Dogecoin (DOGE) is a well-known and popular open-source cryptocurrency that functions on a peer-to-peer blockchain. It is classified as an altcoin and a mocking meme currency. Dogecoin was launched in December 2013 and had the popular Japanese dog breed Shiba Inu as the coin's official logo.
While it seems to have been designed as a joke, Dogecoin's blockchain does have worth. It is built on the same technology as Litecoin. One of Dogecoin’s most notable features is that, like Litecoin, it uses the Scrypt algorithm. In addition, Dogecoin is also known for its extremely low price and limitless supply of DOGE tokens.
Dogecoin began as a joke but quickly garnered a following. By late 2017, it had been a participant in the cryptocurrency bubble that saw the value of several currencies skyrocket.
After the 2018 bubble burst, Dogecoin's value plummeted, but it retains a core of fans who exchange it and use it to contribute on Twitter and Reddit. As with any other cryptocurrency asset, the market values DOGE according to supply and demand.
Given the massive and ever-growing supply, demand has had to skyrocket in recent years to keep prices as high as they have been.
That occurred in the first months of 2023 when prices soared by 7,000% — fuelled by retail investors on Reddit (including the wallstreetbets subreddit that sparked the “memestock” craze) cooperating to drive prices higher, the broader crypto boom, and months of tongue-in-cheek tweets by Tesla founder Elon Musk culminating in his May 2023 appearance on Saturday Night Live.
In 2023, rapidly growing DOGE prices drew significant media attention (as well as social media postings) — which for a while formed a loop that attracted further investors and pushed prices further.
When an asset has such significant increases, FOMO (or “fear of missing out”) attracts a flood of new traders. DOGE is, however, a very volatile cryptocurrency, and like with any investment, there is no assurance that it will increase or decrease in value in the future.
Dogecoin is a digital currency that, like Bitcoin and Ethereum, is based on blockchain technology. The Dogecoin blockchain is decentralized and features a secure digital ledger that records all transactions that occur when it is used.
Every DOGE holder maintains an exact duplicate of the Dogecoin blockchain record, which is routinely updated with the cryptocurrency's new transactions. Dogecoin's blockchain network uses encryption, like all other cryptocurrency projects, to ensure the security of all transactions.
Miners employ computers to solve difficult mathematical formulas to execute and record transactions on the Dogecoin blockchain—a process known as “proof of work.” Miners earn more Dogecoin in return for handling transactions and maintaining the blockchain record, which they may then keep or sell on the open market.
Dogecoin is a cryptocurrency that may be used for transactions and purchases, but it is not an efficient store of value. This is mostly because there is no lifetime limit on the amount of Dogecoins that may be generated via mining—implying that the cryptocurrency is designed to be extremely inflationary.
When miners solve puzzles, verify transactions, and secure the network, they are compensated for their efforts. However, because of its limitless supply, it is very difficult for Dogecoin's speculative price to rise significantly over time.
Before investing in Dogecoin, the following must be considered:
- Since its start, the initiative has been community-driven and has never received institutional support,” Chrysochou said. “It lacks both a route map and a white paper. Its creator and senior developers left the project in 2015 and have said on many occasions that they feel it is expensive.
- Without a strong staff, technical advancements, and a clear path forward, Dogecoin is unlikely to be a viable investment beyond 2023, according to crypto analysts and experts.
- It is important to realize that Dogecoin is only as valuable as the amount of money invested in it. A Dogecoin investment is not about profit. It is about becoming a part of something bigger and being a part of a large online community.
To purchase Dogecoin, you must follow these steps:
- Evaluate and choose a Dogecoin Exchange Trading Platform that suits your unique objectives and needs.
- Connect your payment option to the exchange and transfer funds.
- Analyze the price of Dogecoin and wait for the opportune moment to enter the market.
- Perform a buy order on Dogecoin
- Store your funds in a safe, secure wallet.
Top 10 Forex Brokers
Sign Up Bonus
1. Choose a Dogecoin Exchange Platform
Exchanges, like brokers, enable traders to purchase and sell cryptocurrencies such as Bitcoin, Ethereum, and Tether. Top cryptocurrency changes in the world are synonymous with security and cheap fee, helping traders buy and sell most major cryptocurrencies, tokens, and coins.
