In this article, I will guide you through the step-by-step process of buying Dogecoin on Robinhood. I will tell you all the questions Robinhood will ask you throughout the process and what you need to do. I will also tell you all the dimensions you need to think of before buying Dogecoin on Robinhood.
But before we dive in, let’s briefly discuss what Dogecoin is and why it has become such a popular cryptocurrency, especially with Gen Z investors.
Hey, also, before I forget: for those of you who are interested in how to buy Dogecoin more broadly, like knowing what to do and what not to do, check out my guide on how to buy Dogecoin for beginners.
What is Dogecoin?
Dogecoin is a cryptocurrency that was created in 2013 by software engineers Billy Markus and Jackson Palmer. The coin was inspired by the popular internet meme featuring a Shiba Inu dog. Initially, Dogecoin was intended to be a joke, but it quickly gained a following due to its low price and friendly community. It is now one of the most popular cryptocurrencies. `
In 2021 Dogecoin saw a massive surge in popularity. Its price reached an all-time high of 60 cents after Tesla CEO Elon Musk tweeted about it and even mentioned it on his appearance on Saturday Night Live.
Dogecoin has been in the top 10 coins by market capitalization ever since.
It’s astounding to think that even today DOGE’s market cap is over $9Bn.
Let’s take a closer at what buying DOGE on Robinhood involves.
Step-by-Step Guide: Buying Dogecoin on Robinhood
Before we get started, it’s important to note that Robinhood’s cryptocurrency trading is only available to users who reside in certain US states. More specifically, Dogecoin and other cryptocurrencies are not available in the states of Hawaii and Nevada.
Step 1: Open a Robinhood Account
If you already have a Robinhood account, you can skip this step. But if you’re new to the platform, you’ll need to create an account first.
To do this, go to the Robinhood website or download the app from the Google Play Store or Apple App Store.
You are going to need your Social Security Number.
Once you’ve downloaded the app, follow these instructions to set up a new account.
- When you load up your Robinhood app, you will see the main page. At the bottom right-hand side of the page, click on “Sign Up”.
- Enter Your Email Address and Create a Password
- Next, enter your legal first name and last name. Make sure these are correct as Robinhood will use your government ID to confirm your identity.
- Enter your phone number and wait for a code for verification.
- Next, it will ask for your date of birth and residential address. It will ask you to confirm your address on the map.
- Select your Citizenship. Keep in mind that Robinhood is only available in the US and the UK
- Next, input your Social Security Number and click “Continue”.
- Next, it will ask you a few questions about your investment experience. At this point, you can also choose to enable commission-free options trading but this is not necessary if you only care about buying Dogecoin.
- Enter your employer name, occupation, and job industry.
- Confirm Whether You or Any of Your Family Members Work for a Stock Exchange or Brokerage. This is for legal reasons and won’t apply to most people. Most likely you will answer “no” to this question.
- Finally, review and agree to the tax certification and brokerage agreements.
Et voila! You are all set up to transfer your funds which is the next step.
Step 2: Fund Your Account
Once you have created an account, you will need to fund it before you can start trading.
Here is what you need to do.
- Once you accept the agreements, it will ask you to fund your account.
- You will see a notification message that says you can buy small amounts and that you can transfer up to $1,000 in an instant deposit. It also says you can enable 2-factor authentication which you will need to do if you are interested in buying Dogecoin. Click on Continue
- Next, you will see the page where you can connect your bank account with Robinhood. Robinhood uses Plaid to connect your account
- Click on continue and select your bank from the list. If you can’t see your institution you can also search for it.
- Enter your email and password to log into your bank account.
- Once you have logged in through Robinhood to your bank account you can select which account you want to use to fund your Robinhood account (checking savings etc)
- In the next screen, you will enter the amount you want to transfer and click “Submit”.
Step 3: Navigate to Robinhood Crypto
To start trading cryptocurrencies on Robinhood, navigate to the Robinhood Crypto page on the app.
To find the crypto tab click on the search icon at the bottom middle. Next click where it says crypto.
A list of the top cryptocurrencies available to trade on Robinhood will appear. Scroll down to find Dogecoin and click on it. You can also search for DOGE in the search bar.
