A seemingly innocuous meme coin called Dogecoin made waves across the crypto sector when it was launched a few years ago. Its impact was so prevalent that investors started to re-evaluate their perceptions of the cryptocurrency ecosystem. Dogecoin surged over 10,000% and investors who once rightly thought that the cryptocurrency was nothing more than a joke started to take it seriously. For investors that are considering taking a punt on DOGE, this guide will explain how to buy Dogecoin, how to choose an exchange, and whether it's a sound investment.
How To Buy Dogecoin – Quick Guide
Here is a quick guide to the easiest and safest way to buy Dogecoin:
- Compared and select a crypto exchange. Popular cryptocurrency exchanges have added support for Dogecoin. However, not all of them offer all the facilities an investor requires. Some provide high user interactivity but have a steep trading fee. Others charge nominal transaction costs but have systems that are only fit for veteran investors.
- Create an account with the exchange. Once the user has selected a crypto trading platform, they must create an account. The procedure is the same in all exchanges. It requires entering the basic user details and uploading the KYC information. The exchanges recommend that users enable additional security features such as two-factor authentication after registration. That act will provide extra protection to users' account details and funds.
- Deposit funds into a wallet. Investors have to deposit initial funds into their accounts after registering at the trading platform. The minimum fund required differs for each crypto exchange. Users can use fiat methods such as debit/credit card, Paypal, ACH transfer, Skrill, Neteller, or others to deposit the required amount.
- Buy Dogecoin. Once the account has the initial amount, the account can search for Dogecoin by entering the term "DOGE" in the platform's search bar and pressing enter. They can then follow the steps specific to the trading platform to buy Dogecoin.
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Where to Buy Dogecoin In 2023
Binance is the most popular exchange to buy, trade and sell Dogecoin with USDT. Since Binance listed Dogecoin on 5th July 2019 which pumped the price of the meme coin by 30%, the exchange has become the top market for DOGE/USDT trading with a market share of 8.4% at the time of writing. Binance is also a great option for first-time investors with its fiat-to-crypto gateway to convert USD, EUR, GBP and other currencies into Dogecoin.
In addition to being a premium exchange for buying crypto, Binance is known for offering various options to both advanced and first-time crypto traders. Newcomers can engage with the simple interface to invest in Dogecoin quickly. At the same time, more experienced investors can turn to Binance Futures to speculate on Dogecoin with margin, perpetual or futures contracts to long and short the meme coin.
One of the biggest benefits of investing in Dogecoin through Binance is the low transaction fees. Binance investors can swap other digital currencies into Dogecoin for a maximum 0.1% trading fee. When compared to other exchanges that support Dogecoin, it is undoubtedly one of the most economical platforms. There is also the ability to further reduce the fee by staking Binance Coin (BNB) – Binance's native token. The more BNB held by a user, the lower the transaction fees to purchase Dogecoin.
Read our full Binance review.
Coinbase is an excellent option for investing in altcoins such as Dogecoin due to its high user interactivity and ease of use. This allows newcomers to invest in Dogecoin quickly and safely. Since Dogecoin was listed on 4th January 2021, Coinbase is now the 4th largest exchange for buying and selling DOGE tokens at the time of writing with US Dollars (USD). This makes Coinbase the best exchange in the United States to buy Dogecoin.
Along with 146 other cryptocurrencies listed on Coinbase, users can fund an account using a variety of payment options. Depending on their location, these can include ACH transfers, wire, SWIFT, credit and debit cards. Transferring funds via ACH is a common method as there are no additional costs. However, once the funds arrive, there is a standard trading fee of 0.5% which is quite high. Although, the benefit of Coinbase is the minimum purchase amount. Users can obtain DOGE tokens with as little as $1 in their account.
Another reason why Coinbase is a top exchange to buy Dogecoin is due to its reputation as a trusted and secure platform that includes several safety measures. These include two-factor authentication, cold wallet storage for 98% of customer funds and a crime insurance policy that protects a portion of digital assets against losses from theft and hacks.
