Most of the profitable cryptocurrencies have incredibly high prices. Bitcoin (BTC) goes for AUD$24,748.26, while Ethereum (ETH) has a value of AUD$1,815.17.
That’s why it’s no surprise that many people struggle to enter the crypto market. But the good news is that particular cryptocurrencies don’t require you to invest a huge amount for your crypto investment journey. One such cryptocurrency is Dogecoin.
Dogecoin has a lower price than most cryptocurrency coins. It also has a lot of circulating supply, so buying in is easy. Despite this, it’s profitable crypto at the moment.
For these reasons, it makes sense that you’d want to learn to invest in Dogecoin. In that case, this article should help as it goes over a step-by-step guide on how you can buy and trade Dogecoin.
Let’s start with the first step.
Step #1: Look for a cryptocurrency exchange
A cryptocurrency exchange is, as the name implies, a platform that allows you to exchange crypto with money or with another crypto. It’s what you’ll use to buy and trade Dogecoin.
Remember that every cryptocurrency exchange has a commission fee for buying or selling cryptocurrencies. Some have higher charges than others. That’s why if you’ve tried tracking prices on different platforms before, you may have noticed that prices differ by several decimal places.
Naturally, you’d want to go for the exchange with the lower price for Dogecoin since that’s what you’re going to trade with. The decision ultimately depends on your judgment.
Of course, you have to consider several things. For one, there must be both buyers and sellers of Dogecoin. Otherwise, you won’t be able to trade with the coin. It is essential since not all exchanges sell meme coins like Dogecoin. Two, the price must not be higher than usual. And three, the cryptocurrency exchange must have a reputation of being safe from hackers.
Once you find an exchange you’re comfortable with, make an account on that platform.
Step #2: Deposit the money into your account in the exchange
Because you will be purchasing Dogecoin with fiat currency, you must first fund your exchange account. For that, you only have to follow the instructions on the platform.
The instructions will vary from platform to platform. Regardless, there should be several ways to deposit the money. At the very least, they should allow you to deposit from the following sources:
- Bank account (checking and savings)
- Online payment accounts (PayPal, Skrill, Payoneer)
- Wire transfers
- Credit card
- Debit card
Simply choose between these options. Remember that your bank or credit card company may charge quite a hefty fee for some of these options. Confirm with your provider beforehand if you don’t want that to happen, as it would further reduce your profits.
Step #3: Place the order for Dogecoin
The fourth step would be to place your order on your chosen cryptocurrency exchange. Again, the exact steps to accomplish this may vary from platform to platform.
However, the process should still be somewhat similar.
Let’s use Swyftx for demonstration. The process to buy Dogecoin should go like this:
1. You log in to your Swyftx account, assuming you’ve already done steps 1 and 2.
2. There must be a button that says Buy somewhere on the trading page. Click that button.
3. A pop-up window will appear with three sections:
- Trade from: This is the currency you’d want to use to purchase Dogecoin. Set this to the currency of the money you deposited in step #2.
- Trade to: This is the asset you want to buy. Set this to Dogecoin.
- How much to spend: This refers to the amount of money you want to use to buy the asset you set in Trade. Set this according to how much you want to spend.
4. Click review and place order.
You should now have a certain amount of Dogecoin. If you don’t plan to stop there and want to trade Dogecoin for some other crypto to make a profit, you must proceed to the fourth step.
This step would be roughly the same as the previous step. It’s only applicable if you’re not planning on holding onto the dogecoin you bought. Instead, you intend to swap it with another cryptocurrency or sell it back for fiat currency to make a profit. In that case, here’s what you need to do. Note that we’re still using Swyftx as an example:
1. On the trading page, look for the Swap button. Click that button.
2. Again, there should be three sections in the pop-up window.
- Trade from: Set this to Dogecoin.
- Trade to: Set this to whatever asset you intend to swap Dogecoin with.
- How much to spend: Set this to the amount of Dogecoin you want to spend.
3. Click review and place order.
If the process seems confusing, you can use the demo mode of whatever cryptocurrency exchange you’re using. The demo mode allows you to trade freely without consequences, using fake money. The trading process in the demo mode is the same as the real thing.
As you may have realised from this article, it doesn’t take an expert to buy and trade Dogecoin. It’s fairly simple. However, that doesn’t mean you can do it as you wish without giving it a second thought. Like most investments, you must put a lot of thought into your decision. Only then can you maximise your profit from this transaction.
- This information is of a general nature only and should not be regarded as specific to any particular situation. This should not be taken as financial advice to buy, trade, or sell cryptocurrency or use any specific exchange. This is not intended for use as investment, financial or legal advice as each individuals need will vary.