Step 4: Buying Dogecoin
Once you’ve navigated to the Robinhood Crypto tab, select Dogecoin from the list of available cryptocurrencies.
Next, click on the “BUY” button.
Next enter the dollar amount that you want to invest.
Step 5: Review and Confirm Your Order
Before you place your order, click on “review” to check all of the details, including the amount you’re investing, the trading fees, and the payment method.
Once you’re satisfied, swipe up and the order will be placed.
Once your order goes through you can check your order details or click on “Done”.
Step 6: Hold or Sell Your Dogecoin
Now that you’ve successfully bought Dogecoin on Robinhood, you have two options: hold onto it or sell it for a profit. If you’re in it for the long term, consider holding onto your Dogecoin in a secure hardware wallet or online crypto wallet. If you’re looking to make a quick profit, you can sell your Dogecoin on Robinhood or transfer it to another crypto exchange to sell.
Step 7: Set a stop loss.
If you plan on trading Dogecoin then you should set a stop loss. This will allows you to cut your losses if the price of DOGE starts to drop. Read up more on How to Set a Stop Loss on Robinhood for Your Crypto.
Robinhood Dogecoin Trading Fees?
Robinhood has an unusual fee structure in that it does not charge you anything for trading crypto. Robinhood makes money because they get a rebate (money back) for using certain partners called market makers to place the trades. This is also known as order flow. As in you get compensated as a broker if you send your trades to be processed to another firm instead of a cryptocurrency exchange. Robinhood discloses that it receives 0.35% in rebates on its crypto trading volume. So somewhere along the line that cost is passed along to you.
Also, keep in mind that their crypto wallet is free to use. If you decide to move your DOGE elsewhere you will need to pay for the Ethereum Network gas fees. But this has nothing to do with Robinhood and you would need to pay these fees anyway. I can’t give you an estimate of much this will be should you decide to send your DOGE elsewhere because it depends on how congested the Ethereum Network is.
What you need to know before buying DOGE on Robinhood
If this is your first time buying Dogecoin on Robinhood then you should be aware of two things
Firstly you should be aware of the order types that are available to you
Secondly, you need to understand a thing or two about digital wallets.
Dogecoin Order types on Robinhood
When you buy Dogecoin on Robinhood if you look carefully in the top right you will see it says “Order Types”.
There are 4 types of orders types you can place to buy DOGE.
- Marker orders
- Limit orders
- Stop Orders
- Stop limit orders
When you place a market order it means you are willing to buy DOGE at whatever the prevailing price in the crypto market is when you swipe up to submit. This is usually fine and the simplest option to use. However, keep in mind, that because DOGE is volatile the price could change between the time you enter the amount you want to buy and when you place your order.
If you want to make sure you don’t buy DOGE if the price exceeds a certain threshold then you would place a limit order. Say the price of DOGE is 7 cents and you are not willing to pay more than 8 cents. You can set a limit order with the limit price at 8 cents. This way if the price shoots up to more than 8.5 cents by the time you place your order then your order won’t go through. Had you set a market order your purchase would have gone through and you would have paid 8.5 cents per DOGE.
Now say the price is 7 cents but you only want to buy if the price falls to 6 cents. You can wait around and keep looking at your screen until the price drops. Alternatively, you can set a stop order at 6 cents. This will execute a market order to DOGE when and if DOGE’s price hits 6 cents
Stop limit order
In our previous example say the price hits 6 cents. Then your market order would go through. But what if you wanted to enter a limit order to make sure you don’t buy again should the price shift suddenly back up to 7 cents? Then in this case you can set a stop limit order.
What order type should I set?
It really depends on what you want to do and how frequently you trade. For most use cases the default, market order setting should be good enough. If you are going to be frequently trading or placing a large order then I would recommend you experiment with the other options.
The second thing you need to consider is that Dogecoin is a meme coin. You can read up more about what I think
What you need to do about wallets when buying Dogecoin
So when you buy your Dogecoin you have two options. You can leave them as is on Robinhood. OR you can move it to an online wallet. The reason to do this is that crypto on Robinhood is not insured so if anything goes wrong you ain’t getting your Dogecoin back. However, if you move your Dogecoin to a wallet then you have the private keys to that wallet.