Read our full Coinbase review.
eToro is a social trading platform that listed Dogecoin on 9th May 2021. It combines social media features with its standard trading utilities to allow the traders on the platform to interact with each other. Launched in 2007, eToro quickly rose to fame because of its notable and unique CopyTrading feature that allows novice investors to follow the investment strategies of veteran traders.
There are 40+ markets to choose from including Dogecoin which is paired with the US Dollars. eToro is a great option for customers in the US that want to invest in Dogecoin. There is a minimum $10 amount to fund an account using a user-friendly trading platform and visual portfolio manager.
There is a flat 1% fee that is in addition to the spread. This makes eToro a more expensive platform for buying Dogecoins but its ease of use and social community are standout features. Moreover, beginners can simulate buying and selling Dogecoin using a free demo account.
Read our full eToro review.
Best Exchanges To Buy Dogecoin: Compared
While the above-mentioned platforms are highly reputable and trusted exchanges for buying Dogecoin, there are many other options to choose from. It is important that Dogecoin buyers prioritize their research on choosing an exchange that will suit their investment requirements. The table below breaks down and compares the fees of the top platforms for buying DOGE.
|Exchange Poo||Crypto Assets||Trading Fees||Rating||Promotion||Website||Review|
0% to 0.1%
Up to $100 welcome bonus
|Visit Binance||Binance Review|
$5 BTC bonus (USA only)
|Visit Coinbase||Coinbase Review|
0.16% (maker) and 0.26% (taker)
None available at this time
|Visit Kraken||Kraken Review|
None available at this time
eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk."
Is Dogecoin A Good Investment?
Dogecoin is going through a bearish downtrend at the time of writing which may not present the best opportunity to invest in DOGE. While advocates for Dogecoin believe in its strong community, it is difficult to see the coin reaching its height of $0.75 based on fundamentals alone. The performance of Dogecoin in 2022 has been short of spectacular and in a downward trend since May 2021.
While Dogecoin enthusiasts hold a strong belief the coin will reach $1 in the near future, the token is mostly a speculative asset with little intrinsic value. Moreover, with a circulating supply of 132 billion DOGE, it is almost impossible for Dogecoin to reach a height of $100.
Why Is Dogecoin A Popular Coin To Buy?
Dogecoin started as a joke and has become one of the most popular meme coins in the world to speculate on. As a result, several derivatives have emerged such as investing in Shiba Inu and Floki Inu. However, none of them could catch up to the popularity and relevance that Dogecoin acquired.
With Elon Musk stating that Dogecoin has potential as a currency, the value of DOGE tokens has spurred excitement as an investment opportunity. There are several aspects that have and will continue to play a critical role in the price development of Dogecoin which should be considered before investing - these include:
- It is a low-cost token. One of the biggest reasons for Dogecoin's popularity is its low price. Considered a meme coin, Dogecoin still maintains its status quo as one of the cheapest cryptocurrencies to invest in. For instance, novice crypto investors can't invest in BTC or Ethereum because their price is thousands of dollars. While investors can own a fraction of those coins, Dogecoin has created its pedigree within the crypto ecosystem.
- Suitable for global payments. DOGE is a suitable currency for global payments. For instance, the speed to transfer Dogecoin from one wallet to another can be completed within one minute. That, combined with cheaper transaction fees, make Dogecoin one of the best cryptocurrencies as far as fund transfer is concerned.
- A highly liquid asset. Since its inception, Dogecoin has become a multi-billion-dollar asset. It is highly liquid, so it has gained the attention of multiple cryptocurrency exchanges such as the FTX. Dogecoin stands as a flagship token, making it a suitable investment for newcomers and veteran crypto investors alike. The current market capitalization is $11 billion, making it a crypto investment to look forward to.
- Lower transaction speeds. One drawback of Dogecoin is its slow transaction speed. With 33 TPS, it has a higher transaction speed than Bitcoin. However, at the current time, it is not enough. Its competitor TRON has a transaction speed of 2000 TPS. While most early cryptocurrency adopters have become comfortable with the slow transaction speeds, the newcomers are looking for a faster approach – making it critical for Dogecoin to work towards quicker transactions to increase the adoption rate.
