Currency Converter

Dogecoin Investors Guide: What You Need To Know

In this Dogecoin investor guide, we give a brief understanding of what is Dogecoin, how to buy the DOGE, and simple tips on trading the cryptocurrency.

 

 

Dogecoin (DOGE), also known as “meme cryptocurrency”, was started as a kind of “joke” crypto in 2013 and is based on a Litecoin code fork.

Dogecoin is a peer-to-peer cryptocurrency with open-source transactions and may rival Bitcoin someday, say investors who bought the Doge in the initial low price levels. There is no upper limit on Dogecoin, which means that the Dogecoins in circulation is more than 100 billion. Its low fees and fast speed in the transaction make it popular for regular use to move money from one crypto exchange to another.

Billy Markus and Jackson Palmer, software engineers, created Dogecoin as a light-hearted coin. It started as a “joke” crypto but later gained mainstream acceptance.

The live Dogecoin price on September 27, 2021, is $0.206911.

In May 2021, it outperformed to be the fourth-largest cryptocurrency in the world. The currency ranking is #10 by CoinMarketCap, with a market cap at $27.138 billion. The circulating supply is 131.45 billion Dogecoins.

History of Dogecoin   

The Shibu Inu “Doge” is the friendly mascot of Dogecoin. It is a Japanese dog breed that gained popularity as an online meme.

  • Doge started with a $1 billion market cap, but in 2021 it has multiplied to more than $27 billion as of May 2021.
  • Dogecoin protocol runs on scrypt technology, like Litecoin and Luckycoin, in their proof-of-work algorithm. Miners can only use ASIC and FPGA devices for mining. They cannot use SHA-256 mining equipment.
  • A hack performed on the Dogewallet made users lose millions of coins by the hack. However, it raised a fund named “SaveDogemas” to help those who lost the altcoin on their Dogewallet, and it helped to recover the lost amount.
  • In 2014, the Dogecoin trading volume surpassed that of Bitcoin and other crypto coins put together, though the market capitalization was behind the large Bitcoin market cap.
  • Dogecoin prices were trading below one cent until 2020. In the last week of January 2021, it shot up to eight cents, an eight-fold increase, as Doge gained fame from Elon Musk’s tweets. His memes like “Who let the Doge out”, “D is for Dogecoin”, and a string of other social media posts boost up the prices of Doge.
  • In January 2021, it rose almost 800% within 24 hours ($0.07). In February, it hit $0.08.
  • In April 2021, Coinbase, the best crypto exchange, was directly listed on the stock exchange. It brought up the prices of the entire crypto market. Dogecoin hit $0.46 on April 16.
  • Dogecoin surged to life highs at $0.73 in May 2021, as it received fame from Elon Musk on the Saturday Night Live show.
  • In September 2021, Doge is trading at $0.20. There is no hard cap on the total supply of the Doge coins.
  • Dogecoin is more approachable than other leading cryptocurrencies such as Bitcoin. It is paid as tips for work on media posters and content creators online. Some companies accept Dogecoin as crypto payment in 2021.

Dogecoin Live Price

You get live price updates along with analysis, news, and video on websites like coindesk.com, livecoinwatch.com, and coinmarketcap.com. The Crypto App provides real-time alerts on cryptocurrencies like Dogecoin, Bitcoin, and Ethereum. You can get reminders too.

(chart)

 

What Makes Dogecoin Price Move

The crypto market is on the rise. The crypto prices of Bitcoin and Ethereum have multiplied in value, reaching life-highs in 2020 and 2021. This upmove in top cryptocurrencies brought up the prices of other cryptocurrencies, including Dogecoin.

Elon Musk, the CEO of Tesla, mentions Dogecoin frequently on his Twitter account. He added to its popularity through social media, bringing high volatility in prices. Musk talks publicly on his regular Saturday Night Live TV show on the Doge and is fondly called “Dogefather”.

The listing of Coinbase, the US-based crypto exchange, saw a massive surge in prices by more than $205 in June 2021. Coinbase is one of the biggest crypto exchanges, preferred by professional traders in the cryptocurrency market. However, Dogecoin remains restricted to the professional version of Coinbase, the best cryptocurrency trading platform. Prices of Doge soared to $0.40 on the Coinbase listing in the US market.

Dogecoin Price Falling

TikTok users caused a “pump and dump” trend in the Dogecoin prices that hurt investor sentiment. A few investors in the TikTok circle make money from the tweets, while other users undergo heavy losses with massive selloffs. Jackson Palmer, the co-creator of Dogecoin, slammed the crypto industry calling it “hyper-capitalistic” technology.

