Risk Warning: Your Capital is at Risk.
In this guide to trading Dogecoin (DOGE), we’ll explain how and where to buy this altcoin. We also list regulated brokers and cryptocurrency exchanges in that allow you to buy Dogecoin outright or speculate on its price. We’ll also discuss the reasons why some traders choose to trade in Dogecoin while others don’t.
In a hurry? If you want to get started trading Dogecoin, here are platforms available in to consider:
Disclaimer: Availability subject to regulations.
Dogecoin is a unique cryptocurrency born out of a cute meme about a Shiba Inu dog. Traders can either purchase Dogecoin or gain exposure to its price changes through trading instruments like derivatives.
How Can I Trade Dogecoin?
There are several ways you can trade Dogecoin (DOGE), including:
- Exchanges – Buy or sell Dogecoin with fiat currency or another cryptocurrency that you can own and use for purchases.
- Online brokers – Buy CFDs, futures, or forex from online brokers that allow you to speculate on whether the price of Dogecoin will go up or down.
Online Brokers for Trading Dogecoin
Start your research with reviews of these regulated crypto brokers available in .
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. <b>Between 71.00%-89.00% of retail investor accounts lose money when trading CFDs.</b> You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Please Note: Availability subject to regulations. Cryptocurrency CFDs are not available to UK retail traders.
Where Can I Buy Dogecoin?
So, after weighing up the pros and cons, have you decided that Dogecoin might be able to go to the moon? The next step is to figure out how to go about actually purchasing some.
There aren’t many ways to easily purchase Dogecoin with fiat currency like the US dollar (USD), so your best way is by trading it for Bitcoin using an exchange.
Direct Ways To Purchase Dogecoin
Most traders purchase Doge using an exchange like Bitfinex. This involves buying cryptocurrency with fiat currency and storing them in a virtual wallet.
While this approach is common it carries risks and you must do your research and select a reputable exchange.
Here’s a list of popular cryptocurrency exchanges:
|Binance||Exchange hundreds of coins, buy futures and leveraged tokens, crypto loans|
|Bitfinex||Crypto exchange, margin trading, crypto derivatives 👜 🔹|
|Bitmex||Crypto exchange, futures, perpetuals, 100x leverage on some derivatives 🔹|
|Coinbase||Crypto exchange, get paid to learn about crypto, offers USD Coin 👜|
|Huobi||Crypto exchange, 5x leverage for spot trading, futures, swap, C2C lending 👜|
|Kraken||Crypto exchange for traders at all levels, many crypto derivatives 🔹|
|OKEx||Crypto exchange, spot, futures, perpetual swap, and derivatives trading, cold and hot wallets 👜|
|Stormgain||Crypto exchange, low fees and 200x multiplier on crypto futures 👜 🔹|
|👜 = Built-in cryptocurrency wallet
🔹 = Demo available
Coinbase: A Regulated Crypto Exchange
If you want to acquire Bitcoin to trade for Dogecoin, one possible choice is an exchange called Coinbase. There are several other choices but Coinbase is one of the most newcomer-friendly.
It comes with a large number of currency pairs and you even have the option to buy BTC using your credit or debit card. Coinbase has a competitive fee rate.
Purchasing BTC will typically result in a 3.99% fee if using a credit or debit card and a 1.49% fee for most kinds of bank transfers.
How Do I Get To Trade With Coinbase?
Coinbase requires your ID and address when registering. This kind of verification is a standard procedure and considered the best practice for many exchanges.
It’s designed to prevent the exchange from being used for money laundering and other criminal activities. Privacy-conscious traders should consider a different exchange, however.
LocalBitcoins: Peer-To-Peer Crypto Trading
Rather than buying DOGE directly, you can first buy Bitcoin through a peer-to-peer Bitcoin Exchange that does not require an ID.
One of the best options is LocalBitcoins which allows users to buy Bitcoin with almost any currency.
Once you have the Bitcoins, you will be able to trade these for Dogecoin at another exchange. If you choose to use LocalBitcoins, make sure you vet other users thoroughly.
There is a review function and you should make sure you use it. Some unscrupulous users have been known to scam new traders.
If you get a bad feeling or see poor reviews, it is generally best not to make the trade. Some users even meet in person to exchange their currency.
How To Manage Your Dogecoin
To manage your Dogecoin, you must learn how to navigate exchanges and keep your computer secure.
- You will need to take extra precautions to protect yourself against phishing scams, viruses, and other risks. You will also need to keep very careful track of your wallet’s access codes.
- If you misplace those then your DOGE coin will be trapped in a wallet you can no longer access.
- On top of this, there are risks that you have no control over. Whenever you use an exchange you are relying on it to protect your DOGE. The problem is that they sometimes fail to do this properly.
Are Exchange Wallets Safe To Store Dogecoin?
Keep in mind that cryptocurrency exchanges are not safe and you will need to be serious about your security.
- Always enable two-factor authentication and avoid keeping all of your coins in a single wallet.
