Today, we’ll be looking at one of the more unique cryptocurrencies around – Dogecoin and finding out where and how to buy Dogecoin.
In this guide, you will learn what Dogecoin is, what Dogecoin was created for, what it is used for today, and if you should think of Dogecoin as a good investment.
After that, the next section will look at options to buy Dogecoin. This part will cover: where to buy Dogecoin, how to buy Dogecoin, how to buy Dogecoin with USD, and how to buy Dogecoin with PayPal.
By the end of the guide, you should know the following:
- A brief history of Dogecoin.
- What Dogecoin can be used for.
- If Dogecoin is a good or a bad investment.
- How to buy Dogecoin.
- Where to buy Dogecoin.
At the end, we’ll sum everything up with a few closing thoughts. As usual, there’s quite a lot to cover. So, as the Doge itself would say:
Wow. Much time. How waste.
So, let’s get started already!
Table of Contents
What is Dogecoin?
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- Open source: The code is freely available for any programmer to change themselves
- Decentralised: Its blockchain, or database, exists on many computers around the world
- Peer-to-peer currency: Sending and receiving coins doesn’t need a central server or authority to work currency
If you already know a little bit about Bitcoin, you’ll probably notice that Dogecoin’s description is a lot like Bitcoin. However, there are some important differences.
Firstly, there are lots more Dogecoin than there are Bitcoin. At the time I’m writing this article, there almost 114 billion DOGE and maybe in the end, you'll buy Dogecoin. Another difference is that there is no ultimate limit on how many Dogecoins will be created.
Note: When you see Dogecoin listed at exchanges, it often uses the “ticker” DOGE. This is used the same way as BTC is used for Bitcoin and ETH is used for Ethereum’s native currency, Ether.
Finally, Dogecoin uses different coding for its miners. It’s a little confusing and much too technical for this article. All you really need to know is that regular computers can mine Dogecoin. This is different to Bitcoin.
Only specialized computer systems that have been designed for crypto mining can profitably mine Bitcoin these days. These systems are known as Application-Specific Integrated Circuits or “ASICs”, for short. The difference is that CPUs (the chips in normal computers) can still mine Dogecoin.
What is Dogecoin’s Purpose?
As you can probably tell from the logo pictured above, Dogecoin was originally created as a bit of a joke currency. Obviously, it fun to buy Dogecoin. It started in 2013 and was created by Billy Markus and Jackson Palmer. These two founders have since left the project.
The name itself is taken from a popular early internet “meme”. The original meme featured a Shiba Inu dog (the smallest breed of dog from Japan). The meme had a picture of one of these dogs with multicolored, comic sans (the font) text written in a kind of broken English. Examples of this text can be seen around the dog pictured in the Dogecoin logo:
“Plz mine, v rich, very currency, wow, much coin, how money, so crypto”
Despite starting as a joke currency, DOGE quickly developed a strong community around it. This community began to use the currency to tip other internet users for their content on forums such as Reddit. This form of tipping has become Doge’s primary purpose.
Since its creation, Doge has also been used to donate money to charities. These have included the 2014 Jamaican Bobsled team who couldn’t afford to get to the Sochi Winter Olympics, a Nascar driver named Josh Wise, and a clean water project in Kenya called Doge4Water.
Has Doge Been a Good Investment?
As with any asset, whether Doge has been a good investment depends on when the investor first bought Doge and when they decide to sell it.
If they bought it at the all-time high of just over $0.0178 and sold today at around $0.0026, it will have been a terrible investment. On the other hand, if they bought back in December 2013 when the price was around $0.000256 and sold at the all-time high, they will have been very pleased with their investment. It’s all relative!
A better question is “if I buy DOGE today, how likely is it to increase in value?”.
The short answer is: not very (but it still possible!).
How to Buy Dogecoin
Buying Dogecoin can be a bit tricky if you’re not used to buying cryptocurrency. There are a few ways to do it though. Below, you’ll find instructions on how to buy Dogecoin with USD, how to buy Dogecoin with a credit card, and how to buy Dogecoin with PayPal.