Dogecoin prices will definitely increase in the days to come. However, with an unlimited supply of Doge coins, it has a limited upside price movement.  Dogecoins lack updates, while new coins come up with the latest technology, which users prefer for investment and trading purposes.

Related:  How Cryptocurrencies Are Changing the Future of Payments

Dogecoin Price Rising

In May 2021, the Dogecoin prices were at 75 cents, with a market cap of $39 billion. The surge in Dogecoin prices has fuelled the rise of other altcoin cryptocurrency prices. Fans have set a target price of $1 in the coming months.

Ways to Invest in Dogecoin Coin 

Know the basics of investing in Dogecoin cryptocurrency.

Find the Right Exchange: The crypto exchange is the platform for people to buy and sell their digital assets. Create an account, transfer the amount you have set aside to buy crypto from your bank account to the exchange account. Select a cryptocurrency like Dogecoin for investment and trading.

Debit or Credit Card: You can use your debit or credit card to buy Dogecoin. Open an account with a crypto exchange platform and link your account to the best cryptocurrency trading platforms.

Wallets: You can use your web and mobile wallets for safe storage.

Crypto Exchange: Choose one of the lowest fees crypto exchanges. You have to give your ID and address for registration purposes. The verification process is a standard procedure that follows. It will provide security to your digital assets and protect them from usage in money laundering or other illegal activities.

Receive or Send as Tips: You can accept or send tips in Dogecoin, as some communities accept Dogecoin.

How To Open A Dogecoin Wallet?

Have a cryptocurrency wallet to store your Doge, away from the exchange. It will keep your digital asset safer, as you get a set of keys to ensure security. Make sure that you can manage your private key on your wallet.

  • You have to download a wallet app. Create your account, keep your private key safe and transfer the crypto token to your wallet.
  • It should be a platform you trust with features such as ease of use, security, and compliance with regulations.
  • Enable two-factor authentication for the safety of your cryptocurrency on your wallets. If you leave it on an exchange wallet, there are many risks.
  • eToro crypto, Crypto.com, Trezor, and Coinbase are some of the best wallets for Dogecoin, as they come with additional features that keep the crypto secure. A hardware or software wallet will store the private and public keys of your digital asset.

Dogecoin Funds

Dogecoin has one of the best cryptocurrency communities as it is friendly and helpful, especially for charity purposes.

The Dogecoin community raises funds for charity and other noble causes. They raised a $50,000 fund for the Jamaican Bobsled Team in January 2014 to participate in the Sochi Winter Olympics. A well was built in Kenya with a fund of $30,000 in February 2014. In March 2014, they raised 67.8 million to sponsor driver Josh Wise of the NASCAR Series.

Best Performing Dogecoin Funds

Traders prefer to trade Dogecoin because it has an active user base. Price fluctuations make day-trading opportunities profitable. Doge is an inflationary currency that is profitable for trade but devalues individual Dogecoins.

Biggest Dogecoin Funds

According to reports from the Wall Street Journal, a single owner, whose identity remains unknown, owns 28% of total Dogecoin in circulation. The digital asset was worth $2.1 billion in February 2021.

Best Dogecoin Trading News Sources

Every investor and trader in the crypto space should remain updated on the latest trends in cryptocurrency. There are numerous handy websites to keep you updated on the news, market information, and updates. Coinbase has a simple trading interface. Coinbase Pro is best for experienced traders. You can cop-trade on the eToro platform. Do a bit of research before you choose an exchange for trading on Dogecoin. Get accurate and updated information on events that occur in the market. Choose well-presented websites to access information easily.

Is Dogecoin A Good Investment (chart and summary)

On December 19, 2013, the prices of Dogecoin surged almost 300% with 72 hours. It went up from $0.00026 to $0.00095.

In 2020, a TikTok trend brought high surges and sharp declines in prices.

It is primarily used to make online purchases and for tipping purposes.

Elon Musk is known for sharing references and memes to pump or dump prices of the Doge on several occasions.

The entire crypto market is a risky business, with high risks and high profits. Every tweet from personalities like Elon Musk causes a sudden jerk in Doge prices. A safer alternative is to buy stocks from the stock exchange or safe-haven assets like gold and silver.

Is Dogecoin A Genuine Investment?