- Also, remember that you should never leave your coins in an exchange wallet unless you are planning to exchange them.
- If you don’t own the keys to your wallet then you don’t own the tokens inside it.
- The best way to secure your Dogecoin is in a hardware wallet or by putting them in cold storage.
Are Private Wallets Safe To Store Dogecoin?
It is arguably safer to store your Dogecoin privately in a wallet. There are different types of wallets for Dogecoin storage:
- Cold wallets
- Hardware wallets
- Hot wallets
- Desktop wallets
- Paper wallets.
Cold storage involves keeping your cryptocurrency in an offline wallet that only you have access to. Remember that you are entirely responsible for your assets’ security.
Hardware wallets are a form of cold storage. Examples include Ledger and Trezor, both of which support Dogecoin.
If you don’t own the keys to your wallet, you don’t own your tokens.
You will also need to take extra care to ensure that your computer is secure and password protected. Any breach could result in your coins finding their way into the wallet of a hacker.
Should You Trade Dogecoin?
Every trader is different, so we’ve listed some common reasons why some choose to trade in Dogecoin while others don’t.
Important: This is not investment advice. We present a number of common arguments for and against investing in this commodity. Please seek professional advice before making investment decisions.
Reasons to Trade Dogecoin
Here are some reasons that traders choose to trade Dogecoin:
- Inflationary supply dynamic
- An engaged user base
- 1 DOGE = 1 DOGE.
Dogecoin Is An Inflationary Currency
Unlike Bitcoin, Litecoin, and many other cryptocurrencies, Dogecoin is an inflationary currency. It may seem counterintuitive to call inflation a good thing since it devalues individual Dogecoins more than scarcity would.
However, its inflationary nature is a feature that may ensure Dogecoin’s survival.
When a cryptocurrency, like Dogecoin, is inflationary, it means that there is no maximum limit to the number of coins in circulation.
Benefits of an Inflationary Supply Dynamic
With most cryptocurrencies, a large number of coins can be lost or damaged as a result of users losing hardware, or forgetting wallet passwords.
This is especially true for a cryptocurrency like Dogecoin, where users regularly spend their coins. An inflationary coin can help ensure a constant supply and that mining will also be at least semi-profitable.
Dogecoin’s Engaged User Base
Dogecoin undoubtedly has one of the best communities out there. They are approachable, friendly, and helpful.
- They raise money for charities.
- They’re trying to put a physical Dogecoin on the moon.
- They regularly send Dogecoin as tips to other users as a reward for entertaining or informative content.
This community is what has allowed Dogecoin to survive and it means that the cryptocurrency is unlikely to die anytime soon.
One DOGE Equals One DOGE
A common refrain among the Dogecoin community is that no matter how much the price increases, 1 DOGE will always be equal to 1 DOGE.
In essence, they are saying that Dogecoin is a transactional currency, rather than a speculative asset.
From a trading point of view, this means that even though Dogecoin might not have cutting-edge technology behind it, it is being treated as a proper currency by many users which means that it has a utility purpose.
Reasons Not to Trade Dogecoin
While there are upsides to this unique crypto, there are two main risks to consider:
- Update lag
- Uncapped maximum supply levels.
Dogecoin has not seen a major update since 2015 (v1.10). While the security behind the coin is still strong, a lack of updates could well leave the cryptocurrency behind as newer coins bring new features to the table.
There are reports that the Dogecoin Dev team is considering coming back and making changes, but there are no guarantees as they essentially work on the cryptocurrency in their spare time.
A lack of updates could well find Dogecoin being left behind.
Uncapped Maximum Supply Levels
Being an inflationary coin improves Dogecoin’s chances to be used as a proper currency, but there are downsides. Dogecoin is designed to maintain a constant supply of around 1 billion tokens.
This is excellent for liquidity and makes it easy to obtain coins but it also means that there isn’t much incentive to pay in large sums of money for the coin. However, this limits its potential as a realistic long-term hold.
Here are some common questions and answers about Dogecoin trading.
What is the history of Dogecoin?
Dogecoin started as a joke that its creator Jackson Palmer made in 2013. Programmer Billy Markus then worked with Palmer to bring the coin to life in less than two weeks.
Dogecoin Price Historical Chart
The highest value of DOGE to date was $0.17 USD in January 2018. Find out more on our Dogecoin history and background page.
Is Dogecoin based on Litecoin?
Indirectly, yes. DOGE is based on Luckycoin (LKY), which is based on Litecoin (LTC)‘s blockchain ledger. By virtue of its lovable mascot (the Shiba Inu “doge” meme), Dogecoin was designed to be a more approachable cryptocurrency than Bitcoin, but it wasn’t intended to break any new ground as a digital asset.
What can Dogecoin be used for?
A common use for Dogecoin is to tip online content creators and social media posters in recognition for their work. In this way, DOGE acts like a monetary way to “like” someone’s post. However, Dogecoin is unlikely to be useful in a broader retail sense until its value increases and adoption rates are higher.
- Learn More About Dogecoin
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