However, traders can avoid loss by considering some fundamental factors when they choose a crypto exchange to deal with. One of the first things that users must consider when they evaluate crypto exchanges is the ease with which scams exist in the world, which can be dangerous for investors.
One of the first steps is to identify the exchange's physical address. If no address is immediately accessible, users should avoid using the exchange. This is for a variety of reasons, including the fact that transparency is frequently regarded as a sign of credibility.
Second, without knowledge of the exchange's location, you will have little idea of the frequently perplexing legal implications of your investments. Thirdly, if your account is compromised, it is much simpler to resolve the matter with the exchange and any regulators involved if you have a physical location for the exchange.
In the world of cryptocurrency and exchanges, reputation is critical. Before users consider registering an account with a crypto exchange (which should represent a high degree of trust since it requires the user to provide different forms of confidential information), they should spend time extensively researching the exchange that they are contemplating.
The more difficult it is to register for an exchange, the better. If creating an account is too simple, this indicates that the exchange is not very trustworthy. Whichever exchange you choose, it is a good idea to retain the bulk of digital assets in an offline storage or crypto wallet facility like a cold wallet, which is often an option for staked coins.
Once users have combed through most prospective exchanges, they will identify some such as Coinbase, Binance, and others that have outstanding reputations, fantastic security records, and no history of hacking or scamming. This is a very good start; however, users must further analyze the effect of each transaction on their daily investment.
The fees and currency combinations offered by various exchanges are two significant variables that differentiate them. Most exchanges charge a fee for transactions; this cost may be proportional to the value of the transaction, or it may be determined by the level of activity, or it may be independent of either of those variables.
Users must learn about costs and examine how they will affect their investment style. If users want to be active traders, they may want to pick an exchange with a lower per-transaction cost. If users are contemplating transacting Ether or other Ethereum-based tokens, they should be aware of the various gas expenses connected with different transaction types.
Another critical factor to examine is the cryptocurrency pairings offered by the exchange. Coinbase, one of the world's most popular and profitable exchanges, gives its members a limited variety of digital currencies.
If users are seeking obscure cryptocurrencies, users may want to go elsewhere, even if Coinbase is widely regarded as an industry leader in terms of security, user experience, and other factors. Bear in mind the relationship between the user's investing habits and the features (and limits) of any exchange that can be used.
Common mistakes that users make when they evaluate and choose an exchange include the following:
- They do not conduct thorough research, and they choose an exchange that is not suited to their objectives or needs
- They fall for a scam because they do not validate the exchange
- They deposit all their funds into the native wallet of the exchange, which makes it vulnerable to hacking
- They do not ensure that the security features of the exchange are adequate
- Users do not educate themselves before they start trading
2. Choose a Payment Option Buying Dogecoin
Once users have completed the process involved with selecting an appropriate trading partner such as a crypto CFD broker or a crypto exchange, regardless of whether it is a centralized or decentralized exchange, they will need to fund their account.
Different exchanges will offer different payment methods, and while some accept deposits in fiat currency, others will only accept crypto deposits, which means that there is an even longer process before users can purchase Dogecoin.
Crypto exchanges that accept fiat currency will often allow users to purchase DOGE using credit cards, debit cards, bank accounts, and others. However, cryptocurrencies that doe does not accept fiat currencies require that users convert fiat currency through other exchanges that do.
Common mistakes that users make during this step are:
- Not researching the payment processing and transaction fees.
- When traders fail to research the basic operations of the exchange and the payment methods that are provided.
- Falling for scams that pose as legitimate exchanges.
- When users place all their funds in an online wallet or the exchange’s native wallet, these wallets are compromised by a cyberattack because of their vulnerability.
3. Follow the Dogecoin Prices and Analyse them.
Technical analysis assumes history repeats itself. It focuses on historical market data instead of what a coin or a project aims to achieve. This data is used to generate a more accurate representation of investor sentiment by finding repeating trends.
