Dogecoin is currently one of the many cryptocurrencies that are climbing up the charts. If you’re updated with Elon Musk, he once tweeted about owning Dogecoin – impacting its popularity and price.
However, Dogecoin might be too complex for newbie investors and traders. That’s why in this article, we’ll discuss what this cryptocurrency is all about.
Dogecoin is a cryptocurrency developed in 2013 by Billy Marcus and Jackson Palmer. It’s created to make fun of crypto enthusiasts lightly. The software engineers started it as a joke after the sudden rise of Bitcoin prices in the same year. The name and logo of this crypto are based on the very popular Shiba Inu dog meme in 2012-2013.
It’s more popularly called DOGE now and has captured the industry’s interest despite its origin story. As of August 2021, the total value of all existing Dogecoins is approximately $41 billion.
Dogecoin is used to purchase online goods and services or simply send funds. Like other cryptocurrencies, Dogecoin also runs on blockchain technology. Blockchain is a secure digital ledger that stores all transactions made with DOGE. It’s frequently updated, and every investor carries their copy.
Investing in DOGE works the same way as investing in other cryptos. Here’s a brief guide on how you can get start investing:
1. Get a Dogecoin Wallet
The first step is to have a Dogecoin wallet. You can choose between hardware or a software wallet. Each wallet varies in terms of usability, security, and features that you need to consider. After choosing a wallet, create an account to get your Dogecoin address. This address is used to send and receive the crypto.
2. Select a Cryptocurrency Exchange
Since you have an address now, find and decide on the best place to buy Dogecoin. There are exchange platforms, like Changelly, where you can purchase DOGE with fiat currencies like USD.
3. Decide on How Much You Want to Invest
There will be investors with success stories on every crypto exchange available. But this doesn’t mean you can just wait to get profit. It’s critical to remain cautious, especially since you’re still a beginner. Cryptocurrencies are generally very risky and volatile. There’s a chance that you can lose all your money if you risk too much and invest improperly.
4. Choose a Payment Method
Deposit on your wallet or exchange account so you can start purchasing DOGE. Most of the time, exchanges only support bank transfers. However, some allow credit cards and deposits through wire transfers. Some even accept e-wallet transfers like Paypal. Decide on which is more convenient for you.
5. Place Your DOGE Order
After a successful deposit, purchase your Dogecoin. On the exchange platform or on your wallet, look for DOGE. Select your preferred trade type and enter the amount you want to invest or the number of Dogecoins you want to buy. Place the order and wait for it to be processed.
Once you get your Dogecoins, transfer them to your wallet if you purchased the coin from an exchange. If you plan to invest, just keep your DOGE for the meantime and observe the market. Most investors hold their coins for a long time as a form of investment, while traders keep them short-term and trade them after a while.
Here are additional tips for your Dogecoin investment:
- Consider and observe its volatility regularly since it’s highly volatile. This is to know when to sell or buy.
- Look out for influencers talking about DOGE since they can significantly affect its pricing. This means the price can go either way, high or low.
- Avoid FOMO or the Fear of Missing Out. Don’t invest simply because there are investors who became millionaires.
Dogecoin is one of the popular cryptocurrencies nowadays. However, it’s best to remember that it’s highly volatile, so be cautious when investing. It’s easy to buy and invest in DOGE, but it’s important to study the coin and the market to lessen your risks.