Cryptocurrency has quickly become one of the most popular investment options among individuals looking to diversify their portfolios. One cryptocurrency that has recently gained immense popularity is Dogecoin. In this article, we will provide you with a step-by-step guide on how to buy Dogecoin on Coinbase, one of the most popular cryptocurrency trading platforms.
This article is part of my series on how to buy Doge.
Understanding Dogecoin and Its Popularity
Dogecoin is a cryptocurrency that was created in 2013 by Billy Markus and Jackson Palmer. The cryptocurrency was initially created as a joke, inspired by the popular “Doge” meme featuring a Shiba Inu dog. However, it has gained immense popularity in recent times, with its market capitalization reaching over $40 billion in May 2021.
One of the reasons for Dogecoin’s popularity is its strong community of supporters. The Dogecoin community is known for its lighthearted and welcoming nature, with members often using the phrase “to the moon” to express their belief in the cryptocurrency’s potential for growth.
What is Dogecoin?
Dogecoin is a decentralized digital currency that operates on a peer-to-peer network, allowing for easy and fast transactions between users. It uses a unique technology called blockchain to ensure the security and authenticity of transactions. Like other cryptocurrencies, Dogecoin can be bought and sold on various online exchanges.
One of the unique features of Dogecoin is its inflationary supply. Unlike Bitcoin, which has a limited supply of 21 million coins, Dogecoin has no limit on the number of coins that can be mined. This means that new Dogecoins are constantly being created, which could potentially lead to inflation in the long term.
The Rise of Dogecoin
In May 2021, Dogecoin saw a sharp increase in value, with its price rising from around $0.05 to a peak of $0.68 in just a few days. This sudden surge in price was largely due to the support of several prominent figures, including Tesla CEO Elon Musk.
Musk has been a vocal supporter of Dogecoin on social media, often tweeting memes and messages about the cryptocurrency. His tweets have been known to cause significant fluctuations in Dogecoin’s price, with some investors referring to him as the “Dogefather.”
Why Invest in Dogecoin?
Investing in Dogecoin could potentially yield significant profits. However, it is important to remember that investing in cryptocurrencies is highly speculative and can be risky. It is important to do your own research and invest only what you can afford to lose.
Despite its recent surge in popularity, Dogecoin’s long-term prospects are still uncertain. Some experts have raised concerns about its inflationary supply and lack of a clear use case. However, for those who believe in the power of memes and the strength of community, Dogecoin may still hold promise.
Setting Up Your Coinbase Account
Are you ready to buy some Dogecoin? The first step is setting up your Coinbase account. Don’t worry, it’s easy!
Creating a Coinbase Account
To get started, head over to the Coinbase website and click on the ‘Get Started’ button. This will take you to a page where you will need to enter some basic information such as your name, email address, and password. Make sure to choose a strong password that you will remember.
Once you have entered your information, click on the ‘Create Account’ button and you will be taken to your new Coinbase account dashboard. Congratulations, you are now one step closer to buying Dogecoin!
Verifying Your Identity
The next step in the process is to verify your identity. This is an important step as Coinbase is required by law to verify the identity of their users. Verifying your identity will also increase your account limits and allow you to buy and sell more cryptocurrency.
To verify your identity, you will need to provide some personal information including your name, date of birth, and address. Coinbase will then ask you to upload a photo ID to verify your identity. This can be a driver’s license, passport, or government-issued ID.
Don’t worry, your personal information is safe with Coinbase. They use industry-standard security measures to protect your data and prevent unauthorized access.
Linking a Payment Method
The final step in setting up your Coinbase account is to link a payment method. Coinbase offers several payment options including bank transfers, credit/debit cards, and PayPal. Choose the payment method that suits you best and follow the instructions to link it to your account.
Once your payment method is linked, you are ready to buy Dogecoin! Simply navigate to the Buy/Sell tab on your Coinbase dashboard and enter the amount of Dogecoin you want to buy. Coinbase will show you the current market price and the total cost of your purchase. Confirm the transaction and voila, you are now the proud owner of some Dogecoin!