To understand wallet better check out my article that explains crypto addresses
Selling Dogecoin on Robinhood
To sell Dogecoin on Robinhood you will follow very similar steps:
- Navigate to the crypto page and select Dogecoin
- Next, click on Sell
- Review your order
- Swipe up to confirm
- And hey presto your DOGE has been sold
If you want to cash out your DOGE check out my step-by-step instructions on how to go about that
Alternative platforms to buy Dogecoin?
Dogecoin is available on multiple brokerages such as eToro and Webull. And it is available on all the major crypto exchanges such as Binance, Kraken, and Coinbase.
Should You Buy Dogecoin on Robinhood Now?
In my opinion. No. And to get a better perspective on why I think that I recommend you read my article that explores what the world would look like if DOGE reached $100.
Robinhood is a financial services company that offers commission-free trading and investing in stocks, exchange-traded funds (ETFs), options, and cryptocurrencies through a mobile app and website. It was founded in 2013 with the mission of democratizing finance for all by making it accessible to the general public. Robinhood allows users to buy and sell assets with no fees or minimum account balance requirements. It also provides tools and resources to help users manage their portfolios and make informed investment decisions.
What is the disadvantage of Robinhood crypto?
One of the main arguments against using Robinhood for crypto is that you cannot transfer it out of Robinhood. However, this information is outdated as, nowadays, Robinhood’s wallet allows you to do precisely that.
The main disadvantage of Robinhood crypto is simply its lack of a wide range of products. At the time of writing Robinhood only offers 18 cryptocurrencies.
Another disadvantage is Robinhood does not allow margin investing for crypto. This means that you can’t use leverage to trade. In my opinion, this is a good thing because you are more likely to lose money by using leverage.
Finally, Robinhood does not allow you to short crypto. So if that’s something you care about you need to move your crypto to a cryptocurrency exchange.
Are you actually buying Dogecoin on Robinhood?
Yes, when you buy Dogecoin on Robinhood it is the real thing and if you have a Robinhood wallet then you actually own the DOGE.
What is the fee to buy dogecoin on robinhood?
There is no fee for buying DOGE on Robinhood. Robinhood is a zero-commission trading platform.
How many Dogecoins does Robinhood have?
As of May 2023, according to the Twitter account of @DogeWhaleAlert, the current total combined amount of #Dogecoin held by Robinhood is 33,562,118,525 $DOGE which is $2,7Bn or 24.12% of the circulating supply
When was dogecoin listed on Robinhood
Dogecoin was listed on July 16th, 2018. The price of DOGE grew 46% immediately after the listing. By September 2018 it had grown 3x only to crash back down to pre-listing levels that October.
Can I buy and sell Dogecoin on Robinhood same day
Yes, there are no restrictions on how often you can trade Dogecoin on Robinhood. Transactions execute fast. You can buy and sell DOGE as frequently as you want within the same day.
Can I buy Dogecoin after hours on Robinhood?
Yes, you can trade Dogecoin on Robinhood 24hrs 7 days a week. Blockchains do not go to sleep and neither does Robinhood.
Can I buy Dogecoin on Robinhood in New York?
Yes, Robinhood holds a BitLicense from the New York State Department of Financial Services which means you can legally buy Dogecoin in New York. The only states where Robinhood does not offer Dogecoin because it does not operate there are Hawaii and Nevada.
Can I transfer my Dogecoin from Robinhood to Webull
No WeBull only allows you to use cash to purchase DOGE.
Can you buy Dogecoin on Robinhood on the weekend?
Yes, Dogecoin's blockchain never stops and Robinhood is open on all days of the week including weekends.
Is my crypto safe if Robinhood goes under?
Yes, provided you are using the Robinhood wallet, then the crypto you buy belongs to you and no one else can take it if Robinhood goes under.
Can I transfer Dogecoin out of Robinhood?
Yes, you can send your Dogecoin to any other address whether it is a crypto exchange or a personal wallet.
Is it dumb to buy crypto on Robinhood?
Using Robinhood to buy crypto used to be considered nonsensical by many because once you bought a crypto on Robinhood you couldn't send it elsewhere. However, this has changed since Robinhood introduced its wallet. Whether it is a good idea to buy crypto, in general, is up to you. It is a risky investment and crypto is highly volatile.