Purchasing digital assets is often challenging, given the thousands of products available. This task becomes far more daunting when you step outside of the prominent coins like Bitcoin (BTC) and Ether (ETH). Nevertheless, Dogecoin (DOGE) has gained a strong following within the community of crypto enthusiasts, emerging as a top 10 coins by market cap after a rally in 2021. Today, it takes 9th place with a total value of over $10 bln. The price surge generated a great deal of interest in DOGE among prospective buyers. Here is a guide on what DOGE is and how to buy it.
Introduction to DOGE
If you want to invest in Dogecoin, foremost, it’s necessary to learn the key features of this project and explore its prospects.
DOGE is among the numerous open-source and peer-to-peer cryptocurrencies available, which stands out with its iconic Shiba Inu meme logo. Jackson Palmer, an Adobe product manager, conceived the idea of Dogecoin in 2013 as a lighthearted parody of the hype surrounding new cryptos. Billy Markus, joined forces with Palmer to create the software that would support the first-ever meme digital coin.
Dogecoin’s community expanded quickly after its December 2013 launch, particularly on Reddit, thanks to its casual concept of an internet meme-based coin. In the world of digital finances, the community of this project is recognized for its unique and enthusiastic character, often collaborating to support causes and individuals. Dogecoin is mined through a proof-of-work consensus algorithm and is similar to many other virtual coins.
Investing in DOGE might seem daunting, but with some research and preparation, it can be a profitable investment. Here’s a step-by-step guide on how to invest in DOGE:
1. Educate Yourself: Before putting some funds in DOGE, it is important to educate yourself about cryptocurrencies and their risks. Start by reading articles and watching videos that explain the basics of the technology behind crypto.
2. Select a Trading Space: You’ll need to pick up a good decentralized exchange. Research exchanges to find one that is reputable, user-friendly, and has low fees.
3. Create an Account: Once you’ve chosen an exchange, create an account and verify your identity. This usually involves providing personal information and uploading identification documents.
4. Fund Your Account: To purchase the coin, you’ll need to fund your account with any acceptable payment means. Follow the guidance of the provider when replenishing funds.
5. Buy DOGE: Navigate to the DOGE trading page and set a buy order. Select the amount of DOGE you are going to add to a digital wallet and the price you can afford to pay.
6. Secure Your Investment: After buying Dogecoin, it’s important to store it in secure storage. It’s possible to use a software solution or hardware solution to store your DOGE securely.
7. Monitor Your Investment: Keep track of your investment by monitoring the movements of DOGE value and news or developments related to the project. Be ready to sell if the price starts to fall down.
How much a beginner should invest in DOGE?
Investment experts commonly advise that unpredictable financial products such as DOGE should make up 1% to 5% of your total crypto investments. Crypto markets are highly unpredictable, so even a small percentage of investment can provide significant long-term growth potential.
Though allocating only 1% to 5% to crypto might appear to be a small amount, it can accumulate over time. You should never underestimate the volatility, that’s why it’s suggested to compile a basket of various investments that aren’t connected. This approach is called diversification and it can greatly contribute to better reliability of your crypto basket.
It’s worth noting that putting funds in cryptos can be intricate and requires comprehensive research and analysis before making any investment decisions. Market trends, government restrictions, and technological advancements in the crypto industry can all impact your investment’s value. That’s why even if you allocate only 1% of your investment portfolio to DOGE, we strongly recommend you follow all the news about this project and related issues.
The bottom line
In conclusion, investing in Dogecoin can be a profitable venture for beginners if done correctly. It’s important to educate yourself about cryptocurrencies and their risks before investing, choose a reputable exchange, and store your DOGE securely in a wallet.
Investing 1% to 5% of your portfolio in high-risk investments like DOGE can provide significant long-term growth potential, but it’s crucial to diversify your portfolio and stay informed about market trends, regulations, and advancements in the crypto industry. By following these steps, beginners can approach investing in DOGE with confidence and increase their chances of success.