rise only if investors buy dogecoins faster than miners can produce them.

It’s also important to remember that dogecoin’s hype-driven rallies can be short lived. In mid-2021 dogecoin’s price doubled in less than a month after Tesla founder Elon Musk tweeted he would host Saturday Night Live, setting off rumors he would plug it on the show. As it happened, Musk called the meme coin “a hustle” and during the show, its price plunged by nearly 30%.

Where can you buy Dogecoin online

You can buy dogecoin by opening an account with a crypto exchange like Coinbase, Binance, or Kraken or Gemini. You can also access dogecoin through investment apps like Robinhood, SoFi, Webull and eToro.

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