Buying Dogecoin: What You Need to Know

The invention and widespread adoption of cryptocurrency around the globe has led to a wide range of fantastic innovations and opportunities for individuals and businesses alike. But with so many different types of cryptocurrency now in existence, from Bitcoin to Ethereum and more, how can you be sure which ones are the best to buy? Thankfully, our team of expert financial professionals at unBanked are here to help explain some of the basics you’ll want to understand going forward! 

In the following article, we’ll be exploring the ins and outs of the cryptocurrency Dogecoin and delving into the essential information you’ll want to know about buying it for yourself! Please continue to learn more and consider exploring the wide range of other expertly written cryptocurrency resources available on our website!

Related: Altcoins: Everything to Know

What is Dogecoin?

A Dogecoin on top of a $50 bill.

Like other types of cryptocurrency, Dogecoin (DOGE) is a virtual currency that exists on decentralized blockchain technology. Specifically, Dogecoin is a peer-to-peer, open-source cryptocurrency that’s also classified as an altcoin. It was launched near the end of 2013 and featured the image of a Shiba Inu dog as its logo. Unlike many other crypto coins, however, Dogecoin has an unlimited supply, which can make it a relatively volatile and risky investment.

While it initially seemed to be created as a joke and became a successful online meme, it has become relatively successful over the years. It has a core of supporters who often use it to tip for content on different websites, like Reddit and Twitter. Like other crypto coins, people can buy and sell Dogecoin on various crypto exchanges and store their Dogecoin in a specified crypto wallet.

Buying Dogecoin: An Easy Five-Step Process

Several Dogecoins and a tiny plastic crown.

Buying Dogecoin is like purchasing any other type of cryptocurrency. While the process may seem slightly complex, the steps involved are relatively simple once you know what you’re doing. There is also a wide selection of helpful online resources that can help walk you through the process, much like the one we’ve compiled below! If you’d like to invest in some Dogecoin for yourself, follow the simple five-step process below to get started. 

Related: Investing in Altcoin: Looking Beyond Bitcoin

  1. Consider The Amount You Want to Invest

The amount you choose to spend or invest in any crypto depends on various factors, such as what you can afford and your overall risk or volatility tolerance towards specific investments. Again, we’d like to note that Dogecoin is particularly volatile compared to many other crypto types because there is an unlimited supply. For Dogecoin’s price to remain stable- let alone increase- enough people need to buy more coins continuously. Because of this, you’ll need to be careful about how many Dogecoins you purchase and how long you hold onto them.

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  1. Choose Your Crypto Exchange and Crypto Wallet

Next, you’ll need to select your preferred crypto exchange that will allow you to buy and sell the crypto of your choice and make an account with them. Some of the most popular exchanges currently in operation include Coinbase and Binance, which are easy-to-use and serve as a great starting place for beginners just dipping their toes into the cryptocurrency market. 

However, keep in mind that even as Dogecoin has become more popular, it isn’t available on all exchanges. If you choose an exchange other than Coinbase or Binance, make sure it carries the crypto you want to invest in before creating an account. It would help if you also considered signing up for a secure cryptocurrency wallet account to help ensure your crypto will remain as safe as possible.

  1. Select Your Preferred Payment Option

Before you can start buying and trading any crypto, you’ll have to select a payment option and deposit money into your exchange account. Most exchanges will allow you to deposit money directly into your account from your checking or savings, though more significant deposits may take a few days.

  1. Buy Your Dogecoin

Once your account is made, and you’ve entered enough money, you can finally start making your Dogecoin purchases. You’ll want to either search the term “Dogecoin” or “DOGE” (the crypto’s ticker symbol) to find it on the exchange. Then, you’ll need to input either the dollar amount you want to spend or specify how many Dogecoins you wish to purchase. Once you complete the order, it should go through immediately, and your Dogecoins will be added to your account. Because Dogecoin isn’t limited to specific trading hours like other coins, you can buy and sell it 24/7.

  1. Safely Store Your Dogecoin 

As soon as you’ve purchased your Dogecoin, you can choose to keep it in your exchange or move it directly into a secure crypto wallet. Congratulations! You officially have your own stash of Dogecoin cryptocurrency.

Related: Best Crypto Exchanges & Platforms

Final Factors to Consider: Should You Buy Dogecoin, and is it a Good Investment?

While Dogecoin may have initially started out as a meme-worthy joke, investors have long since started to take it more seriously, and it’s widely seen as a decent crypto asset to invest in because many of those who have purchased it were well rewarded. However, it’s still classified as a relatively risky investment, alongside cryptocurrency as a whole. Because of this, experts also recommend that people invest no more than 3% to 5% of their portfolios on crypto assets and don’t focus solely on a single type of crypto. 

Those with higher levels of investment risk aversion would likely benefit from more secure and stable cryptocoins, like Bitcoin or Ethereum, while those with higher risk tolerance should consider giving Dogecoin a chance. It might just end up being worth your while! For access to more information on all things crypto, please consider exploring our website at unBanked today.Are you eager to break away from the limiting capabilities of more traditional banks to take control of your own financial experience? Our financial experts at unBanked are proud to offer a wide array of modern solutions for modern problems to provide clients with an entirely new kind of banking experience!