Unless you have been hiding under a rock for the last year, it’s safe to assume you have heard of Dogecoin, the Shiba Inu themed cryptocurrency. But is DOGE a good investment, and if so, what is the safest way to buy it? Well, luckily, there are lots of ways for new investors to dip their toes into the crypto market. Here are some of the best ways to buy Dogecoin, but before you do, let’s discuss what it is and whether it’s right for you.
Dogecoin is a cryptocurrency similar to Bitcoin that allows users to make peer-to-peer payments without an intermediary. Although one of the most popular Google searches regarding DOGE is ‘does Elon Musk own Dogecoin?’ it was actually the brainchild of software engineers Billy Markus and Jackson Palmer, who came up with the idea to create a light-hearted cryptocurrency for the masses. Even though Dogecoin was never intended to be a serious rival to fiat currencies, DOGE has soared in popularity amongst retail investors and even attracted some high profile supporters in the last year.
Although DOGE has been around since 2013, it was in 2021 that it made headlines. After spending years trading at a fraction of cent, in January, the Dogecoin price jumped 800% in 24-hour. This caught the attention of billionaires’ Mark Cuban and Elon Musk. The Dallas Maverick’s owner and the Tesla chief become instant fans and often tweet about DOGE to their loyal followers. As a result, the Dogecoin price exploded to 76 cents in May, and higher by 30,000% since the start of the year. Of course, since then, DOGE has dropped in value, but over the last month, the price has started to go up again, and this has left many wondering if now is the right time to buy Dogecoin.
If you have heard the stories of Dogecoin creating overnight millionaires, you may be tempted to join the party. However, it would be best to remember that DOGE is extremely volatile, and investors should be prepared for wild swings in price. And due to its unpredictable nature, DOGE holders should accept their investment is highly speculative and may incur considerable losses. However, if you are comfortable with this, you may consider Dogecoin a worthwhile addition to your portfolio. But before you jump in, you should ask yourself, is Dogecoin safe?
Horror stories of hackers stealing millions in cryptocurrency from trading exchanges have stopped many risk-averse investors from buying. And whilst this has happened, there are some ways for investors to safeguard their investment. For instance, Coinbase offers users a secure way to invest in cryptocurrencies such as Dogecoin, storing 98% of clients assets offline. This is an important measure to protect clients from theft or loss.
Another way to protect your investment is by storing your Dogecoin in a crypto wallet. Whilst the first thing you may think of is the leather accessory that holds your cash and credit cards, crypto wallets are a different thing altogether. Cryptocurrency wallets store the digital credentials needed to access your coins and tokens. Notably, wallets come in two forms, ‘Hot’ and ‘Cold’. A hot wallet is a software-based solution that acts as an online storage facility for cryptocurrencies. Typically users access their hot wallet via a desktop programme or a mobile app. Although this offers protection, more security-conscious investors may prefer to store their investments offline in the cold storage of a hard wallet.
A hard wallet is a device such as a thumb drive that allows holders to store their crypto offline. This is a secure way to disconnect your investment from the internet, removing the risk of your digital assets being stolen. However, bear in mind, you become solely responsible for protecting your assets when stored offline. Therefore, the less tech-savvy prefer to store their crypto on an exchange. But which exchange is right for you?
The largest US cryptocurrency exchange, Coinbase, offers various coins, including Bitcoin, Ethereum and DOGE. The first step to buying DOGE on Coinbase is downloading the app from iTunes or Google’s play store. After entering your personal details and selecting a secure password, you will be asked to verify your age and identification.
Once the verification process is finished and your account is open, you will be free to buy and store Dogecoin and other cryptocurrencies securely.
If you think the Robinhood app is just for stock trading, you may be surprised to learn that Dogecoin is Robinhood’s most popular product. So for those wondering how to buy Dogecoin on Robinhood, the first thing you need to know is that only US citizens can use the app at the moment. If you qualify, opening a Robinhood account is easy. Similar to Coinbase, you will need to download the app and complete the verification process. Once that’s done and you have funded the account, you’re good to go.
These are just two of the exchanges where you can buy Dogecoin. Many others such as Binance, eToro and Kraken also offer clients access to DOGE and other cryptocurrencies. Investors should consider security, functionality, and reputation when selecting the best exchange to buy Dogecoin. But before you do this, you should consider the most important question for any investor: Will Dogecoin go up in price?
Of course, this is the million-dollar question. Earlier, we highlighted the incredible run DOGE had at the start of the year. But that does not guarantee Dogecoin will continue to go up in price. Often, we are asked, “Will Dogecoin reach $1?” and even “will Dogecoin reach $100?”. The answer is nobody knows for sure, and many people believe Dogecoin is a bad investment.
Often investors are drawn to cryptocurrencies that have limited supply, such as Bitcoin. However, whilst there will never be more than 21 million Bitcoins, DOGE has an unlimited supply. There is around 130 billion DOGE in circulation presently, and this figure rises every day. Furthermore, it is estimated that the total amount of Dogecoin in circulation will increase by 5 billion coins per year. However, this hasn’t stopped DOGE from becoming the 7th-largest cryptocurrency with a market cap of over $40 billion, the same as supercar maker Ferrari.
It’s difficult to say what the future holds for Dogecoin. Although the easy money has certainly been made, DOGE may still be attractive to some. But, If you do decide that Dogecoin is a good investment for you, it may be best to start small, only risking capital you are prepared to lose.
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