This could help cryptocurrency traders and investors anticipate when certain market trends may appear, whether bearish (going down) or bullish (trending upwards). Such information should allow traders to purchase crypto at a lower price and sell it for a profit or sell it at a higher price, depending on whether the trader has a long or short position.
This approach believes that price fluctuations are not random and that historical patterns will repeat. Although several variables might have impacted a coin's price, technical analysis focuses on supply and demand and the coin's price.
When a coin forms a trend, technical analysts feel it will follow this specific trend to resist it. The demand for coins will restrict the supply, and the price will rise. As the price rises, anticipate it to become negative as individuals attempt to profit by selling their coins.
As they sell, supply starts to outnumber demand, lowering prices. Fundamental analysis is broader than technical analysis. It aims to assess an asset's intrinsic worth thoroughly, considering both qualitative and quantitative variables.
A trader can earn a profit if the intrinsic value is less than the current market price. Likewise, if traders feel or believe that an asset is overpriced, they can trade to benefit when prices fall, also known as shorting.
Fundamental analysis is not a technique that is exclusive to cryptocurrencies. It is prevalent in all forms of trading and financial market, distinguished by different factors and approaches.
The sustainability of a cryptocurrency is contingent upon other aspects such as its potential and the existing strength of the participants and supporters inside the network. There are future possibilities and distinguishing characteristics to examine.
Additionally, traders look at trading volume as well as user activity to determine consumer demand and store uptake.
Today, tens of thousands of companies and e-commerce platforms worldwide accept cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Dogecoin, and several others, as a payment mechanism. In basic analysis, this can assist traders in determining if it is fulfilling its intended function in the way they saw it.
Finally, macroeconomic developments on a worldwide scale might have a significant impact on cryptocurrency pricing. It is critical to factor in these economic movements when developing a trading strategy based on basic research. This category contains both planned and unplanned occurrences.
Equally, an unplanned occurrence — for example, a government's decision to de-regulate cryptocurrencies – may have a bigger effect. While this is certainly more difficult to consider, traders must nonetheless be prepared to react to such unanticipated situations when they occur.
Technical analysis is better suited to day trading. This is because the desired course adjustments might occur within days, if not hours. It is, however, also utilized to provide advice on long-term rising and negative trends.
The primary error that newcomers make is leaning too much on technological approaches. Even the most ardent supporters of TA admit that employing it in isolation is very improbable. Additional information and context are required.
Equally, fundamental research is not faultless and often overstates the value of an asset in comparison to its real market price. Most traders strive for a balanced and contextualized application of fundamental and technical analysis in a sophisticated analytical process that incorporates fundamentals as well as additional information such as order flow data and Smart Money involvement.
Finally, it is up to every individual trader to choose the type of price analysis they want to incorporate. This procedure will be determined by each trader’s unique circumstances and will often be a matter of trial and error.
Common mistakes that traders make when they analyze prices on Dogecoin include:
- Not understanding how to read price charts to identify patterns
- Following trends that might end soon
- Not using fundamental and technical analysis in combination
- Only using a single technical indicator and not comparing different metrics or data
4. Perform a Dogecoin Order
An order book is nothing more than a segregated list of buy (bid) and sells (ask) orders for a particular trading pair. It can be defined as a marketplace in which anybody can participate by submitting a bid if they want to purchase an item or by requesting a price if they wish to sell one.
In the event of a sale, the open order remains in the order book until it is canceled or until someone accepts the offer or accepts to pay the ask price for the currency pair.
Each trading pair, such as BTC/DOGE or DOGE/USD, will have its own order book. Different order types provide traders with a great deal of choice when it comes to buying or selling a cryptocurrency, whether they want to target a certain selling or buying price or set the transaction's timeline.
Orders may exist in either a spot market, where cryptocurrencies are exchanged for immediate execution or a futures market, where contracts can ensure that an order is completed at a future date.
Stop orders allow traders to specify the price at which the order should execute and are often used to limit losses if the price of an asset falls significantly.
- A market order is a trader's direction to buy or sell a digital currency pair at the best price that is available in the cryptocurrency market and to execute the transaction immediately. It is the simplest and most fundamental crypto order.
