eToro is one of the leading online trading platforms with over 38 million registered users. Much of this appeal comes from the myriad of financial assets you can buy on eToro, including cryptos like Dogecoin (DOGE).
Therefore, if you’re considering investing in Dogecoin, this guide to buying Dogecoin should be a great place to start. We’ll discuss why eToro is among the top platforms to buy Dogecoin and show you exactly how you can start to buy Dogecoin on eToro.
What Is Dogecoin?
A lot of people have only recently heard of Dogecoin. It is probably thanks to Elon Musk’s tweets encouraging you to buy DOGE cryptocurrency. However, the history of this cryptocurrency dates back to the early years of crypto in 2013.
Software engineers Billy Marcus and Jackson Palmer had noted the rise of crypto, but they didn’t like how ‘serious’ it was becoming. So, they created Dogecoin instead, as a joke based on the meme of a dog.
Despite their best efforts, though, investors started buying Dogecoin online and its market cap kept rising. Today, it is a perennial top 10 digital currency and there’s even talk of a spot Dogecoin ETF coming soon.
Why Buy Dogecoins?
The main reason to invest in Dogecoin is to increase your performance. For example, when compared to Bitcoin, it has increased in value by nearly 4,000% whereas Bitcoin’s rise has been about 460% during the same period.
This astronomical growth makes it an excellent performer that can substantially boost your investment returns. And since Dogecoin is so favored by investors and traders, it’s likely that its value could remain on an upward trajectory in the coming years.
- High returns on investment
- A huge market cap
- Backed by influential and institutional investors
- Strong community of developers to provide upgrades and fixes
- Possible Dogecoin ETF in the works
- Limited use case
- Does not support smart contracts
Why Buy Dogecoins On eToro Specifically and Not Other Platforms?
Given how popular it is, many Dogecoin acquisition methods are available to you. All the top crypto exchanges such as Binance, Coinbase, and Crypto.com list the coin, but we would recommend using eToro instead.
For one, it offers one of the most secure ways to buy Dogecoin. eToro has been around since 2007 and has not suffered a catastrophic hack because it ensures the security of its users’ assets.
Most of all, however, is because you can trade Dogecoins as CFDs. This allows you to buy DOGE in a bull market and also profit during a bear market by short-selling the coin. And you can do this using leverage of up to 5x.
How to Buy Dogecoins on eToro
Assuming you’re new to eToro, here is how you can start buying Dogecoin through eToro on your computer. You can also follow along on your mobile, but you would need to download the eToro app first.
Step 1: Sign Up For An eToro Account
Visit the eToro website and click on ‘Login’. Click on ‘Sign up’ from where you will need to enter your email address, username, and new password.
Step 2: Verify Your Account
Regulations dictate that eToro verifies its users’ identities (KYC). So you will be asked to upload an image of an identity card (passport, national ID, or driver’s license) and one showing your address (utility bill or bank statement)
Step 3: Buy Your First DOGE on eToro
Your account is now ready, and you can find DOGE in the search bar or scroll through the ‘Discover’ tab to find it. Click on ‘Trade’ and set your trade parameters such as the value of the trade, leverage, and order type.
Different Payment Methods For Buying Dogecoin on eToro
Before you can buy DOGE, you will need to deposit funds into your eToro Wallet. At the moment, eToro supports 3 payment methods for doing this if you’re wondering how to acquire Dogecoin safely.
Remember that each Dogecoin purchase option comes with its own benefits and drawbacks. Besides, transactions in non-USD currencies may attract a currency conversion fee.
Credit/Debit Card
This is the fastest option since transactions are instantaneous. Deposits are also free and limited to $40,000 per transaction. The minimum first-time deposit is $100 after which you can deposit as little as $10, but there’s always a $5 fee for withdrawals.
Bank Transfer
The minimum amount for a wire transfer is $500, which includes global transfers, Swift (UK), and SEPA (EU). US residents have an extra option for online banking, which is instantaneous and can involve a minimum of $1 after a first-time minimum of $100.
PayPal
This option is only available to US residents and is also processed instantly. The first-time minimum is $100 after which you can deposit as low as $1.
Skrill/Neteller
These are online banking wallets powered by Paysafe, based in the UK. You will be charged a fixed commission when using either method, but transactions are fast and can be conducted from most countries.
What You Can Do With Your New Dogecoin Crypto
Once you have acquired DOGE on eToro, it’s time to put it into work, and here are a few ways to do so.
Sell High
In case the value of DOGE rises significantly after your purchase, you can sell it for a profit. This is the main goal of investment after all – buy low and sell high. But this can also take time, sometimes months or years, so just keep an eye on the market prices.
Trade Cryptos
Another way to make a profit is to trade cryptos. It can be traded against fiat currencies or other cryptos. This is a more advanced skill with more risk, but platforms like eToro allow you to trade using leverage for higher profits.
Shop Using DOGE
Many outlets, online and in real life, now accept crypto payments in DOGE. And some exchanges even have debit cards that allow you to spend DOGE directly. Whichever you like, you can comfortably pay for goods and services using the coin now.
Where To Store Your Dogecoins
Where you ultimately decide to keep your Dogecoins will depend on your goals. We can think of 4 ways to store DOGE to address various goals:
Crypto Wallet App
These are typically designed for common uses such as shopping and crypto transfers. They are also easy to use and usually installed on your mobile phone. MyDoge is the official app, but many other platforms offer a wallet app for Dogecoin transactions, including:
- Trust Wallet
- Coinbase Wallet
- Exodus
Hardware and Offline Wallets
If you’re planning to hold large amounts of DOGE, hardware and offline wallets are the most secure. An offline wallet can be as simple as a written private address, but we would recommend a hardware wallet like Trezor.
Trezor
- Enhanced Security
- User-Friendly Interface
- Wide Cryptocurrency Support
Trezor
Crypto Exchange
For an active trader, leaving your Dogecoin on an exchange like eToro is the best option. It will allow you to act quickly and respond to shifting market conditions, maximizing your returns.
DeFi Platform
Finally, you can also keep your holdings in a DeFi platform. Such platforms can earn interest and thus generate passive income, so your crypto works for you.
Our Recommendations Before You Buy Dogecoins On eToro
- Only risk an amount you’re willing to lose
- Trends can be useful but don’t be swayed too easily
- Do your own research before making the buy
- Make your personal investment goals and stick to them
- Maximize your returns and limit your losses
- Start trading on a demo account for practice
Conclusion
We hope these Dogecoin buying tips help you on your crypto journey. eToro is particularly attractive for the above reasons, but always keep an open mind. And don’t forget that you will only become a better crypto investor if you take a genuine interest in the industry.
