It might have started out as a joke, but with a market capitalisation of £10.4 billion, Dogecoin (DOGE) is a serious player in the crypto space.
The token was established in 2013 as a parody of cryptocurrencies like Bitcoin. Its mascot – a Shiba Inu dog – was borrowed from a popular meme at the time.
Like many cryptocurrencies, DOGE had a rough year in 2022 but it appears to have stabilised and now trades at 7p.
If you’re thinking about investing in the memecoin, here’s how to buy Dogecoin.
Disclaimer: investing in cryptocurrencies is speculative and your entire capital is at risk. Cryptocurrencies are given to volatile price swings. The UK’s financial watchdog, the Financial Conduct Authority (FCA), issues regular warnings about the crypto industry.
The FCA reminds would-be traders that crypto assets are unregulated and high-risk. It says this means people are “very unlikely to have any protection if things go wrong, so people should be prepared to lose all their money if they choose to invest in them”.
Step 1. Choose a crypto exchange
A crypto exchange is a website or an app where buyers and sellers can trade cryptocurrencies.
There are many exchanges to choose from, each with different fees and features. We’ve compiled our pick of the best here to help you make a choice.
You should consider payment methods, the number of tokens available to trade, what fees are charged and security.
Step 2. Choose a payment method
Most exchanges let you add funds to your account from your debit card, bank account, payment providers like PayPal or in some cases, credit cards.Transaction fees may apply, and your payment method may have a bearing on the amount you’ll pay.
Credit card payments will be treated as cash advances by lenders, which are subject to a higher rate of interest than a normal purchase. It is generally a bad idea to use credit to purchase cryptocurrency.
Step 3. Buy your DOGE
Within your chosen exchange’s website or app, find the DOGE page and enter the amount you want to invest.
Step 4. Select secure storage
Cryptocurrencies like DOGE aren’t covered by the Financial Services Compensation Scheme (FSCS). As such you wouldn’t be entitled to compensation if your DOGE were stolen, your exchange went bust or you lost access to your account.
Most exchanges offer a free crypto wallet in which to store your private and public keys. These keys are necessary to make trades using your DOGE. Online wallets are known as ‘hot wallets’. Hot wallets are convenient but also more exposed to hackers.
Cold wallets, on the other hand, are external hardware storage devices that resemble thumb drives. They’re more secure since they’re disconnected from the web until you connect them to a networked computer. But, if you were to lose your own access codes, you may never be able to access your assets again.
In either case, you may be charged a fee by your exchange for withdrawing your DOGE to an external wallet.
Alternative ways to invest in DOGE
Buying shares in a company that uses or owns cryptocurrencies and the blockchain technology that powers them is a different way to invest in cryptocurrency. If the company is regulated, you may feel this is a more secure investment.
Nvidia (NVDA), for example, manufactures graphics processing units used by cryptocurrency miners. Paypal (PYPL), meanwhile, allows users to buy and sell select cryptocurrencies.
Note: Nvidia and Paypal are used for illustrative purposes and are not share recommendations. Investing in publicly traded companies is no guarantee that you’ll make money or even recoup your investment. You’ll require an online investing platform or trading app to get started.