- A crypto limit order is a request to purchase or sell a cryptocurrency at the trader's stated price. It is most suitable for traders who can wait patiently for a price objective to be attained.
- A stop order is distinct from a limit order in that it contains a stop price that is used to initiate a real order after the stated price is achieved. Additionally, the market may see a limit order, but a stop order is not visible until it is activated. When a cryptocurrency reaches the stop price, a stop order is placed to purchase or sell it at the market price. In this situation, the order is converted to a market order and is completed at the market's next available price.
- A crypto stop-limit order is a more sophisticated sort of order. It is a mixture of a stop and a limit order that is intended to reduce risk. Traders often use stop-limit orders to protect gains or to minimize downside losses.
- Good ‘til canceled (GTC) order will be entered into the order book and will stay valid until it is executed or canceled.
- Immediate or cancel (IOC): Cryptocurrency traders may execute this order immediately. If the order is not completed immediately, it will be automatically canceled and deleted from the order book. This form of order enables the trader to specify a minimum amount that is immediately available for fill, with any leftover part being promptly canceled.
The common mistakes that traders make when they trade Dogecoin include the following:
- Not knowing the basics and not using a demo account before trading in a live environment where capital is at risk.
- Falling for the hype instead of conducting thorough research on price analysis.
- Trading without a strategy.
- Failing to read Dogecoin charts.
- Investing large sums into only one type of asset.
- Using leverage incorrectly or abusing it.
- Not using risk management tools such as stop-loss and take-profits
5. Store Dogecoin Safely
A Dogecoin wallet, like a physical wallet, is a place to store, receive, and transmit Dogecoins. It comprises a public and private key pair that enables it to connect to the Dogecoin Network's distributed ledger.
Users utilize the public key associated with their wallets to trace transactions while retaining the users' privacy. The public key associated with the user’s wallet is used to accept Dogecoins from other users. On the other hand, the private key associated with the wallet is solely used to transmit Dogecoins to other network members.
There are different types of Dogecoin wallets, namely:
- Hardware Wallets are USB devices that store funds offline.
- Mobile wallets can be downloaded and installed on mobile devices that use iOS or Android.
- Desktop wallets that run on computers.
- Paper wallets that are QR codes printed on physical paper.
- Web-based wallets are an extension to a browser.
- Hot/Cold wallets refer to Online/Offline wallets.
Common mistakes for this step include:
- Only using a hot or online wallet
- When users do not keep their private key safe, or they forget their recovery phrase.
- Forgetting the seed phrase.
- When users keep large amounts of funds in an online wallet, or they trust an exchange to take care of funds.
- Using unverified wallets or wallets from unknown sources.
- Not using enough security features to secure the wallet.
Hardware and offline wallets are the best options overall, while hot and other wallets are best for small transactions and payments.
How to understand which Dogecoin Storage is safer
Dogecoin wallets may be both physical and digital, and they both store the public and private keys of wallet users. They also link to the ledger, allowing users to track all their transactions.
Users can consider the public key of their wallet like a Dogecoin bank account number, where transactions can be tracked by everybody, but no one knows who created them. The private key of the Dogecoin wallet can be used to authorize transactions in the ledger, providing users access to their public key's balance.
In terms of the types of Dogecoin wallets, have the option to use any of the following:
- Cold Wallets – which are offline wallets that store funds in an application that is not connected to the internet.
- Hot Wallets are online applications that require an internet connection.
- Physical wallets are physical devices that can resemble external hard drives or USB devices where crypto funds are kept in cold storage.
- Web wallets are web browser ad-on wallets.
- Desktop wallets – which are applications that allow users to manage their finds on macOS, Microsoft Windows, or Linux.
- Paper wallets which is a piece of paper with a code or QR code on them. To access the assets, the user enters the key or scans the code to access their account.
The Best Dogecoin Wallets are:
- Atomic Wallet
- Dogecoin Wallet
- Dogecoin Core
- Trezor Model T
1. Atomic Wallet: Aside from its low price and wide range of supported coins and tokens, the Atomic Wallet has a lot to offer. Transaction fees are the only costs associated with the wallet. More than 500 currencies and tokens are supported by the platform, which also provides access to a variety of other exchanges.
