How to Buy Dogecoin (DOGE) Right Now • Benzinga

The cryptocurrency that Tesla CEO Elon Musk once referred to as his “fav cryptocurrency” is back in the spotlight once again. Dogecoin (DOGE) has spiked over 800% in value amid a buying frenzy fueled by social media site Reddit. The coin that was once worth a fraction of a penny less than a year ago was valued at $0.07 per coin on January 28, 2020.

If you’re thinking about investing in DOGE, be sure that you understand the risks. Our guide for beginners will help you learn more about DOGE and make your first investment.  

What is DOGE?

Branding itself the “fun and friendly” internet currency, Dogecoin is a peer-to-peer and open-source digital currency introduced in December of 2013. The original idea behind Dogecoin was to create a more memorable cryptocurrency project to help the public understand the technology behind blockchains.

Dogecoin is built on the same basic technology as other cryptocurrencies like Bitcoin. However, DOGE introduces a few improvements to Bitcoin’s technology to enable users to access faster and more affordable trading. You can tap into an unlimited supply of Dogecoin and the cryptocurrency trades on a number of major exchanges.  

Brief History of DOGE

Dogecoin was introduced as a joke in 2013 to help raise public awareness of the capabilities of blockchain technology. Its mascot, the Shiba Inu, replicates the popular “doge” internet meme, which is also where the cryptocurrency gets its name.

Though Dogecoin was originally intended as a joke, DOGE quickly began gaining momentum thanks to its vibrant and passionate online community. Dogecoin has been involved in a number of highly public news stories, including its successful $50,000 fundraiser to send the Jamaican Bobsled Team to the 2014 Winter Olympics after they qualified but could not afford to attend.

DOGE is currently the 13^th largest cryptocurrency project when measured by total market capitalization, with a market cap of more than $5.9 billion. 

Step 1: Open an online account.

The first step to buying Dogecoin is to open an account with a cryptocurrency broker that supports DOGE. 

Some of the things you may want to consider when opening your crypto brokerage account include:

• 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)

Not many brokerages offer DOGE, but Robinhood does offer DOGE coin.

Step 2: Fund Account & Make your purchase.

After both your wallet and your brokerage account are open, you can place a buy order to purchase DOGE. First, open your broker’s trading platform and take a look at the current price of DOGE. Though the prices of cryptocurrencies always change, you can expect to pay near the market rate — you may want to track the price of DOGE and how it’s moving to ensure that you don’t overpay for your coins.

The best brokers will offer you a wide range of order types to choose from. If you’ve ever traded stocks before, you’re likely already familiar with the basic types of orders. If you haven’t, be sure to gain a basic familiarity with the most common order types before you invest. Choose an order type and calculate how much DOGE you want to buy based on your available funds and the current market price.

From here, your broker will take care of filling your order on your behalf. When you see your DOGE in your exchange wallet, it means that your order has been completed. If your broker cannot fill your order according to your specifications, they may cancel it at the end of the trading day.

Bonus section: You’ll find an unlimited number of DOGE on the market at once. Though the coin might see sporadic media attention, it’s important to remember that there are currently no active use cases for this cryptocurrency project.

Trade or Sell Your Cryptocurrency

After you see your DOGE in your exchange wallet, you will now need to decide how you want to earn a return on your investment. There are 2 major strategies you can take:

• Long-term holding: Investors who believe that the price of Dogecoin 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.
• 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. A few of our favorite platforms are below, but they do not offer DOGE.

Step 3: Buy a wallet (optional)

A cryptocurrency wallet provides you with a private set of keys that you can use to store your DOGE off of an exchange. This helps keep your investment safer in the event that your exchange is targeted in a hack or theft.

Robinhood does not currently offer users access to send or receive their assets to another wallet. If you want to hold your own cryptocurrency, do not purchase it on Robinhood. Coinbase, eToro and Gemini all provide access to send and receive from their respective exchange wallets. For the best security, use a wallet that lets you manage your own private key.

There are 2 major types of cryptocurrency wallets: hot software wallets and cold hardware storage wallets. Software wallets are free, but they must be connected to the internet in order to access your investments. Hardware wallets store your coins offline for maximum security but may cost up to $50. Consider our favorite software and hardware wallets when deciding how you’ll store your DOGE. 

Best Hardware Wallet: SecuX W20