In this article, I will walk you through how to buy Dogecoin and everything you need so as to be set up correctly.
Let’s kick it.
Steps to Buy Dogecoin
Step 1: Decide how much you are going to invest (Do not skip this step)
ok, first things first, you need to understand that Dogecoin is a coin that started off as a joke. It was based on a popular meme of a Shiba Inu dog that had been making the rounds at the time.
Now, maybe you have seen some of your bros make a decent return. You’re thinking ok it looks like this doggy coin is here to stay.
Or maybe you are thinking, “If DOGE reaches its previous all-time high that’s 12x. Dude! That’s the solution to my all troubles.”
Whatever the reason, you want in on some of the action and potential upside. However, before you make a rash decision based on a bullish thread you read on Reddit, I highly recommend you get more perspective.
You need to understand what you are investing in.
Since you are all pumped about buying DOGE why not counterbalance that emotion by reading up on the main arguments why Dogecoin will fail?
Once you have done that, if you still want to proceed, decide on how much DOGE you want to buy.
Whatever you do, do not invest more than you can afford to lose. For example, had you invested $1,000 at the peak of Dogecoin’s price it would now be worth $108. So you need to be comfortable with losing like 90% of what you put in.
Also, keep in mind that just because the price has dropped 90% it does not guarantee that we have reached the bottom. It could casually drop another 90%.
Once you have decided the amount you want to buy you need to choose a platform.
Step 2. Decide what platform to buy DOGE on
You have 2 categories to choose from here:
Option A: Go with a crypto brokerage
A brokerage such as eToro or Webull allows you to buy Dogecoin directly through their interface. It’s as simple as transferring some money to them and hitting the buy button.
Brokerages are simple to use and most people already have an account with them so they don’t need to switch platforms to buy DOGE.
The most notable difference between brokerages and crypto exchanges is that brokerages don’t (usually) offer wallets. This means that you cannot move your Dogecoin elsewhere.
One exception to this rule is Robinhood which offers its users a wallet to keep their crypto in. Robinhood is the most popular platform to buy Dogecoin. To find out how to go about this, read my detailed guide on buying Dogecoin on Robinhood. Please note this is not a plug for Robinhood. I don’t get a commission from them. But their wallets hold about 1/4 of the total supply DOGE. They are the most preferred platform for buying Dogecoin.
Option B: Choose a crypto exchange
Crypto exchanges have very similar mobile apps to brokerages. The major difference is that you can only buy cryptocurrencies on them and that you then have the option to send your Dogecoin to a wallet.
Be aware that when you buy DOGE on an exchange the DOGE is non-custodial. This means you don’t have custody of your Dogecoin. It’s like you are putting it in a bank where they are keeping your DOGE for you.
Except that exchanges are not banks.
Many people found this out the hard way when one of the largest crypto exchanges, FTX, went bankrupt. FTX had been taking users’ DOGE and other crypto assets and making risky trades with them.
This is why if you are investing a meaningful amount you need to get your DOGE off the exchange and into a wallet. (See Step 6: Store your Dogecoin in a wallet)
I recommend you use a crypto exchange if you want to have a wider selection of cryptocurrencies to choose from. You should also use an exchange or Robinhood if you plan to invest a lot in DOGE and want to hold it for a long time. This way you can move your DOGE into a wallet where you have custody of your private keys to access the wallet.
If you are undecided check out my guide on where to buy Dogecoin to help you make a decision. This will help you decide which is the best app to buy Dogecoin.
Step 3: Open an Account and wire funds to it
To open an account whether you choose a crypto exchange or a brokerage you are going to need to provide them with some proof of ID.
Once you do that you will need to move funds to it.
Different platforms offer different wire transfer options depending on where you are located. For US residents wire transfers that use ACH take 3-5 business days.
Some exchanges might also allow you to deposit using a credit card if you are in a hurry. But those that do, charge you an outrageous fee of at least 2% for doing so.
Step 4: Buy DOGE
The user interface for buying DOGE is slightly different depending on the platform you are using.
However, there are some commonalities.
Crypto exchanges will often have a pro version and a newbie version. The pro version might come as a separate app or it could be a toggle button within the app itself.
The benefit of using the simpler version is that it is less scary for first-time users. There are fewer options to choose from and there is usually a simple “buy” button that you click on on the DOGE page. However, fees are higher (more than double).