Dogecoin has been lucky in its rise to success. Cryptocurrencies like Bitcoin have a finite supply of coins. Dogecoin coins are unlimited. The current Dogecoin supply in circulation is at 131 billion. The Dogecoin community raised a fund of over $55,000 to sponsor Josh Wise, a Nascar driver.

Though the price value of Dogecoin can appreciate, it will not see market domination like Bitcoin, Ethereum, Litecoin, and Ripple. There are many other alternate investments like gold, silver, oil, and stock indices. Dogecoin is not the only choice available.  

Related:  Cardano Price Prediction: An Investor's Guide

Dogecoin Links With The Dark Web

Dogecoin is prevalent in the pornography and gambling industries. They are known as darknet markets, as they sell illegal goods through these sites, using crypto like Bitcoin and Dogecoin.

As crypto holders are anonymous, crypto usage in the dark web is high. Since Dogecoin prices are low, they do not play a vital role in the dark web.

Trading Dogecoin

Social media users provide interesting tips and newsworthy content for other users.

How To Trade Dogecoin

You can trade Dogecoin via top cryptocurrency exchanges and online brokers. You require adequate exposure to trading derivatives like futures and CFDs to understand the price movement. Without basic knowledge, you cannot trade profitably.

Exchange Trading: You can buy and sell Dogecoin with fiat currency or with another cryptocurrency that you have.

Online Crypto Brokers: You can buy futures or CFD, or forex from online crypto brokers. You can then speculate on the digital assets you own, depending on your view on the price movement of the crypto.

Peer-to-Peer Trading: You can buy BTC and trade it for DOGE through the P2P top cryptocurrency exchanges. Read through reviews and ensure that the crypto exchange is trustworthy.

CFD: These are complex instruments, and you may lose money due to leverage. According to statistical reports, almost 75% to 89% of retail investors lost money when trading CFDs. Without proper exposure, you should not risk your money. If you are interested in trading Doge, you can sign up with one of the best brokers.

Ensuring My Dogecoin Trading Is Profitable

Trade is an individual decision. This guide provides the details required to avoid pitfalls in trade.

Take precautions when you start trading Dogecoin. There are various cases of scams, viruses, phishing, and other risks. You have to keep your wallet access codes secure. The unregulated nature of the cryptocurrency lacks legitimate information that you cannot trust always.

Buying Dogecoin Beginners Vs Professionals

Investing in the crypto market is risky but provides huge returns too. The best crypto trading app for Dogecoin is Kraken, Coinbase, Binance, and eToro.

eToro is the best crypto trading app for beginners, while Coinbase is the best app for crypto trading for beginners and professionals. Choose the best app for crypto trading so that more cryptocurrencies are available for trade.

The best cryptocurrency brokers for Dogecoin are eToro, Voyager, Fortrade, Binance.US, and Kraken. You can buy Doge crypto through mobile-only brokers or online brokerages from the best cryptocurrency brokers.

Best Way For Beginners To Buy Dogecoin

Crypto currency trading is the buzzword for new investors. The simplest way to invest in Doge is by trading crypto coins like Bitcoin, Ethereum, Cadence, and Dogecoin. Investors can open an account and start trading on the best cryptocurrency exchanges.

  • You can buy Dogecoin on the Robinhood cryptocurrency app. However, you cannot access your Dogecoin wallet or send or receive Doge crypto on Robinhood. Robinhood crypto fees are zero. Investors cannot buy Dogecoin on TD Ameritrade crypto.
  • To buy Dogecoin, you can use fiat currency such as the US Dollar, the Euro, or the British Pound. You can also buy Doge with Bitcoin crypto through an exchange.
  • Coinbase is a US crypto exchange that you can buy Dogecoin with fiat currency. You can store them in your virtual wallet. It is the best US crypto exchange, available in more than 100 countries.
  • US, eToro, Bitpanda, Robinhood, and Bittrex are other US crypto exchanges available. Gemini and OKEx are US crypto exchanges that offer trading and exchange facilities for access across the globe.
  • Some lowest fees crypto exchanges are Binance, Kraken, Coinbase, and Coinmama. They provide the best overall service, with low fees, and are secure.
  • There are no Robinhood crypto fees, as it is commission-free. Buying crypto on Robinhood is best for beginners as it is a US-based platform that is user-friendly.
  • Doge is a popular asset traded on top crypto exchanges like Binance, Kraken, and Bittrex. On Binance you can trade BTC for Doge and viceversa. On Kraken you can trade Doge for BTC or USDT. On Kraken, you can buy and sell Doge fiat currencies like USD and EUR. You can also trade it for BTC.

