How to Buy Dogecoin (DOGE) in 2022: Things You Must Know

12:24 PM, Jun 24, 2022
How-to-Buy-Dogecoin.jpg

In 2021, Dogecoin skyrocketed by 7,000%. The mind-boggling gains crypto investors made placed the popular meme coin into the spotlight of the investment world, with many asking, "How do I buy Dogecoin?"

Despite the usual market volatility in the cryptocurrency world, many experts point out that Dogecoin (DOGE) still has the potential to reach the stratosphere once more. So today, let's talk about buying Dogecoin and where to buy it (spoiler alert, you can buy Dogecoin on eToro).

Disclaimer: “managementhelp.org is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc., as applicable. This compensation incentivizes managementhelp.org to describe those products and services in favorable terms. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.”

Social trading, cryptocurrency trading, and eToro stock trading are not covered under the Financial Services Compensation Scheme. You incur a high risk of losing money rapidly when trading CFD assets with this provider. None of the content in this eToro review constitutes investment advice.

How to Buy Dogecoin (DOGE): The Super-Fast Guide

dogecoin.jpg

Below is the fastest, most concise possible guide on how to buy DOGE. We'll use eToro as an example because they are a well-established platform that's safe and easy to use.

  1. Create an account at the eToro cryptocurrency exchange: Visit the eToro website and hit the Get Started or Sign-Up button - the green one. Enter your email, create a username and a password, and verify your registration.
  1. Deposit money: In the cashier or deposit section of your brokerage account, set the payment method you wish to use.
  1. Find Dogecoin: Find DOGE on the list of available currencies or through the search bar and hit the Trade button.
  1. Buy Dogecoin: Enter how much money you wish to spend on DOGE. The minimum deposit and purchase value are $10. Click Open Trade and wait for the funds to reach your crypto wallet at eToro.

This short guide covers all the key steps you need to follow to add Dogecoin to your investment portfolio.

And if you're experienced in using cryptocurrency exchanges or buying other cryptocurrencies like Bitcoin, you'll be fine. But for beginners looking to invest in Dogecoin, we recommend checking out our in-depth guide below.

Where to Buy Dogecoin: A Detailed Rundown

Find the Best Cryptocurrency Exchange

Finding a high-quality crypto exchange is the biggest challenge for most potential crypto investors looking to buy Dogecoin. If your cryptocurrency exchange is legit and safe, you are all set. And this applies to every digital asset, including Bitcoin and other major cryptocurrencies.

Safety, encryption, and licensing are critical. We always advise investors that the crypto exchange they opt for must remain stable no matter how volatile the market is and no matter how many coins you are looking to add to your Dogecoin wallet.

We already mentioned that our top pick is eToro, but these are the essential factors to consider if you decide to search for the best brokerage services and third-party sites on your own.

  • Available Cryptos and Digital Assets: While this article explains how to buy Dogecoin (Doge), you should search for crypto exchanges that include other digital currency options and add new coins you can invest in. It’s a good idea to check for any particular stocks you are interested in before registering. And, of course, you should also be able to sell Dogecoin on the platform.
  • Payment Options: Whether you want to use traditional bank transfers, e-wallets, or other cryptocurrencies to buy DOGE, you should be able to do it. In plain terms, make sure that the crypto exchange you're considering joining supports the payment method you want to use for investing.
  • Fees: All online brokers and cryptocurrency trading platforms charge fees, but we want lower fees than the competitors. Hidden charges should not eat up your crypto profits - that's not what you buy Dogecoin (DOGE) for. But note that even the best crypto exchanges tend to add withdrawal and deposit fees.
  • Customer Service: We don't recommend a crypto exchange unless you can reach out to support agents 24/7. Live chat is a must, but we also prefer companies that offer email and phone communication. As an extra bonus, we like when a crypto exchange is active on social media and engages in a public discussion with users.

Buy Dogecoin on eToro Today

When we went through all major crypto exchanges and placed them against these benchmarks, eToro stood out as the top option to buy and sell Dogecoin. Let's now focus on your first purchase and joining the Dogecoin community.

