We get so many questions from people who would like to know which coins they can invest in besides Bitcoin and Ethereum, the two most popular coins. Our answer is as follows; there are so many other options for investing in cryptocurrency, one of the top choices out there is Dogecoin. So we have written this post to be a perfect guide on how to buy Dogecoin.
At the moment, Dogecoin is ranked among the top ten coins in demand by the cryptocurrency community. This year, 2021, has been remarkable for Dogecoin, with a significant increase in its value. Many investors have realized the potentials of investing in Dogecoin. If you have also noticed the amazing trend for Dogecoin in the market and you would like to invest, continue reading to know how you can secure Dogecoins in your wallet.
A brief overview of Dogecoin
Dogecoin is a crypto coin in the same category as BTC and others. It is mined through the Proof of Work (PoW) consensus algorithm, and it works with the Blockchain decentralized system. Miners are free to create the coins they need without limits because Dogecoin has no daily cap. However, there is an annual cap of 5 billion, which helps to prevent inflation.
Dogecoin easily became famous because of its unique logo, which features the Shiba Inu dog breed. It is one of the fastest-growing open-source networks with peer-to-peer transactional options. Dogecoin was created in 2013.
The IT specialists who created Dogecoin are Jackson Palmer and Billy Markus. The Dogecoin concept started as a simple idea to create software similar to Bitcoin. At that time, Jackson Palmer was a product manager with Adobe in Sydney, Australia. He teamed up with Billy Markus and developed software for the coin. Dogecoin was launched in December 2013.
There is a growing Dogecoin community. The community has been successful because it thrives on the minds of people eager to harness the internet’s power for cryptocurrency. They have made Dogecoin become a popular meme seen on different internet platforms.
The Dogecoin community has been supportive of each other. There have been contributions to support common interests in sports. Individuals and sports teams have been given donations to support their careers. These are unique features that have made the Dogecoin community stand out among others in the cryptocurrency market.
Is Dogecoin a good investment
Yes, for people who are willing to invest reasonably, it is a great decision to buy and hold Dogecoin. The market volatility makes it necessary to invest carefully. This is why we advise people to invest free money instead of all their savings. There are risks in this investment, but it usually pays off very well.
How to buy Dogecoin
The process of buying Dogecoin may seem hectic to new investors, but you will get used to it soon enough. For people with experience in buying and selling crypto, it is easy to secure Dogecoin in wallets. The only problem we believe you may encounter is finding Dogecoin to buy because it is not as readily available compared to other popular coins such as BTC and ETH.
Here are things you should do before buying Dogecoin;
Get a Dogecoin wallet
There are so many wallets for cryptocurrency in the market. But you cannot buy any wallet for Dogecoin. You must ensure the wallet can hold Dogecoin before purchasing it. If you already have a wallet, find out if it can hold Dogecoin so you avoid the stress of searching for a wallet.
You can get a hardware or software cryptocurrency wallet for your Dogecoin. With your wallet comes a private and public key. Your public key is used to receive coins into your wallet. Always keep your private key safe, never reveal it to anyone.
Are there free wallets?
You can find free software wallets. However, you will need to buy hardware wallet devices. The software wallets are commonly used by beginners to understand how it all works. However, it would be best if you made plans to buy a hardware wallet because it has more security features and can accommodate frequent transactions with cryptocurrency.
You can use software or hardware wallets to hold your Dogecoin. All you need to do is lookout for a confirmation that the wallet is compatible with Dogecoin and secure.
Finding an exchange platform
After securing your Dogecoin wallet, your next move should be finding an exchange platform to buy your coins. At the moment, only a few exchanges offer to sell Dogecoin. This will change soon because the coin is becoming more popular, which means there is a higher demand. Before buying Dogecoin from an exchange, you should confirm that the company is legally authorized to sell cryptocurrency in your location.
Don’t be too worried if you cannot find an exchange that offers Dogecoin quickly. Keep searching and following leads. You should find a reputable exchange soon enough. And when you do, check out the transaction fees to ensure it is not too high. Also, read reviews from other users who have been trading with the exchange.
Choosing an exchange is a critical step in starting your experience as a cryptocurrency investor. Here are other points to note while you screen your options;
Exchanges operate within the regulations specified by governing agencies in your country. It is mandatory for exchanges to implement a secure Know Your Customer scheme. So don’t be surprised when you are asked to enter some confidential information to verify your identity while signing up on the exchange platform. Usually, the information required includes a copy of your government-issued ID card, recently paid bills, and a portrait picture.
You may also be required to enter information that allows the agencies to track and ensure your wallet is not used for money laundering. All exchanges operating legally must obey the applicable Anti-Money Laundering (AML) rules.
Providing the information needed to verify your identity is a good idea. It protects you and other users on the exchange. For example, lost funds or scams can be detected and the perpetrators caught, which means you get refunds.
Read the reviews
The best exchanges have been able to build and maintain a good reputation for so long. These are the platforms you should use. Please note that some exchanges are set up to scam people and steal money. Also, other poorly managed exchanges are vulnerable to hackers.
To avoid bad experiences with exchanges, you should read the reviews written by other users. If there are many complaints about hackers, loss of funds, or poor security protocols, please avoid those exchanges. You can find reviews on the official website, social media pages, and blogs.
Another way to confirm that an exchange is legit is by searching for the owners, management, and tech team. These people should make their identities public. If you cannot find information about the real people who manage the exchange, you should avoid using that service. Look for another exchange that publicly reveals its CEO and top management staff.
You pay transaction fees for every trading deal you initiate on the exchange. The rates are different, so you should find an exchange that charges lower rates. Generally, crypto traders who complete many transactions every day pay lower charges.
Your goal should be to find an exchange that offers fair rates for transactions with Dogecoin. But be careful to avoid exchanges that offer Dogecoin at very low rates. Any offer that seems too good to be true is most likely a scam.
Overall, it is best if you use an exchange with a high number of daily transactions. Exchanges with a large number of users is an indication that the platform works favorably. However, the large number of transactions could make it difficult to trade across the platform with different coins.
You can find information about the volume of daily transactions done on the exchange by viewing records published on third-party websites.
Best options to store Dogecoin
One of the options you can leverage to store your coins is by using the wallet provided by the exchange. Your account on the platform is directly linked to this wallet. It is convenient to store coins on the exchange wallet, but your wallet’s safety is not guaranteed.
For example, if the exchange platform is attacked by hackers successfully, all stored coins on the platform can be stolen. Also, if someone else gains access to your private key, you could lose your stored crypto. It is impossible to recover stolen crypto.
Another option to store your coin is by transferring your Dogecoin to an online software wallet. The security features of these wallets are better when you get yours from a reputable site.
However, for peace of mind, especially if you have a large trading volume, you should consider using an offline hardware wallet. The offline wallets are safer, but you should know how to use these devices to avoid losing your tokens.
Buying Dogecoin – The risks
Finally, for emphasis, let us highlight the risks you may encounter while buying Dogecoin. There are always risks in investments, so you should know the risks and be prepared.
The first risk is exposing your private key. You must ensure your private key is well hidden. You can write the key on paper and store it in a safe deposit box. Another risk is using an exchange that is not protected from hackers. You could also lose your investment by trading with an illegally operating exchange.
You could become a target for scammers while buying and selling Dogecoin. Never respond to suspicious emails, and avoid clicking on strange links sent to you. And never reveal information about your trading activities to strangers.
Our advice and from experience is that you should be patient while trading Dogecoin. The crypto market is volatile, and there are price fluctuations. You should study the market closely and invest carefully.