How to Buy Dogecoin (That Cryptocurrency with the Dog)

dogecoin (DOGE) is a cryptocurrency that started as a joke in 2013 but has since gained a loyal fan base and a market value of over $8 billion. Dogecoin is known for having an image of a Shiba Inu dog as its logo as well as its association with Tesla CEO Elon Musk, who called it his favorite coin.

To learn how to buy dogecoin, you may need a few things, including a crypto wallet, an exchange account, and some fiat or crypto funds. 

In this guide, you’ll learn how to buy dogecoin, how it’s different from bitcoin, and whether it’s a smart investment choice for you. 

What is dogecoin?

dogecoin, or DOGE, is a cryptocurrency that was created by founders Billy Markus and Jackson Palmer in 2013. It was originally created as a joke that capitalized on two trending pop culture elements at the time: Bitcoin and the Shiba Inu dog meme, also known as the doge meme.

The doge meme features a Shiba Inu dog and assorted text in Comic Sans font that reveals the dog’s inner monologue. The Shiba Inu in the meme became the official symbol of dogecoin and can be seen on social networks and message boards all around the internet.

Dogecoin's popularity

Dogecoin rose in popularity in 2020 and 2021 largely due to celebrity backers and social media support, including numerous tweets from Tesla CEO Elon Musk. This may have been driven by a desire to not only invest in Tesla but also invest in what Musk invests in.

Dogecoin has a market capitalization of over $8.5 billion as of June 19, 2023. Market cap is the total market value of an asset. 

Dogecoin's technology

The meme coin is a peer-to-peer open-source cryptocurrency that runs on blockchain technology.

Peer-to-peer means dogecoin can be traded between individuals without the need for a bank or other centralized middleman. This is what enables dogecoin users to freely tip each other and pay for goods and services online using dogecoins.

Other cryptocurrencies like ether (ETH) and bitcoin (BTC) also use blockchain technology to securely record digital currency transactions. These transactions are secured using complex cryptographic algorithms.

The blockchain operates as a public ledger that’s shared between cryptocurrency holders. Every transaction in the crypto market is verified and stored on the blockchain and can’t be tampered with.

That's why digital currencies or crypto assets such as dogecoin and bitcoin are quite different from fiat currencies. Fiat money, such as the U.S. dollar, is backed and controlled by a government and typically stored in banks. Cryptocurrencies aren’t controlled by the government and operate on decentralized blockchains. This means you don’t need to go through a bank to use them, but this also means you'd have less support from a bank or a government if you face issues.

How to invest in dogecoin

There are two primary ways to invest in dogecoin. You can use investment apps or cryptocurrency exchanges. Here’s what you need to know about each.

Investment apps

Investment apps such as Robinhood, eToro, and Webull allow you to buy and sell certain cryptocurrencies. But keep in mind that what you actually buy on these investment platforms is IOU, or I owe you, for the cryptocurrency you buy. This means you can’t withdraw the actual cryptocurrency funds to an external crypto wallet.

Robinhood¹: Robinhood is an investment app that allows you to buy and sell stocks, exchange-traded funds (ETFs), and cryptocurrencies. It has over 15 cryptocurrencies available, including bitcoin, ether, and dogecoin. Robinhood doesn’t charge any commission fees for cryptocurrency trading.

Visit Robinhood

... Or learn more in our Robinhood review.

eToro²: eToro is a social trading platform that allows you to buy and sell dogecoin and other cryptocurrencies, as well as stocks and ETFs. You can copy the trades of other successful traders or join a crypto portfolio managed by eToro’s experts. eToro has about 80 cryptocurrencies available, including bitcoin, ether, and dogecoin. The platform charges a flat 1% trading fee.

Visit eToro

... Or learn more in our eToro review.

Webull³: Webull is an investment platform that allows you to trade stocks, ETFs, and cryptocurrencies. It doesn’t charge commission fees for cryptocurrency trading and offers over 40 cryptocurrencies to choose from, including bitcoin, ether, and dogecoin.

Visit Webull

... Or learn more in our Webull review.

Cryptocurrency exchange

The best cryptocurrency exchanges typically allow you more options for your digital currencies than brokerages or investment apps. Once you create an account and deposit fiat money, such as the U.S. dollar (USD) or euro (EUR), you can apply your understanding of how to buy cryptocurrency to make your first trade.

Crypto exchanges often charge trading fees that depend on your transaction amount and type. To see a breakdown of fees associated with three popular cryptocurrency exchanges that allow you to purchase and trade dogecoin, read our guide on Kraken vs. Coinbase vs. Gemini.

• Kraken: Kraken is a US-based cryptocurrency exchange that supports over 220 cryptocurrencies, including dogecoin. It offers low fees, high security, and multiple payment methods, including debit cards and Apple Pay.

Visit Kraken

… Or learn more in our Kraken review.

• Coinbase: Coinbase is one of the most popular crypto platforms. It supports over 240 digital coins, including dogecoin, and has a user-friendly interface and a high level of security. Coinbase also offers educational content that can help you learn how to use the platform.

Visit Coinbase

… Or learn more in our Coinbase review.