How Can I Buy Dogecoin

purchase-doge.jpg

So you found the best place to trade Dogecoin - now what? Well, the next step of the journey is investing in Dogecoin. And investing takes three steps: registration, funding, and actually buying DOGE. Let's use eToro to take you through each step.

  • How to Register: Head over to eToro, click on the button that says Get Started or Sign Up, provide the data the exchange will ask from you and verify your profile. The company has the right to ask for a photo ID document.
  • Deposit Money: You can now log in to the exchange and set the amount of cash you wish to deposit in the Deposit Funds department. Select the currency, the payment option, and make sure to meet the minimum deposit requirement of $10.
  • Purchase Cryptocurrency: Now that you have money in your account, click Discover in the site's main menu. Then click on Crypto and find DOGE from the dropdown selection. Alternatively, you can find DOGE using the search bar.

Click on Buy and adjust the amount of cash you wish to use to invest in Dogecoin. The minimum money you can spend on Dogecoin investing on eToro is 10 USD. Click on Open Trade, and the funds will arrive in your digital wallet.

Invest in Dogecoin on eToro Today

You are now investing in Dogecoin, and are free to trade Dogecoin if you want, which is a different matter altogether and not investment advice.

So once the crypto transactions are through, the next step in any investor's journey is to safely store their private key and digital assets, no matter how many Dogecoins you own.

You have four types of cryptocurrency wallets you can use to store DOGE; let’s discuss more.

Store Your Dogecoin in a Crypto Wallet

crypto-wallet.jpg

The four types of crypto wallets at your disposal range from storing your Dogecoin on the exchange to cold wallets.

  • Store Dogecoin on the exchange: You can leave your Dogecoin on the exchange where you bought it. This option doesn't give you complete control of your private keys but is the fastest way to trade or sell Dogecoin.
  • Software wallet: Also known as the desktop wallet, this crypto wallet type is essentially software you install on your desktop or mobile device and store crypto - Dogecoin included. These are also hot wallets. What are hot wallets? They're crypto wallets that connect to the internet, allowing you to buy and invest straight from the wallet or just check Dogecoin's price and market capitalization.
  • Hardware wallet: A hardware wallet is a dedicated device, usually similar to a USB drive, that allows you to store your crypto. Popular hardware wallets include Trezor and Ledger, both of which support Dogecoin.
  • Cold storage: Cold wallets or offline storage is universally presented as one of the safest options among crypto wallets. Zero internet connection, top safety, but you also can't easily trade or sell your assets. It's excellent for long-term investors, but many traders aren't fans.

Dogecoin Operation Explained

Like most cryptocurrencies, including major ones like Bitcoin and Ethereum, Dogecoin is driven by blockchain.

Blockchain is a distributed public ledger on which all transactions are stored in a centralized manner, without a central authority.

Every Dogecoin user or investor has a crypto wallet. Each wallet has a private key and a public key. The public key is used to submit a transaction request, which is processed by decentralized miners.

Miners validate the sender's amount of Dogecoin and confirm whether they can make the transaction. After validation, the transaction is approved.

Dogecoin miners compete in collecting the transaction data called the nonce. They apply math functions to produce correct hash numbers for the nonce in question. The most successful miner is awarded 25 DOGE.

In the final stage of the process, miners and users receive a confirmation message, after which the DOGE amount is transferred into the target crypto wallet, completing the Dogecoin money transaction.

Buy Dogecoin on eToro Today

Pros and Cons of Dogecoin

Pros

  • Fast confirmation times (faster than Bitcoin)
  • Super low transaction fees
  • Dogecoin community 
  • Lower value boosts use as currency in gaming
  • Widely accepted

Cons

  • Dogecoin mining is not profitable
  • Dogecoin is inflatory, reducing its investment potential
  • Limited functionality, no Smart Contract
  • Fewer buying options than bigger cryptos

How Is Elon Musk Connected to Dogecoin?

Any DOGE discussion these days doesn't seem possible without bringing Tesla and SpaceX founder Elon Musk into the conversation.

While some claim that Elon is the mysterious "whale" who owns over 28% of total Dogecoins, others insist that such claims make no sense since Musk insists cryptos are becoming too centralized to his liking.