How Pros Buy And Invest In Dogecoin

Day Trading Cryptocurrency: Professional traders prefer Dogecoin for day trading cryptocurrency because of its high volatility. They benefit from the extreme swing in Doge prices. Traders enter and exit trade within the same day. But it is high-risk crypto that traders cannot predict based on fundamental analysis.

Crypto day trading on Doge finds wild swings within minutes or intraday. Small-time investors should keep away from such trade as they lack adequate knowledge and may lose their investments by day trading crypto Doge.

Related:  Best Cryptocurrencies to Consider Trading in 2018

Cryptocurrency Platforms: Professional traders prefer to use crypto trading platforms like Gemini crypto exchange, Webull crypto, Binance.US, Coinbase, and Robinhood cryptocurrency for trading. But on the Webull crypto and Robinhood crypto, you cannot send or receive Dogecoin. On eToro crypto, you can send and receive limited coins. eToro charges 0.75% to 5% spread.

Webull fee per trade is $0, Gemini crypto exchange fee per trade is 0.5% to 3.99%.

Top Crypto Trading Bots: The Dogecoin trading bot is an automated crypto trading bot that processes your Doge trading automatically. You can buy and sell Doge or accumulate Doge on Coinrule. With a crypto trading bot, you can execute orders and customize them based on your unique trading crypto strategy.

Cryptocurrency Futures: Dogecoin Futures allows two parties to buy and sell Doge at a predetermined future price and date. Traders do not have to hold the cryptocurrency with cryptocurrency futures. Kraken charges 0% to 0.26% for futures and margin trading.

Best Crypto Trading Platforms: You have several trading options from the best crypto trading platforms for Dogecoin.

Tax Liabilities On Dogecoin

In most jurisdictions like the US, UK, Australia, and Canada, cryptocurrencies come under taxation.

You can connect your crypto wallets and the best crypto exchanges to get your taxes done in minutes.

Tax on Dogecoin US

In the US, cryptocurrency profits and losses come under the tax net. It is similar to the property by the Internal Revenue Services (IRS). When the asset gains or loses value, it comes under capital gains and capital losses, respectively. The tax amount depends on the capital gain or loss, the period of holding the asset, and the jurisdiction of that region. 

Dogecoin sold for fiat currency, trading Dogecoin for another crypto, like BTC or ETH, receiving crypto from mining, and using crypto to pay for goods and services are taxable events.

Tax on Dogecoin UK

Consolidated tax guidance issued by Her Majesty’s Revenue and Customs (HMRC) breaks down the crypto tax rules for easy understanding. HMRC gives importance to how you deal with your digital assets. If it is a personal investment, it comes under Capital Gains taxation. If it is a business activity, it comes under Income Tax rules.

Document all your crypto transactions for taxation purposes.

How Much Do You Need To Start Investing In Dogecoin?

Dogecoin started as a joke coin, though taken more seriously now. But it is a risky investment on which you should spend only 3% to 5% of your portfolio in Doge tokens.

Have a diversified portfolio, pay your debt, build up a healthy savings plan and then invest money into the crypto market that you can afford to lose.

Dogecoin Investors Summary

Though Dogecoin has been around for a long in the crypto space, price predictions are relatively lower than other crypto-assets like Litecoin, Bitcoin, and Ethereum.

The projected value for Dogecoin is $1 per token. Though it almost reached these levels recently in May 2021, it slipped from the 0.72 levels. If the crypto market turns bullish again, Dogecoin prices may attain the target price of $1.

Dogecoin has support from big names like Elon Musk. Prices may surge higher. However, such TikTok-driven prices make it volatile crypto with an insane price movement on the price chart. It is difficult to predict the price targets for the tweet-driven crypto.

Dogecoin is not good for long-term investment. It is known as a “pump and dump” asset that investors should not trust with their savings.

The best US crypto exchanges are Coinbase, Binance.US, Gemini, and Crypto.com to buy, sell and trade Dogecoin.

Dogecoin took centre stage in 2021 as it saw a huge surge this year. The crypto may falter in its prices in the long run, but early investors can benefit, as it may touch the $1 mark. The Doge gains popularity among small investors and celebrities. However, it has no inherent value and Dogecoin prices are likely to fall flat in the long run. Wild trading swings reveal that misinformation and hype are driving the Doge prices. Dogecoin has to provide real value to its investors to sustain its move upwards.

 

Foreign Exchange Live
Foreign Exchange Live
FOREIGN EXCHANGE LIVE