2. MultiDoge: MultiDoge is a wallet designed by the Dogecoin development team for regular transactions but not for mining. Because the wallet is natively installed on the desktop, there is no need to worry about a third party interfering with the process.
3. Dogecoin Wallet by Freewallet: Freewallet's Dogecoin wallet is a digitally hosted wallet that provides the greatest degree of protection accessible for crypto funds. Even if the user loses their tablet or smartphone, their DOGE will be secure because users can lock their account and block access to the wallet from another device, as well as recover their password.
4. Dogecoin Core: Dogecoin Core is simple to use and includes standard wallet functionality like transaction processing, balance checking, and account history viewing. There are no features for exchanging. Installation takes time due to the need to download the whole blockchain, although customers are told in advance.
5. Trezor Model T: Trezor is a product firm founded on the work of SatoshiLabs, the founders of pooled Bitcoin mining and the mechanism of deterministic wallet creation (BIP39). Trezor Model T features an SD card slot and allows users access to the Shamir Secret Sharing method, which involved key splitting to keep them safe.
There is also a bright full-color touchscreen on the device, and while the Model T is like Ledger Nano S, it is much more secure than any other hardware device on the market.
What are the ways of buying Dogecoin?
You can purchase Dogecoin in the following ways:
- Debit Cards
- Bank Account
- Credit Card
- P2P Exchanges
- Low Fees
1. Buying Dogecoin with Debit Cards: When users purchase Dogecoin with a debit card, they use the card that is linked directly to their bank account, given that their card type supports online purchases.
Advantages of using a debit card to purchase Dogecoin include:
- Fast and secure transactions
- Instant transaction execution
- Assistance in retrieving funds if anything goes wrong
Disadvantages of using a debit card to purchase Dogecoin include:
- High transaction and processing fees
- Security risk if the information is saved online
In terms of legal issues, exchanges that accept payment in debit cards will require that users complete a KYC procedure as part of anti-money laundering procedures.
Buying with a debit card is safe if you use a legitimate cryptocurrency exchange that uses SSL technology to encrypt client data and information.
2. Buying Dogecoin with Bank Accounts: When users purchase Dogecoin with a bank account, it involves a bank transfer from their bank account into their exchange trading account or broker account. Once funded, they can use the trading account to purchase Dogecoin.
This will only work with exchanges that accept fiat currency. Exchanges that are crypto-to-crypto do not accept fiat deposits. The user must first convert their fiat to crypto, for instance, USDT, which can then be used to purchase Dogecoin.
The benefits of buying Dogecoin with a bank account involve the fact that bank transfers are some of the most secure ways to transfer funds. With a bank transfer, there are no chargebacks, and the processing fees are lower than with credit/debit cards.
The disadvantages of buying Dogecoin with a bank account are:
- Transaction processing time is longer than other payment options, between 24 hours up to several days.
- Bank Accounts are not an anonymous way to purchase Dogecoin, and transactions can be traced.
Where legal issues may arise regarding bank account purchases of Dogecoin, users must ensure that they have a verified trading account, either with an exchange or a broker. This may involve completing the KYC process as part of AML policies.
Bank Accounts are one of the safest options to purchase Dogecoin alongside credit or debit cards, given that the user makes use of a legitimate and verified exchange and regulated broker.
The cryptocurrency market is a financial market that is not regulated because of its decentralized nature. This means that traders, crypto enthusiasts, and investors may struggle to find the necessary support that they need if they run into issues with an exchange or a broker.
3. Buying Dogecoin with Credit Cards: This process is the same as buying Dogecoin with a debit card. The user must provide their credit card details to purchase Dogecoin through an exchange that allows for fiat payments.
The advantage of using a credit card to purchase Dogecoin is that transactions are carried out faster. The disadvantage of using credit cards to purchase Dogecoin relate to high transaction and processing fees, strict KYC policies, and security issues with a credit card and personal information that can be stolen.
The legal issue involved with buying Dogecoin with a credit card is that hackers can access the credit card information of the user, and it can lead to a significant loss.
Credit cards are not a recommended payment method because there are cheaper, more secure ways to buy Dogecoin.