What we can say with certainty is that Elon Musk is a fan of the iconic meme coin. The Tesla leader has promoted DOGE a number of times through his Twitter feed, raising awareness of crypto and even encouraging potential investors to invest.

Elon's DOGE enthusiasm can be traced well over a year back, leading to price jumps any time he mentions the cryptocurrency. It now became known as "The Musk Effect."

The exact amount of DOGE Elon Musk owns, and whether he owns any in the first place, remains unknown.

Things You Should Know Before You Buy Dogecoin

What Is Dogecoin?

Dogecoin is a meme crypto coin based on the Shiba Inu dog. Dogecoin was jokingly launched in 2013 by software engineers Jackson Palmer and Billy Markus, becoming the first meme coin ever to exist.

Will Dogecoin Reach $1?

Based on past performance, Dogecoin price prediction experts say that it is not impossible for Dogecoin's price to reach a dollar.

However, many also point out that Dogecoin can only accomplish such a feat in a new crypto bull market, which is tied to the price of Bitcoin in many ways. Investors are advised only to spend money they can afford to lose. No Dogecoin forecast is investing advice.

What Is Dogecoin Worth?

dogecoin-worth.jpg

Cryptocurrency prices vary from minute to minute, and it is best to check the latest price of any crypto - Dogecoin and Bitcoin included - by visiting a prominent investment app or exchange like eToro and checking the prices.

Is Dogecoin a Joke?

Dogecoin came to be in 2013 as a meme coin. It was initially launched as a joke by Billy Markus and Jackson Palmer, two software engineers who later noted that Dogecoin was merely a hobby.

Recently, Markus pointed out that the original goal of Dogecoin was launching a fun crypto community that opposed the "elitist" crypto community at the time. Dogecoin is based on the Shiba Inu dog meme, featuring the Japanese dog surrounded by deliberately broken English.

What's the Difference Between Bitcoin and Dogecoin?

Both Dogecoin and Bitcoin exist on the blockchain and are driven by the proof of work. Miners verify crypto transactions and create new coins, although, unlike Bitcoin, the number of Dogecoins in public circulation is not limited.

In the case of Bitcoin, the cryptocurrency's software guarantees that no more than 21 million coins are ever created. When it comes to Dogecoin, though, over 133 billion coins exist right now, with the numbers continually rising.

Buy Bitcoin on eToro Today

Is Dogecoin Worth Investing in 2022?

Some experts say that yes, it is worth investing money in Dogecoin, pointing out that the sharp decline of the crypto market in mid-2022 is bound for a leg up.

This is not investment advice; please do your research before putting real money on the line.

When Is the Best Time to Buy Dogecoin?

The best time to buy Dogecoin might be now.

Pinpointing the exact moment when you should buy Dogecoin or any other crypto is next to impossible. But most experts point out that while it might take a while for DOGE to reach that all-time high again, the massive crypto corrections of mid-2022 drove some experts to expect a leg up.

However, others point out that the best option is to invest consistently and always dedicate a portion of your income to crypto. This is not investment advice, do your research before investing any money.

Why Is Dogecoin Price Dropping?

The price of Dogecoin is often closely related to the price of leading cryptos like Bitcoin. Since this is a speculative asset, news cycles also tend to affect the price. Whether it's any worries about the Federal Reserves or hype over Elon Musk praising the coin, Dogecoin's price is bound to be affected by news articles.

One of the top examples is when DOGE price soared from 6 pennies to 77 cents after Elon Musk announced he would host SNL.

How High Can Dogecoin Go?

dogecoin-price.jpg

There is no limit on how high the price of DOGE can go. Dogecoin reached its current all-time high in May 2021, touching 77 cents per coin. By the end of the year, it dropped to 14 cents.

Is Dogecoin Compatible With Decentralized Exchanges?

Yes, investors can trade and transact Dogecoin on decentralized exchanges. The Ren Project enabled DOGE to be compatible with the ETH blockchain and access the DEX network. Dogecoin can continue to thrive in the emerging decentralized environment in the crypto world.

