Dogecoin has begun as a joke, but now its succeeded as a peer-to-peer cryptocurrency and achieved a great market capitalization. It is similar to cryptocurrency because its transactions can take place directly from person to person over the internet without passing via a centralized middleman such as a bank. Everyone is having the question how to trade dogecoin? Let’s dive deep into the detailed process of trading dogecoin.
Dogecoin came into the market in December 2013 through Billy Markus, a programmer from Portland, Oregon. As I told you before It started its career as a joke in the cryptocurrency exchange but it attracts a huge online following. Now it is a very famous member of the cryptocurrency exchange market. It is also popular for its meme-inspired logo of a Shiba Inu Dog.
In the beginning, Itis decided to limit Dogecoin to 100 billion coins. But after some time, it was decided that there would be an unlimited supply of Dogecoin. Dogecoin backbone is very strong due to its passionate community, which have invested a big deal in fundraising. The cryptocurrency community uses dogecoin for tipping on the social media platform.
What is Dogecoin?
Dogecoin is a member of the cryptocurrency family which was introduced by a programmer known as Billy Markus. It was launched on December 6, 2013. After the launch of 30 days, it was successful to get attracted over million visitors to its official website which is Dogecoin.com. They want to design a peer to peer digital currency that could spread a broader demographic than Bitcoin. Dogecoin is also known as an altcoin with many users.
3 Simple steps on How to Trade Dogecoin
Step 1: Purchase a Dogecoin Wallet
There are a number of Cryptocurrency brokers available in the market who provide Dogecoin wallets. Trading Dogecoin is not a difficult task. There are so many types of wallets with different features, usability, and security available at regulated online broker platforms. Here are some brokerage platform options for dogecoin purchase.
Dogecoin Hardware Wallets
Hardware Wallets is one of the safest wallet types. It may require an initial investment. In comparison to hardware wallets, software wallets are almost free. A hardware wallet is safe due to the broker keeping the private key of your Doge offline on a physical device.
Dogecoin Software Wallets
A software wallet will keep the private key to your Doge on your device, it doesn’t matter if it is a mobile phone, a desktop PC, or a laptop. Sometimes these wallets have high risks, so you must read all the rules and regulations and take necessary precautions before downloading a software wallet. Try to trade dogecoin from the regulated dogecoin brokers. All these brokers provide Dogecoin wallet which is available for Windows, Mac, and Linux. Alternatively, you can go with a multi-currency wallet.
Professional Dogecoins can also purchase dogecoin from the official website. Therefore this option is not suitable for beginners or you do not know the meaning of full client. For Android device users, there is an option for the official Dogecoin Mobile Wallet which consists of approving reviews for users. But there is no such option available for iOS users.
Locate your Doge Address
After purchasing your Dogecoin wallet it’s time to receive your Dogecoin address. A Dogecoin consists of a long string of letters and numbers that begin with a capital D which is followed by a number or another capital letter.
Step 2: Find a Dogecoin Cryptocurrency exchanges
In the cryptocurrency exchange market, there are not enough reputable brokers available for buying dogecoin. Only a few cryptocurrency exchanges are available for purchasing Doge with Euros and Dollars.
Trade Dogecoin with a Credit Card
This is the easiest way to buy Dogecoin with a credit card. It usually consists of higher fees in comparison to bank transfers. But it will be processed faster than other sources.
Buy Dogecoin with PayPal
Most cryptocurrency exchanges do not accept PayPal payments. Only a few options are available in the market that accepts PayPal payments. Beacuse of this reason, there is no option is available when it comes to purchasing Dogecoin with Paypal.
Step 3: Withdraw of your Dogecoin
It’s very important to keep your cryptocurrency in a wallet in place of exchange. This decreases the risk of your cryptocurrency being lost and stolen. So do not forget to withdraw the dogecoin which you have purchased from the exchange and your own wallet by using the address which we mentioned in step 1. If you leave your Dogecoin on the exchange, this means you are giving up control of the coins. In case of hacking and bankruptcy, you will not get back your coins. You can withdraw the currency at a real-time price.
How to Trade Dogecoin?
Dogecoin is a unique cryptocurrency that gives birth to the popular dog meme. Dogecoin features a Shiba Inu Dog. Investors can either trade Dogecoin or gain exposure to cost movements via trading derivations such as trading CFDs.
Here we providing options by which we can trade Dogecoin are:
- Exchanges: Buy or Sell Dogecoin by using Fiat currency or another cryptocurrency that you own.
- Online Brokers: Trading CFDs, futures, or Forex from online brokers which permit you to speculate whether the costs of cryptocurrency will go up or not.
How to manage your Dogecoin?
Before handling your Dogecoin, you should learn how to navigate exchange and protect your computer.
- You have to be more careful and take precautions to save yourself against phishing scams, viruses, and other risks. You may also need to protect the very careful track of your wallet’s access code. You can get real-time updates from time to time when signing up with a good broker.
- If you misplace or forget those your dogecoin will get stuck in a wallet and you are no longer able to access them.
- On the other hand, there are some risks over which you do not have control. Whenever you use an exchange you trust on them to protect your DOGE. The problem, in this case, is that sometimes they fail to protect them.
Is an Exchange wallet Safe to keep Dogecoin?
Must keep this thing in your mind that cryptocurrency exchanges are not automatically safe and you must have been serious about your studies.
- Always use two-factor authentication.