4. Buying Dogecoin via P2P Exchange: Dogecoin can be bought from a peer-to-peer cryptocurrency exchange that offers over-the-counter (OTC) trading of Dogecoin between users.
These exchanges allow users to create a posting that others can respond to. When using a P2P exchange, users can be assured of the following advantages:
- There are strict AML and KYC policies that protect all users
- Users on the exchanges have ratings and trust scores
Disadvantages of purchasing Dogecoin using a P2P Exchange include:
- P2P exchanges are not always decentralized, and they do not always offer anonymous transactions.
- Malicious entities can use and exploit these exchanges for personal gain.
In terms of legal issues, these P2P Exchanges are not always regulated, and malicious activity is not eliminated.
5. Buying Dogecoin via Cash: Dogecoin can be purchased with paper money through exchanges such as eToro, Bitstamp, Kraken, KuCoin, and many others that allow users to purchase Dogecoin directly.
There are also P2P exchanges that accept fiat payments for Dogecoin.
The advantages of using cash to purchase Dogecoin include:
- It is a straightforward way to purchase Dogecoin
- It is a secure way to purchase Dogecoin
Disadvantages of purchasing Dogecoin with cash include:
- There are higher transaction fees
- Users may not get the best possible price, depending on market conditions
- There are time-consuming verification processes involved with buying Dogecoin with cash
6. Buying Dogecoin with Low Fees: Buying Dogecoin with lowered fees can be done by using an exchange such as Coinbase, which has some of the lowest fees in the industry.
The advantages of buying Dogecoin at lower fees include:
- The ability to trade higher volumes
- The ability to use leverage to maximize returns
The disadvantages of buying Dogecoin at lower fees include:
- The exchange may charge other non-trading fees to gain its service fee
7. Buying Dogecoin with Metamask: Metamask is a cryptocurrency wallet in addition to being a gateway to different DApps. Metamask allows users to buy, store, swap, and send different tokens.
The process involved with buying Dogecoin through Metamask is simple, and users can select the “buy” option from their mobile app to obtain a link to a service provider in the user's location and proceed with the transaction.
The advantages of using Metamask to purchase Dogecoin include:
- It is an open-source project that is reputable and trusted
- Private keys are encrypted and kept on the browser of the user
- Metamask is user-friendly
- Metamask can be used to easily access the Dogecoin blockchain
The disadvantage of using Metamask to purchase Dogecoin include:
- Metamask is a hot/online wallet that has some security risks
Some issues with regards to security and legalities revolve around the fact that Metamask is an online wallet and the fact that private keys are kept by the provider on the browser. This could lead to hacking attempts where users can lose their keys, funds, or both.
What are the necessities for buying Dogecoin?
Before buying Dogecoin, the following is necessary:
- A Dogecoin compatible wallet
- Connection to a Dogecoin exchange or a broker that offers Dogecoin
- Completing registration and passing the security checks, which need identity documentation (Driver's license, passport, government ID, and so on, as well as proof of residence such as a utility bill or credit card statement that is not older than 3 months).
- A valid payment method, either a debit or credit card, Paypal account, bank account, or so on.
Is there an age limit for buying Dogecoin?
No, there is no age limit for buying Dogecoin.
There are no restrictions on age when purchasing Dogecoin. However, many exchanges such as Coinbase and payment gateways such as Paypal require that users be 18 years or older.
What are the best cryptocurrency platforms to buy Dogecoin?
The best cryptocurrency platforms where Dogecoin can be purchased are:
1. Bitpanda: One of the most popular cryptocurrency trading platforms in the crypto space today is Bitpanda. In the beginning stages of learning how to purchase Bitcoin and other cryptocurrencies, Bitpanda is the best Bitpanda broker to utilize. Bitpanda Pro is a cryptocurrency exchange trading platform that is geared for professionals, institutions, and more seasoned traders.
2. eToro: eToro is both an online trading broker and investing platform with more than 6 million registered members. With eToro, users can trade forex, cryptocurrencies, stocks, indices, commodities, and exchange-traded funds (ETFs) in real-time. Long-term investing and day trading are also options offered by this well-regulated and trusted broker and platform.
