What is Dogecoin?
Dogecoin is a cryptocurrency created in 2013 by software engineers Billy Markus and Jackson Palmer as a joke. They decided to name the coin after a popular meme of “doge” (featuring a Shiba Inu dog).
Should You Even Buy Dogecoin?
With its solid performance in 2021 (and lots of media hype), Dogecoin may seem like a desirable option for investors looking to gain exposure to the cryptocurrency market and build wealth.
That being said, it’s important to remember that to invest in Dogecoin is the same as investing in any other vehicle: you need to do your research and set up realistic expectations.
Decide on an Amount
– How much do you know about cryptocurrency (what a ledger is? what about a mining pool or bitcoin exchange?)
– What purpose does Dogecoin serve in your portfolio?
– How much volatility are you willing to withstand (since most virtual currencies are known to be highly volatile)
– What is your risk tolerance?
Pick a Cryptocurrency Exchange
To buy Dogecoin, you’ll need to open an account on a cryptocurrency exchange. This exchange is an online place where buyers and sellers meet to buy-and-sell cryptocurrencies. Some popular exchanges include Coinbase, Binance, and Kraken.
Choose a Payment Option
Before buying any crypto-currency or making trades, you’ll need to deposit some money in your account. Most exchanges will let you deposit money directly from a chequing or savings account. Some will accept wire transfers or PayPal transfers.
Place a Dogecoin Order
Once your money has gone through and is sitting in your account, you can place an order for Dogecoin. You can search for Dogecoin via its name or by typing in its ticker: DOGE. Then, specify how many Dogecoins you want to buy (or what dollar amount you wish to pay), and your anonymous purchase of Dogecoin should go through.
Consider Storing Your Dogecoin
When you buy Dogecoin, it is typically stored directly on the exchange where you made the purchase. However, some people prefer to keep their coins in a cryptocurrency wallet (or blockchain wallet). These are designed to prevent thieves (hackers) from stealing your digital money like genuine wallets.
As a quick recap, here are the five steps you should follow to make a Dogecoin investment:
– Decide on the amount of money you’re willing to invest into Dogecoin.
– Pick out a cryptocurrency exchange or brokerage (that has Dogecoin listed).
– Choose a payment option and load up money into your account.
– Make an order or Dogecoin!
– Consider storing your Dogecoin on a wallet for more security (and also to earn interest on it potentially).