Remember, cryptocurrency is a volatile market and prices can fluctuate rapidly. It’s important to do your own research and invest wisely. Happy trading!
Navigating the Coinbase Platform
As a cryptocurrency exchange platform, Coinbase is a great place to buy, sell, and trade cryptocurrencies. However, navigating the platform can be a bit overwhelming, especially for new users. In this guide, we’ll explore some of the key features of Coinbase and how to use them effectively.
Exploring the Dashboard
The dashboard is the first page you’ll see when you log in to Coinbase. It provides you with an overview of your account balance, recent transactions, and the value of your investments. This is a great place to start if you’re new to Coinbase as it gives you a quick snapshot of your account’s performance.
On the dashboard, you can also access your portfolio, which shows you the current value of your investments and how they’re performing. This is a great tool for keeping track of your investments and making informed decisions about buying and selling.
Finding Dogecoin on Coinbase
Dogecoin is a popular cryptocurrency that has gained a lot of attention in recent months. To find Dogecoin on Coinbase, click on the ‘Trade’ button in the top navigation menu. This will take you to the trading page where you can buy and sell cryptocurrencies.
Once you’re on the trading page, type ‘Dogecoin’ into the search bar to find it. From there, you can see its current price, market cap, and price history. This information is essential to making informed decisions about buying and selling Dogecoin.
Analyzing Dogecoin’s Market Performance
Before making a purchase, it is important to analyze Dogecoin’s market performance. This can be done by looking at its price history, market cap, and current price. Coinbase provides all this information on the trading page, so take some time to analyze it before making a purchase.
In addition to market performance, it’s also important to consider other factors that could impact the price of Dogecoin, such as news events, social media trends, and overall market sentiment. Keeping up with these factors can help you make informed decisions about buying and selling Dogecoin.
Overall, Coinbase is a great platform for buying, selling, and trading cryptocurrencies. By understanding how to navigate the platform and analyze market performance, you can make informed decisions about your investments and potentially earn a profit.
Purchasing Dogecoin on Coinbase
Dogecoin, a cryptocurrency that started as a joke, has gained significant popularity in recent years due to its unique community and growing acceptance as a form of payment. If you’re interested in investing in Dogecoin, Coinbase is a great platform to start with. Here’s a step-by-step guide on how to purchase Dogecoin on Coinbase.
Selecting the Amount to Buy
Before making any investment, it’s important to do your research and analyze the market performance of the asset you’re interested in. Once you have done your due diligence and are ready to make a purchase, the next step is to select the amount you want to buy.
One of the best things about Coinbase is that it allows you to buy fractions of cryptocurrencies, so you don’t have to buy a whole coin at once. This makes it easy for investors with any budget to get started with Dogecoin.
Choosing a Payment Method
After selecting the amount you want to buy, the next step is to choose a payment method. Coinbase offers several payment options, including bank transfer, credit card, and debit card. Choose the payment method that you linked to your Coinbase account and follow the instructions to complete the purchase.
It’s important to note that each payment method has different processing times and fees. Bank transfers are usually the cheapest option but can take several days to process. Credit and debit cards are faster but may have higher fees.
Reviewing and Confirming Your Purchase
Before finalizing your purchase, it’s crucial to review the details of your transaction to ensure they are correct. Check the amount you’re buying, the payment method you’re using, and the fees associated with the purchase.
Once you’re satisfied with the details, confirm the purchase and wait for the transaction to be processed. Coinbase will send you a confirmation email once the transaction is complete. Your Dogecoin will then be added to your portfolio, and you can monitor its performance on the Coinbase app or website.
Remember, investing in cryptocurrencies can be volatile and risky, so it’s important to do your research and only invest what you can afford to lose. With Coinbase’s user-friendly interface and security features, buying Dogecoin has never been easier.
Alternatives to using Coinbase to buy Dogecoin
While Coinbase is super popular as an exchange it’s not the only platform that offers DOGE. There are a bunch of brokers and other crypto exchanges that also offer Dogecoin. Check out my guide on the best places to buy Dogecoin below.