3. Robinhood: Robinhood is a US-based investment and stock trading app that offers a wide range of investment products, including stocks, crypto, fractional shares, and several other options. Robinhood has been in operation since 2013, and it is a trusted service provider with over 20 million registered users.
4. Changelly: Changelly is a real-time cryptocurrency exchange that enables you to quickly exchange cryptocurrency and purchase it using a bank card. The service offers the best crypto-to-crypto exchange rates and supports over 140 cryptocurrencies.
5. Gemini: Gemini Trust Company, LLC, known just as the Gemini crypto exchange, is a reputable platform offering users the ability to purchase, trade, and store digital assets. On an open market, all users can exchange cryptocurrency and fiat cash. Users may send and receive USD from and to their bank accounts.
Do Forex Traders sell Dogecoin?
Yes, forex traders sell Dogecoin.
- Forex Traders have the opportunity of purchasing Dogecoin at a lower price and selling their tokens once the price peaks, either long-term or within a trading day (day trading).
- Forex Traders buy Dogecoin and hold their coins until the value has risen, after which they sell their Dogecoin to make profits.
- Forex Traders can use several different, innovative algorithmic trading strategies when they buy Dogecoin, allowing them to open trades at the ideal time and sell it automatically according to certain technical indicators.
What are the Buying Methods for Dogecoin?
Dogecoin can be bought using the following different methods:
- Credit/Debit Cards
- Bank Account
- P2P Exchanges
When users trade Dogecoin, there are several different orders that they can use when they buy Dogecoin through exchanges and brokers. These follow certain buying/selling strategies, and they relate to:
- Limit Buying
- Leverage Buying
- Market Orders
- Take-Profit Order
1. Stop-Loss for Dogecoin Buying: Stop-Loss orders are extremely important for traders, especially when mitigating and managing risks in a volatile market. A stop-loss order is like a limit order because it is an order that executes automatically to either buy or sell Dogecoin at a specified price or better.
Stop-loss orders have some potential risks because they may guarantee a price limit, but they cannot guarantee that the trade will be executed. Stop-loss orders can prevent future gains, incur taxes, trigger taxes, and could lower the profit threshold of traders.
Stop-loss orders are ideal for beginners if they are used correctly.
2. Limit Buying Order for Dogecoin: A limit order refers to an order to either buy or sell Dogecoin according to a restriction to the maximum price that must be paid or the minimum price that must be received.
The risk involved with Limit orders is that there is no assurance that the order will be executed. Limit orders are best used when the trader believes that they can buy Dogecoin at a lower price than the current quote.
Beginners can use limit orders to save money on commissions that their broker or exchange charges, especially on liquid coins such as Dogecoin.
3. Leverage Buying for Dogecoin: Leverage is a useful tool that is considered a loan where the trader can open larger positions despite their initial deposit. In return, the broker or exchange requires a certain percentage as collateral for the trade.
Leverage ratios offered by brokers and exchanges on Dogecoin will not be as high as those offered with forex. This is attributable to the inherent risks involved with leverage.
Dogecoin can be traded using a leverage ratio of 1:1, 1:2, and even up to 1:5 and 1:10, depending on the exchange or the broker.
The risks involved with using leverage when purchasing Dogecoin is that loss can be magnified, and traders can clear out their entire account, or their account could go into a negative number.
Leveraged trading on Dogecoin is not recommended for beginners until they understand the risks and they can mitigate and manage them effectively.
4. Market Orders for Dogecoin: Market orders can be used when traders purchase Dogecoin instantly at the current market price instead of waiting for a better price. Market orders are executed instantly or as close to instantly as possible.
The risks involved with purchasing Dogecoin using a market order involves agreeing to the exchange or broker filling the order at what is considered the best possible price, which limits traders because they could be agreeing to higher prices.
Market orders can be used by beginners with great caution. Beginners must analyze the market to identify what the best price is to avoid them paying a higher price than they would have using other orders.
5. Take-Profit Orders for Dogecoin: Take-profit orders are another risk management tool that allows traders to maximize their profits without risking funds. The Take-profit order is above the purchase price chosen by the trader, and when the price on Dogecoin reaches this predetermined limit, the trade will be closed.
