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. Dogecoin was created in the early days of crypto, soon after major players like Bitcoin and Litecoin. The original idea behind Dogecoin was to create a more memorable cryptocurrency project to help the public understand the technology behind blockchains. Since then, Dogecoin has become an icon in the internet-powered retail investor era we live in today. The meme coin’s logo, the Shiba Inu, has been hard to avoid in 2021.
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 transactions. While this is the case, other cryptocurrencies offer better, more innovative solutions to lessen transaction costs. Dogecoin isn’t groundbreaking by any means, but Dogecoin investors aren’t betting on the cryptocurrency’s technology. Instead, the so-called “Doge Army” is betting on the robust community around DOGE.
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 among the largest cryptocurrency project when measured by total market capitalization, with a market cap of more than $25 billion.
How to Buy Dogecoin
Open an online account.
The first step to buying Dogecoin is to open an account with a cryptocurrency exchange that supports DOGE. Dogecoin is available on Coinbase, eToro, Robinhood, Gemini, SoFi and Webull.
SoFi is a great option for a few reasons. Investors who sign up for SoFi will receive free bitcoin for a limited time, giving you exposure to cryptocurrency without having to risk your own money. Plus, SoFi lets investors buy and sell other assets, such as IPOs and exchange-traded funds.
Fund Account & Make your purchase.
After both your wallet and your exchange account are open, you can place a buy order to purchase DOGE. First, open your exchange’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 exchanges 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.
Buy a wallet (optional)
A cryptocurrency wallet provides you with a 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, use a wallet that lets you control your own private key. 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 Crypto Wallets for Dogecoin
It’s not recommended to store cryptocurrency on an exchange, as it increases your risk of being hacked. Since centralized exchanges hold custody of your funds, they’re large targets for cryptocurrency hackers. If a hacker is able to breach the exchange, they could steal the funds held on the platform. To mitigate this risk, you should use a cryptocurrency wallet that allows you to hold custody of your cryptocurrency. Here are our picks for best hardware and software wallet for DOGE.
Best Hardware Wallet: Ellipal Titan
The Ellipal Titan is a multicurrency wallet that supports DOGE, Bitcoin, Ethereum and over 7,000 additional digital assets. The Ellipal Titan features a large touchscreen that makes it easy to track your holdings without connecting to Wi-Fi. Since the wallet isn’t connected to the internet, it’s impossible for online hackers to steal your assets. To transfer your coins to your wallet, you can use the device’s QR to send crypto in a matter of seconds. With a simple, streamlined interface and an easy setup process, the Ellipal Titan is an ideal choice for cryptocurrency investors.
The Ellipal Titan usually comes in at a premium over other cryptocurrency wallets, as it has several premium features that improve user experience. However, the hardware wallet is currently on sale, so you can save $30 on your Ellipal today.
Best Software Wallet: Dogecoin Wallet
The fun and friendly internet currency also offers its own simple, intuitive wallet option for both desktop and mobile. Getting started with the Dogecoin Wallet takes about 5 minutes. Simply click on your operating system, download and execute the wallet and start safely storing your DOGE online. You can also download the Dogecoin Wallet for free on the Google Play store.
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.
Current Crypto Prices
The price of cryptocurrencies can change on a minute-to-minute basis. Some of the factors that may influence the price you’ll pay to invest in DOGE or another cryptocurrency may include:
Current supply: Dogecoin is an inflationary cryptocurrency. 10,000 new Dogecoin are minted every minute.
News: Elon Musk has pumped DOGE several times, including the cryptocurrency in his SNL skit.
Current financial conditions: Like most altcoins, Dogecoin follows the trend of Bitcoin’s price. More investors flock to altcoins for higher returns during bull markets, but these cryptocurrencies typically underperform in cryptocurrency bear markets.
Monitoring how the prices of other cryptos are moving can help you decide when you should place your buy order. Browse cryptocurrency market conditions using our table below.
Getting Started With Cryptocurrency
Whether you decide to invest in Dogecoin, Bitcoin or another cryptocurrency, remember the risks that come with buying a volatile asset. Most investors would agree Dogecoin is a much more risky investment than Bitcoin. With Bitcoin being added to corporate balance sheets and becoming legal tender in El Salvador, it’s likely here to stay. However, the cryptocurrency market is still largely unregulated and the price of any cryptocurrency can decline in value at any time. Never invest more money than you can afford to lose and it may be smart to use cryptocurrency as an add-in to a diversified portfolio.
Frequently Asked Questions
Q Is Dogecoin a scam?
A No, Dogecoin isn’t a scam. Dogecoin is a currency, so its value is derived from user adoption and utility. This being said, many investors agree that Dogecoin is a bubble, so you should still be weary of investing in a meme coin with a multi-billion dollar market capitilization. While there may still be room for Dogecoin to grow, there is certainly room for Dogecoin to fall in price.
Q Why is Dogecoin so cheap?
A The per token price of Dogecoin is cheap solely due to the enormous supply of Dogecoin in circulation. Since there are over 130 billion DOGE in circulation (compared to just 21 million bitcoin) the per token price is lower. When investing in crypto, a cryptocurrency’s market capitalization (token supply x token price) is much more telling of whether or not a cryptocurrency is “cheap.”
