A Beginner’s Guide To Buying Dogecoin
Dogecoin was created only a few months ago, yet it has already exploded in popularity. The concept is similar to Bitcoin but is based on a popular internet meme. Dogecoin is a decentralized, peer-to-peer digital currency that lets you easily send money online. Think of it as “the internet currency.” Dogecoin can be bought, sold, and traded online and is accepted by many merchants worldwide.
Dogecoin is a term for a cryptocurrency featuring a likeness of the Shiba Inu dog from the “Doge” Internet meme as its logo. The Dogecoin network went live on December 8, 2013. Billy Markus created it in Portland, Oregon, and hoped to create a fun cryptocurrency that could reach a broader demographic than Bitcoin.
Dogecoin has become one of the most popular alternative cryptocurrencies to Bitcoin. Like Bitcoin, Dogecoin is a peer-to-peer digital currency that allows for fast and cheap transactions worldwide. However, Dogecoin has a crucial advantage over Bitcoin: its value is much more stable.
While Bitcoin can fluctuate by 15% in one day, Dogecoin’s value changes a lot less. This makes it a perfect option for long-term investments. In this guide, we’ll explain how to buy Dogecoin from exchanges and how to store them safely.
Features of Dogecoin
Dogecoin’s features include:
Speed: Dogecoin registrations are approved within minutes and transactions clear in less than 60 seconds. In fact, one of the most popular uses for DOGE is microtransactions—small purchases with very low fees because of how quickly they’re processed.
Low Transaction Fees: With transaction fees as low as 0.0001 DOGE, you can use Dogecoin to make any purchase you want without having to worry about how much it’ll cost you.
Microtransactions: If you’re buying a $2 coffee with your Dogecoins, why not tip the barista? You’ll pay less than a penny instead of leaving a larger tip that would be worth more in traditional currency.
Ways To Buy A Dogecoin
The most popular way to buy Dogecoin is through an exchange like the one offered by Vault of Satoshi. Most exchanges do not sell directly to consumers; instead, they focus on businesses and more significant transactions. This method requires you to set up an account with them and link it to your bank account or credit card.
Once your account is linked and verified, you can make purchases using your linked payment method and sell your Dogecoin for cash. Purchasing Dogecoin through an exchange is one of many options available; there are other ways to buy Dogecoin directly from another person.
Users can also purchase Dogecoin directly from another person using localbitcoins.com. This website allows users to post advertisements stating their asking price for buying or selling Dogecoin.
Process Of Buying Dogecoin
Buying Dogecoin can be a bit confusing initially, especially if you’re new to cryptocurrencies. The good news is that it’s not hard, and once you know the basics, you’ll love how easy it is to buy DOGE. Here’s a step-by-step guide for buying DOGE USDT.
1) Create an account and provide details.
2) Verify your identity with either service, which typically takes about a week. It is required to meet federal know-your-customer standards, but it also means that they will verify your identity so that no one else can use your account.
3) Once your identity has been verified, connect a bank account to either service, which will allow you to make instant purchases of Bitcoins or Dogecoins with USD and transfer them to your wallet when they arrive.
What to consider before buying Dogecoin?
Before you get started buying Dogecoin, you should consider your reasons for doing so. If you are looking to invest because of the fun factor associated with the coin’s name and logo (a Shiba Inu), you may want to reconsider.
While there is no doubt that Dogecoin is extremely popular on social media sites like Reddit and Twitter, it is important to realize that this coin is technically still an investment in cryptocurrency and should be treated as such by all investors.
Is It Safe To Store Dogecoin in an Exchange?
There are many speculations about whether or not it’s safe to store your Dogecoin in an exchange. There’s a good reason for this: many exchanges have gone under in the past. And, since exchanges are third parties, they can seize your coins if they want to.
Most recommend moving your coins off the exchange and into a paper or hardware wallet to avoid these situations. It is an excellent idea.
But what if you’ve already got coins on the exchange? How do you protect those?
The data center that runs the Dogecoin exchange, Dogewallet, has implemented several security measures to protect your coins from being taken by hackers or malicious employees.
Is Dogecoin Good for Beginners?
The most important thing for beginners to know about Dogecoin is that it’s not technically a cryptocurrency. Technically speaking, it’s closer to being a coinless currency or a token-based system. Unlike Bitcoin, which uses a Proof of Work (PoW) system, Dogecoin has no mining involved in its process.
Instead, 100 billion coins were pre-mined and created from the start. And these coins are easily obtainable—you don’t need expensive mining equipment or technical knowledge to earn them. In fact, there are many ways that you can earn free Dogecoins just by using your computer or smartphone.
Is Dogecoin Worth Investing?
There are plenty of reasons why Dogecoin might not be worth your time. It still has much growing to do before it is even remotely close to being near as widely accepted as Bitcoin, which is currently the most popular cryptocurrency. You can’t even buy Dogecoin with dollars—it’s totally against their philosophy.
That said, Dogecoin is gradually gaining traction, and it could undoubtedly become prominent enough in the future for its DOGE price to rise significantly. If you’re looking for a fun way to gamble on something like that, you can get your hands on some Dogecoins relatively quickly and cheaply right now through sites like Poloniex or Bter.
Plus, there’s one other thing that makes Dogecoin worth considering: unlike Bitcoin, Luna (and virtually every other cryptocurrency), there’s an actual community attached to Dogecoin. Although there was one time when LUNA coin price surpassed Dogecoin, the latter remained unbeatable, being on top.
Dogecoin doesn’t have transaction fees, and sending money is much easier than with traditional forms of payment. There’s also no risk of identity theft when you use Dogecoin because your identity isn’t tied to your account. The value of each coin has dropped dramatically since it was first introduced, but there’s still more than $60 million worth of the currency in circulation today.