A few months ago, I covered how to invest in bitcoin on the app cash app in a very simple guide. Now I want to cover another crypto: Dogecoin.
This article will show you exactly how to invest in dogecoin on the cash app with your debit card.
Dogecoin is a cryptocurrency, such as Bitcoin or Ethereum, although it’s a very different animal than either of these popular coins. Dogecoin was created at least in part as a lighthearted joke for crypto enthusiasts and took its name from a once-popular meme.
Dogecoin was created by a Software engineers Billy Marcus and Jackson Palmer in late 2013. Palmer branded the cryptocurrency’s logo using a meme popular at the time that featured the deliberately misspelled word “doge” to describe a Shiba Inu dog.
It is a wise investment decision to invest in Dogecoin, those who bought Dogecoin before the big gains of 2021 have been well rewarded. Still, White is a little wary about buying Dogecoin, especially as an investment. The constant flow of new coins onto the market put unending downward pressure on the coin’s value.
White also warned about additional security risks for Dogecoin, compared to other major cryptocurrencies. “It just hasn’t had the same security and code-level scrutiny that Bitcoin or Ethereum has. Plus, there’s just not a particularly robust mining community around Doge, so the exposure for a mining level attack is well above that of something like Bitcoin.”
Buying any sort of cryptocurrency involves risk, and that includes Dogecoin. It’s always worth buying a few coins and familiarizing yourself with the system but it’s probably best to refrain from sinking more than a token amount of your hard-earned money in a cryptocurrency that started life as a joke.
So the contents below would guide your investment diversification option and give you more reason why you need to invest in dogecoin as part of your cryptocurrency investments.
How Does One Buy Dogecoins?
If you are planning on bbuyingDogecoins, consider the following;
- How Much do You Want to Invest in Dogecoin
While there are viral stories of people who invested trivial amounts in DOGE but are now millionaires, invest with caution. Cryptocurrencies are very risky investments, and Dogecoin is uniquely volatile because it has an unlimited supply.
Here’s how that works: For Dogecoin’s price to increase or even remain steady, investors have to buy more coins continually. Otherwise, the supply of DOGE rises rapidly and diminishes the value of all the coins already in circulation (think inflation on steroids). The limit on the number of Dogecoins was expressly removed by one of its creators to discourage people from holding onto it long-term. That’s in stark contrast to other major cryptocurrencies like Bitcoin, which have caps on how many coins are issued. This creates scarcity, which helps coins retain their value.
When deciding how much to invest, consider your overall financial situation, investment portfolio, and risk tolerance. Experts don’t recommend you invest more than you’re willing to lose with cryptocurrencies in general.
- Decide on a Cryptocurrency Exchange
To purchase Dogecoin, you’ll need to open an account with a cryptocurrency exchange, where buyers and sellers meet to exchange cryptocurrency for dollars. Popular exchanges include Coinbase, Binance.US, and Kraken, all of which offer a simple, easy-to-use platform that charges higher fees as well as a more advanced trader platform with lower fees.
You can also purchase crypto through beginner-friendly investment apps like Robinhood, but keep in mind that these may not let you transfer your coins off of the app. Some investors prefer to move their crypto into separate crypto wallets to protect their coins from hackers. To do that with a brokerage app like Robinhood, you’d have to sell your coins and then rebuy them in an exchange to move them to a separate wallet, which kind of defeats the purpose of buying them with an investment app in the first place. All of this is to say if you even think you might want to move your coins to a separate wallet, you’re probably better off starting with an exchange.
An important note: While Dogecoin has become much more popular recently, it is not universally available on all crypto exchanges. Make sure any exchange you’re considering has DOGE available for purchase if you wish to buy it.
- Select a Payment Option
Before you can begin trading cryptocurrencies, you must deposit money in your exchange or brokerage account. In most cases, the exchanges will let you deposit money from a checking or savings account. Some accept wire transfers and PayPal transfers.
Typically, you get instant access to a portion of the money of your deposit for trading. If you deposited a large amount of money typically more than $1,000, you may have to wait a few days for the transfer to clear before you can use the entire deposit.
- Place Your Order for Dogecoin
Once your money is in your account, you can purchase Dogecoin. On the exchange’s trading or purchase platform, search for Dogecoin or enter its ticker symbol: DOGE. Then pick your trade type and input either the dollar amount you want to invest or specify how many Dogecoins you want to buy.
Once you place the order, it should go through immediately. Like other cryptocurrencies, Dogecoin isn’t limited by trading hours; you can buy and sell Dogecoin 24 hours a day, seven days a week.
- Consider Your Storage Options
When you buy Dogecoin, it’s by default kept in your exchange’s or brokerage’s crypto wallet. Because these are generally connected to the internet, some investors prefer to withdraw the crypto they purchase from their exchange or brokerage and store it in another wallet. You can choose to store your Dogecoin in a hot wallet or a cold wallet outside of your exchange.
Hot wallets are digital and connected to the internet whereas cold wallets are physical hardware that you can disconnect, making them much less susceptible to hacking. Cold wallets, however, are generally more expensive than hot wallets, and you also run a greater risk of being unable to access your cryptocurrency if you lose or forget the password necessary to get into your cold wallet.
What’s the Best Way to Sell Dogecoins?
No matter how the DOGE is acquired, DOGE holders can sell the cryptocurrency whenever they’d like, and one can do it on any crypto exchange that supports Dogecoin.
If a user never moved their Dogecoin from the exchange wallet, setting up a sell order is easy. If the DOGE was transferred to another wallet, it must be sent to a wallet on the exchange of choice.