• Gemini: Gemini is a regulated cryptocurrency exchange that supports over 115 cryptocurrencies, including dogecoin. It has a simple and elegant interface that makes buying crypto simple, as well as advanced security features such as cold wallets.

Visit Gemini

… Or learn more in our Gemini review.

How dogecoin differs from bitcoin

Bitcoin was created in 2009 and was the first cryptocurrency to exist. Today, it’s the most popular and most valuable digital currency available (as of June 19, 2023). It also has a few important differences from dogecoin.

• Total supply: Bitcoin has a built-in limit. Once 21 million bitcoins have been mined, no more can be created. The goal behind this limit is to keep the value of bitcoin more stable. So if you’re investing money in bitcoin, know that there’s a finite amount of this cryptocurrency available. Dogecoin, on the other hand, is an altcoin with no limit to how many new coins can be created. This means that dogecoin might lose value more easily than bitcoin.
  

• Mining time: Creating new bitcoins or dogecoins happens through a computing process called mining. The average block times for blockchain miners to create a coin of each cryptocurrency are quite different. It's about 10 minutes for bitcoin and about one minute for dogecoin. This affects how quickly new cryptocurrencies are created.

• Purpose: Dogecoin was created as a joke while bitcoin had more serious intentions in mind. This likely affects the support and backing of each cryptocurrency to a certain extent. You can see this reflected in the valuations of each currency over time and how many trading platforms allow you to buy and sell bitcoins or dogecoins.
  

• Years in the market: Bitcoin has existed since 2009 and was worth an all-time high of over $65,000 per bitcoin at one point. Dogecoin was created in 2013 but hasn't crossed the one-dollar threshold as of June 19, 2023.

If you’re interested in getting some BTC, learn more in our guide on how to buy bitcoin.

Should you invest in dogecoin?

It’s inherently risky to invest in anything because you never know what might happen in the future. If you're curious about investing in cryptocurrency for beginners, the general rule of thumb is that you'd be dealing with considerable risk. This is because cryptocurrencies are relatively new and tend to be very volatile, seeing huge gains and losses in short amounts of time.

However, like many alternative assets, crypto assets could play a part in a diversified portfolio. It could make sense to have a few riskier investments in your portfolio that might pay off.

For example, $500 worth of bitcoin over a decade ago would be worth millions of dollars today. However, you should only invest what you can afford to lose, especially when investing in riskier assets. You might also want to have safer investments to fall back on in case there’s a big crash.

Pros and cons of dogecoin

To help with your thought process, consider some of the pros and cons of investing in dogecoin:

Pros

• Celebrity support: It seems strange and might not be sustainable, but tweets from famous people, such as Elon Musk and Snoop Dogg, are helping support dogecoin’s rise in value.
• Fun community: Early supporters of dogecoin are quick to point out that the currency doesn’t have to grow in price to be valuable. Rather, it was created for and mainly used for fun before its rapid rise in popularity. This goes to show that not all dogecoin holders are in it for the money, though making money can be fun, too.
• Actual growth: The dogecoin community might keep growing as its popularity spreads. This could affect dogecoin in positive ways.

Cons

• No limit: The potential amount of available dogecoin is infinite since there’s no cap on how many can be mined. This is a warning sign because assets tend to lose value the more they become available.
• Less secure: bitcoin is the original cryptocurrency and has much more recognition and support. As an altcoin, the value of DOGE is not as reliable.
• Less accepted: Since bitcoin has been around longer and is more recognized, it’s also typically more accepted as payment than dogecoin. 

A note about digital wallets

If you want to help secure your digital assets, including cryptocurrencies, you’ll want to set up a crypto wallet. These wallets don’t physically hold your cryptocurrency funds, but they allow you to access your funds through a private key.

Since only you would have the key, nobody else should be able to access your funds. However, this also means if you lose your private key, you won’t be able to access your funds either. (For a real horror story, learn about the person who accidentally put 7,500 bitcoin in a landfill in our list of surprising facts about crypto.)

Cryptocurrency wallets typically come in the form of hot wallets or cold wallets. Cold wallets can be hardware wallets, such as a USB drive that you can disconnect from the internet. While hot wallets are online wallets, which may be offered from a cryptocurrency exchange like Coinbase or Gemini. Dogecoin also offers digital wallet options. Dogecoin wallets are available in the form of Multidoge and Dogecoin Core, which each have different features.

Just remember that if you want to cash out your crypto from your wallet for fiat money, you typically have to first move your crypto to an exchange where you can sell it. This will give you fiat money in your exchange account, and then you can do a bank transfer to a linked account.

FAQs

Bottom line

There have been plenty of ups and downs when it comes to dogecoin price and value over the years, so it’s best to approach a DOGE investment with care and after having done your due diligence. This includes researching which platform would be best for your cryptocurrency needs and how investing in a cryptocurrency can fit into your portfolio.

Overall, investing is risky and requires plenty of preparation and forethought. Online brokers and exchanges can help inform you of certain risks and teach you investing tips. Yet, at the end of the day, it’s up to you to decide what makes sense for your situation.