Personally, I recommend you use the pro version. For a few reasons
- Most people who buy DOGE are going to buy other cryptos in the future. It would be better to become familiar with how to trade on the pro versions where fees are cheaper.
- With the pro version, you can reduce the chance of losing all your money. I will teach you how.
- The interface is busy but not as complicated as you think.
Let me walk you through what a typical pro version will look like. The experience with brokerages is going to be very similar.
Once you enter the amount of DOGE you wish to buy you need to decide on the type of order you want to place.
An exchange is like a big marketplace or grand bazaar where people are offering their goods for sale. There is one person in the corner shouting “Fresh Dogecoin! Come and get your fresh DOGE. Only $0,07.” Then there is another dude on the other side “I’ve got Dogecoin people. Best Dogecoin. You my friend, I’ll sell you a DOGE for $0,069”.
But because this marketplace is virtual and there is no one you can actually interact with you need a way to signal what you are willing to pay.
Here are your options
1. Place a market order
With a market order, you accept the current rate that is being asked by sellers. It is usually the lowest rate that is on offer at the time.
Market orders are the default order option. When you use the newbie version of your crypto app you are placing a market order. I place all of my purchase orders as market orders. (I still use other types of orders. There is a trick I do that I will tell you about shortly.)
But there are other options too. For example, say the price for DOGE is $0.08 but you only want to buy it below $0.07. In that case, you would need a limit order.
2. Limit order
A limit order indicates the maximum price you are willing to pay.
In your app’s pro version, there will be a dropdown where you can change the order type from market order to limit order.
When you do this, a new field will appear that asks you to set the limit price. For example, if you set it at $0.07 then your order won’t execute unless DOGE has dropped to $0.07 or less.
Note that when you set a limit order your transaction will not go through immediately. It will wait until the criteria are met and the price drops (if it does).
Also, in a market without enough buyers and sellers, it could be the case that you are not able to use all of your available capital to buy DOGE at that price. So you might see your order executing partly or in batches.
DOGE is a highly liquid asset with a market cap in the billions so I do not think you will face that issue. But it’s good to be aware.
3. Stop order
A stop order is very similar to a limit order. However, there are two fine differences.
- The first is that once the stop order price is hit a market order is placed. It’s like saying, “Once DOGE hits $0.07 buy at the going rate”. For example, if within the next few seconds, the price increases to $0.072 your purchase will still go through whereas with a limit order, it wouldn’t have.
- The second difference is that no one can see your stop order while the market can see your limit order. I don’t think you need to worry about this aspect.
Sometimes stop orders are called “stop loss orders”. This is because you can set a stop order to sell. So say you buy at 0.07$ but if the price of DOGE continues to fall you’d want to cut your losses.
Which brings us to step 5. Ha!
Step 5: Make sure you cut your losses
When you buy Dogecoin you are probably in one of two mindsets.
Mindset A: You’re thinking, “ok let me put in $100 and see what happens.”
Brain break: I once did that by the way. My mother gave me $100 for my birthday (yes she still gives birthday cash at 44) so I put it into DOGE to see what happens. I was lucky enough to buy just on the cusp of Dogecoin making a massive rally. When I next checked my phone my DOGE was worth $1,000. I was planning to buy a guitar but then I put it into some other nascent cryptos. I was thinking “Wow! I 10-xed in a week. If I do 10 x two more times I could be a millionaire.” Eventually, I lost it all. Lesson learned: don’t be greedy.
Anyways, if it’s a small amount you’re buying then you can just leave it and see how your experiment pans out.
How much will I get if I invest $100 in Dogecoin?
At the current price, you will get 1250 DOGE. If you are wondering how much profit you will make think of it in percentages. If the price of DOGE increases by 20% you will make 20 bucks. If it drops 20% you lose 20 bucks and so on.
Check out this table of returns depending on how the price moves
Price of DOGE
ROI on $100
Mindset B: You’re thinking ok let me put in more than $1,000. If DOGE goes back up to its all-time high I make like $11,000 profit.
You need to be aware that you are making an extremely risky decision by doing this. When Jack Palmer, one of Dogecoin’s founders, saw that people were investing more than $20,000 into DOGE he resigned and sold all of his DOGE. He still regrets his practical joke even though DOGE has become a behemoth of a coin.
So, people, this is the most important part of this post. If you are investing a substantial amount in DOGE make sure you cut your losses.
It’s better to lose 10% rather than 90% right?