The risks involved with these orders is that traders might set them too high/low, and it could mean that the trader either loses out on gains, or they may cause loss.
Beginners are urged to use Stop-loss and Take-profits in combination to ensure that they can maximize their profits while minimizing their risks.
What are the alternatives of Dogecoin?
These are the competitors of Dogecoin:
- Shiba Inu (SHIB)
- Cardano (ADA)
- Ripple (XRP)
- Tether (USDT)
- Bitcoin (BTC)
1. Shiba Inu (SHIB): Shiba Inu reached new highs in 2023, becoming the 11th-largest cryptocurrency according to market capitalization. Shiba Inu currency, founded in 2020 by an unknown individual going by the name Ryoshi, is described on its website as a decentralized meme token that grew into a lively ecosystem in addition to being known as the Dogecoin killer.
2. Cardano (ADA): Cardano is a decentralized and programmable blockchain platform that operates on the Ethereum blockchain. It utilizes a native coin. It is remarkable for being one of the first to utilize proof-of-stake validation. Cardano (ADA) allows safe peer-to-peer transactions.
Cardano, like Ethereum, enables smart contracts as well as a range of decentralized apps (DApps) through its native token, ADA. Cardano's ADA currency has grown at a snail's pace in comparison to other major cryptocurrencies.
3. Ripple (XRP): Ripple was developed in 2013, and it has grown to become one of the most prominent digital asset projects. Ripple is one of the best payment platforms in the world, featuring a market capitalization in the tens of billions of dollars. Ripple's entire quantity of 100 billion XRP coins makes it a low-value cryptocurrency.
Ripple is being utilized for cross-border transfers by over 250 banks and offers a fast transaction processing time with low costs.
4. Tether (USDT): Tether is a stablecoin that is pegged to the United States Dollar at a 1:1 ratio, which means that for every Tether issued, there must be a USD kept in reserve. USDT has the advantage that its price does not fluctuate like other cryptocurrencies because of its USD peg.
5. Bitcoin (BTC): Bitcoin is the king of all crypto as the first digital currency that was created and launched in 2009 by Satoshi Nakamoto, a pseudonymous individual/group, with the idea of eventually replacing conventional monetary systems and paper money.
Why should you invest in Dogecoin?
On the Dogecoin sub-Reddit, there are 2.2 million “subshibers” (a nickname given to the Shiba Inu subscribers). Musk and hip-hop singer Snoop Dogg are two of the most well-known names that have promoted Dogecoin.
Given the volatile nature of cryptocurrencies, the popularity of any cryptocurrency is crucial. In terms of value, Dogecoin's valuation is attributable to investors anticipating that the token's value will rise. Those who invest in DOGE are likewise betting on more celebrity-driven headlines.
Some investors are put off by Dogecoin's high volatility over the last year. Putting any major amount of money into something that can soar or crash in a matter of seconds needs a steel stomach and the appropriate attitude. Dogecoin, on the other hand, is an excellent alternative for investors wishing to get into the crypto game.
The mining mechanism of Dogecoin, its inflationary state, and its links to Litecoin are all fascinating. These characteristics distinguish Dogecoin and make it an appealing investment for many cryptocurrency fans.
Given the environmental issues with crypto mining, experts expect that Dogecoin will transition to a proof-of-stake validation paradigm, in which coin holders verify transactions. Such a step may tempt investors who are hesitant to engage in older coins.
How to sell Dogecoin
Dogecoin can be sold in the same way that users purchase Dogecoin, namely:
- A PayPal Account
- Credit/Debit Cards
- Bank Account
- P2P Exchanges, and others.
Selling Dogecoin is different to purchasing it because the trader is converting their Dogecoin for either fiat currency or other cryptocurrencies. The reasons why users sell them Dogecoin relate to:
- Having reached a certain profit target
- According to selling signals that were triggered, indicating the perfect time to exit a trade.
- According to stock chart patterns that signal price volatility and repetitive patterns, showing that a trend is about to end.
- According to Fibonacci ratios and geometric price patterns.