How to Buy Dogecoin with USD
There are not many options to buy Dogecoin with USD directly. However, a few smaller cryptocurrency exchanges do offer fiat pairs with DOGE. Examples of these include:
To buy Dogecoin with one of these exchanges. Simply follow the steps below. Each exchange will be slightly different but for the most part, these steps will apply to all:
- Register at your chosen exchange. I’ll use Exrates for this example. Just click “Registration” at the top right-hand corner of the exchange page.
Fill in the form pictured below:
- Once registered, make a deposit. Click on “Refill/Withdraw” on the top navigation bar of the website.
- Click the “Refill” button next to “USD”. You will be presented with the below options. Click the deposit method you want to use to send USD to the exchange.
- Follow the onscreen prompts entering in the information Exrates ask for.
- Find the “DOGE/USD” pair. To do this type “Doge” in the search bar. I’ve highlighted this with a red arrow below. Click the “DOGE/USD” pair (highlighted with a yellow arrow). Finally, enter the amount of Dogecoin you wish to buy in the box shown by the purple arrow and click “Buy”.
- After you make your trade, you should immediately withdraw your DOGE to a wallet that is not an exchange. To do this, click “Refill/Withdraw” and then “Withdraw” next to your DOGE balance. You will then need to enter your secure wallet address.
Note: It’s important to withdraw your DOGE straight away to a wallet that you control the private keys of. Exchanges are not safe places to store cryptocurrency. They get hacked often. Download a multi-asset wallet such as Jaxx. Better still, use a hardware wallet such as the Ledger Nano S. This applies to all the methods to buy Dogecoin listed below.
Each of the exchanges that let users buy Dogecoin with USD accepts different USD deposit options. I’ve listed each below:
- Livecoin: Visa / Mastercard, Payeer, Perfect Money, Capitalist, AdvCash, Qiwi.
- Exrates: Payeer, Perfect Money, AdvCash, NixMoney.
- YoBit: OkPay, Payeer, AdvCash, PerfectMoney, Capitalist.
Advantages and Disadvantages Buying Dogecoin with USD Directly
- Quick and easy.
- You only need to register at one exchange.
- Small exchanges (like those listed above) are often completely unregulated. This means that they could disappear at any time and there would be nothing you could do about it. You’d just lose all the money you had stored at the exchange! Remember, do not leave any cryptocurrency on any exchange EVER.
- These small exchanges can charge large fees for depositing with USD directly. Some of the above methods listed will be free. Others might charge 1-2%.
- Smaller exchanges usually have less liquidity. This means if you were wanting to buy a large amount of Dogecoin, they might not have enough to sell you. The below methods are much better for larger orders.
- The exchange rates and the fees charged for trades can be very high. You should always check the rate against a website like Coinmarketcap before buying.
Buy Dogecoin with a Credit Card
There are very few options to buy Dogecoin with a credit or debit card. Livecoin claims to accept credit card transactions. However, being a small unregulated exchange, it’s up to you whether you want to trust them with your credit card details.
If you simply must use a credit card to buy Dogecoin, it’s better to use one of the larger exchanges. You will first need to buy Bitcoin from a more trusted exchange like Coinbase, CEX.io, or Bitstamp. You can then exchange the Bitcoin for DOGE later.
I’ve listed how to buy Bitcoin below. In this example, we’re using Coinbase:
- Head to Coinbase and click sign up.
- Fill in the registration page.
- When registered, you need to add your credit card details.
- Then, to buy Bitcoin, click the “Buy/Sell” tab as shown below.
- You then need to enter the amount of Bitcoin you would like to buy.
- Choose your payment method (credit card) and enter your details to complete the sale.
- Click on the “Accounts” tab and you should see the amount of Bitcoin you just bought in your Bitcoin wallet.
Next you need to exchange your Bitcoin for DOGE. For this example, I’ll be using Bittrex. Again, the steps are below:
- Fill in your details on the standard registration page.
- Once registered, click “wallet” on the top menu.
- Click the small + sign next to Bitcoin. This gives you your Bitcoin receiving address.
- Copy this address and head back to Coinbase.
- When you have logged in to Coinbase, click on the “Accounts” tab.