Here is the trick I use that I mentioned earlier
My special trick
In our example, if the price of DOGE were $0.07, you would set a stop loss order to sell at $0.063. This is instructing the interface to sell your DOGE back for dollars as soon as the price drops below $0.063.
This way if the price starts falling you don’t lose as much. Yeah sure it might start going back up again but dude when things go down they tend to spend time there. So better to lose a little rather than a lot.
There is a 3rd mindset that I haven’t mentioned. This one is that you believe that Dogecoin is going to be worth holding onto for years. You have a long-term horizon and don’t mind if the amount you put in touches zero.
If this is your mindset then it would be better to store your DOGE in your own wallet.
Step 6: Store your Dogecoin in a wallet
A wallet is a way to keep your Dogecoin somewhere where only you have access to it. No matter whether an exchange or a brokerage goes bust or gets hacked your DOGE is with you.
There are two main categories of wallets: hot wallets and cold wallets.
Hot wallets are online apps or browser extensions. Some popular hot wallets for holding DOGE are MetaMask, Trust Wallet, and Guarda.
To set up a hot wallet you need to open an account whereupon you will get a 12-word mnemonic key. This is your private key which allows accessing the wallet. All hot wallets are free to use. They are called hot wallets because they are connected to the internet which makes them more hackable in theory though many of these have never been hacked.
A safer option is to buy a cold wallet.
A cold wallet is a hardware device such as a Trezor or a Ledger device. It kind of looks like a USB stick. The benefit of keeping your Dogecoin in cold storage is that the device is not connected to the internet. The drawback, of course, is that if you lose the device there is no way to retrieve your coins.
What to do with your DOGE if you turn a profit
There are two options here. You either cash out or you can use Dogecoin to buy stuff.
Cashing out is pretty straightforward. All you need to do is sell your DOGE and wire the funds to your bank. For the specifics check out my article on how to cash out Dogecoin
In this article, I will walk you through how to cash out Dogecoin. Dogecoin is one of the oldest and most widely available cryptocurrencies. Thus, it is supported by most crypto exchange platforms. This makes it far easier to cash it out on almost any cryptocurrency exchange than many other digital currencies. Read more.
The other alternative is to use your DOGE to buy stuff. There are over 1,400 stores that accept DOGE as payment. You can check out my list of the top 50 businesses where is dogecoin accepted for more on this.
Alternative ways to earn DOGE
Do you want to earn free dogecoin? Yes, you can earn Dogecoins by performing simple tasks. How? Dogecoin faucet is the secret. Doge faucet provides one of the best ways to earn free coins. Read more.
In this article, I will walk you through what a Dogecoin mining pool is, how you can join one, how much money you could make, and which are the best pools to join. Read more.
Should I buy Dogecoin
I don’t know man. I’m not but that decision is completely up to you. Seriously don’t search for stuff like that online. Here is a framework that will help you clarify that question.
You only have two options when deciding whether Dogecoin is a good investment
- Become a professional trader. Learn how to spot patterns and trade based on momentum. You buy the dips and exit at the peaks. You learn how to manage your emotions and how to deal with frequent small losses that are counterbalanced by less frequent but larger wins. To learn how to do this you need to read books. A lorra books.
- Have an opinion on the long-term prospects of DOGE. Study Dogecoin’s fundamentals and decide if you think this coin has a future or not. Use elementalcrypto to understand Dogecoin and crypto in-depth and don’t use the conversation you overheard and that youtube video that got you pumped as the only source of information.
Here are some resources that will help you further explore this:
How many Dogecoins should I buy to become a millionaire
how much to become a millionaire
|How much you have to invest to become a millionaire||when price reaches|
At today’s price, you need to buy $1,000,000 worth of Dogecoin to be a millionaire. If you expect the price of DOGE to reach 0.5 then you need to invest $160,000 into DOGE today. Please don’t do that.
As you can see it is very unlikely that we will have many new millionaires from Dogecoin. The opportunity to make those kind of gains has long gone.
To understand this better check out my price prediction below.
Dogecoin Price Prediction Resources
- Where to buy dogecoin in the US
- How to buy dogecoin on Binance
- Buying Dogecoin on Robinhood
- Guide for Buying Dogecoin on Coinbase
- Steps to buy Dogecoin on Etoro
- Buying Dogecoin on MEXC
- Buy Dogecoin on Gemini
- Buying Dogecoin on Webull
- Guide to buying Dogecoin on Kraken
- Steps to buy Dogecoin on Phemex
- How to buy Dogecoin on Crypto.com