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 movements.
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.
Between 74-89% of retail investor accounts lose money when trading CFDs.
How Can I Trade Dogecoin?
Dogecoin is a unique cryptocurrency born out of the popular Doge meme, featuring a Shiba Inu dog. Traders can purchase and own Dogecoin or gain exposure to price movements through trading derivatives, like CFDs, or futures.
For example, Binance now offers DOGE futures, traded alongside Tether (USDT. Tether is a stablecoin with the value equivalent of $1 per 1 USDT.
You can trade Dogecoin (DOGE) via:
- Exchanges – Buy or sell Dogecoin using either fiat currency or another cryptocurrency that you own.
- Online brokers – Buy CFDs, futures, or forex from online brokers that allow you to speculate on whether the price of crypto will go up or down.
Some exchanges, like Binance, offer cryptocurrency pairs to trade, like DOGE/BTC, DOGE/USD, and DOGE/EUR.
Where Can I Buy Dogecoin?
Convinced that Dogecoin is set to go to the moon – or even a dollar? The next step is to figure out how to go about actually purchasing some.
There are some ways to purchase Dogecoin with fiat currency, such as the US dollar, but you will often need to buy using Bitcoin through an exchange.
Dogecoin at Crypto Exchanges
Most traders purchase Doge using an exchange, like Coinbase. This involves buying cryptocurrency with fiat currency and storing them in a virtual wallet.
Here’s a list of other reputable cryptocurrency exchanges and platforms:
Peer-To-Peer Crypto Trading
Another option to is to buy BTC to trade for DOGE through a peer-to-peer Bitcoin Exchange.
One option is LocalBitcoins which allows users to buy Bitcoin with almost any currency.
Once you have BTC, you will be able to trade it for Dogecoin at another exchange. If you choose to use LocalBitcoins, make sure you vet other users thoroughly using their reviews. 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.
Brokers for Trading DOGE
Many brokers now offer DOGE trading. If you are interested in trading Dogecoin (speculating on it’s price), start your research with these brokers available in .
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74%-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
IMPORTANT: CFDs are not available in the USA due to local regulation, and regulated brokers do not accept US citizens or US residents as clients.
Please Note: Availability subject to regulations. Cryptocurrency CFDs are not available to UK retail traders.
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 automatically safe and you will need to be serious about your security.
- Always enable two-factor authentication.
- Avoid keeping all of your coins in a single wallet.
- Don’t leave your coins in an exchange wallet unless you are planning to exchange them.
- If you don’t have the keys to your wallet then you don’t own the coins inside it.
- The best way to secure your Dogecoin may be in a hardware wallet, which is a form of ‘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 (also considered cold 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.
Reasons to Trade Dogecoin
Here are some reasons that traders choose to trade Dogecoin:
- Inflationary supply dynamic
- An engaged user base
- Significant price fluctuation offers day trading opportunities.
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.
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.
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 many cryptocurrencies, coins may be lost as a result of users losing hardware, or forgetting wallet passwords.
This may be especially true for a cryptocurrency, like Dogecoin, where users spend their coins, rather than use it as a mere store of value.
An inflationary coin can help ensure a constant supply and that mining will continue in the future.
Dogecoin’s Engaged User Base
Many believe Dogecoin has one of the best crypto communities out there: 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.
Many believe this community is what has allowed Dogecoin to survive and it means that the cryptocurrency is unlikely to die anytime soon.
In 2021, we also saw Dogecoin hit new all-time highs with a market cap of over $80 billion, partially driven by Elon Musk and the user base of the WallStreetBets Reddit thread.
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 or mere store of value.
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. It has utility, even if it is mainly used for online tipping.
Reasons Not to Trade Dogecoin
While there are upsides to this unique crypto, there are always risks to consider when trading any cryptocurrency:
- 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.
However, since 2019, a small development team has somewhat planned to maintain the Dogecoin network. In 2021, Elon Musk is said to have funded the small team to take action behind the DOGE infrastructure.
In any case, a lack of updates could well find Dogecoin left behind.
Uncapped Maximum Supply
Being an inflationary coin encourages users to spend Dogecoin, rather than see the value of their coins fall over time.
This is excellent for liquidity and makes it easy to obtain coins. However, this limits its utility as a long term store of value, versus something like Bitcoin or even traditional assets, like gold.
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
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.
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 sense until adoption rates are higher.
In 2021, a number of smaller merchants began to accept dogecoin as payment, which could be a positive indicator for its future.
- Learn More About Dogecoin
- Today’s DOGE Price & Historical Charts
- Getting Started With Cryptocurrencies
- Crypto Broker and Exchange Guide
- Learn to Trade Commodities
We also have several other crypto trading guides, including: