TLDR
This guide will give you everything you need to know about how to buy Dogecoin on eToro.
Dogecoin is a peer-to-peer cryptocurrency. It is a decentralized exchange with blockchain to help traders with their transactions. Moreover, it has low transaction fees and a cloud mining system. However, the Dogecoin price has high volatility and is inflationary due to no maximum supply limit.
To buy Dogecoin on eToro, you have to:
- Visit the eToro website and log into your account.
- Search [Dogecoin] in the search bar.
- Click [Invest] to choose how much Dogecoin you want.
Now, let us go into detail about what Dogecoin is, a step-by-step guide on how to buy Dogecoin on eToro, what it offers, and if there is anything we must be aware of.
What Is Dogecoin? How Does It Work?
Dogecoin, or DOGE, is a peer-to-peer, open-source cryptocurrency created in 2013. Traders can buy Dogecoin on exchanges such as Coinbase, Binance, eToro, etc.
At first, the creators, Billy Markus and Jackson Palmer, created this altcoin as a joke, making Dogecoin the first “meme coin.” Also, its community, known as “Shibes,” has raised funds and held charitable activities, which increased Dogecoin’s popularity and recognition.
It is a decentralized exchange and uses blockchain technology to keep the cryptocurrency going. Also, traders can mine and buy Dogecoin from its community. Slowly, some businesses or merchants started to accept Dogecoin as a payment option. In addition, some traders will use Dogecoin to tip content creators on social media platforms.
However, Dogecoin is highly inflationary since it has no maximum supply limit. Plus, since its origin is from a popular internet meme featuring a dog, it depends on influences such as bloggers, internet celebrities, and others. Thus, its market has high volatility. The most crucial point is that few traders use Dogecoin to trade, so few accept it as a payment, making fewer people buy Dogecoin.
Create An Account On eToro.
This section is for those who don’t have an eToro account and are interested in creating one.
Step 1: Visit The eToro Website
To get started, go to the website. Then, click the [Start Investing] button to sign up for an account.
Step 2: Register Your Account
Once you click the button, the image below will pop up. Fill in the required information and check the eToro Service and its Terms & Conditions. After that, click on the [Create Account] button.
Step 3: Verify Your Email Address
Once completed, eToro will send you a verification code in your registered email. Go to your inbox and look for the verification code.
Then, type the verification code before clicking the [Activate Now] button to activate your account.
Step 4: Verify your eToro account
After activating your account, you will be asked to complete your profile by filling in personal information (name, birth date, address, and answer questions regarding your investing experience, etc.). You may also need to submit a photo ID (or driver’s license) to complete your profile.
Rest assured that your data is secure with eToro. Still, they must collect this information like any other trading platform due to Know-Your-Customer (KYC) and Anti-Money Laundering (AML) legislation.
Congratulations! Now, you have an eToro account and can buy as much Dogecoin as you desire.
How To Buy Dogecoin On eToro?
Now that you have an account and know what Dogecoin is, let’s see how to buy it on eToro.
To easily create an account, click the [Get Started] button.
More details
eToro is a popular online trading platform for crypto assets, stocks, and ETFs, featuring low fees and a user-friendly interface. With a free eToro wallet and social features like messaging boards, users can copy experienced traders and access numerous assets. Take a look at what makes this platform perfect for starting your trading journey.
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Provides an attractive, communal atmosphere.
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Offers zero commission on ETFs.
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Extensive selection of educational resources.
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Mobile app with trading features.
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Smooth account opening and bank transfer.
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Limited number of cryptocurrencies.
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Limited customer support.
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No crypto-to-crypto trading pairs.
Step 1: Visit the eToro Website
To buy Dogecoin on the eToro account, go to your account.
Step 2: Search Dogecoin
After arriving at the webpage, type [Dogecoin] into the search bar at the top. Then, click on the [DOGE] market.
Step 3: Start To Invest
Then, click on the [Invest] button at the right side of the page.
Step 4: Fill In The Information
After that, you will be asked to fill in a certain amount of money to deposit funds used to purchase Dogecoin. Choose your desired amount and fill in the necessities before clicking the [Deposit] button at the bottom.
Congratulations! Now, you have a certain amount of Dogecoin in your investment portfolio. You can sell Dogecoin or trade it against your preferences.
In addition, according to CFI, here are some other platforms that you can buy Dogecoin with:
- Binance
- Coinbase
- Gemini Crypto
- Robinhood
- Upbit
- OKEx
Demo Account
Before we go deeper into what Dogecoin has to offer, please keep in mind that Just like any other cryptocurrency exchange, Dogecoin is also full of risks.
You’ll lose your money if you are not careful or knowledgeable enough. Hence, using a demo account before trading or buying Dogecoin is wise to prevent traders from losing money.
Using a demo account, traders can practice their trading strategy in a risk-free environment to check for potential losses that can be avoided during trades. Hence, more experienced traders say it is recommended to use a demo account first before actually trading or buying Dogecoin.
Dogecoin Features
Now, let’s dive deep into what Dogecoin offers us.
Active Community
The Dogecoin community is widely known for its welcoming and positive environment. It is also known for holding charitable activities and fundraising campaigns to help with disasters, donations, community projects, etc.
The community also promotes Dogecoin by publishing content on social media. Plus, it develops many projects to increase the use of Dogecoin, such as crypto wallets, educational resources, trade markets, etc. In addition, it is a friendly community where traders help each other when encountering problems.
Low Transaction Fees
Dogecoin has relatively low transaction fees. Because of this, most traders will use it as micro-transactions, meaning that they would tip content creators or make small online purchases. In addition, traders’ networks can handle higher trading volume without being expensive, giving traders a great experience during high demands.
Although Dogecoin provides bank transfers with a low fee of 1 DOGE, the transaction fee amount may vary to different fees depending on different kinds of transactions and network conditions. So, checking the fee price on a specific platform or exchange before making a transaction is recommended.
Decentralized Exchange
Dogecoin offers peer-to-peer cryptocurrency trading. It provides users with blockchains to direct trade DOGE between both sides of open trade. In addition, traders can have more control over their funds and greater security to deposit funds than centralized exchanges.
Risks of Dogecoin
As the saying goes, “Nothing is perfect.” Although Dogecoin might seem like all fun and games, it has some flaws that one might need to be careful of.
No Maximum Supply
One of the disadvantages is that it doesn’t have a limited supply. If Dogecoin doesn’t have a limited market cap, it may decrease the value of existing Dogecoin since it may increase indefinitely. Aside from that, if the demand isn’t in sync with its supply, it may impact the value and stability of its price due to rapid fluctuations.
Another reason is that it lacks scarcity. Since Dogecoin has an unlimited market cap, it reduces scarcity compared to cryptocurrencies with a limited supply, unlike Bitcoin.
Dependent On Market Influences
News, social media trends, endorsements, or influencers’ statements influence Dogecoin’s price and performance. Thus, it will affect its interest and demand. Thus, it doesn’t have enough stability for long-term investment due to its reliance on market influences.
High Volatility
Like many other cryptocurrencies, its prices may also have high market volatility. If traders are not careful with their trading, they will have potential losses, according to the fluctuation. This happens because of its lack of usage and is dependent on popularity.
Dogecoin Mining
Now that we know some of Dogecoin’s benefits and risks. Let’s see something else it offers: mining Dogecoin.
Dogecoin provides cloud mining for its users. Traders can mine Dogecoin by using standard computer hardware. However, using ASICs (aka Application-Specific Integrated Circuits) or high-performance GPUs to mine Dogecoin efficiently is recommended.
Also, traders can choose to either have solo or pool mining, which allows traders to mine without needing a room full of mining equipment.
Dogecoin recommends things that traders need to mine Dogecoin:
- A computer (Windows/Linux/Mac OS)
- A mining pool account
- A Dogecoin crypto wallet
- One or more ASICs for Scrypt-based cryptocurrencies
- Power supplies for ASICs
- Having access to cheap electricity
If traders want to know more about Dogecoin mining, you can look at its official website, which will give you detailed information about how to mine DOGE.
Dogecoin: About Elon Musk
By now, we all know that Dogecoin is a “meme coin” from the start. Only a few people will use it as transactions other than tipping content creators. However, some think that it has the potential to be a real currency. One of them is Elon Musk.
Elon Musk has been known to post things relevant to Dogecoin on his Twitter, which is why he is also seen as a supporter of this cryptocurrency. His tweets about Dogecoin often cause the coin to have significant price fluctuations and increased attention.
For example, his first tweet about Dogecoin caused its price to rise by 20%, and even to 40% after Elon Musk posted another Dogecoin-related tweet that followed his first tweet.
However, not everyone is happy to see Elon Musk tweeting about Dogecoin-related tweets, which will cause the market to have high violations. When Elon Musk’s SNL performance made the cryptocurrency price rise about 22%, Dogecoin co-creator Jackson Palmer called him a “self-absorbed grifter.”
Aside from that, on 16th June 2022, Elon Musk was sued with a complaint of $258 billion by Keith Johnson, claiming that Elon Musk had used his social influence to promote Dogecoin, which inflated the price.
In recent news, the Dogecoin price rose more than 30% after Elon Musk changed the Twitter logo to an image of a Shiba Inu dog. Currently, he is facing a lawsuit by Dogecoin developers, claiming that he is causing market manipulation. Still, it is unknown whether Elon Musk is making a joke since he changed it after someone on Twitter suggested it.
Conclusions
To sum it up, Dogecoin is a cryptocurrency that uses decentralized exchange that allows traders to trade their transactions directly. Traders can make trades and mine Dogecoin with different kinds of crypto wallets. Besides that, it has low transaction fees, a user-friendly interface, and education resources (Twitter, Reddit, and Discord) that will benefit traders in gaining more knowledge about the market.
However, the potential drawback is that it has high market volatility and relies on social media influences. Also, since it started as an internet meme, it doesn’t have much recognition for purchasing items.
Here are some alternative links to learn about Dogecoin: Coinbase, Forbes, and Investopedia.
Yes. Although not many people have accepted Dogecoin globally, it is still a payment option for some. These include E-Commerce, social trading platforms, charities, content creators, independent merchants, and more.
Currently, it is not a good investment to make. It has high potential risks and limited use cases, which are drawbacks for those who want to invest or purchase Dogecoin as a long-term investment. Moreover, it lacks regulatory and legal considerations for investing.
Initially, it starts out as a joke, so it is not meant to be a good investment for traders to sell cryptocurrencies and increase their crypto assets.
Julia Zakharchuk
Julia is a professional crypto and blockchain writer known for her insightful YouTube channel "MoneyFest." She showcases her dynamic presentation skills as a host and moderator at blockchain conferences. Julia drives also business development at ChainUp and advises UNITBOX, an innovative NFT renting protocol. With her exceptional expertise, Julia is a highly valued industry contributor and is set to make a lasting impact. We at Coinweb are lucky to have her on board.