- Price is driven by speculation and hype. Much like all the cryptocurrencies in the market, Dogecoin's price is also driven by speculation and hype. Early 2022 saw a sharp drop in the coin's value. However, Elon Musk tweeting about DOGE may cause the price to rally once again. In 2021, it took less than seven months for Dogecoin's price to increase by 8,000%. But this was mostly due to investors being naïve to the market's volatility.
What Can You Do With DOGE After Purchase?
For those that have purchased Dogecoin and wish to make use of it (as opposed to leaving it idle in a wallet), there are several options to maximize the purchase:
- Medium of exchange. While most will likely hold onto DOGE longer-term, some marketplaces and platforms accept Dogecoins, and other cryptocurrencies, as a transaction method. Tesla used to accept Dogecoin for merchandise sales, however, this was later removed. For the most part, Dogecoin is a cheap, fun way of sharing money with internet users around the world.
- Earn passive interest. More experienced crypto users can leverage centralized and DeFi lending and borrowing platforms to deposit DOGE into a savings account to earn interest. Some of the best places to earn interest will pay up to 3% APR on deposits.
Buying Dogecoin – Complete Guide
Step 1: Compare and select a crypto exchange
Dogecoin's popularity has allowed it to be listed in the top cryptocurrency exchanges. However, most crypto trading platforms cater to different types of investors. Therefore, investors must consider the following factors before choosing a platform.
- Fees: Naturally, the fee model differs in most crypto exchanges. Coinbase, Binance and FTX stick by standard commissions. On the other hand, eToro has spread-only tasks. Another important fact to consider is whether a platform provides payment via fiat.
- User Interface: New investors have no use for complex systems. They are only concerned with finding the token of their choice and trading. However, one must always seek a platform that offers multiple trading views to make an informed investment decision.
- Cryptocurrencies: Dogecoin is a newer cryptocurrency and thus is available in most crypto exchanges. However, many consider Dogecoin a frugal investment. Thus, choosing a platform that offers affordable investment options is wise.
- Security: All popular crypto exchanges have employed security measures to protect the user's assets. However, it would be more suitable for investors to look for exchanges that provide insurance for investments.
Step 2: Create an account with the exchange
The account creation process is the same for all cryptocurrency platforms. Users will need to input the relevant details, sign – in and upload the KYC documents. Many users have stood against the requirement for KYC. Unfortunately, there have been rising calls in the government to make the crypto market more regulated. Therefore, uploading KYC documents is required.
That being said, there are certain exchanges that allow users to swap their crypto for Dogecoin. But they have set a limit to the amount of Dogecoin that an investor can trade.
Step 3: Deposit fund to a wallet
All trading platforms require the investor to meet the minimum deposit requirements before investing. For eToro, the requirement is $10 for US and UK-based traders. On Coinbase, those with a minimum of $2 can invest in the cryptocurrency of their choice, including Dogecoin.
Investors have to log in and go to their dashboard to make the initial deposit. Most trading platforms listed in this guide allow investors to deposit the minimum amount using fiat methods.
Step 4: Buy Dogecoin
After depositing the funds, all the user needs to do to buy Dogecoin is search for it on the trading platform and click on the "Trade" button or "Buy" button. The nature of these interfaces will differ depending on the platform. Clicking on it will take the user to the Dogecoin investment page, where they can choose the amount of Dogecoin they want to buy and finish the process.
How To Sell Dogecoin After Purchase
The process of buying and selling cryptocurrency is not so different. A user has to go to their dashboard, choose Dogecoin from the list of purchased tokens and click on the "Open Trade" button. The above option works on eToro. However, on Binance and Coinbase, users can engage with spot trading by swapping their DOGE for currencies, such as USD.
Dogecoin is a meme coin that took off the ground as soon as it arrived on the market. Corporate giants such as Elon Musk have shown interest in this cryptocurrency – causing the Dogecoin price to pump many times in the past. The current market, however, is showing a downward slope. But for experienced investors, could now be the right time to buy the dip? Interested parties can choose among multiple cryptocurrency exchanges to buy Dogecoin and do their own research before investing.