When the Dogecoin is in an exchange wallet, the investor can sell instantly via a market order or at a future price using a limit order. Aside from the market order and limit order selling types, there’s also a stop-loss order method.
A stop-loss order prevents a trader from losing their funds in case of an asset price crash. When selling DOGE, one might set a stop-loss for 15% of their current DOGE portfolio. If DOGE crashes overnight and drops 25%, the stop-loss order would have automatically sold when the portfolio fell by 15%.
Either way, the trader is losing money. But, a stop-loss prevents the trader from losing more than they could have by selling assets before the price drops too low.
Where Can I Spend My Dogecoins and Earn Some Heat?
Dogecoin might have started as a meme coin, but many companies allow you to use the currency to pay for goods and services. But which are the best? Here is a list of them
Twitch, one of the world’s most popular live-streaming services, has been accepting Dogecoin payments for some time now. It initially began accepting Dogecoin for tipping back in 2014, before cryptocurrency hit its popularity boom. You can pay for subscriptions and tip creators in the form of Dogecoin, making it easy for you to enjoy your Twitch experience without connecting a traditional payment card.
In Spring 2021, Newegg announced it would add Dogecoin to its list of accepted cryptocurrencies for payment. Given that Newegg is a big name in the tech market, it’s no surprise that they’ve shown a lot of enthusiasm for cryptocurrency. Along with Dogecoin, Newegg also supports Shiba Inu Coin, Bitcoin, Litecoin, Ethereum, and several other crypto payments, so it’s a great company to use if you’re big into crypto spending.
It’s safe to say that Tesla’s founder and CEO, Elon Musk, has had a tumultuous relationship with cryptocurrency over the years. The tech billionaire’s involvement in the cryptocurrency space has massively affected the market at certain points, and he has gone back and forth on Tesla’s acceptance of certain coins.
keys4coins website homepage screenshotKeys4Coins is a great website to use if you want to buy game keys and gift cards using your Dogecoin. The site offers game keys from Steam, Origin, PSN, and several other providers. So, regardless of your gaming tastes, you’ll find something for you.
- AMC Theaters
Looking to catch a movie? You can now do so using your Dogecoin funds. AMC Theaters announced in early 2022 that it would be using BitPay, a cryptocurrency payment service, to support payments in Dogecoin. You can already pay via Dogecoin on the AMC Theaters website, but the company’s app won’t be accepting DOGE payments until mid-April (or possibly a couple of days earlier). AMC is also using BitPay to accept payments in Shiba Inu Coin.
In December 2021, gaming and electronics merchandiser GameStops announced that it would be accepting payments Dogecoin, along with Shiba Inu Coin, using the cryptocurrency payment processing service Flexa. Flexa’s app, SPEDN, can be used at GameStop stores to pay for products in the form of Dogecoin.
Dogecoin isn’t just a solid payment option for physical products. You can also use your DOGE funds to travel. While crypto is by no means a common form of payment for air travel at the moment, some companies are beginning to take it on board, including the Latvian airline airBaltic.
Bitrefill is your one-stop shop for buying gift cards with crypto. Using this website, you can find all kinds of gift cards for yourself or a loved one, with over 5,000 to choose from. Whether you need a gift card for travel, gaming, clothing, or even grocery shopping, you won’t be disappointed by Bitrefill.
- The Dallas Mavericks
In March 2021, the Dallas Mavericks announced that they would be accepting Dogecoin payments for both tickets and merchandise. Like AMC Theatres, the Dallas Mavericks are using BitPay to process payments made in Dogecoin, making it easy for customers to make purchases using their DOGE.
In Spring 2021, the well-known Canadian ISP EasyDNS announced began supporting Dogecoin payments. EasyDNS is the first Internet Corporation for Assigned Names and Numbers (ICANN) registrar to accept Dogecoin, Bitcoin, Ethereum, and Litecoin payments.
Which Cryptocurrency Exchange Should You Use to Buy or Sell Your DOGE Coins?
While all sorts of cryptocurrency exchanges support buying and selling of DOGE, only a few are the best places to buy and sell DOGE: Kraken, Robinhood, and Binance app.
Robinhood’s commission-free stock trading app also allows users to buy and sell dogecoin and several other cryptocurrencies.
Users can set up an account at the Robinhood website and download the Robinhood app on Google‘s Play Store or Apple‘s App Store.
Robinhood notes: “Robinhood Crypto is not a member of SIPC [Securities Investor Protection Corporation] or FINRA [Financial Industry Regulatory Authority].
Kraken users can convert DOGE to Bitcoin, United States dollar, and euro. All that’s required is holding DOGE in the Kraken DOGE wallet by signing up for a Kraken account. To sign up for a Kraken account, you need an email address, username, and a strong password. Then, the Kraken account needs to be verified. Your name, country of residence, birth date, and phone number are all that is required for verification purposes.
Binance supports the deposit of more than 300 cryptocurrencies, several of which you can exchange for Dogecoin at some of the best rates in the market. You can directly purchase Dogecoin with credit card or debit card on Binance. It offers the best route to buy Dogecoin Doge using Visa or MasterCard.
If you’re a tech-savvy cryptocurrency fan looking for your next opportunity to make a passive income, Dogecoin is the ideal choice. It’s getting stronger daily, and the market is continuing to grow. You could be part of that growth. If you’re still looking for technical help on how to make it happen, we can help you do that, too. And whether you have experience with cryptocurrency or not, we can also walk you through the process with ease. The Cash App is here to help with all things crypto—don’t hesitate to reach out any time!