How to Buy Dogecoin (DOGE) in 4 Steps
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The simplest way to buy Dogecoin (DOGE) is on a cryptocurrency exchange, where you can buy tokens with U.S. dollars or sometimes with other digital assets. But before you add Dogecoin to your portfolio, make sure you know what you're getting into.
» Learn more: Here are the basics on Dogecoin.
1. Decide whether to buy Dogecoin
Dogecoin is a risky, volatile investment, and should only be purchased if you’re in a strong financial position and can afford to lose whatever money you might put in. Investment rules of thumb say risky assets like these should make up no more than 10% of your investment portfolio.
If you’ve already built a diversified portfolio of low-cost index funds via tax-advantaged accounts or taxable brokerage accounts — and have a plan to regularly contribute to these accounts — you may be in a good position to add alternative investments like cryptocurrencies to your portfolio.
» Another dog-related token: How to buy Shiba Inu
2. Find a place to buy Dogecoin
Centralized cryptocurrency exchanges
The easiest way to purchase Dogecoin is on a centralized exchange. As Dogecoin is one of the more popular cryptocurrencies, you should be able to find Dogecoin as an available option on most of the more popular exchanges. As with any crypto, be sure to check if the platform allows you to access your own digital wallet, which means you can send and receive Dogecoin. Some brokers only let you buy and sell Dogecoin with USD.
Decentralized exchanges
Dogecoin can also be found on decentralized exchanges, where you can coordinate peer-to-peer transactions. While decentralized exchanges are often much cheaper to use, they also require a bit more technical know-how, and should only be used by investors who have some expertise in the world of crypto.
Online stock brokers
Some conventional brokerage accounts offer cryptocurrencies alongside more traditional investment choices such as stocks. A few offer Dogecoin:
Cryptocurrency is not necessarily the focus of these platforms, and their crypto offerings are mainly geared toward traders — they may not offer capabilities such as payments or external wallet compatibility.
3. Decide how to pay for Dogecoin
Generally, there are two ways to pay for Dogecoin:
Cash: Exchanges and brokers will generally accept fiat currencies like the U.S. dollar for investors who wish to purchase Dogecoin directly. In order to make a purchase, you’ll need to create an account at the exchange you choose, and generally fund that account from a bank account.
Cryptocurrency: If you already own cryptocurrency, you may be able to trade some of your existing digital assets for Dogecoin. However, not all cryptocurrencies can be exchanged for Dogecoin, and each platform can be different in terms of what’s allowed. Brokerage accounts generally don't allow crypto-to-crypto trading, for example. You’ll need to make sure that the platform you’re using allows you to pair Dogecoin with another cryptocurrency before you place a trade.
4. Decide how to store your Dogecoin
Once you’ve purchased some Dogecoin, you’ll have a few different options on how to store it:
Use an exchange or brokerage account. Most exchanges will allow you to store digital assets directly on the exchange itself, as will the brokerage accounts that offer Dogecoin. While this is the simplest and most straightforward way to store your crypto, it can also leave your assets exposed in cases of crashes or hacks. For an additional layer of protection, you might consider using a digital wallet to store your assets.
Use a digital wallet. Storing your digital assets in a cryptocurrency wallet can be a good way to increase security, but it also requires more responsibility on the part of the investor. Certain crypto platforms, such as brokerage accounts, may not offer users the ability to transfer crypto to an external wallet, so make sure you read the fine print before buying crypto if you intend to store it in your own wallet. There are two different types of digital wallets to choose from:
Hot wallets remain connected to the internet at all times. This makes them more convenient, as the owner of a hot wallet can access the contents of the wallet from anywhere, any time. However, their internet connection may make them more susceptible to a hacking incident.
Cold wallets do not remain connected to the internet. This makes them less convenient to use, as the owner of a cold wallet has to have physical possession of the wallet in order to access its contents. However, their lack of internet connection makes them less vulnerable to online hacks.
» Need to back up? Learn more about cryptocurrency basics.
Disclosure: Author Andy Rosen owned DOGE, BTC and ETH at the time of publication.