- Do not keep all your coins in a single wallet.
- Never leave your coins in an exchange wallet unless you are planning to exchange them.
- If you lost the keys to your wallet then you don’t have access to coins inside it.
- The best way to protect your Dogecoin is to keep your coins in a hardware wallet or by putting them in a Software wallet.
Are Private Wallets Safe to Keep Dogecoin?
It is conceivably safer to keep your Dogecoin privately in a wallet. There are different types of wallets are available for storing Dogecoin.
- Cold Wallets
- Hardware Wallets
- Hot Wallets
- Desktop Wallets
- Paper Wallets
Factors to Trade Dogecoin
Every trader has a different style of trading. So here we provide some reasons why you select to trade in Dogecoin.
- Inflationary Supply Dynamic
- An engaged user base
- Significant costs fluctuation provided day trading opportunities.
Is Dogecoin an Inflationary Currency?
Dogecoin is an inflationary currency which makes it different from other cryptocurrencies such as Bitcoin, and Litecoin. It meant good to call inflation which is a good thing because it devalues individual Dogecoins. However, Its inflationary nature is a factor that will provide surety of Dogecoin’s survival.
Trade or Sell Dogecoin Cryptocurrency
After transferring your DOGE to your exchange wallet, Now it is your choice how you want to invest them for good returns. The two major strategies are:
- Long term holding: Investors who trust that the dogecoin price can hold for a month and even years at a time, this is one of the best strategies which seem profitable in case of digital currencies. To keep Dogecoin safer, transfer your coins from crypto exchanges to your wallet.
- Short term holding: Short term investment dependent on small price movements by buying and selling dogecoin at the time when they are giving maximum returns. For short term holding, you must have an account with one of the regulated brokers.
Recent Cryptocurrency Prices
Cryptocurrencies are digital assets that is why their prices can change very fast on a minute-to-minute basis. Important factors that may influence the minimum investment costs which you invest in Dogecoin and any other cryptocurrency.
- News: Elon Musk plays an important role in dogecoin hits which involve other cryptocurrencies under the SNL skit.
- Current supply: As we know Dogecoin is an inflationary cryptocurrency. In every 10 minutes more than 10,000 new Dogecoin coins are minted. Crypto markets run very fastly This thing makes it different from other exchanges. It may generate profits quickly but it also contains high risks.
- Current Financial conditions: Investors can in a bunch to become a member of Dogecoin community when the market is moving towards downtrend. Cryptocurrency industry. Sometimes poor economic conditions may become the reason for Dogecoin price rise.
Keeping a close look at how the prices of other cryptocurrency are rises can help you to determine at the time when to place an order to buy cryptocurrency.
Beginning With Cryptocurrency
When you decide to start investing in digital assets such as Dogecoin, Bitcoin, and another cryptocurrency, you must remember it consists of risks that come with buying a virtual currency. Most investors know that DOGE investment is much riskier than Bitcoin. When Bitcoin is included in corporate balance sheets and becomes legal tender in EL Salvador, It’s likely here to stop. The price of Dogecoin get affected most of the time because of the tweets of Tesla boss Elon Musk. Elon Musk has a significant impact on the rise of the meme currency Dogecoin and its adoption.
Although, The cryptocurrency is still unregulated and the costs of any cryptocurrency can drop in value at any time. Never invest too much money that you can’t afford to lose and it is smarter to add cryptocurrency as an add-in to a diversified portfolio. The future of cryptocurrency is good.
Dogecoin is an established cryptocurrency that has been on the market since 2013. The crypto coin has always been compared to Shiba Inu also as Shiba Inu is also a potential meme currency. It consists of a passionate community that invests and uses Dogecoin for giving to other users. This article will help you to collect complete details about Dogecoin. Here we provided 3 easy steps for how to trade Dogecoin. For further details read the above article carefully.
Frequently Asked Questions for Dogecoin
Can I Mine Dogecoin?
Yes, you can mine Dogecoin at real-time value, similarly to Bitcoin. Dogecoin consists of a blockchain that’s handled by the mining system. The main difference between Dogecoin and bitcoin is that Dogecoin uses Scrypt which is a different mining algorithm than Bitcoin’s SHA-256. Traditionally, the Scrypt algorithm was designed to be ASIC -resistant. Therefore by now, ASIC creators have found a path around that. So it is only profitable recently to mine Dogecoin with ASIC miners.
Why is Dogecoin so cheap?
The single dogecoin price is cheap solely because of the enormous supply of Dogecoin in circulation. Since there are more than 130 billion DOGE circulated their per token price is lower. At the time of investment in crypto, a popular cryptocurrency exchange’s capitalization is showing too much whether or not the crypto is cheap.
Is Dogecoin worth buying?
The cost of dogecoin has pumped up to 40% since its peak in mid May, the latest ups and downs the cryptocurrency has been on since the starting of the year. In some cases, market downfalls are a good opportunity to purchase stocks when the costs are lower.
Is Dogecoin a scam?
No, Dogecoin is not a scam at all. Dogecoin is a virtual currency, its value is derived from user utility and adoption. Many traders admit that dogecoin is a bubble. So be aware investing in a meme coin with a multi-billion dollar market capitalization. There are still chances for Dogecoin to grow, there is certainly a chance for Dogecoin to fall in price. So be aware before investing in Dogecoin. It may involve the risk of losing money. try to invest only the amount which you can afford to lose in case the market falls down.