- Under “Your Accounts” you will see your Bitcoin wallet. This is where you will see the amount of Bitcoin you purchased on Coinbase. You need to click “Send” as shown below. (For this example, we didn’t purchase any Bitcoin. That is why the “Send” option is grey. If you have Bitcoin here, you should be able to click it.)
- Once you have clicked “Send” you should see the following box.
- In the Recipient box, you need to paste the Bittrex address you copied earlier.
- Enter the amount of Bitcoin you want to transfer to your Bittrex wallet.
- Click “Send funds”
- In a few minutes, you should receive your BTC at Bittrex.
- Go back to Bittrex and click the button at the top of the page that has a Bitcoin logo with the word “market” next to it.
- Type “DOGE” in the box that appears and clicks on the link.
- On the left of the screen, you’ll see the buying options. Enter the amount of Bitcoin you wish to spend on DOGE and click the “Price” link.
- Then, click “Ask”. This is the fastest way to fill an order on an exchange. Using “Ask” isn’t recommended for the largest orders but for lesser amounts and for the purposes of this example, it’ll work just fine.
- It might take a few minutes to complete your order. When it’s done, your DOGE will appear in the wallet section.
- It’s then important to withdraw your DOGE to a secure wallet. I’d recommend either a hardware wallet. However, you can use a software wallet if you’re only storing small amounts of DOGE for online tipping.
That’s all there is to it. You now know how to buy Dogecoin using a credit card.
Buy Dogecoin Using PayPal
Even fewer cryptocurrency exchanges accept PayPal than they do credit cards. This is because users can simply report the transaction to PayPal and claim their money back. Exchanges obviously don’t want people stealing cryptocurrency from them. For this reason, PayPal deposits are rare. There are ways to buy Dogecoin using PayPal though.
Probably the easiest and safest way to buy Dogecoin using Paypal is to first use it to buy Bitcoin. Unfortunately, Coinbase and the exchanges listed so far don’t except it. However, true peer-to-peer exchanges, such as LocalBitcoins, often have traders willing to accept PayPal. You might be shocked at how much they charge for the service though!
I’ve listed the steps for buying Bitcoin using PayPal below:
- Head over to LocalBitcoins.
- Click “Sign Up Free” (see below.)
- Fill in the details and login.
- Click the link that says, “Buy Bitcoins” (red arrow below) and then use the scroll down box to select PayPal (blue). You’ll notice that the price is a lot more expensive than the average market rate of Bitcoin. At the time of writing this article and taking that screenshot, the rate for Bitcoin on XE.com was £4683.17. You can see from the screenshot below that PayPal traders charge around a 20% premium. This is because so many of them get scammed by people making chargebacks. It’s a risk for the traders to accept PayPal so they need compensating.
- Once you’ve decided which offer to go for, click “Buy”. You will then receive instructions on how to pay the seller.
- Once the transaction has taken place, you then need to withdraw your BTC to a website like Bittrex. To do this, copy your address from Bittrex (see steps above for more information). Then, click “wallet” over at Local Bitcoins (red arrow below) and paste your Bittrex address into the bar (yellow arrow).
If you’ve been following this guide from the beginning, you should know the rest of the steps already. Head back over to Bittrex and follow the above instructions for trading BTC for DOGE.
As you can see, Dogecoin is a bit different from many other cryptocurrencies we’ve covered. It hasn’t really been designed as a deflationary currency (the supply is always getting bigger). This makes it not such a good investment option and people buy Dogecoin for fun.
That said, Dogecoin does serve a useful purpose, unlike many cryptocurrencies around today. It has found a nice use case as a coin to tip a few fractions of a cent to internet users creating fun or interesting content. The community surrounding DOGE and the current team of developers using the currency in the charitable ways they have done is also a worthy use case.
All that said, buying a few Dogecoin probably isn’t going to make you a millionaire – unless the developers put a hard limit on the number of coins available to buy. So, if you want to have some crypto fun, you can always buy Dogecoin.
Hope this guide has been helpful to you in learning a little more about this interesting digital currency. You should now know its history, its purpose, where to buy in, how to buy it using different methods, and if it should be thought about as a good investment. As the Doge would say:
Wow. Much knowledge. Very learning.
So, what do you think? Will you be making an investment in DOGE?