Dogecoin still cannot interact directly with smart contracts as it runs on its own blockchain, which does not support smart contracts. But DOGE can be wrapped, which locks the coin with a smart contract until its release.

What Are Dogecoin Fees?

Receiving DOGE has no fees attached. Most crypto wallets allow users to control their spending fees. IF you opt for higher fees, in most cases, the transaction confirmation is significantly faster, allowing you to transfer a million coins as fast as sending a single DOGE.

Why Should I Trust DOGE?

You should trust DOGE because this crypto is 100% decentralized and open-source. Anyone can access the source code, anywhere, in full.

It means that any developer out there is free to verify the legitimacy and validity of Dogecoin. Access is transparent and in real-time.

DOGE transactions rely on zero third-party sites. The entire system is on the Dogecoin blockchain. Not a single individual or organization has the power to control Dogecoin. The network is safe and secure even if some of its users are not to be trusted.

Can I Make Money From Dogecoin?

It is possible to make money from DOGE. You make money either by selling DOGE at a higher price than you bought it for or by multiplying your existing coins through trading. This is not investment advice, and as much as you can make money from this cryptocurrency, you can also lose it.

Sell DOGE on eToro

Is Dogecoin Anonymous?

Dogecoin is anonymous to an extent. However, the currency is not 100% anonymous like cash. Because all transactions are tracked on the blockchain, public records of every transaction are left behind.

And while your wallet is anonymous by default, there is a chance that your wallet address can be traced to you.

What If I Lose My Dogecoins?

Lost dogecoins are still on the blockchain but will remain idle forever if you don't find your private keys and gain the ability to spend them once more.

Can You Regulate Dogecoin?

The DOGE protocol requires the participation of most users for modification, which is practically impossible. An organization could theoretically invest in enough Dogecoin mining tools to gain the ability to control the network and reverse the latest transactions.

But even then, maintaining that power would be very difficult and require a consistent investment of more power than all other miners combined.

How Much Dodge Does Elon Musk Own?

There is no credible data to show how much DOGE Elon Musk owns - if any. But speculation suggests that the Tesla CEO is the mystery DOGE "whale" holding over 36 billion coins, which is over a quarter of the total circulation.

But since Elon has criticized cryptos for becoming too centralized and concentrated, others tend to dispute this theory.

How Many Dogecoins Are Left to Buy?

The supply of Dogecoins is infinite. You can buy as many as you want. 10,000 new coins are mined whenever a new block is added to the blockchain. It means that over 14 million coins get mined daily and that the final number is not determined.

Should I Buy Dogecoin?

Dogecoin and all cryptocurrencies are speculative assets, meaning the price can go way up but also way down. The top advice anyone can give you is to do your own research and never invest more money than you can afford to lose.

What Is the Shiba Inu Coin, and How Does It Relate to Dogecoin?

Shiba Inu Coin is a newer cryptocurrency that gained traction as the so-called "killer of DOGE." The two currencies are similar in the sense that they are both meme coins revolving around the Shiba Inu meme.

But the core difference is that while Dogecoin is based on a proof-of-work (POW) mechanism like BTC, SHIB is an ERC-20 token based on the Ethereum network.

Shiba Inu has developed a full-on ecosystem that includes two additional coins called BONE and LEASH and has a decentralized exchange called ShibaSwap. Shiba Inu (SHIB) is also available on mainstream exchanges like eToro.

So, Where to Buy Dogecoin?

You have a variety of exchanges at your disposal, including eToro, Coinbase, Binance, and more.

Our recommendation is eToro, based on the company’s years of experience in the crypto domain with an impeccable reputation.

Read this eToro review to learn more about the trading platform.

We also like the wide variety of payment options, lower fees, and top-tier SSL encryption with maximum safety. The buying process is straightforward and only takes a few minutes of your time.

That said, always choose to do your own research rather than relying on online brokers and robo-advisors too much. It's your cash you’re investing, so come prepared. Once you're ready to invest real money, never invest more than you can afford to lose.

Stay safe, invest safely!

PMA_nominate_480x360.png

We need your nominations for the 2022 Positively Milwaukee Awards