How to buy Dogecoin? Guide to investing in popular cryptocurrency that has surged 850% over a month
Dogecoin has managed to build a reputation as the people's currency as it keeps breaking new records again and again. On Tuesday morning, May 4, it reached a new all-time high of over $0.60. In the past month, the fan-favorite cryptocurrency has increased more than a whopping 850% in valuation.
It is obvious that many are considering investing in DOGE due to its meteoric and almost inexplicable ascent. Here are some tips to help beginners learn more about the coin and make their first investment with all the available safeguards in place.
What is Dogecoin? Here's how 'joke currency' defied digital-trading rules and made the Internet say 'LET'S GET RICH'
Who created Dogecoin? Cryptocurrency price jumps after Mark Cuban claims Dallas Mavericks could take it to $1
What is Dogecoin?
Dogecoin was introduced in December 2013 as a peer-to-peer, open-source digital currency. Casually branding itself as a "fun" internet currency, Dogecoin was originally intended to be a more memorable cryptocurrency project that would pique the interest of the public in blockchain technology, according to Benzinga.
DOGE went on to become an icon in the online individual investor spectrum of today and its logo, the Shiba Inu, has arguably become a pop-culture figure in 2021.
It's worth pointing that Dogecoin is built on the same framework as other cryptocurrencies, including Bitcoin. However, its makers claim to have added several improvements to Bitcoin's technology to enable faster and more affordable trading options. According to Benzinga, one can tap into an unlimited supply of Dogecoin, and it trades on a number of major exchanges.
DOGE is already the 13th largest cryptocurrency project when viewed in terms of total market capitalization, with a market cap of over $5.9 billion. It is understandable if you are scrambling to understand how to get started.
How to invest in Dogecoin
Step 1: Open a cryptocurrency account
According to Benzinga, the first step to purchasing Dogecoin is to open an account with a cryptocurrency broker that supports DOGE trading. Following are some of the things one must consider while opening a crypto brokerage account:
- The broker’s fee and commission schedule
- Features and education tools you can access through each brokers’ trading platform
- The type of coin and tokens available to buy and sell on the exchange
- Access to additional markets (some brokers focus on providing access to as many coins and tokens as possible, while others combine cryptocurrency market access with stock, forex, and additional market choices)
Step 2: Fund account and purchase cryptocurrency
Once you have opened your wallet and brokerage account, you can place a buy order to purchase DOGE. As a first step, you must take a look at the current price of DOGE as soon as you open your broker's trading platform. While prices of cryptocurrencies keep fluctuating, you can expect to pay close to the market rate. It is essential to track the price of DOGE and ensure you are not overpaying for your coins.
Most competent brokers will offer you a wide range of order types to pick from, according to Benzinga. If you're not already familiar with the basic types of orders, you are advised to gain a basic familiarity with the most common order types before investing. After choosing an order type and calculating how much DOGE you can afford at the current market price, you can make the purchase on the platform.
When you see your DOGE in your exchange wallet, it means your order has been completed by the broker. Should the broker not be able to fill the order per your specifications, they may cancel it at the end of the trading day, per Benzinga.
Step 3: Trade or sell your cryptocurrency
Once the Dogecoin has arrived in your exchange wallet, you will need to employ one of two major trading strategies and decide how you want to earn a return on your investment.
The aforementioned trading strategies are classified as follows, as reported by Benzinga:
1. Long-term holding: Investors who believe that the price of Dogecoin will increase may hold it for months or even years at a time. If this is your strategy, transfer your DOGE to your wallet as soon as possible to keep your investments safer.
2. Short-term scalping: Short-term investors capitalize on small price movements by buying and selling DOGE when it’s advantageous for them. If you plan on becoming a short-term investor, it’s important to have access to a reliable and fast-executing trading platform.